SKHY, STX, VRT Earnings Raise Bar for MSFT & GOOGL; Fed Readies Rate Decision

quarter percent. Small cap futures a little soft this morning as well. Lring in Kevin Green senior markets correspondent right away to help set up the a today. All right. KG feels like the tech sector is really taking ce stage. Once again. Let's start out with your big picture take. Yeah. We are seeingnice lt comes to the technology trade yester Information technology did lead the way when it came to sectors. And we saw thatwed up by consumer discretionary stocks. If you're kind of looking at the the memory names that's really kind of the headline mover and you're, you know, kind of already talked aboutsome have seen. But that has been a pretty strong move, esly if you're looking at Dram as the proxy. And then you also hae of the other semiconductor names actually performing relatively well. So out type of trade, getting back into the concentrated trade. And I think yesterday, Diane, whatctually a really decent bright spot was the small caps were actually advancing rely well. And we have actually seen the Russell break it's down trend line tha we've intact for about a month and a half, almost two months. So that's somethingt's also encouraging. But I would say today, obviously we got the fed meeting. I think it's to be very contentious. And I do believe that we will see a lot ofility within this meeting, because we know that the fed is going to hold on rates st what the market's pricing in right now. But is it holding because the economic data tten better or is it because of politics. And I think that's going to be the the back and forth that you're going to see. And Kevin Warsh comments today. We know that September PCE numbers are going to come out tomorrow. And you're expecting that from a heastandpoint to come in at around 3.6% on a year over year basis. So we're still f you're looking at core PCE, that's expected to move to around 3.05%, with an increase of about 0.3% on a month over mont basis. S inflationary picture actually has gotten worse since the previous And Kevin Warsh, his comments, the previous meeting wasn't really that great.o a little bit we're sitting at around 17.5. The tech trade is working out,al a lot of technical damage that it's going to have to repair here. But I think that we do have potentially some fireworks when it comes to volatilityace s moving back to the upside as the fed acknowledges that the the direction of inflation is not stalling out, it continues to act accelerate to the upside. Okay. All right. Let talk about some of those tech names that are front and center this morSK Hynix off to the races overseas. We'll see how it performs here when that ADR opens. But walk us throug just some of your takeaways here. Yeah. We're seeing the shares up about 7.6% in premarket trading. The operating profit on a dollar equi basis came in at $62.55 billion. It's around 632% increase on a year over year basis. We also saw revenuer year basis, and operating margins n at 80%. So they prices. And that's actually fueling their top line growth in AI. Server demand cnues to outstrip supply. And they actually do believe that they're going to have ahip shortage and demand above the supply that's available through 2030, which is why we are seeing their guidance actually rerate to the upside here. So this name is obviously performing relatively well. We are seeing a nice litt bounce back here, Diane. See if this is going to be able ty through for the remainder of the session. And earlier, Seag didn't have the same kind of response off the back of his quarterly results It looked like they performed better than expected. But what there? Yeah, we're seeing the shares down about 2% in arket try were able to beat both on the top and bottom line. Bu think the whisper number was actually higher than the Street's expectations unfortun here. Sohey did obviously see a significant amount of demand when it comes to the heat assisted magnetic recording or the HAR high hard disk drive technology. And they continue to see that obviouslyon the market right now. And they continue to see record prility. I think this is just a high bar going into this report. And unfortu, we are see little bit of a sell off here this morning. But fact that the fundamentalsth continue to be relatively strong for SGX, least from this quarter that they just Let's cross over to a big. winner this morning. That's Vertiv off the back of its quarterly results. Walk us through some of your takeaways on this one. Yeah. You know, you continue to see kind of that power play bei relativelyong here. And they are showing that the net sales actually increased by 61% on a year over year basis. And the adjusted earnings per share also increased by around 78% on a year over year basis. The operating margin sitting at around 25.2%. They continue to spend on CapEx, but they alsoe g by 55% on a year oarbasis. And e big driver. The Americas segment grew by 75%. The APAC segment also grew by around 50%, and thei operating profit increased by 90%. So they are seeing not only top line growth, but also the backlog of orders continues to ramp u And this is going to be a very long transition to build out the infrastructure. They're a direct player for this, and that's why they're seeing very strong results for the quarter that just reporte okay shares of Vertiv right now rallying nearly 16% at the moment. Let's cross over to oil prices. We're looking at elevated oil prices today. Triple digits WTI above 101 right now. Brant crude also st well into triple digits. What are you watching on this front. Yeah. So the Y Houthis actually did strike Saudi Arabia's l refinery. That actually does produce around 550,000 barrels per day. And that's also pushing prices to the upside here. We also have kind of this dilemma within the Israeli elections that might be causing a little bit of uneas when it comes to the Middle East conflict. We know that there's some conversations back and forth between the Iranians, as well as some of the other Gulf states that are out there, but g that disrupts logistics. And there is also a concern that the supply narrative that we have sn kind of play out over the last couple of months can actually continue on the backoff this renewed concern that Russian supply hitting the market actually could be curtailed over the next month and a half or so, as their refiners kind of shift towards the diesel refining output strategy in order to obviously fulfill some orders here in the United States as well as around the globe. So you are seeing a little bit of a bounce back. Obviously, this is going to put pressure on the inflationary front, and I think we're going el risk that the fed is trying to assess today. And Kevin Walsh's. Let's talk about levels you're watching out for on the S&P 500 today. What do flows look like to the upside andide. Yeah to the upside. Looking at 7790 to the dow 7650. So a pretty wide range. And we're ng around a 1% move to the upside or downside puts are actually starting get a little steam this morning. Obviously that's probably hedging activity for the ent thhave later today. Diane this is a really decent move. We're going to have to be able to hold the 20 day and 50 day moving average for the S&P 500 to get y a little bit more confidence that we can get bac