Major Indexes Lower as Recovery Stumbles; Banking Stock Selloff Hits Dow

Tech Companies That Could Benefit From New iPhone Launch

46 minutes ago

Apple’s (AAPL) new iPhone 16 is coming to stores next week. But the tech giant isn’t the only company that stands to benefit from sales of the artificial intelligence-powered phone.

The latest iPhone, officially announced Monday, is powered by the A18 chip, which according to a Monday Financial Times report and other sources is based on an Arm Holdings (ARM) design. Shares of Arm jumped 7% Monday following the report; they were retreating Tuesday.

The A18 chip runs on a processor made by Taiwan Semiconductor Manufacturing Co. (TSM), Apple’s primary chip manufacturer. American depository receipts of TSMC gained nearly 4% Monday but have also given back some gains today.

Both companies could benefit if the iPhone 16 drives “Cupertino’s biggest upgrade cycle in its history,” as analysts at Wedbush predicted over the weekend. Globally, about 300 million iPhones have not been upgraded in more than four years, which Wedbush says could mean more than 240 million iPhone units sold in fiscal 2025.

In terms of software, Apple has partnered with OpenAI, backed by Microsoft (MSFT) to integrate ChatGPT into iOS, iPadOS, and macOS.

–Andrew Kessel

Retail Investors, Hedge Funds Bought The Dip Last Week

1 hr 19 min ago

Retail investors and hedge funds were net buyers of equities last week as major U.S. indexes fell, according to new research. 

Stocks dropped last week, with the benchmark S&P 500 turning in its worst weekly performance in more than a year. Tech stocks, including several high-profile chip shares, were hit particularly hard.

Still, investors largely bought the dip, according to a report released Tuesday by Bank of America that analyzed the moves of its retail and hedge-fund clients. Clients bought individual stocks, pushing them to their highest inflows in nine weeks, and sold exchange-traded funds (ETFs) for a second week.  

The buying was broad-based, with inflows for eight of the S&P 500’s 11 sectors; real estate, industrials, and materials were the exceptions. Tech saw its largest inflows since June. 

–David Marino-Nachison

Oracle Jumps After Earnings, AWS Partnership

5 hr 43 min ago

Oracle (ORCL) shares surged in more than 8% in premarket trading Tuesday after the enterprise software company posted better-than-expected fiscal first quarter results and announced a multicloud partnership with Amazon’s (AMZN) cloud business, Amazon Web Services.

The software giant’s stock has gained around 34% since the start of the year prior to Monday’s after-hours jump, as growing demand for its cloud services, particularly in artificial intelligence applications, has powered earnings in recent quarters.

Bulls defended a retest of a prior trading range in early August before driving a rally of more than 11% from last month’s low ahead of the company’s quarterly results.

Investors should monitor shorter-term and longer-term price targets in Oracle shares at $154 and $180, respectively, while eyeing the $145 region as a potential retracement area.

Read the full technical analysis piece here.

–Timothy Smith

Stock Futures Tied to Major Indexes Slightly Lower

6 hr 15 min ago

Futures tied to the Dow Jones Industrial Average were down less than 0.1% about two hours before Tuesday’s opening bell.

S&P 500 futures were also down less than 0.1%.

Nasdaq 100 futures were off 0.2%.