Crude Oil Near $90, CBRS & OpenAI Partnership, QCOM & Huawei Agreement

futures a little higher. Small ca futures look like they're catching a little bit of a bid. Let's bring in senior markets correspondent Kevin Green right away to help set up the action today. All right. It feels a push pull that's happening today. What's your icture take. I would agr I mean if you look at the market action for last week we did see a little bit more volatility, especially kind of towards the middle of the week. But technology continues to outperform this market. It's really the oing that's holding this market up at this point in time. We're seeing only about 24% of the stocks in the S&P 500 above its 20 day or even 50 day mov average. Here, you're seeing some weak under the surface, but the headline indexes continue to trade near alle highs. Now for this morning. What's actu very interesting we're seeing yields up slightly. But we're also seeing the Russell 2000 futures actually outperhe Nasdaq 100 as well as the S&P 500. So we'll see if that actually is g to remain the case here today. And see kind of a rotation for sf these unloved sectors throughout the week. W have a lot on the calendar that we have to be mindful of. And I think the biggest one is going to be the ten year futures. I'm sorry, the ten year auc that we're going to have on Wednesday, that's going to really show the appetite not for States, but also foreign demand that has been waning. And that could be another driver for to move a little bit higher. And, Diane, I would just say I was a little bit shocked that we did not see a firm reversal on Friday after that jobs report, as well as some of that PCE data that we had coming into the market here. But at the end of the day, we are still trading at around this 5.3% level. For ten year. It has been a headwindfore S&P 500. But once again, technology seems to be the onead where the dolre flowing right now. Okay. And let's talk oil markets. It feels like there's some push pull action there as well. You've got WTI a little bit lower. You've got B crude ticking a little bit higher. Whatre you watching there. Yeah a lot of action. I mean if you're kind of looking at it we have some reports coming from Kepler as well as some of the other data analysts analytics companies ore that are stating that the flowsough the Strait of Hormuz is actually back to pre-war levels. l to be contested, but that's kind of pushing prices to the downsire we are seeing flows coming out of the strait. working, at least for now, but th still some heightened tensions, especially if you're g at the Bab el Mandeb or cally f Yemen. Now, this morning, we are seeing reports that the Ye government is actually trying to pushk the Houthis from controlling some of the territory that they did take over here. And that is also e got more of a strain when it comes to the logistics around the Middle East and trying to move se are seeing oil move to the downside down about 1%. But itn relatively volatile this morning just given the ts that we have. And I think there's always going to be this optimism in the back of everybody's mind that a deal can be done. And when that does actually happen, if it does happen, we are expecting obviously crude to move to the downside here. But fundamen we still are seeing a shortage when it comes to capacity within refiners. We are still seeing a shortage when it comes to diesel, even though we are going to see the EU kind of release some of their diesel stock, that did push prices a little bit lower here. That's only a temporary fix givens kind of long term nature of this cict. Okay. And let's talk about cerebr. Those shares gaining some ground in the early action today. But it was after a difficult week last week. Walk us through what you're watching here. Yeah. We're seeing the shares up about 4.7% this morning. It was actually up around 6.3%. But we ha seen a little bit of a pullback here. This is after OpenAI CEO Samtmaa close partner with deep engagement, pushing, pushing frontier when it comes to artificial intelligence, if you will. So that did kind ofverse t we saw last week, almost around a 20% pullback last week, recovering some of those losses here. Now, the big concern is that OpenA going to actually utilize Nvi GPUs, rather than cerebras chipsor the ChatGPT 6.1 release here. That has not been confirmed that that's goi be the case. But once again, Sam Al trying to provide a little bit of comfort for those shareholders, as well as maybe some of those executives that are concerned that their business could be at risk in the future due to some competition coming from Nvidia. Okay. And let's talk Qualcomm, those shares on the move a little bit higher her morning off the highs of what I earlier along with it looks like some deepening of ties with Hua What's the latest here. Yeah we're seeing the shares up over 1% here. So it does appear that Huawei and multiyear crossgreement here. And this is going to include a I5G computing as well as network technologies. Now Qualcomm is looking to purchase certain Huawei US patents related to computing AI and networking. And this is also going to aow Huawei to get some access or some licensing deals with Qualc when it comes to 5G. So k a diversification when it comes to theirtfolio. This also could loose probably reduce a little bit of the pr for Huawei and some of the regulatory headwinds that we have seen for this company the last couple of years here. Now, their business, when you're looking at Huawei here, has actually generated positive revenue since 2021. That's becau the heavy R&D investment that theye put to that particular part of their business. And they are now sa quality rate of return. S interesting deal. We'll see how Qualcomm actually reacts when the market opens. This has been a stock that has some positive news. We usually do see a nice little ramp up, but it doesn't last for too long. Hopefully that's not going to be the same this time around. Okay. And let's talk about the flows that you're watching on S&P 500, the levels to the upside the downside today because, you know, sit at a record for the Nasdaq. S&P 500 is closer to than not. What are you watching on flows. So this morning we are actually seeing a significant amount of activity on the SPX options to start off the trading day. And ite call size skew rather than put side. a little bit more bullish than bearish the upside. You're looking at 7760 to the downside 7680. Those puts are not the top tick puts. But that's where you have the most exposure when it comes to gamma exposure here. So looking f little bit more of an upside move here Diane. Let's see what happens when the mark gets that ISM services PMI and the prices component. That could be the mover for stocks this morning. All right thank you. KG