Last week’s speculative frenzy finally cooled down alongside big tech, making today an easy win for the bears. Concerns about global tensions, inflation data, and the start of earnings season had traders and investors locking in gains and taking a more cautious approach to new positions. 👀

Today's issue covers why the market is starting to slip, a major day of dealmaking, and the comeback happening in lithium stocks. 📰

Here’s the S&P 500 heatmap. 1 of 11 sectors closed green, with energy (+0.35%) leading and utilities (-2.30%) lagging.

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $MYTE, $NAPA, $WAFU, $CETX, $CSIQ 📉 $ZK, $PLL, $MREO, $CELH, $LPSN*

*If you’re a business and want to access this data via our API, email us.

With all the speculative businesses and stocks we discussed last week soaring, many came into this week expecting further upside across the board. Instead, they were met with selling. So, let’s take a look at today’s action.

First, Super Micro Computer’s shares rebounded sharply after the company said it’s shipping over 100,000 artificial intelligence (AI) GPUs per quarter. That helped the beaten-down semiconductor stock find its footing at prior resistance and break out above a three-month downtrend line. 👍

The semiconductor optimism helped Nvidia shares break out as well, giving the bulls optimism that the sector's next leg higher has begun.

Unfortunately, that’s where the positives ended, as most of the stock market sold off today. Many of the market’s leaders were down on the day, like Amazon, which faced a Wells Fargo downgrade over increasing competition and an antitrust case from U.S. regulators (the irony of those two news items, eh?). 🙃

Macro headwinds remain the major focus of investors who don’t want to take on too much risk as we head into a fresh earnings season on Friday, navigate the Middle East’s conflict, and an upcoming U.S. election.

Still, the Stocktiwts community isn’t betting on a major breakout in volatility, despite the Volatility Index ($VIX) rising 18% today and closing at a two-month high. The long volatility futures ETF $VXX popped 9% today, but Stocktwits sentiment remained in ‘bearish’ territory. 🫨

The last few months have presented many profitable themes, such as a Chinese stock comeback, rate cut bets breaking out, and tech’s rally broadening. But with many of these market bets looking stretched in the short term, some investors and traders are stepping aside and waiting for clearer signals before making big bets. We’ll have to see what this week’s inflation data and earnings season kickoff bring… 🦺

As the title says, tons of deals took place today. Let’s get you caught up.

Activist investor Starboard Value thinks it has a cure for Pfizer’s underperformance, taking a $1 billion stake as it pushes for change. The company’s $162 billion value is about half its pandemic-era peak, given management has failed to find a revenue driver now that the vaccine business has slowed globally. When he took over in 2019, CEO Albert Bourla bet big on vaccines and cancer drugs. Now, that strategy may have him on the chopping block. 💉

Duckhorn Portfolio will be taken private by Butterfly Equity in an all-cash deal valuing the struggling winemaker at $1.95 billion. The agreement includes a 45-day “go shop” provision, but given the weakness in the overall alcohol industry and struggling stock price…many expect the deal to close as is. 🍷

Oil and gas giant Chevron is selling its Athabasca Oil Sands and Duvernay Shale to Canadian Natural Resources for $6.5 billion as it continues to divest its Canadian assets. The all-cash deal is part of a strategy to raise $10 to $15 billion by 2028 through asset sales to refocus its core business on U.S. shale and Kazakhstan. 🛢️

The offshore wind industry continues to struggle, which has created chances for buyers to step in. Norway’s Equinor is buying a 9.8% stake in Danish offshore wind farm developer Orsted for roughly $2.50 billion. High costs, project delays, inflation, and regulatory issues have all weighed on the industry, encouraging consolidation to survive this tough period. 🌬️

Japanese automaker Nissan is buying into the home electric vehicle charging business ChargeScape, becoming an equal investor alongside founding partners BMW, Ford, and Honda. The company operates a software platform that wirelessly “talks” to electric vehicles and utility companies, managing home charging networks and sending energy back to the grid when needed. ⚡

Mining giant Rio Tinto is taking advantage of the recent problems in the lithium industry by buying producer Arcadium. While the companies are only in talks, and no financial details were disclosed, the proposed deal has high stakes. If successful, the move would make Rio Tinto one of the largest suppliers of lithium, behind Albermarle and SQM. ⚒️

And speaking of Lithium, the Stocktwits community has identified another stock in the sector that should be on people’s radars. Check it out below. 👇

Given the major rally in lithium stocks over the last two weeks, many think the move has already been missed. However, in our Chart Art Newsletter, Stocktwits user @AskLou provided a long-term perspective on a beaten-down stock that might just be ready to rebound.

Economic data: Imports/Exports (8:30 am ET), RCM/TIPP Economic Optimism Index (10:10 am ET), Fed Bostic Speech (12:45 pm ET), Fed Collins Speech (4:00 pm ET), and Fed Jefferson Speech (7:30 pm ET). 📊

Pre-Market Earnings: PepsiCo ($PEP) and Accolade ($ACCD). 🛏️

After-Hour Earnings: IDT Corp. ($IDT) and Saratoga Investment ($SAR). 🎧

P.S. You can listen to all of these earnings calls and more straight from the Stocktwits app or website. You’ll find them on the calendar page and individual symbol pages once they’re set to begin! We’ll see you there. 👍

🎁 October 7-13: Get free access to IBD Digital's premium tools and research, no credit card required*

👨‍💼 Robinhood announces first Investor Day on December 4, 2024

⚡ Panera Bread settles first death lawsuit over Charged Lemonade

🛒 Walmart-owned Sam’s Club tests a future without checkout lines

😮 Scholar Rock ignites retail buzz as stock rockets 300% on positive muscle-targeted therapy trial

📈 Trump Media stock spikes 15% after Elon Musk came to a campaign rally

🍻 Join us in NYC on October 9th for a live Stocktwits<>CMT Association event

*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here.

Follow our social channels for great, real-time content on Stocktwits and Twitter. And check out our YouTube channel for in-depth video content! 📲

Help us deliver the best content possible by completing this brief survey. 📝

Email me (Tom Bruni) your feedback; I’d love to hear from you. 📧

Want to sponsor this newsletter and reach hundreds of thousands of passionate investors and traders? Reach us here.

Securities Disclaimer: STOCKTWITS IS NOT A TAX ADVISOR, BROKER, FINANCIAL ADVISOR OR INVESTMENT ADVISOR. THE SERVICE IS NOT INTENDED TO PROVIDE TAX, LEGAL, FINANCIAL OR INVESTMENT ADVICE, AND NOTHING ON THE SERVICE SHOULD BE CONSTRUED AS AN OFFER TO SELL, A SOLICITATION OF AN OFFER TO BUY, OR A RECOMMENDATION FOR ANY SECURITY. Trading in such securities can result in immediate and substantial losses of the capital invested. You should only invest risk capital, and not capital required for other purposes. You alone are solely responsible for determining whether any investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should also consult an attorney or tax professional regarding your specific legal or tax situation. The Content is to be used for informational and entertainment purposes only and the Service does not provide investment advice for any individual. Stocktwits, its affiliates and partners specifically disclaim any and all liability or loss arising out of any action taken in reliance on Content, including but not limited to market value or other loss on the sale or purchase of any company, property, product, service, security, instrument, or any other matter. You understand that an investment in any security is subject to a number of risks, and that discussions of any security published on the Service will not contain a list or description of relevant risk factors. In addition, please note that some of the stocks about which Content is published on the Service have a low market capitalization and/or insufficient public float. Such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information. Read the full terms & conditions here. 🔍

Author Disclosure: The author of this newsletter does not hold positions in any of the securities or assets mentioned. 📋