AI Stocks Rebound After OpenAI Revenue Selloff, SPCX Gets Low-Band Spectrum License

of a percent. Small cap futures higher by 4/10 of a percent. Let's bring in Kevin Green senior markets correspondent right away to help set up the action today. All right KG so it looks like it's going to be a little bit of nibbling some risk on today. Let's start out with your big picture market taking. Good morning to you. And good morning Diane. Yeah I would agree actually if're looking at the E-mini S&P 500, we have been able to erase the gains for tt part from what we saw for yesterday. So we are seeing some buyers kind ofin. And yesterday was actually very interesting. We did see tech stocks as well as sothe communication services stocks sell off to the downside, especially the last two, 2.5 hourse trading session, as we did have that open AI report coming out from th. But we also did see equal weight S&P 500 advancinghe Russell 2000, for the most part, ending the day flat. So we actually did see a little bit of a rotation yields moving to the downside yesterday also helped out the broader equity market. While we did see this concentrin tech because of maybe potentially some of these fears when it comes to AI demand open AI, open AI's revenue as a whole as well. But we are still seeing volatility really, really cheap right now. We do have an the calendar for next week, so I would not be surprised if we do see a bit more of an uptick in volatility, as we do have some CPI numbers comingt, g headline economic as well as earnings data coming out week as well. But overall, we were able to recover. And we're going to see if we have a follow through day today not only when it comes to the bounce back in tech, but let's see if the other sectors can still try to recover some of the losses that they've seen over the last two weeks. Okay, so some recovery after the losses yesterday. Let's talk a little bit more about OpenAI. You know, I heard a lotf conversations here on Wall Street, whether we're talking about traders on the floor or bankersome through the doors here about the 50 versus 70 billion. Some said, you know, nu were reported. I don't the get this. where did we lose the $20 billion. And now it seems to be coming back. do you read the tea leaves on this. Yeah. So it is a little bit confusing here. We're just going off of the Ft article. So there i a measurement OpenAI as well as anthropic. And if you're kind of looking a OpenAI investors, they're trying to compare themselves with anthropic metrics, if you will, obviously when it comes to the IPO. But they calculate their revenue a little bit differently. Whereas anthropic kind of looks at the platforms that distribute on. And OpenAI kind of keeps it in-house as far as the revenue generation. So that's one of the reasons that we are hearing of thecrepBut we did see Bloomberg kind of follow up on this report. And they did state t OpenAI is expected to exceed the $70 billion in annual revenue by this year, and that the figures that were shared at the last meeting in fundraising talks just kind of reflects that they're on that right track, wh is why we are seeing technology stocks kind of rally back to the upside here. So I think it's a difference of how they compare. It's kind of like, you know, non-GAAP earnings, if you will. Some companies report things a little bit different than others I think that's another reason why we saw this confusion from the FTC. Make no mistake, though, Diane, when it comes to inferencing demand as well as even training demand for that matter, I think the trajectory is still to the upside. I think the bigger question is OnAI's ability to hold and retain and even take market share from some of the other competitors, because, as you know, pretty much everybody has their own AI models today and that's probably going to make it a little bit more of a challenge for these hyperscalers to kind of keep some of their customers in-house and monetize this relativelyly. Great analogy there of, you know, GAAP versus non-GAAP, let's talk space. Those shares have been movin higher in the premarket. At the same time, you're seeing some pressure on the likes of AT&T, Verizon, as it looks like SpaceX's Starlink set to encroach on their territory. What's the latest here? A lot going on with SpaceX this week. So SpaceX will acquire grain management nationwide 800MHz portfolio. So this is goinglp t expand their mobility capabilities for Starlink. And this is going to be actually a very big deal especially over time. Now this deal is vued according to The Wall Street Journal at $8 billion. But the terms were not disclosed And the deal is going to be subject to FCC approval as well as pr some European approvals as well. Now the low band spectrum allows coverage to be able to have coverage buil It just basicallys means that they're able to expand their mobile capabilities here. Now, a lot of analysts are expecting that will kind of focus on this mobility shift in the rural markets first, before trying to go into the urban still cost a little bit more money in the urban areas to be able to build up some of the infrastructure. But we are seeing companies like T-Mobile and AT&T moving to the downside today, but also reads like American Tower are actuallymoviy actually do hold and build out the cell towers and the infrastructure needed in order to connect these satellites. So a very iesting day for SpaceX, as well as for the mobility space as a whole. And like I said, we've gotten a lot of news from this company this week, from debt raises to ensuring that they're still working with Intel and kind of pushing back on the Taiwan semi news. So this company has been able to do a lot over the last couple of days and weeks. And the stock price kind of reflects the positive news flow. Yeah, it has been a lot of news flow around SpaceX this week. And then, you know, you've seen movement inla a well, which you know, you can't necessarily correlate the two, but there is there a se speculation about the two eventually coming together. We'll see if that does happen. But let's stick with the skies. But more closer to earth. Delta Airlines are out with their quarterly results first m a couple of years. Walk us through some of your takeaways here. Yeah.re seeing the shares down about 1.5%, which is not really that bad given thearniat they did announce here. The company did announce Q3 results with adju es per share coming in at $1.72. That did miss the Street's expectations t the operating revenue that did iss the street's expectations, coming in at 17.59 billion, she was looking for 17.66 billion. So a small miss when it comes to the adjusted operating revenue. Now, a lot of this is because of expl expense for the quarter was $4.1 billion. That's up 62% on a year over year basis. And above the July estimate that the company outlined here. They also adj to the downside their fiscal year 2026 guidance, their adjusted EPS guidance for the year is sitting at $5.35. No Street was looking for $5.46. This is basically just an story, an energy story. Now, Delta is actually very unique because they own their ry it's not enough for them to be able to offset some of the rising fuel costs. So at the end of the day, they are able to hedge their position a little bit, but unfortunately, they're still going to be at the mercy of th broader energy market. And that's exactly what not only their CEO, Edti mentioned in their in his comments, but also the CFO saying that it's all about fuel that really impacted the numbers for this quarter. S seeing a slight pullback to the downside here. But it seems like demand when you're looking at the amount of tickets that they are selling and the amount of seats that they are filling is still relatively elevated and high, how does premium look? Premium as far as the premium seating for the business, meaning the premium trave because a lot of the strength that we've seen in Delta was because premium travel has held up, whether we're talking about Delta Airlines or United Airlines. What's your take on that? Yeah, I mean, premium travelers continue to be in very strong demand, especially after Covid9. You started seeing business travel actually increase a little bit more. And what's actve interesting with Delta, they probably offer a little bit more perks than some of theothes space. And then they also kind of attract youwith some of the perks and rewards and credit cards and things of that nature as w So it seems like those are actually holding up really when it comes to city, you're really looking at maybe some of the lower fare or the shorter trip flights that may be impacted over time. Diane. So is, it costs the company more money to fly from, let's say, a Chicago to SaintLoh money as, say, flying from Los Angeles to New York. S're going to look at those longer duration flights rather than the shorter duration. And re seee industry where you are seeing some flights being cut because of capacit as well as fuel costs here. So I would expect that that's probably going to continuethe next couple of quarters. And we'll start hearing from Delta as far as theitegyhe spring kickoff season for next year as well. That's always going to be crit for their for their earnings for next year. That's really the set up for them. So premium still holding up for now. Shorter flights are the hat'ng to be impacted as far as routes. All right. And then let's talk a litt oil prices. So we're pulling back today. We're close to $90 barrel on WTI. We're still in triple digits on Brant crude but below $103 a barrel. What are you watching here. Well I mean we have beenal level of around $88 for WTI. That'shere some buyers have been able to step in here. And we have seen the administration well as maybe just some of the news flow kind of fading that $100 level. When y're looking at WTI now Brant is going to be a little bit different. Obviously it's ing abt now. But we do have the weekend coming up. That's wecould see hn and escalation when it comes to strikes, especially if you're g at Saudi Arabia, that has been kind of impacted, especially over the last couple of days her But we are expecting right now China to actually resume their exports of some of their refined products. President Trump has striking Iran before theplan on midterms. And there's also a report that Iran is going to respond to a proposal that the U.S. sent in to reopen the Strait of Hormuz. So those are some positive comments, even though we are still seeing some disruptions within the Strait of Hormuz, as well as the Bab el Mande and Diane, over the last 7 to 8 days, we've seen more strikes than what we've seen at the start of the conflict. When you're looking at tankers and commercial vessels being hit. So we are still seeing a logistics problem within th region. Okay. And then let's go through your levels for the 500 today. What are you watching for. Flows to the upside and downside. Yeah to the upside. Looking at 7820 to the downside 7750. We still have a VIX that's sitting at 15 spot one six right now. So we're implying less than a 1.9 1.95% move to the upside or downside vol. Still cheap markets a little bit more bulled up and trying to rally back here. Let's see if it's going to be ableo hold. I think if you get more news items around open AI or the AIae bit more negative, that's where we could see volatility creep n. And we'll see some repositioning for next week as we have CPI and some o r key datl weight S&P 500. Let's see if it's going to beto continue its gains that