Thursday’s Final Takeaways: Samsung & TSM Earnings Insights, Equity & Bond Gap Narrows

Marley Kayden here in Chicago alongside Sam Bardis at the York Stock Enge. Here are some final thoughts on the session today. I went a wholeday takeaways, but it is back as wen earlier in the session, we saw Brant crude rise a little more % to above $105 a barrel. U.S. West Texasmediate was up roughly 5% as well, to about $93. We did see s pullback, though, after some commentary from President Trump, but those pops came amid a new renewed attacks on shipping. They're raising fresh concerns about Middle East supply. We had nine tankers come under attack in andround the Strait of Hormuz just over the past week. That's the most we've seen in that time frame e e supply concerns are also being compounded by Hurricane Isaias, which has forced U.S. producers to shut in off output in the Gulf of Mexico. With more than 25% of U.S. Gulf oil production offline. The jump in crude also adding ano inflation r for the markets, particularly with the ten year Treasury yieldust below 5.3%. That's raising the stakes for the fed and potly putting additional pressure on stocks and consumers. We also got a warning fro Ray Dalio today. Stocks are losing the cushion that has protected them from rising bond yields, as the gap between expected equit returnsde says that the bond bear market has further to run as governments and companies compete for capital, with borrowing costs eventually weighing on credit and spe That's a silar sentiment to what Thomas Serrano said to me earlier today on trading now. Dalio also cautioning investors to look beyond earnings and on free cash flow, which he expects to deteriorate as companies continue investing heavily. For now, he says that strong earnings growth is allowing stock absorb higher rates, but that cushion is shrinking, potentially leaving equities more vulnerable if yields keep climbing. Now we did see yields come off a bit, Sam. But what caught your eye during the session. Certainly a lot ofgh p. But yeah look the tech trade appears to be getti bit more demanding at this stage. We got two solid reports as we mentioned that apparently weren't enough for investors. Samsung expecting its quarterly pro jump to a record $80 billion as it continues toit from this insatiable demand for memory. The Ninefold jump would just bet estimates and marks the fourth straight quarter of recor profit. Samsung shares fell today, though, adding to the more than 25% slump from its record high in June. So analysts say the rn tellsu justs trade has become, even though the story remains intact and those multiyear supply deals are givingamsung much greater visibility now. The company will release a full report on October the 29th. But TSMC was also out with monthly figures overnight, the world's biggest contract chip m raking in $512 billion in revenue in Septembet's a 55% jump in growth on the year, but down 0.6% on the month. The company which of course we know counts Nvidia and Apple as its biggest customers, is also benefiting from growing demand. We've seen for advanced chips. It's expected to report its third quarter results next week, but Taiwan shares traded lower despite that report. And we saw the ADR is obvious down today as well. But heading into tomorrow. M what are you going to be looking out for. We'll hear from Delta Airlines before the bell tomorrow. Wall Street's expecting adjusted earnings of about $1.93 per share on roughly $17.72 billion in revenue. The big focus here is whether the sg travel demand, particularly premium and corporate travel, can offset sharply higher fuel costs and pressure on margins. Delta could provide us with an early read on consumer resilience when it comes to travel spending, corporate pricing power, and also the impact of the elevated oil pricesn profits. While investors will be watching specifically whether the airline maintains its year EPS outlook, we won't hear from United and Southwest until the 20th of October and American also then. But Sam, what will you be wat Well, I guess we're going to get a read on what the consumer is doing and w as well, Molly, because we've got those preliminary results coming out from the University of Michigan on sentiment. So let's see how p are feeling about the economy right now. Oh, we shall see. You know, but we