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CPI Ruins Tech Tuesday

CPI Ruins Tech Tuesday

Author
Tom Bruni The Daily Rip
11 hours ago
10 MIN READ
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CLOSING BELL
CPI Ruins Tech Tuesday

The market fell Tuesday, pulling back after a roaring Monday saw memory and chip adjacent stocks fly. Turns out, while capex is soaring, so are regular prices.

The April Consumer Price Index climbed at the highest pace in three years, and crude jumped back above $102.

“It isn’t like it’s an avalanche, but it’s a steady move upward,” Thomas Martin, senior portfolio manager at Globalt Investments, said to CNBC.

The Dow finished green, but tech got hit, the Nasdaq fell, and small caps had a rough day. Micron, AMD, and Qualcomm were falling Tuesday after leading tech and the Nasdaq 100 Monday. President Trump is heading to Beijing with 16 executives representing U.S. largecap companies to meet with President Xi.

Today’s Briefing:

  • After the Bell: Oklo’s loss widened as the nuclear buildout story stayed long on promise and short on revenue

  • Deal News: Wendy’s ripped after Trian reportedly explored financing for a take-private deal

  • Earnings Previews: Alibaba’s AI cloud story faces its next test Wednesday morning

  • Commodities News: CME wants to turn AI compute into a tradable futures market

  • Macro News: Hot CPI, $102 crude, and Warsh’s Fed path put inflation politics back on the front burner

  • Pops and Drops & More

AFTER THE BELL
Oklo’s Reactor Reality Check ⚛️ 

Oklo, the advanced nuclear developer chasing AI data-center demand, posted another pre-revenue loss Tuesday as the market looked past regulatory progress and asked the boring public-company question: when does any of this become commercial?

The RIP: $OKLO ( ▼ 5.76% ) fell -6% Tuesday and slipped after hours. Q1 loss was $0.19 per share, in line with estimates but wider than $0.07 a year ago. Net loss was $33.1M, cash used in operations was $17.9M, and cash and marketable securities totaled $2.5B.

The bull case is still about future scarcity, not current earnings. Oklo has Meta-linked plans for a 1.2 GW Ohio power campus, its first Aurora powerhouse underway at Idaho National Laboratory, and a new Battelle partnership to use AI in reactor and fuel-system design. But until customers turn into revenue, every quarterly update is still a progress report wrapped around a cash burn schedule. ⚛️

Get in the $OKLO chat, its going nuclear →
Community is bullish, message volume is high across ~36.0K Watchers.

Top posts:

  • @ACInvestorBlog (14 likes): “$OKLO Bullish pennant pattern. Heavily Nuclear shorted name.” (post)

  • @areyoudowndowndowndown (10 likes): “$OKLO Checking in and reporting that my position hasn’t changed!” (post)

  • @FlightDirector (10 likes): “$OKLO ER numbers don’t even matter at this stage- they have $2.5B in capital. I will be looking for continued…” (post)

DEAL NEWS
Wendy’s Takeout Window Opens 🍔 

Wendy’s, the burger chain trying to fix years of weak sales and worse stock returns, ripped overnight and into the Tuesday session after Nelson Peltz’s Trian reportedly explored financing for a potential take-private deal. Convenient timing, considering the turnaround plan currently involves a better spicy chicken sandwich and a lot of hope. 🐔 

The RIP: $WEN ( ▲ 16.86% ) jumped +17% Tuesday. Trian owns about 16% of Wendy’s and is seeking possible buyout backers, according to the Financial Times. Q1 global ‘systemwide’ sales fell -5.5% to $3.22B, while U.S. same-restaurant sales dropped -7.8%. The stock is down more than 40% over the past year, according to the firm’s release Friday.

The buyout chatter matters because public-market patience is almost gone. Wendy’s is losing traffic while Burger King, McDonald’s, Taco Bell, and Domino’s are still putting points on the board, which makes “strategic alternatives” sound like an escape hatch. 🍔

Jump into the WEN conversation on Stocktwits ->
Community is bullish, message volume extremely high across ~10.7K Watchers

  • @RainMan1711 (3 likes): “$WEN I believe it. This calm AH actually makes me even more optimistic. I’ve seen this play before, many many…” (post)

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TRENDING ON STOCKTWITS
Pops & Drops

EARNINGS PREVIEWS
Alibaba’s AI Grocery Aisle 🛒 

Alibaba, China’s e-commerce and cloud giant, reports Wednesday morning, and investors are hunting for proof that its AI cloud pitch is a win. Management has framed the business as a future “model supermarket,” where Chinese AI builders rent models and compute the way U.S. startups lean on AWS.

The RIP: $BABA is expected to report fiscal Q4 revenue of RMB 247.09B, up +4.5% year-over-year, with GAAP EPS of RMB 3.825, down -26%. Alibaba Cloud revenue is expected to rise more than +37% to RMB 41.4B. Options imply roughly a 5.6% post-earnings move.

The cloud number is the cleanest bull case because Alibaba’s current cloud EBITA margin near 9% leaves room if AI demand scales and in-house chips lower inference costs. For holders, this print is less about headline EPS and more about whether Cloud and AI can outrun the subsidy bill. 🛒

Jump into the BABA conversation on Stocktwits ->
Community is bullish in the leadup to tomorrow’s report; message volume is high across ~424.6K watchers.

Top posts:

  • @m4t0ker (5 likes): “$BABA no sleep tonight. Coffee time.” (post)

  • @OptionsPlayers (4 likes): “$BABA monster beat and guide coming They sandbagged last Q” (post)

  • @crazyaf (4 likes): “$BABA What’s the probability Baba suddenly posts a dramatic upside surprise right before a Trump/Xi meeting (…” (post)

COMMODITIES NEWS
Compute Gets Commoditized 🧠 

CME Group, the derivatives exchange behind some of the world’s biggest futures markets, wants to make AI computing power trade like oil, gold, or wheat. The exchange is teaming with Silicon Data to launch compute futures, pending regulatory review.

The RIP: $CME rose +1% Tuesday. Silicon Data’s H100 Rental Index tracks hourly GPU rental costs. The planned futures market would cover compute price swings for traders, AI builders, cloud providers, and financial firms. BlackRock CEO Larry Fink called compute a likely new futures asset class last week.

Jump into $CME: compute futures, genius or gimmick →

MACRO NEWS
Inflation Meets Politics 🧾

Investing .com

April’s CPI report turned the Iran oil shock into a kitchen-table problem, with gasoline, groceries, rent, and services all moving the wrong way at once. That gives Washington a brutal setup: voters are blaming the cost of living, and meanwhile the Fed is still dealing with its leadership change up.

The RIP: CPI rose +0.6% in April and +3.8% year-over-year, the hottest annual pace since 2023. Food at home rose +0.7%, ground beef rose +14.5% year-over-year, coffee rose +18.5%, and tomatoes rose +39.7%. The Senate advanced Kevin Warsh 49-44 toward Fed confirmation.

The issue now is that the White House is promising affordability fixes while the president says the war objective comes first, and the Fed nominee is promising independence but making his way through a long Senate process that will end with his arrival to a divided FOMC, and a high inflation environment.

“I don’t think about Americans’ financial situation. I don’t think about anybody. I think about one thing: We cannot let Iran have a nuclear weapon,” President Donald Trump said to reporters Tuesday.

Rate-sensitive stocks are exposed first, including $IWM small caps, $KRE regional banks, homebuilders like $DHI and $LEN, and consumer names tied to lower-income spending. If energy stays hot, the Fed-cut trade has a problem no press release can massage. 🧾

ST EDITOR’S PICKS
Links That Don’t Suck 🌐

🧧 Trump heads to Beijing with tariff uncertainty, AI communication, and Strait of Hormuz in focus

😨 Elon Musk said control of OpenAI should go to his children, Sam Altman tells jury

🧓 Kevin Warsh wins Senate confirmation to Federal Reserve Board of Governors

🤖 Waymo recalls 3,800 robotaxis after glitch allowed some vehicles to ‘drive into standing water’

📺️ FDA commissioner is set to resign after tumultuous tenure

👀 Ship operators involved in Baltimore bridge collapse charged with misconduct and obstruction

WHAT’S ON DECK
Tomorrow’s Top Things 📋

Macro: Core PPI MoM (12:30 PM ET), EIA Crude Oil Stocks Change (2:30 PM ET). 📊
Pre-Market Earnings: $BABA Alibaba Group Holding Ltd, $ALT Altimmune Inc, $NBIS Nebius Group N.V., $PSFE Paysafe Ltd, $EOSE Eos Energy Enterprises Inc Class A, +13 more. ☀️
After-Market Earnings: $AMC Amc Entertainment Holdings Inc Cla, $CENN Cenntro Electric Group Limited, $BNGO Bionano Genomics Inc, $MVIS Microvision Inc, $JAGX Jaguar Health Inc, +173 more. 🌙

P.S. You can listen to all of these earnings calls on Stocktwits.

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