Thursday’s market is poised for significant activity driven by geopolitical tensions in the Middle East, which have sent oil prices soaring. Investors will also closely watch key earnings from PepsiCo and crucial economic data, including weekly jobless claims and existing home sales. Additionally, the tech sector faces recent headwinds for major chipmakers, while Blue Origin secures a massive funding round, highlighting the ongoing excitement in the space industry.
As markets gear up for Thursday's trading session, a confluence of geopolitical developments, corporate earnings, and critical economic data are set to drive investor sentiment. Oil prices have surged amidst escalating tensions, while the tech sector watches closely for insights from industry leaders and the performance of key semiconductor stocks.
Tech Titans in Focus:
OpenAI CEO Sam Altman is slated to appear on 'Squawk on the Street' Thursday at 10 a.m. ET, a highly anticipated interview that could influence the broader tech landscape. Ahead of his remarks, the 'big powerful chips' are experiencing recent volatility:
- Nvidia: Down 14% from its May high, though it has seen a 3.3% rise this week.
- Advanced Micro Devices (AMD): Down 11.5% from its June 30 high, with shares down approximately 11% in July.
- Applied Materials: Plunged 22% from its June 30 high, down 21% for the month.
- Micron Technology: Off 24% from its June 25 high, nearly 18% lower in July.
Microsoft, a significant investor in OpenAI, has also felt the pressure, with shares off 31% from a high reached on July 31, 2025, and nearly 7% down over the last month.
Oil Surges Amid Geopolitical Tensions:
Brent crude futures crossed the $80 mark on Wednesday following U.S. strikes against Iran, a response to Tehran's attack on several ships in the Strait of Hormuz. This development propelled the energy sector to become the top S&P performer of the day, climbing 1.45%. Major players like ExxonMobil and Chevron are both down about 20% from their March 30 highs, highlighting the sector's sensitivity to global events. Investors should tune into 'Morning Call' at 5 a.m. ET for full coverage of the escalating situation.
PepsiCo Earnings and Consumer Insights:
PepsiCo CEO Ramón Laguarta will join 'Squawk on the Street' at 9 a.m. ET, following the company's earnings report live on 'Squawk Box' at 6 a.m. ET. Details from their 8 a.m. conference call will be closely monitored. Shares of PepsiCo are down about 8% over the past three months and 17% from their 52-week high. In contrast, competitor Coca-Cola has seen an almost 8% increase in the same period.
Key Economic Indicators:
Thursday brings crucial economic data:
- Weekly Jobless Claims: Released at 8:30 a.m. ET live on 'Squawk Box.' The Dow Jones consensus estimates 218,000 initial claims. Prediction market Kalshi shows 85% expect above 210,000, while 25% anticipate over 220,000.
- Existing Home Sales: Due at 10 a.m. ET, to be featured on 'Squawk on the Street.' The Dow Jones consensus is 4.2 million, slightly above last month's 4.17 million. Homebuilders have shown recent weakness: Toll Brothers is down 13.5% from its February high (7% this week), Hovnanian is down 25% from its September high (9% this week), Pulte is off 15% from its February high (8% this week), and Lennar is down 42% from its September high (5% this week).
Space Race Heats Up:
Jeff Bezos's Blue Origin is making headlines with its first external investment – a substantial $4 billion infusion from Coatue Management. This is part of a new $10 billion fundraising round, valuing the space company at an impressive $130 billion, according to CNBC's Andrew Ross Sorkin. Meanwhile, SpaceX shares closed down 0.8% at $148.30 on Wednesday, still below its June 12 debut price of $160.95. Morgan Stanley analyst Adam Jonas, known for his bold calls, set a $300 price target on SpaceX, advising, "If you like risk, this stock is for you."
Cramer's Call on FedEx:
CNBC's 'Mad Money' host Jim Cramer expressed strong confidence in FedEx and FedEx Freight, calling it a "huge opportunity to buy." Shares of FedEx are currently 10% below their June 15 high.
