U.S. stocks continued their series of record closes, with Mircon’s earnings propelling the semiconductor sector and China’s stimulus boosting equities around the globe. Some traders and investors are pressing their bets into the quarter end, while others are taking profits after this week’s sharp runup. 👀

Today's issue covers Jabil popping with SMCI dropping, CarMax’s sentiment going full circle, and why energy slumped today. 📰

Here’s the S&P 500 heatmap. 8 of 11 sectors closed green, with materials (+2.07%) leading and energy (-1.96%) lagging.

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $DUO, $SOAR, $CNXC, $TAL, $BMEA 📉 $SCHL, $ADPT, $SMCI, $KMX, $MTN*

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

Micron’s positive results last night helped boost the overall tech sector, though two big players had very different trading sessions today…

Manufacturing specialist Jabil soared 12% after announcing a restructuring plan and cost reductions in its manufacturing units. While it will take $150 to $200 million in charges during this process, it’s looking to further “right-size” itself for the current environment.

Additionally, its current-quarter earnings per share and revenues topped analyst expectations as its core business looks to regain momentum. And management anticipates improvements will continue, forecasting first-quarter earnings that were slightly higher than Wall Street’s estimate.

Add a $1 billion stock buyback program to the mix, and you’ve got a pretty nice rally in the shares. 👍

Meanwhile, Super Micro Computer’s shares fell 12% after the Department of Justice reportedly opened a probe into the company. It comes after Hindenburg Research disclosed a short position in the chipmaker following “fresh evidence of accounting manipulation.”

With other semiconductor stocks working their way higher, the Stocktwits community flipped to ‘extremely bearish’ on the stock…erasing any benefit from Micron’s bullish comments yesterday. 🐻

Shares are now down 70% from their March high, so we’ll have to wait and see if any dip buyers start to step in or if this regulatory probe is just another reason to avoid the broken growth stock. 😬

Stocks continue to trend higher globally, but within the U.S., traders are eying the software sector as the next potential AI beneficiary.

Stocktwits user @gpaisa shared a chart that suggests software sector ETF $IGV could finally break out above its 2021 highs, joining semiconductors as the only sub-industry group in tech to exceed those levels. 📈

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U.S. crude oil prices continued their slump today, falling another 3% on news that Saudi Arabia has committed to increase production in December.

According to reports by The Financial Times, the country is preparing to ditch its unofficial oil price target of $100 per barrel and is willing to do so even if it results in a prolonged period of low oil prices. 📈

Higher production in an environment where demand is still tepid is expected to continue pressuring prices. China’s monetary policy efforts this week haven’t convinced the market yet that the world’s largest crude importer and second-largest consumer will see a material increase in demand.

Oil and gas-related energy stocks have outperformed alternative energy massively over the last three years. But now we’re seeing performance converge as investors bet oil prices will stay low and lower rates will support investment in alternative energy like solar, wind, nuclear, and more. 🤔

It’s a developing trend that is starting to gain traction, and traders and investors will be watching it closely through year end and 2025. 👀

Retail investors were extremely bullish on used-car retailer CarMax ahead of this morning’s earnings. But despite better-than-expected results, sentiment has flipped into ‘extremely bearish’ territory. Let’s try to understand why.

The company’s adjusted earnings per share of $0.85 and revenues of $7.014 billion topped the $0.75 and $6.831 billion anticipated by analysts. 📊

The company’s used unit sales rose 5.1% YoY, same-store used unit sales rose 4.3%, and wholesale unit sales fell 0.3% YoY. Average selling prices for used vehicles fell 4.6% YoY but were offset by volume growth.

Inventory also continues to jump, with the company buying 2.9% more vehicles from consumers and dealers than in the same quarter last year. However, the improvements were offset partially by a larger-than-anticipated provision for loan losses, as the company originated $2.2 billion in new loans. 🔺

Carmax shares popped 5% on the day, though Stocktwits sentiment completely flipped into negative territory. While it’s unclear why retail is so sour on the stock, one thesis is that the improvements in the underlying business are enough to stabilize the stock but not justify higher prices.

Time will tell whether Wall Street analysts, who had some upbeat comments on the latest quarter, or skeptical retail investors, are correct about the stock’s next move. 🤷

Economic data: Core PCE Price Index (8:30 am ET), Retail/Wholesale Inventories (8:30 am ET), & Michigan Consumer Sentiment (10:00 am). 📊

Pre-Market Earnings: None — have a great morning. 🛏️

After-Hour Earnings: None — enjoy your weekend 🎧

🌡️ Americans can order free COVID-19 tests beginning this month

💵 Citi joins hands with Apollo for $25 billion private credit program

🤖 Meta’s Mark Zuckerberg faces deposition in Sarah Silverman’s AI copyright lawsuit

🌏 David Tepper’s big bet after the Fed rate cut was to buy ‘everything’ related to China

🥪 Lawmakers push for accountability after 10th death linked to Boar’s Head listeria outbreak

💊 FDA approves Bristol Myers Squibb’s schizophrenia drug, the first new type of treatment in decades

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