Dow Record Close As Big Tech Power Market Higher 8/3/26

The bells ringing into the trety day at the NYSD winner circle project ringing the bell and at the Nasak on Cure Therapeutics doing the honors. Welcome to closing bell. Over time, Reliance and Studio B at the Nasak Market site. I'm Melissa Lee. Mike Santoli is off today. Socks higher across the board today. Big tech jumping and a drop in oil prices helping to clear the way the Dow gaining 700 points to close at a record close. S to P 500 up 1.5% the Nasak. The big winner up more than 2%. The S and P 500 failing to hold onto that 7600 level. It was close to the close. The closing record by the way 7609 that was set on June 2nd. Amazon and Microsoft continuing their post earnings rally both stocks up more than 20% in just the past five trading sessions. And we've got another busy hour of earnings coming up. Palantir the big name reporting, but we're also watching on semi snap chlorox and vertex from among others. Let's get more today's a big max seven lead rally Christina Parks and Evelace here at the Nasak with the lowdown Christina. Well, socks climbed into your day as oil prices fell with investors really encouraged against the lowdown. The lowdown is really encouraged again by signs of a possible diplomatic breakthrough in the Middle East. Lower crude gave travel names of boost and you also saw airlines as well as crew lines, cruise lines, delta, royal Caribbean move higher, but Marriott was the notable lag or falling as one of the worst performers in the S and P 500 after second quarter revenue came in below estimates. Company also issued a softer outlook citing Middle East related headwinds Boeing meanwhile surged after BNP at Parabas upgraded the stocks in it now sees the path for shares to more than double by 2030 shares are 233 right now. And then along with Microsoft, those two names really helped lead the Dow higher today. Sticking with tech, Hyperscalers opened strong and stayed firm. Alphabet outperformed after a recent report said Google could order roughly 15 million TPUs in 2028 while met an Oracle also traded higher Apple, lower again, especially after last Thursday's disappointing earnings. The day was unusual though in the mega cap tech chips and software. Generally all moved higher. You can see except with Apple there. Chips were mixed. Some weakness in names tied to Korea and China headlines plus caution ahead of earnings still sandisk and micron. Yes, because a micro was red turns into the green and then in video also gaining today. And lastly, you had momentum names like Lumen and coherent. These are optical chip names that led the S and P 500 higher guys. Or guys Melissa. Just you. I know. I'm so used to saying guys. I'm totally like right across there. I can see you in my peripheral. I wanted to ask you though about in video because you mentioned that software outperformed semis. But really, I'm in a relative base. The semis were the weaker of the pair and it looked like Invidia was really the standout. A little bit of maybe meaner version here into Invidia. I'm not sure what is sort of pushing the stock higher compared to its peers. I think of anything in video has been lumped in with just the rotation back into my X7 and less than the X7. I think it's a little bit of the same thing. I think it's the rotation back into my X7 and less you know lumped in with the chips group. And so within video, it hit a key technical level again today. And so it stayed at that level through roughly 3% higher. There was no necessary big catalyst. There's no big upcoming catalyst either to re-rate this stock. But it just seems to be more of a rotation playing in videos in that mix. All right, Christina. Thanks, Christina Parts and Eveless. Let's get to the bond market as yields pulled back from recent highs, Rick and the Tellies in Chicago for us and Ricky told us Friday bombs seem to be paying attention more to war than Warsh, which is clever and maybe true. You know, it certainly seems that way. And especially if you look at a one week chart of 2's and 10's. First of all, for today, we see that both yields are down, not a lot. 10 years down about five basis points, a two-year a little bit less. And mostly sideways today, the two-year hovering between 424 and 425, 10-year between 468 and 47, and 425. And so, the first thing we're going to do is to look at the first thing we're going to look at today, we see that both yields are down, not a lot. 10 years down about five basis points, a two-year per day, 10 years between 468 and 470. But if you look at the general trends, two years been drifting a little lower, 10 years been drifting a little bit higher. Yesterday, Friday, the close was the highest since January of 2025 for the 10-year. But maybe the biggest story continues to be foreign exchange. If you look at a chart going back to Thursday of the dollar, you can clearly see every session we seem to get that intervention that pushes the dollar down. That's the chart of the dollar moving lower. Yen moving higher. And the U.S. is teamed up, and it makes sense. Because should we raise rates in the U.S. that's going to make the dollar stronger. The administrations made no secret. They don't like a stronger dollar. They're thinking about the trade markets. And if you look at where the dollar yen is right now, hovering just below that 157 level, what's notable is we've gone from 40-year lows on the 40-year highs on that chart for the dollar in early July. Well, to three month lows on the dollar, three month highs on the yen. Melissa, back to you. I mean, it really seemed like they wanted a signal that they're going to be in it together, Japan as well as the U.S. for continuing to defend the yen. And so I'm wondering if you know, we had this conversation before intervention rarely works in a longer term basis. But maybe this is sort of the sort of signal that maybe there's this coordination. And maybe a coordination between the central banks as well in September. Absolutely. And I think the coordination makes the intervention last a bit longer. But I still think in the grand context of history that it's going to take more. I still think it's more about rates in the U.S. and Japan. They have a more lasting effect on that evaluation. Rick, thanks, Rick Santelli. Oil meantime falling five percent today, despite conflicting reports on peace talks. Pippa Stevens is here with the latest. Pippa, hey, Melissa, so the weakness coming out of the president's Trump called off attacks on Iran and said last hour, talked to the country are going to go quickly. Mixed messaging from the president on the straight. First thing it will be open, quote, literally by tomorrow, completely open as part of phase one before saying the U.S. has total control of the waterway data from Kepler showing the traffic remains constrained just nine ships crossing yesterday. The transit's concentrated through the Iranian Udallateral scheme suggesting reduced operational confidence and limited routing flexibility. According to the U.S. and the U.S. government, the U.S. has total control of the waterway data from Kepler showing the traffic remains constrained by the U.S. and the U.S. government. The U.S. government is also trying to make a change in the state's infrastructure. The U.S. The U.S. The U.S. government is also trying to make a change in the infrastructure. The U.S. The U.S. The U.S. is all about de-leveraging that has incurred last week and I think it set us up a lot better for this week. Some of it has to do with that. But at the same time, I do think we had a number of positive catalysts specifically supporting the hyper-scale at trade. And for example, if you look at the backlog, the cloud backlog of the hyper-scalers, it continues to be upgraded from 1.5 trillion. That was the case last or any seasons to now 1.7, 1.8 trillion. And so the point that investors, I think, find a lot of comfort in is that you are starting to get an ROI on AI. And all of this cat bags that has been putting into the ground is not all for nothing. It is there for a reason. And just after a bit of a timing mismatch, you're starting to see that pay off through higher cloud revenues. Are you surprised at this point? Because today we had news that Alibaba released its latest Quen model, which stacks up to Anthropics Fable 5, that those sorts of headlines don't shake the AI trade anymore. Maybe today, again, it's all about the technicals. But I do say that I will say the longer term, that's the exactly the concern that I have, is there's a lot of money that's been invested in just the leading models from Anthropic and others. But the reality is there are a lot more models out there, whether it's today, whether it's several years down the road, whether it's China-based, whether it's other open source models, and I do think that competition is going to be real, that competition is going to proliferate. And in a way, a lot of these models are going to get commoditized. And I will tell you, at Parchance Group, for example, when we think about embedding artificial intelligence into our portfolio companies, not every single task needs the latest most expensive models. Some of these tasks can be done with open source models. And I think that's going to be the reality that in particular might be painful for not only the leading AI models, but also the semiconductor stocks. OK, hang on, snap earnings are out. Julie Borson's got those numbers, Julia. Melissa, snap eating on the top and bottom line revenue of $1.6 billion that's ahead of estimates of $1.5, $4 billion. The company reporting a loss of 10 cents per share, which is not comparable to estimates, but adjusted EBITDA of $250 million as well ahead of the street account estimate of $192 million. You see, shares now up 9% on this news. Daily active users, $493 million worldwide, was over $6 million higher than anticipated. North American daily active users were right in line with expectations and flat with the prior quarter after that number declined in the first quarter. Now, in terms of guidance, the company's third quarter revenue between 1.7 and 1.7 $4 billion that is ahead of consensus. And EBITDA and arranged with a midpoint just below the street account estimate. The company is saying it's prepared or marks that free cash flow per share will be its primary financial objective going forward. I'm sure we'll hear more about that. And a lot more from Snap when their call starts at 5 p.m. Eastern. Melissa. All right, Julia. Thanks. And Snap's always a big mover. It's about 8.5% right now. Don't miss an exclusive interview with Snappsy, or Evan Spiegel. That's tomorrow on SquawkBox. And Anastasia, we're just talking about the competition from China to the large frontier models here in the United States. To the hyper-skillers. There's also a competition on the Chinese front to the chip makers here in the United States. Have we priced that in? Should we embed some sort of a discount into the trade here? How do you view that? Look, I think we should. One of the things that happened in the second quarter is we've massively upgrade our earnings estimates as an industry for semiconductors. And I think some of that is certainly rational, because we've seen the demand play out in front of our very eyes. But if you fast forward, maybe a year or two from now, I do think that some of the bottlenecks that exist today, whether it's in compute, whether it's in memory chips, are likely to be resolved. So they may not be able to command the same average selling prices as they are today. And then you add on top of that, the increasing competition. That's another thing to worry about. And then finally, the third factor, as I mentioned, of all of a sudden, we're actually rationalizing how much compute we're using. And if the open source model does not require the latest cutting edge compute, then all of that can potentially dent the demand versus what we've priced in today. Now, look, if you look at the technical position of semiconductors today, as I mentioned in the beginning, it's certainly not as stress as it was last week. But let's face it, a lot of investors are still very long the trade. So I do think looking out longer term, we may have to think where's the best stack ranking of beneficiaries of AI. And to me, increasingly, it's not the hardware, but embedding that hardware, embedding those models into software applications, into portfolio companies. I think that's where the most money is going to get made over the next five years. >> Right. We haven't even mentioned rising treasury yields or treasury yields that may stay higher, which could be another hurdle for this trade, whether it be their fundraising efforts, or raise all that cat-backs, or just for their valuations. >> Well, so that is such a great point, because today, clearly, we see some relief in the price of oil and therefore in high expectations. But that's exactly right. I think the status quo going forward is going to be more bond market volatility, and that does not bode well for those longer duration trades or just this high beta trade. So I do think that's another risk that investors have to think about and price it. >> All right, Anastasia, thank you. Anastasia, I'm Maro. So by the way, we were just showing the C-Bone in Chicago, while ringing the bell, marking the end of regular trading for options. All right, so we want to get more on-pallant year earnings. Those shares are moving sharply higher on the back of their report. Just moments ago, joining us now, William Blair, Aerospace and Defense Analyst, Louis de Palma. He's going to now perform rating on the stock. Louis, great to have you with us. >> Yes, great to be on the show. And you were just at the C-Bone in Chicago, and I'm also here in Chicago. >> Oh, so your neighbors. I wanted to ask you about what, you know, what was interesting is that last quarter, Palantir also had a very strong quarter and the stock fell. And it seemed like the celebration and commercial was a big reason. And here we have an acceleration of 150% year on year. Can you sort of, you know, give us sort of your take on this line of business? >> Definitely. There are two closely followed metrics with Palantir. One, as you referenced, is the US commercial growth acceleration. The second metric is a more forward looking indicator. It's the total deal value of bookings with US commercial. And that also accelerated to what I believe is 158% from 47% last quarter. And the reason there's such a huge focus is because of competition from anthropic and open AI. I believe on the last segment, you were also talking about that. But both of those frontier models, they've been rating Palantir's employees in terms of hiring forward deployed engineers. So there is intensifying competition. But Palantir has been shrugging it off and they produced a blockbuster print. >> So just to sort of boil it down, I mean, the growth in US commercial in terms of total deal value as well as just growth and revenue, that sort of, that puts to rest the narrative that Palantir, what Palantir does, could be displaced by AI, is that correct? >> I wouldn't say that it puts to rest the whole narrative from the standpoint that the frontier labs in terms of their capabilities, they're still evolving. And we're still in the very early innings. But Palantir's argument is that their AI is very secure. And that they have the ability to use open weighted models versus closed models. And with open weighted models, organizations have control over their own IP. And they have greater control over the pricing. There's been this concept of token maxing. But Palantir believes, and many of the enterprise customers believe that they have the best solution both from protection of IP and also from an economic standpoint. >> What are some of the questions on the call that you may have? I understand that some analysts were concerned that perhaps European allies may be shying away from Palantir looking for alternatives. What are some of the issues that you'd like answers to? >> Yeah, one of the topics is stocked by back, such that a couple of years ago when Palantir shares were at $30, they initiated a $1 billion stock by back. And stock price is obviously decreasing significantly from the 200. So are they going to be more aggressive? Perhaps they were, I haven't fully gone through the numbers. Secondly, as you referenced in terms of international demand for the government business, Palantir did secure a large contract with NATO to deploy their Maven Smart System, which is their operating system for the battlefield. And we cover both SpaceX and Palantir. And there was recently a lawsuit involving SpaceX that uncovered how SpaceX's GROC is being deployed in Iran as part of Epic Fury on top of Palantir's Maven Smart System. And in addition to anthropic being deployed in OpenAI and the other frontier models. So Palantir has established a commanding lead in terms of battlefield analytics and battlefield planning. And there is international demand from across the European Union and also the UK. >> All right, Louis, thanks for your take. Appreciate it, Louis DiPomo. >> Awesome. And the stock is up more than 8%. Coming up, AstraZeneca and Bristol Myers, both closing lower today. On a report, the two companies could be considering a mega merger. What would a potential deal mean for investors? What's the likelihood that it could happen? We'll dive into that. You're watching Closing Bell over time, live for the Nasdaq Market site. [MUSIC] Shares a whirlpool down 3.4% following its results, a company posting a loss on an adjusted basis sales. Fell short of the estimate, the company saying the results met its internal expectations, despite what it calls persistent economic challenges. These results were delayed a week as a company CEO was injured in a bicycle accident. Well, Shares of AstraZeneca and Bristol Myers on the move today following reports from the financial times that the companies have held talks about a potential $400 billion mega merger, which would make it one of the largest farmer deals in history. What's such a deal makes sense for the companies and for investors. Joining us now is Goldman Sachs head of healthcare business unit, Assad Hader. It's not great to have you with us. Would it make sense? I mean, Bristol Myers has a patent cliff of its own. So what does AstraZeneca gain? Yeah, it's a great question, Melissa. Thank you for having me. It's obviously the topic of the day during the very busy earnings week that we've all gotten a little bit distracted with. We'll see where this all plays out. But what we had written this morning after the deal had been speculated and it remains to be seen whether we see a closure on this or even if anything actually pans out, is that AstraZeneca, shareholders are probably going to get a little bit rattled by this. And the reason is that AstraZeneca has been one of the premier farmer companies from the growth side and they've been executing on their pipeline until recently they had a setback last a couple of weeks ago on one of their trials, which then the stock down. But in general, there's been a really good cadence of pipeline execution. And the CEO has the AstraZeneca management team has basically committed to an ambition of $80 billion in revenues by 2030. And I think that's what investors have been leaning into that name for. That's why trades at 16, 15, 16 times above some of the low end of the valuation of the farmer companies because people were championing this pipeline progress. And now there's questions about that. So there's been a very sudden narrative shift. I don't think anyone was really expecting this type of a deal. And you can see that from the way AstraZeneca shares traded today. They were off about 7% last time I looked. And there are real questions now about why they would want to do this type of deal. Does it mean anything in terms of their own confidence on their pipeline? And this has come right at the back of this setback that they had for this cardio myopathy drug that also send the stock off. And so I think there's a bit of scar tissue around that. From Bristol, what they would get is effectively a greatest presence in the US, which is something that I think that they've been doing more and more off. They're listed on the New York Stock Exchange recently. They've been part of the tariff and a fundamental deal with President Trump in terms of applying capex into the US. And this could be a continuation of their strategy. They are a little bit under indexed in the US relative to their peers, about 40% of total revenues relative to the peer group, which is higher. So it does give them a presence in the US, but it also gives them some binary clinical readouts from Bristol Mayors over the next six months or so. So it'll be interesting to see how the deal gets structured. If the deal gets done, will there be a CVR component? And is this part of a broader strategy for pharmaceutical companies to move away from the European region, given this MFN construct that we've been seeing that is bringing drug pricing down there? So Bristol Mayors has three drug trial readouts that are expected in the coming months. So some were saying that it's kind of peculiar that they would even entertain a deal if there are these potentially valuation changing drug trial results on the horizon. Why would they do that? Absolutely. I think that's a key question that we're all asking. There are ways to structure a deal. And I'm sure that if it does get done, the bankers are going to be very creative around deal structuring. I'm going to tell you that when Bristol Mayors did sell gene, that sell gene acquisition back in 2019, that that was a $75 billion acquisition, the largest acquisition of the time. This would be obviously much larger than that are clipsing it. They did have something called a CVR, a contingent value, right? And around three sell gene drugs. And those were based on on time approvals for those drugs. So I would imagine that there would be some kind of a CVR component to this as well. If it were to happen, what that looks like remains to be seen. But it's something that I would imagine that AstraZeneca shareholders would want to look for. Right. We're limited on time. There's a big roster of earnings coming up. Fies or Merck, Lily, what's your top pick going into earnings? Yeah. We like Lily and Merck, both very different reasons. We think Lily is going to continue to deliver on the obesity pipeline. They have a next generation obesity engine that's moving very fast. This should be prepared and are prepared for a well-anticipated mis in Founderio, which is the oral drug that just launched. But we think that the strength across the rest of the portfolio has given them a really good solid bridge to launch this oral on. And so we think that Founderio mis is probably going to get overlooked if they do beat, where it matters, which is overseas, Mnjaro, and I think investors and ourselves are anticipating a guidance raise. Merck is less about the quarterly numbers. More about it, the event path and the journey into and out of the KTRA. That really has what's got the stock up about 20% on the year. It's got not, it doesn't have to do with the quarterly numbers. And we still see that stock set up well on the event path over the next six months or so. That's odd. Thanks for coming by. Thank you very much, Heather. A sad hater, Goldman Sachs. Well, interest rates have been climbing since the spring, the 30 or fix now at 6.8 compared to lows around 6%. Is that hurting the housing market that's coming up next on overtime? Welcome back. While the markets go crazy over memory chips and AI infrastructure, a good old-fashioned plumbing suppliers being added to the S&P 500 Ferguson, having its best day and nearly a year on news that will replace electronic arts, which is being taken private by an investor group, including Saudi Arabia's Public Investment Fund. We should note that Ferguson is actually an AI beneficiary. It is a key supplier to data centers, which of course need pipes and valves and HVAC. Their mortgage rates are back at their highest levels and over a year adding more pressure to an already challenging housing market. Diana Oleg has more on this. Diana. Well, Melissa, mortgage rates were on fire last week and they only came down a little bit. One basis point today, even after President Trump said he had called off a new plan to attack Iran. The average rate on the 30 year fixed is now at 6.82% according to mortgage news daily. Friday's rate was the highest in over a year. Now, as rates rose last week, demand for refinances dropped sharply down 10% week to the week, according to the Mortgage Bankers Association, demand from home buyers also fell down 4% for the week. The difference between where we were at the start of the spring housing market at 5.99% on the 30 year fixed and where we are now, it's pretty stark. We always say buy the home, but date the rate. And for someone buying a $450,000 home with 20% down, they would pay close to $200 a month more now than they would have just at the end of February. Now, the home builder, ETF, ITB is up a bit on the day, but it had a really rough week last week. And for all of July, it underperformed the S&P 500 for the first time since 2014. So we're now in the dead zone of the summer housing market, but fall can often be busy. But we are getting closer to that emotional border of 7% and less if we hit that, that's going to be a problem. Wow, 7% would be a psychological level. That's for sure, Diana, in terms of mortgage buy downs, rate buy downs from the home builders, are they still engaging? That is their level at which they say no more, we can't handle it. Like that will truly dent earnings. They're doing some rate buy downs, they're also doing incentives, but mostly they're actually lowering prices. The builders, though, their margins have been squeezed, they're having a tough time getting people in the door. So they're trying to build more of those starter homes, but they can't really pencil it given the higher costs for land, labor, materials, now tariffs. Just a rough time for the builders in general. Yeah, Diana, thank you. Diana, I'll like. Time now for our CNBC News Update with Mackenzie Segales, Mac. The House Ethics Committee, today moved to center North Carolina Republican Congressman Chuck Edwards, finding, quote, substantial reason to believe representative Edwards, violated house rules related to sexual harassment and hostile workplaces. Edwards has denied the allegations. The National Highway Traffic Safety Administration said today that some older Ford vehicles pose unreasonable safety risks over timing belts that could fail, causing them to lose power or for the engines to cease. The notice applies to about 135,000 Ford Fiesta's focus and Echo Sport with one-liter engines from model years 2014 to 2021, Ford no longer manufactured any of those models. And Spider-Man, brand new day, earned an estimated $360 million over the weekend, beating the all-time domestic opening weekend record previously held by Avengers Endgame, seven years ago. International, the movie brought in more than $570 million, putting its opening weekend global total in 927 million. Guys, back to you. All right, Mackenzie, thank you, Mackenzie Segales. Well that movie magic, helping the theater change today, only a small gain for AMC, but cinema gaining 3%, both said this was their best weekend ever. And I'm Mackenzie and another 5%, thanks to the continued success of the Odyssey, I'm Mack's theaters will soon begin showing Spider-Man that's later this week. Well, first there was deep seek, then came Kimi. Chinese companies are creating AI almost as fast as American giants, but for a fraction of the cost, so as China winning the AI race, that's next on Closing Bell Over Time. Welcome back to Closing Bell. Over time we're live from the Nasak Market site. Stocks continuing recent gains led by Big Tech, the Dow up nearly 700 points to a record closing high. S&P 500 gaining 1.5% closing at 7,600. Few points shy of a record. The Nasak got more than 2%. The Mag 7 leading the way Microsoft and Amazon continuing their post earnings bounces. Meta rebounding Apple the only Mag 7 name in the red today. Palantir, big after hours gain or earnings of 41 cents a share top in the estimate of 35 revenue also coming in better than expectations raising guidance across the board. That stock is up by more than 10%. Well the US China AI race is getting a fresh read today, not just in models, but in the infrastructure behind them. Ali Baba unveiling Quinn 3.8 max. It's most powerful model yet sending shares higher. And on the chip side, China CXMT is reportedly in talks for local government backing to build another memory fab in Beijing. Reminder that this race is speed, chips, memory and self-sufficiency. Earlier on CNBC, the hugging face CEO whose open source AI model was recently hacked by an open AI model was asked whether he thinks China starting to dominate the AI race. I think they are. Yeah, yeah. Because they're doing much more open science and open models than the US. So there's this kind of like emulation and the rate of progress is much faster there than in the US where everyone is building in silos in some of the frontier labs and not sharing with the rest of the ecosystem. So they're clearly dominating on open models right now. So how much ground is China made and how concerned should the US be? With me now to discuss this KC Newton founder and editor platformer, a publication about the intersection of tech and democracy and a CNBC contributor. KC great to have you with us. Thanks for having me. Should we be concerned about who is winning? I feel like we talk about the AI race as if it's binary. There's going to be a winner and then there are going to be losers. But in reality, if we're going to think about the future as sort of model agnostic, the existence of all models, they can coexist all at once. It doesn't matter if China has the latest of greatest. They may have good enough, which is enough competition for the US. That's absolutely right. And I think good enough is the thing to keep an eye on here, right? China doesn't have to have the very best models in the world in order for it to potentially cause problems here in the United States. I think that the best estimates I've seen say that the best Chinese models are still three to seven months behind the frontier. But look at the models we have today here in the United States, like mythos, Chatchy PT 5.6, three to seven months from now, if China has open models like that, that could really be worrisome. I mean, this is all in the back of tremendous spending to achieve the results of those models. I mean, investors are so focused on CapEx now and maybe rightfully. So how do you think about this race to spend and this sort of assumption that we need to spend a lot to get the best? Right. Well, I think that in my view, the CapEx likely is justified at least in the sense that I think there will be demand there for the compute, both here in the United States and abroad. That doesn't mean that all of the companies are going to have the same margins that they enjoy it and it doesn't mean that one or two of them might not make a mistake. But in the end, I do think we're just going to have a lot of demand here. And the fact that the United States has so many more data centers than China does is actually a huge advantage for the United States right now. And in terms of the hardware race, I mean, the news at CXMT, you know, they want a double production. They certainly had a huge IPO and they could get government backing, which is what, you know, chip makers here in the US don't necessarily have. Is there a concern about the competition there? I mean, it seems like every pillar of this AI trade is facing competition from China. Absolutely. And this is a place where China, I think, feels an existential need to be able to build out the full technology stack. So it's not as dependent on foreign companies like ASMR in order to build all of the ingredients that you need for success in AI. So I would expect the Chinese government to continue to invest heavily there as it becomes more and more clear what a strategic advantage having very powerful AI and access to lots and lots of compute can do. How do you think this all really plays back here into the United States in terms of the application of AI? Do you foresee a day when we're actually using open source Chinese models, you know, running on CXMT chips or is it going to be sort of a parallel universe, which is what basically unfolded with telecommunications equipments when Huawei was, everything was built on Huawei, we ripped that out and then, you know, a whole other bunch of countries are using that equipment and we're using our own. Right. I mean, I think it's clear that there is very real demand for these Chinese open source models largely because they are so inexpensive relative to the frontier labs and we simply do not have good homegrown American alternatives on the open source front. Some of our leading frontier labs like open AI and Google, which used to make and release lots of open models have become a lot more shy in doing so. At the same time, the real question is, is the Trump administration going to allow American companies to continue to use these Chinese open source models? There are a lot of concerns about security other geopolitical concerns. So while I think that there is going to continue to be a lot of demand for these Chinese models, I wouldn't be surprised if a few months from now American companies are simply going to be blocked from using them at least in some cases. All right, Casey, great discussion. Thank you, Casey News. Sanders, can Western Digital Movie and Officer Directions today ahead of their earnings this week? Both stocks sharply lower since the beginning of July. Can these results get memory back on track? Closing bill over time. Be right back after this break. A mixed session for the memory stocks as they get ready to report earnings this week. Sanders chiropris 6% today, but results out Wednesday after the bell. That report is expected to have one of the biggest impacts on SB 500 earnings growth. More than Microsoft, Apple and Amazon. Also on Wednesday, we'll hear from Western Digital shares are down 3% today, but still up more than 200% this year. Joining us now, Guy Damier, RISR reversal media co-founder and fast money trader. Hello, Guy. Good to see you. Nice to see you too. It's a Monday. A little preview, yeah. Starting. It's just two of us. Mike, here's our vacation. So we want to talk about. As I said. Oh, your memory stocks. Yes. It's all about, it's current finite, I would say. It's all about the setup in the earnings and I got to tell you, this is the best setup you've seen for these memory names in quite some time. Now, if you don't think that the Chinese competition is a big deal, I do, but if you don't think so, then you got to say these numbers are going to be spectacular, which I think we all agree they will. And these stocks are going to rally in the same way that we've seen Microsoft and Amazon rally. So I think for the first time in a while, you can actually make a case that the setup in earnings for these names is extraordinary. With that said, you see how quickly, I mean, Sanders lost almost 50% of its value in a month. I mean, look at what micron is done as well. So these stocks can go down as well. But if you think, listen, if you think the competition isn't a thing, if you think the number is going to be great and if you think the setup is good, which I do, by the way, then you got to buy these names with both. I think competition is a thing. I mean, I do think it's a thing. It is a thing. It's a thing. It's a thing. It's also. Yeah. Yeah. So it is coming to a theater in the U. They used to say, was it that Jeff Bezos guy, if the Amazon, your margins are my opportunity. Remember that saying? So I mean, look at the margins that these people are enjoying. I mean, you're just a matter of time before competition comes now. We've had people come on fast money, which appears in about 11 minutes and 30 seconds that have said, listen, it's a two to three year project to get these places up and running, which I agree. But things happen very quickly now and you're seeing on the outskirts, how important competition can be to these stock prices. Let's get to Disney. Their quarter results. Wednesday morning, that stocks among the losers in the doubt. Yes, it is. You know, I've been to Disney. You know what you can't get in the can. How many times have you been there? I went in the early 1970s when they first opened it with my uncle, Sal. He lived in Holland, Del Florida. That's right. And we drove from Holland, Del to Disney. And I remember, as I used to tell you, my favorite ride, of course, is the Hall of Presidents, which is not a ride. What I learned about Disney is a couple things. You can't get a great hamburger there, which is unfortunate. And the stock is about the same price it's been for the last decade. And if you look at what Netflix has said, I mean, you can just sort of draw a straight line to Disney and say, you know what? It's going to be disappointing as well. Outside of that run we had in 2021, 2022. Right. The stock was the hope. It's been flat lining now for a decade or so, Melm's. Let's get speaking of hamburgers. McDonald's reports before the bell tomorrow. The stock is down three, 13% this year underperforming Wendy's Chipotle and restaurant brands. You would think maybe in this environment, people are trading down. They want low costs. You want value menus. As Dan Nathan, who typically sits in this seat, won't be here tonight, much to my chagrin, it's amazing how quickly that stock went from an all-time high to a 52-week low. Simulie in a couple months, all the sudden people are focused on valuation. I actually think you can make a pretty compelling case. And I will say again that in this space, McDonald's is the gold standard. And we've seen some decent quarters out of similar type companies. I think you've got to be long McDonald's into the print. I'll see you in 10 minutes. Can I stay here, though? I have to leave. I should leave, probably. I'll leave because I probably should, you know, it's an hour-long show and at my age. Yes, I get it. Go to your thing. No. All right, space tax closing the day higher, but it did hit an all-time low earlier in the session. Up next, we'll break down what Wall Street will be watching tomorrow in the company's first results since its IPO. And how big of an impact the lock-up expiration could have. Closing bell over time, live from the Nasdaq Market site. You're right back. Major Lee Soccer is named Larry Berg. It's next commissioner, according to your source familiar with the matter, he will take the helm from longtime commissioner Don Garber in 2027. Berg is currently the co-owner of MLS's Los Angeles football club. He will have to sell his stake once he becomes commissioner. Well, SpaceX is set to report its first results as a public company tomorrow after the bell ahead of a major lockup expiration a few days away, the stock in all time low early in the morning trading just below 105 after pricing the largest IPO ever at 135. What will investors be watching in the report? Morgan Brennan has that for us. Hi Morgan. Hey, Mal, that's right. So it's a big week for SpaceX. It starts a little less than 24 hours from now with earnings a lot to watch. But perhaps most critical starlink results, catbecks forecast and starship guidance. So starlink, this is part of connectivity. It's SpaceX's largest segment. It's the one that's profitable updates and subscriber growth, those new V3 satellites plans for the starlink mobile business. That is what is going to matter, especially as catbecks continues to run for AI now SpaceX is spending more to build out a tech stack that spans semi manufacturing. They partner with Tesla on that to AI models applications with that cursor deal expected to close this quarter for starship, which is coming off a successful 13th test flight. Operational launches by years and is that still on track starship is key to future ambitions like data centers in space. So here's the critical question. How much to starlink, neocloud deals with anthropic and Google multi billion dollar government contracts offsets the cash burn that we're seeing in both the AI unit and to a lesser extent in the space unit tied to starship. Still bigger catalyst for the stock that's going to come later this week. You just mentioned it, not until Thursday, first stock lockup expiration 911 million shares are going to become eligible to sell compared that to 629 million shares in the IPO. It's the first of eight tranches, which according to Morgan Stanley through January of 2027 could unlock get this nearly 4 billion shares. Melissa, but of course that is assuming 4 billion shares that actually get sold by insiders. Right, and that also assumes certain benchmark prices correct, they won't be able to release the tranches unless certain levels of the stock hold. That's right, there are certain incentives associated with some of these tranches. There is a flurry of them here through next year and really through June and actually 911 shares are expected to be unlocked later this week. If certain metrics had been met that were not met coming off the IPO, the price trading at a certain level above where it's a viewed, for example, you would have actually seen more shares unlock. So all of this is going to be contingent on some of these performance metrics along the way. All right, Morgan, great to see you. See you first thing tomorrow morning, Morgan Brennan. And let's take a quick look at tomorrow's trade today and the morning we'll get earnings results from caterpillar, merc, McDonald's and Pfizer. And then in addition to SpaceX, we'll get results after the bell from Amgen, booking, Mattel, Pinterest, Paramount Skydance and plenty more on the economic front, trade deficit factory orders and jolts for June. That does for us here at overtime. Fast when he starts right after this quick break.