HAPPY WEDNESDAY TO THE STREET
Momentum stocks are fun and all, until the momentum carries them into a brick wall.
The iShares Momentum ETF has fallen more than 10% off its June high, dragging chipmakers like Micron (MU) into correction territory alongside it. Most of Wall Street seems to think it's a momentum unwind, not a crack in the AI story, with the likes of JPMorgan (JPM) already telling clients to buy the dip.
As any World Cup watchers out there know, the cost of loss momentum may not make it on the stat sheet, but it sure can show up on the scoreboard…
🟥 | US stocks fell today as military tensions reignited between the US and Iran.
📉 | One Notable Decliner: FuelCell Energy (FCEL) tumbled after announcing an upsized $225M public stock offering.
— Brooks & Cas
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
WHEN WILL HORMUZ TRAFFIC RETURN TO NORMAL?
President Trump declared the Iran ceasefire “over” today. Oil prices spiked. Energy stocks surged. And traders on Kalshi just pushed their odds for normal Strait of Hormuz traffic all the way out to January.
A week ago, more than half of bettors bet on shipping lanes normalizing by October. Geopolitics evidently doesn’t run on a trading desk's timeline.
Market Movers
MODERNA, ALIBABA, BATH & BODY WORKS
📈 | Alibaba (BABA) led a rally in Chinese tech stocks as investors rotated into the sector.
📈 | MasTec (MTZ) agreed to acquire electrical contractor Superior Group for about $1.65B.
📉 | Levi Strauss (LEVI) dipped as traders awaited its quarterly earnings report.
Tomorrow's Trade Idea, Today
AT&T SCORES A T-MINUS
Stock Spotlight
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Starlink Static
Wells Fargo initiated coverage of AT&T with an Underweight rating, warning that SpaceX's Starlink is poised to eat into both broadband and wireless share.
Analyst Steven Cahall sees Starlink as a near-term threat in fixed wireless and broadband, and a longer-term disruptor to wireless overall.
Fiber Or Bust
Outside AT&T's fiber footprint, Cahall expects competition to intensify, and he flagged AT&T's wireless net adds as the most exposed piece of the business.
The firm also sees AT&T as less willing than rivals to strike a mobile virtual network operator deal with Starlink, leaving fiber and convergence to carry the upside case largely alone.
Street On Hold
Wall Street is not fully sold on the bearish call. Of the 29 analysts covering the stock, 14 rate it a Hold, while 15 rate it a Buy or Strong Buy, split just enough to keep the debate alive.
Shares are little changed since the report landed. Wells Fargo, for its part, isn’t waiting for the group text to catch up.
Do you own any shares of AT&T Inc (T)?
OVERHEARD ON THE STREET
🏦 Federal Reserve officials were split on the interest rate path at Kevin Warsh's first FOMC meeting as chairman, per June minutes.
🇪🇸 Trump said he wants to "cut off all trade" with Spain over its NATO defense spending shortfall.
🤖 OpenAI will publicly release GPT-5.6 models after the White House had limited rollout to trusted partners.
🔋 Used EV prices jumped 12% in June year-over-year, far outpacing a 1.7% rise for non-EVs, amid Middle East turmoil and oil’s surge.
🚕 Alphabet's (GOOGL) Waymo will launch driverless rides in San Diego, Las Vegas, Tampa, and Denver in the coming weeks.
TUESDAY'S POLL RESULTS
Do you own any shares of First Solar (FSLR)?
▇▇▇▇▇▇ 🐂 Yup, I'm holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I'm interested
And, in response, you said:
👀 No, but I'm interested — “A reasonable long term play, perhaps but unlikely to move much this year or the next. Solar has too much political baggage that obscures real value.”
