On Tuesday, traders will watch oil prices. Crude oil prices jumped after the U.S. and Israel's assault against Iran. The higher the energy prices rise, the more inflation that the economy will need to manage.
Companies posting results today include CrowdStrike (CRWD), a cybersecurity firm. Retailers like Best Buy (BBY), Target (TGT), and Ross Stores (ROSS) will post quarterly results.
In the AI sector, Nvidia’s (NVDA) multi-billion dollar investment in Coherent (COHR) and Lumentum (LITE) on Monday sent their shares higher. They rose by 15.4% and 12%, respectively. Watch for a follow-through rally in those firms. Nvidia gained ~ 3% on the day.
Continue to watch the AI shakeout unfold. After Anthropic refused to give the U.S. military looser restrictions, the government signed up OpenAI instead. In the sector, watch Alphabet (GOOG), Microsoft (MSFT), and Meta Platforms (META). They are among the big suppliers of AI chatbots.
In the health plan sector, watch out for Elevance Health (ELV). The stock lost around 8% after the company said that CMS might sanction the firm. That would stop enrollment for its Medicare prescription plan. UnitedHealth (UNH), which is a big position for Berkshire (BRK-B), also faces selling pressure.
Berkshire shares fell by 4.9% in reaction to the company’s weak quarterly results. Investors are not impressed with the new CEO, Greg Abel, who posted a CEO letter and outlined a vision.
