MMR

Record Highs for Dow, SPX as Stocks Bounce Back

Nvidia's absurd revenue growth is powering the tech sector

Managing Editor
Feb 22, 2024 at 11:55 AM
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Wall Street has bounced back in a big way today, with the Dow Jones Industrial Average (DJI) last seen up 267 points and earlier hitting a new record high. The S&P 500 Index (SPX) hit a record high of its own , while the Nasdaq Composite (IXIC) is on track for its best single-session gain since November 2022. The story -- as it has been all week -- is Nvidia (NVDA), with the chipmaker's artificial intelligence (AI)-driven 256% year-over-year increase in total revenue powering the entire tech sector. 

Continue reading for more on today's market, including:

  • A deep dive into what Nvidia's earnings impact.
  • E-tail stock sits out of broad market rally. 
  • Plus, puts pop after AT&T outage; cruise stock breaks out; NEM deep in the red.

MMC Stats Feb 22

AT&T Inc (NYSE:T) is getting blitzed by options bears today. The stock was last seen down 2.7% to trade at $16.54, after over 74,000 customers reported network outages across the country. At last check, over 71,000 puts have changed hands, volume that's seven times the average intraday amount. The weekly 16.50- and 16-strike puts are the most popular, with new positions being bought to open. T is now down 15% year-over-year. 

Royal Caribbean Cruises Ltd (NYSE:RCL) is one of the best stocks on the SPX today, last seen up 7.7% to trade at $123.77. The cruise operator raised its full-year guidance thanks to a surge in demand. J.P. Morgan Securities and Stifel hiked their price targets to $151 and $174, respectively, in response. RCL is 74% higher in the last 12 months, with its February pullback finding support at its 80-day moving average. 

MMC Stock Chart RCLNewmont Corporation (NYSE:NEM) stock is near the bottom of the pile today, down 5.9% to trade at $31.50. The miner reported fourth-quarter earnings that fell short of estimates, and announced intentions to divest six non-core assets. NEM is now 23.4% lower in 2024, and earlier hit a five-year low of $31.45.

 

AI has exploded ever since ChatGPT set the world on fire near the end of 2022.

Numerous companies with connections to artificial intelligence have seen their stocks soar.

That includes Nvidia, the poster boy of AI.

Its stock has skyrocketed 716% since ChatGPT’s debut. But here’s the thing …

While everyone’s still counting their money from this first AI boom … Nvidia and countless others have moved on to the next stage.

That includes Big Tech, which is currently making a series of peculiar investments in a few strange companies. This has nothing to do with tech. At least on the surface …

Yet, these strange investments could be the early ripples of a massive wave …Without them, ChatGPT could stop operating … Amazon, Google, Microsoft and more could see profits drop drastically.

In fact, Elon Musk says these investments are critical when it comes to solving the number one problem facing AI.

Now, Silicon Valley legend Michael Robinson has identified two companies that could play a significant role in the solution.

Their stocks just may be the key to AI 2.0.

Find out more about these two companies today.
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