Futures Rise Ahead Of Hot CPI As Houthis Torch Aramco HQ, ASML Beat Fails To Revive Chip Trade

Dell (DELL) shares fell 11.4% on the 14th, closing at $507.43. Barclays downgraded Dell, Hewlett Packard Enterprise (HPE), and NetApp (NTAP) to 'Neutral,' citing overvaluation and lack of enterprise AI spending growth. Dell's AI-optimized server business is projected to reach $75B in revenue, but growth may slow if memory prices decline. Other data center stocks like Oracle (ORCL) and CoreWeave (CRWV) also dropped.

Google's 1-gigawatt data center in Van Buren Township, Michigan, received final approval. Construction is expected to start soon, with power draw beginning by late 2027. Google secured a 20-year power contract with DTE Energy, committing to significant renewable energy investments. The project faces local opposition due to construction impacts and quality-of-life concerns. Google will benefit from tax breaks and has agreed to infrastructure investments and job guarantees.

Bank of America reported over $109 billion in unrealized losses on its bond portfolio in Q3, up 28% from Q2, due to rising interest rates. While losses are unrealized, they may impact investor confidence and share buybacks. JPMorgan and Wells Fargo also saw AOCI losses double. Bank of America's portfolio is the largest among peers, with plans to replace lower-yielding bonds as they mature.

BlackRock reported $205B in Q3 inflows, pushing assets under management to $15.49T. Adjusted EPS of $15.93 beat estimates by 12.7%. iShares ETFs led inflows with $134.5B. Shares rose 5% in premarket trading. Private credit redemption pressure eased slightly.

U.S. stock futures fell as inflation data revived Fed rate hike concerns. Nasdaq 100 Futures dropped 0.8%, S&P 500 Futures declined 0.3%. The CPI rose 3.7% YoY, exceeding expectations. AI-related stocks like CoreWeave, Nebius, Oracle, and Dell saw significant declines.

Dell shares fell 11% on Wednesday, with peers like Hewlett-Packard Enterprise, Oracle, and Super Micro also declining. Barclays downgraded Dell, HPE, and NetApp, citing uncertainty around enterprise AI spending and timing. The firm noted that only 5% of IT budgets are allocated for AI, and memory price normalization could strain infrastructure-linked revenue.