WS #7194
The dominant macro narrative remains the Iran war-driven oil supply crisis and PPI surge, which is ESCALATING. US wholesale inflation accelerated in April to the fastest pace since 2022 on war-driven energy prices, and US crude inventories fell by 4.3M barrels. Trump is in China as the Iran war continues with no end in sight, and Iran insists it is ready for a new US attack. The US Energy Secretary warned Iran is close to weapons-grade uranium. Russia's oil production dropped to a 10-month low due to Ukrainian drone attacks. On the corporate front, Anduril raised $5B at a $61B valuation, doubling its valuation from a year ago, signaling strong demand for defense tech. Tencent missed Q1 revenue estimates, weighing on Chinese tech sentiment. Nvidia gained on a China trip and a partnership with Ineffable Intelligence. Dynatrace slid 10% after Q4 earnings failed to defend its AI position. Leidos won a framework agreement to supply 3,000 low-cost containerized munitions to the Department of War. The Alex Murdaugh conviction overturn is a non-market story. The eBay-GME takeover rejection is noise. The PPI data and oil inventory draw are the key macro signals.
Key developments
- US wholesale inflation accelerates to fastest since 2022 on war-driven energy prices
- US crude inventories fall by 4.3M barrels for week ended May 8 – EIA
- Anduril raises $5B at $61B valuation, doubling from a year ago
- Leidos to build initial 3,000 low-cost containerized munitions through Department of War framework agreement
- Tencent misses Q1 revenue estimates, bets on AI for new growth
- Nvidia partners with Ineffable Intelligence for reinforcement learning AI
- Dynatrace stock slides 10% after Q4 earnings fail to defend AI position
- Russia's oil production drops to 10-month low of 9.057M bpd in April due to Ukrainian drone attacks