Live5 updates

• Thu, June 6, 2024 at 3:33 PM GMT+2

  Stocks steady as Nvidia inches higher

  US stocks were little changed on Thursday morning following a tech-fueled rally that sent the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) to records.

  Nvidia (NVDA) opened slightly higher after the AI darling surpassed the $3 trillion market cap level in the prior session.

  On Thursday morning, the S&P 500 and the Dow Jones Industrial Average (^DJI) hovered around the flatline. The Nasdaq rose about 0.1%.

  Investors have their eyes set on the highly anticipated jobs report to be released on Friday morning.

• 

  Thu, June 6, 2024 at 2:55 PM GMT+2

  The commercial PC market is rebounding

  Two makes a trend, in my books.

  Results out of the major PC makers recently have suggested a rebound in the commercial PC market, at long last.

  Loop Capital’s John Donovan is out with a note this morning providing more insight into the emerging trend:

  “The more we dig into this sector, frankly the news and updates are becoming increasingly exciting. All the ingredients are present for a protracted and extended refresh cycle. Among the inputs are the finalization of back-to-work doctrines, an extended and prolonged lack of upgrades since the pandemic (this is also in play on the consumer side to a degree), the Windows 10-11 rollover – and this is leading to growing optimism. Add to this the simple fact that AI PC solutions will undoubtedly carry higher ASPs, particularly on the commercial side of the ledger, and the optimism appears to be realistic. Keep in mind that corporations upgrading can simply not go the “cheap route” as AI innovations would render “just good enough solutions” obsolete, so we see a roadmap to a level of “overbuying” in the near future. More good news for the PC OEMs.”

  Here’s what HP Inc. (HPQ) CEO Enrique Lores told me about this rebound.

• 

  Thu, June 6, 2024 at 1:44 PM GMT+2

  A new face on the Walmart board

  A meaningful new side hustle for one of the most popular CEOs in the fast-food industry.

  Chipotle (CMG) CEO Brian Niccol has been officially elected as a director of the Walmart (WMT) board. He is now the fifth new, independent director Walmart has onboarded since 2017, CEO Doug McMillon said Wednesday morning prior to the shareholders’ vote.

  Niccol takes the spot of longtime board member Rob Walton (son of Walmart founder Sam Walton) who retired as of Wednesday.

  This isn’t Niccol’s first rodeo as a board member outside the confines of Chipotle. He previously served on the boards of KB Home (KBH) and Harley-Davidson (HOG).

  The addition of Niccol makes a lot of sense.

  Both Chipotle and Walmart have seen success in recent years as value-conscious consumers seek items that they believe allow them to stretch their dollars. Niccol has also led the charge on digital ordering at Chipotle, whereas McMillon has led a digital rebirth at Walmart.

  While other food chains struggled to keep traffic up last quarter, Chipotle saw its same-store sales jump by 7%, in part thanks to Niccol’s efforts.

  A similar vibe at Walmart: Its US same-store sales increased 3.9% year-over-year.

  Shares of the burrito chain are up nearly 38% year-to-date, while Walmart shares are up more than 26%. It’s also worth noting that Walmart recently conducted a 3-for-1 stock split, while Chipotle is awaiting shareholder approval for its 50-for-1 split.

• 

  Thu, June 6, 2024 at 11:53 AM GMT+2

  Hey, before you get excited about this Lululemon quarter

  The bears raided Lululemon’s (LULU) stock prior to its earnings report last night, so I get the 9% pre-market pop on results that weren’t that brutal.

  But this wasn’t a typical Lululemon quarter (strong double-digit growth at each division) by any means, and the positive reaction may be overdone.

  Of worry is that comparable sales in the Americas division were unchanged versus the prior year. The company called out misses with customers in colors, usually not a good sign of future demand. (I used to cover the stock as an analyst — believe me, this isn’t a good indicator.)

  “We advise investors to be sellers on any strength, the Lululemon brand and its fundamentals have peaked, in our view, and we anticipate relentless competition ahead,” said Jefferies analyst Randal Konik in a client note this morning.

  Konik reiterated an under-perform rating on the stock.

  Makes a lot of sense.

• 

  Thu, June 6, 2024 at 11:44 AM GMT+2

  Good to learn the AI terminology

  If you are going to invest in AI, it’s good practice to understand the lingo.

  And that includes yours truly, who isn’t investing in AI but is writing way more about it than I thought I would a decade ago.

  Helpful insight into the topic of “liquid cooling” below in my chat with HPE (HPE) CEO Antonio Neri on Yahoo Finance Live. I think you will be hearing more about this, given the power that new AI chips generate.

  I also found what Neri said about Nvidia (NVDA) to be of interest.