Passport to Wall Street

Tesla, XPeng Build Humanoid Robotics, While New ETF Bets on What Makes Them Move

Benzinga News — Tue, 15 Sep 2026 13:00:24 -0400

The next trade in humanoid robotics may be less about the companies building the robots and more about the components that make them move.

Defiance ETFs on Tuesday launched the Defiance Robotics Actuators ETF (AT ), a fund focused specifically on robotics actuators.

The launch comes as humanoid robotics shifts from demonstrations and prototypes toward the more difficult task of scaling production. That shift could put greater focus on the supply chain for motors, gearboxes, screws, sensors and other precision-motion components.

Why Actuators are Becoming a Key Robotics Bet

McKinsey estimates actuators account for 40%-60% of a humanoid robot's bill of materials, making the category the largest hardware cost block. An actuator typically combines a gearbox, motor, driver, mechanical components and sensors, with the gearbox alone accounting for roughly 30%-50% of actuator costs.

The consultancy has also identified the robotics supply chain as a major constraint on humanoid scale, with many components still requiring custom development and qualification. Tesla, Inc.'s (TSLA ) Optimus, for example, has 28 joint actuators in its body and another 50 in its Gen 3 hands, according to McKinsey.

The timing of the launch comes as major humanoid developers move closer to scaled production. Tesla has been preparing its Optimus production lines, while XPeng Inc.- ADR (XPEV ) has said it has launched an automated production line for its IRON humanoid robot, where robots can assemble other robots.

XPeng has targeted large-scale production of IRON by the end of 2026. Together, the developments underscore the shift from demonstrating humanoid capabilities to building them at scale - potentially increasing demand for the precision components targeted by AT.

That makes the actuator layer potentially attractive to investors because component demand could rise regardless of which humanoid manufacturer ultimately emerges as the winner.

What AT Owns

AT's index requires companies to derive at least 50% of revenue from actuator systems, motion-control components or related technologies used in humanoids, collaborative robots and next-generation automation.

Its universe includes manufacturers of servo motors, harmonic and cycloidal reducers, precision gearboxes, ball screws, linear actuators, encoders, bearings and integrated actuator modules, as well as humanoid and consumer robot companies.

The index targets at least 25 constituents, with no individual stock allowed to exceed 8%. The fund has significant exposure to Japan and China.

The investment case is already beginning to show up in supplier agreements. Schaeffler, for instance, agreed earlier this year to become the preferred supplier for more than half of Humanoid's joint-actuator demand through 2031, covering at least 1 million actuators.

For AT, therefore, the humanoid opportunity is not simply a bet on which robot wins. It is a bet that every winner will need something to move.

The fund seeks to track the MarketVector Humanoid Actuator Index and charges an expense ratio of 0.69%.

Palantir CTO Warns AI Safety ‘Effective Altruists’ Are Attempting a ‘Coup’ — Says ‘Tiny Group of Technocrats’ Shouldn’t Decide for Everyone

Benzinga News — Tue, 15 Sep 2026 13:00:18 -0400

Shyam Sankar, CTO of Palantir Technologies Inc. (PLTR ), expressed his concern over the politicization of AI safety.

In a post on X on Monday, Sankar criticized the "Effective Altruists," accusing them of attempting a coup by deciding the pace of technological progress for everyone else.

"Effective Altruists believe a tiny group of technocrats should decide how much technological progress the rest of us are allowed to have.... and how many shrimp your life is worth," wrote Sankar.

Pushback Grows Over AI Slowdown

Sankar's comments add to the ongoing debate about the pace of AI development, with executives from OpenAI and Anthropic calling for a slowdown.

Former White House AI and Crypto Czar David Sacks said OpenAI and Anthropic should slow their AI development voluntarily if they believe their next models pose serious risks, rather than relying on government regulation. He argued that CEOs Sam Altman and Dario Amodei already lead the AI frontier and effectively determine the pace of progress.

At the same time, Michael Burry criticized OpenAI and Anthropic executives for urging a slowdown in AI development, calling the stance self-serving and beneficial to incumbents and upcoming IPOs. He argued that current LLMs are not true AI or AGI and suggested the slowdown narrative may mask weaker growth and delayed IPO plans.

"IPOs need hype & puffery; "we are so awesome it could become dangerous" is hype & puffery," he said.

Notably, Nvidia Corp. (NVDA ), Palantir and Booz Allen Hamilton Holding Corp. (BAH ) are reportedly tightening restrictions on their use of advanced AI models from Anthropic and OpenAI over concerns that providers could retain or learn from sensitive corporate data. The companies are seeking stronger data protections or dropping certain models altogether.

Trump Backs AI, Others Urge Caution

President Donald Trump called into Nvidia CEO Jensen Huang's All-In Summit session and delivered a strong pro-AI message, dismissing fears that AI and robots could pose a threat to society. He called such concerns "a hoax," while arguing that data centers create wealth for people and states. Trump also warned that opposing AI development could benefit China, saying AI is "bigger than the internet."

On the other hand, AI leaders such as former President Barack Obama and billionaire Elon Musk have welcomed the idea of slowing down AI development, considering it a necessary step. They believe that the government and the public should have a say in how this technology evolves.

Sam Altman’s AI Nightmare Splits ETF Trade: Build Vs. Control

Benzinga News — Tue, 15 Sep 2026 13:00:13 -0400

The artificial intelligence (AI) trade may be developing an unexpected second leg: not betting on who builds the most powerful AI, but who helps contain it.

OpenAI CEO Sam Altman and Anthropic CEO Dario Amodei have both warned that AI development could be moving too quickly for safety measures to keep pace. Amodei has called for "pacing" frontier AI development, while Altman said the industry must avoid both losing control of AI and letting too much power concentrate in one company or country.

The comments triggered a sharp divergence across AI-related stocks on Monday, creating a potential new ETF trade: AI infrastructure versus AI protection.

Chips Take The Hit, Cybersecurity Rallies

The semiconductor selloff was stark. The Philadelphia Semiconductor Index plunged nearly 6% on Monday, its worst one-day decline since July, with Nvidia Corp (NVDA ) falling about 3.4%, while Intel Corp (INTC ), Advanced Micro Devices, Inc. (AMD ) and Marvell Technology, Inc. (MRVL ) also tumbled between 4% and 7.5%.

That pressure spilled into iShares Semiconductor ETF (SOXX ), whose portfolio is heavily exposed to the AI buildout. Nvidia and Micron Technology (MU ) each represent about 9.2% of the ETF, followed by AMD and Broadcom, Inc (AVGO ) among its major holdings.

But the other side of the AI equation moved sharply higher.

CrowdStrike Holdings, Inc. (CRWD ) surged 14%, Zscaler, Inc (ZS ) gained nearly 17%, SentinelOne, Inc (S ) climbed climbed 15%, Fortinet, Inc. (FTNT ) climbed 9% and Palo Alto Networks (PANW ) jumped 13% as of Monday market close.

That makes First Trust Nasdaq Cybersecurity ETF (CIBR ) an intriguing ETF beneficiary. The fund, which ended Monday with a 6% gain, has about $15.3 billion in net assets and an expense ratio of 0.58%.

Another ETF captures the same "Control AI" theme at a lower expense ratio of 0.50%. The Global X Cybersecurity ETF (BUG ), which tracks companies positioned to benefit from the growing adoption of cybersecurity technology, provides exposure to names including Palo Alto Networks, CrowdStrike and Fortinet. Unlike semiconductor funds that primarily capture the capital spending required to make AI more powerful, BUG offers investors a way to play the rising demand for protecting data, networks and AI-enabled systems as those capabilities expand.

The fund surged 11% on Monday.

The 'AI Safety' Trade

The irony is that AI's risks could themselves become an investment theme.

Amodei specifically cited risks including AI-enabled cyberattacks and said frontier labs need more time to improve monitoring, sandboxing, alignment and interpretability. His proposed framework includes embedded third-party evaluators and stronger safety standards.

That could mean a growing market for the companies providing the digital locks around increasingly powerful AI systems.

The AI trade may therefore be splitting into two baskets: companies selling the picks and shovels to make AI more powerful, and companies selling the security tools needed to keep that power under control.

For ETF investors, Monday offered a striking preview of what that divergence could look like.

AI is no longer just a race to build the biggest model. It may also become a race to build the biggest firewall.

Top Economist Warns Odds of a 'Serious' Fed Policy Mistake Are ‘Uncomfortably High and Rising,’ Says Rate Hikes Could Trigger 'Self-Reinforcing' Downturn

Benzinga News — Tue, 15 Sep 2026 12:59:25 -0400

Moody's Economist Mark Zandi on Monday voiced concern over the rising possibility of a significant Federal Reserve policy error, as markets anticipate a rate hike on Wednesday.

Zandi took to X to express his apprehension about the Federal Reserve's potential policy misstep. He stated, "The odds of a serious Fed policy mistake are uncomfortably high and rising."

He further added, "But the economy is already growing near potential (2% real GDP growth) and operating at full employment (unemployment a bit above 4%)."

The Kevin Warsh-led Federal Open Market Committee's two-day meeting will commence today.

Zandi also pointed out that inflation is currently too high, running above 3%. However, he attributed much of the inflation to higher energy prices and tariffs, supply shocks that interest-rate hikes cannot address.

He warned that aggressive Fed tightening could trigger layoffs and rising unemployment, creating a self-reinforcing economic downturn.

Zandi stated that the Fed faces a difficult choice: AI investment is driving economic growth while the non-AI economy is already weakening. Bringing inflation down could require either slowing the AI boom or putting more pressure on the broader economy-both undesirable options. The Fed could instead wait and see how the economy evolves.

"Neither is a good outcome. Of course, it doesn't have to choose either. It can wait," he wrote.

Market Split Over Rate Hike

Zandi's post comes at a time when markets anticipate that the Fed will increase rates by a quarter point at Wednesday's meeting, according to Polymarket traders.

Jeremy Siegel, chief economist at WisdomTree, suggested that the market is signaling the necessity for a rate increase. He believes that the new Federal Reserve chair, Kevin Warsh, might be tested by the market and could potentially raise rates, despite the possibility of political backlash. Siegel expects an initial market sell-off after a rate hike but believes stocks could recover if the move boosts confidence in the Fed's inflation-fighting credibility and supports long-term bonds.

On the other hand, Truflation CEO Stefan Rust told Benzinga that there would be no rate hike at next week's meeting, stating that Warsh's hawkishness is a "distraction from his dovishness. Rust said oil prices could be a key trigger for a rate hike, with crude around $97. He warned that if oil rises above $110, an interest-rate increase is "very likely."

TotalEnergies Bets Over $115 Million on AI to Hunt for Oil With Mistral

Benzinga News — Tue, 15 Sep 2026 12:59:16 -0400

TotalEnergies SE (TTE ) and French artificial intelligence company Mistral have launched a three-year program to develop advanced AI models for oil and gas exploration and reservoir engineering. The partnership represents an investment of more than 100 million euros (about $115 million). It will combine TotalEnergies' decades of subsurface expertise and data with Mistral's AI technology.

AI Targets Reservoir Exploration

The companies plan to use advances in AI, including agentic AI, to analyze large volumes of geological and reservoir data.

The models will help TotalEnergies generate development scenarios for exploration opportunities. They will also support efforts to optimize existing projects and extend their operating lives.

As part of the partnership, TotalEnergies and Mistral will establish a joint scientific laboratory. It will bring together TotalEnergies' subsurface teams and Mistral's AI researchers.

TotalEnergies Expands AI Strategy

The energy giant said the collaboration will help it develop proprietary AI models within a European digital ecosystem while protecting strategic subsurface data.

"Exploration and reservoir engineering are among the areas where artificial intelligence can create the greatest value for our activities," TotalEnergies CEO Patrick Pouyanné said.

Mistral CEO Arthur Mensch said the project demonstrates how customizable AI models can support complex industrial and scientific processes while protecting companies' intellectual property.

The agreement also expands TotalEnergies' AI ecosystem as energy companies increasingly use advanced computing to improve exploration and project economics.

Stock Performance And Technical Analysis

TotalEnergies stock edged higher Tuesday, holding firm despite broader market weakness. The Nasdaq fell 0.17%, while the S&P 500 declined 0.20%.

TotalEnergies' modest gain comes against a defensive market backdrop. The Dow Jones fell 0.38%, while the Russell 2000 dropped 0.56%.

The relative strength suggests investors are still supporting the stock near the upper end of its recent range.

TotalEnergies remains in a clear longer-term uptrend. The stock trades about 2.4% above its 20-day simple moving average of $89.62 and 12.8% above its 200-day SMA of $81.32.

The 20-day SMA also remains above the 50-day average, supporting the bullish trend.

Momentum remains constructive. The MACD is above its signal line, while the histogram is positive. That suggests buyers are maintaining control.

Resistance sits near $92. A breakout could put the 52-week high of $94.17 back in focus. Support sits near $85, close to the 50-day and 100-day moving-average region of $86 to $87.

TTE Stock Price Activity: TotalEnergies shares were up 0.29% at $91.40 at the time of publication Tuesday, according to Benzinga Pro data.

AI Slowdown Talk Turns Tech’s Biggest ‘Losers’ Into Monday’s Biggest Winners

Benzinga News — Tue, 15 Sep 2026 12:58:59 -0400

Calls from artificial intelligence leaders to slow the development of advanced models could trigger a near-term rotation in technology stocks, according to Melius Research analyst Ben Reitzes.

AI 'Losers' Could Get a Lift

Reitzes told CNBC on Monday that companies viewed as vulnerable to AI disruption could benefit from the debate. Stocks that could gain from lower AI capital spending may also attract investors.

"What is going to happen today is that the AI losers will actually go up," Reitzes said.

That rotation was already visible Monday. CrowdStrike Holdings Inc. (CRWD ), SailPoint Inc. (SAIL ) and Palo Alto Networks Inc. (PANW ) each surged roughly 13% to 15%. Meanwhile, ServiceNow Inc. (NOW ) and HubSpot Inc. (HUBS ) gained about 7% to 11%.

However, he argued that the broader AI investment cycle remains intact. He pointed to recursive self-improvement, or RSI, as a major driver of future computing demand.

"That train has left the station," Reitzes told CNBC.

He also expects cybersecurity demand to surge as more powerful AI models create new security risks. That could require more computing power and AI models designed to defend against other models.

OpenAI, Anthropic Hold Early Lead

Reitzes said OpenAI and Anthropic have established a significant lead in advanced AI. He compared the industry to a 100-yard race, with the two companies already at the 70-yard line.

That position could allow the AI leaders to help shape industry guardrails while protecting their competitive advantages, he said.

Reitzes expects industry leaders to eventually coordinate on safeguards and communicate a clearer path forward to investors. He suggested NVIDIA Corp. (NVDA ) CEO Jensen Huang could play a role in bringing key players together.

For investors, the immediate concern is uncertainty around AI spending. However, Reitzes' comments suggest calls for tighter safeguards do not necessarily signal an end to the AI infrastructure boom.

Middle-Aged Americans Are Filing for Bankruptcy at the Highest Rate Since 2017 — Debt, Inflation and Soaring Gas Prices Are Piling on the Pressure

Benzinga News — Tue, 15 Sep 2026 12:58:39 -0400

Americans aged 40 to 59 now account for nearly half of all new consumer bankruptcies, the largest share for that age bracket since 2017, as middle-aged households buckle under debt and rising costs.

Middle-Aged Americans Lead the Rise

Consumers aged 40-49 made up 26.8% of new bankruptcies, the highest share for that age group since the third quarter of 2015 and the largest of any single bracket, according to data shared by The Kobeissi Letter.

The 50-59 group accounted for another 23.1%, bringing the combined share of Americans aged 40-59 to 49.9%, the highest since the first quarter of 2017, though still below the 54.3% peak in the fourth quarter of 2011 following the financial crisis.

Younger and Older Americans Move in Opposite Directions

Americans 70 and older now make up 21.5% of new bankruptcies, their largest share since the second quarter of 2017, while adults aged 18-29 account for just 5.9%, their lowest share since mid-2014.

"Older Americans are falling behind on their debt," the market commentator added.

Household Debt Climbs Across the Board

Credit card and auto loan balances each rose 1.7% in the second quarter of 2026, while home equity lines of credit rose for a 17th consecutive quarter, according to the Federal Reserve Bank of New York.

Student loan delinquencies also ticked up, with 10.6% of balances now 90 or more days past due.

Energy Costs Are Reigniting Inflation

U.S. annual inflation held at 3.4% in August, matching July, while prices rose 0.4% for the month, according to the Bureau of Labor Statistics.

Gasoline was the single biggest driver, jumping 3.9% and accounting for more than a third of the entire monthly increase, with fuel oil up 52% over the past year.

Fuel Costs Are Hitting Retailers

The national average for gas hit $4.32 a gallon Monday, up 17 cents from a week earlier, while diesel climbed to a record $6.23 a gallon amid intensifying conflict in the Middle East, according to AAA.

This week, Costco Wholesale Corp. (COST ) raised prices on its private-label motor oil and capped purchases at two units per member per week, as rising crude oil costs tied to the ongoing conflict in the Middle East ripple through the auto care aisle.

Elon Musk Says 'Excitement’ is Guaranteed at Tesla Roadster Reveal in October: Audience Would Need to ‘Vouch’ That 'This Is Not AI'

Benzinga News — Tue, 15 Sep 2026 12:58:33 -0400

Tesla Inc.'s (TSLA ) CEO Elon Musk said that the upcoming unveiling of the anticipated Roadster high-performance vehicle on Oct. 1 would far exceed expectations. Elon Musk Says the Event Is Not AI

During his appearance on the All In Podcast via video on Monday, Musk spoke about the Tesla Roadster. "Come October 1st," the billionaire said.

"Success is not guaranteed, but excitement is," the CEO added. All In Podcast host Jason Calacanis then said that he had seen a preview of what the event could show, saying that the demo would "blow people's minds" at the event.

"We need an audience to vouch for the fact that this is not AI," Musk said. Calacanis added that he initially believed what Musk showed him was a simulation, but the Space Exploration Technologies Corp. (SPCX ) CEO confirmed it was real.

In the past, Musk has teased the "flying car," as well as saying that Roadster would be better than all the technology in fictional MI6 Agent James Bond's cars.

Notably, Tesla had filed a patent which was granted in August last year. The patent detailed an active aerodynamic system which could suck air through a series of fans to generate downforce "across varying conditions." The filing also mentioned that the system could be used to make the car hover by reversing the airflow.

Tesla-SpaceX Merger?

During the same appearance, Musk was also asked about a possible merger between Tesla and SpaceX, to which Musk hinted at the possibility, citing deep collaboration between Tesla and SpaceX. The merger could hand Musk an $824 billion payday through terms in the new Tesla CEO pay package approved by investors in November.

Price Action: Tesla shares were down 0.48% at $357.24 during premarket trading on Tuesday.

Apple's iOS 27 Is Here: 8 New Features You Should Know About in This Major Software Update

Benzinga News — Tue, 15 Sep 2026 12:58:09 -0400

Apple Inc. (AAPL ) began rolling out iOS 27 on Sept. 14, bringing an Apple Intelligence expansion, Siri AI and systemwide performance changes after unveiling the software at WWDC26. The release lands days after Apple introduced its iPhone 18 Pro lineup. Who Gets iOS 27?

The tech giant's iOS 27 is supported on iPhone 11 and newer models, plus iPhone SE (2nd generation) and later. That leaves iPhone XS, XS Max, XR, and older devices behind. Apple Intelligence and Siri AI require iPhone 15 Pro or Pro Max, or iPhone 16 and later, meaning many phones receiving iOS 27 still miss its biggest AI additions.

New Features To Look Out For:

Siri Gets Its AI Overhaul

Siri AI can search personal context across messages, email and photos, act across apps and answer questions about on-screen content. Apple also added a dedicated Siri app for revisiting conversations. The upgrade has already drawn analyst attention. Siri AI is rolling out in English first.

Visual Intelligence Enters Camera

A new Siri mode in Camera lets users point at objects, ask questions and take actions directly from the viewfinder.

'Photos' Gets Smarter Editing

Spatial Reframing changes composition after capture, Extend expands image boundaries, and an upgraded Clean Up removes larger distractions with more realistic fill.

Safari Organizes And Monitors Pages

Safari can now group tabs automatically by topic. A new 'Notify Me' feature within the browser can watch webpages for changes such as price drops or restocks and sends alerts.

Messages Suggests Useful Actions

Messages and Mail can now offer context-based one-tap suggestions, such as adding a reminder or note. Apple says these suggestions are initially available in English.

Calls Surface Relevant Information

Call Context can pull useful details from other apps during business calls, including confirmation information stored in Mail.

Parents Get More Controls

Ask to Browse lets parents approve new websites. Time Allowances and Schedules manage app access, while Communication Safety expands to intervene around violent or gory images and videos.

iPhones Should Feel Faster

Apple says app launches can be up to 30% faster, Photos can load new images up to 70% faster, and AirDrop transfers up to 80% faster. Liquid Glass also gets improved contrast control and a customization slider.

Before You Update

Apple recommends backing up through iCloud or a computer first, then updating while connected to Wi-Fi and power. Users should also check available storage before installing, though the update file size will vary by device model.

How Many Rate Hikes Will The Fed Deliver In This Cycle? Economists Answer

Benzinga News — Tue, 15 Sep 2026 12:57:53 -0400

The Federal Reserve's first rate hike in more than three years is hardly in doubt. Traders assign a 93% probability to a quarter-point increase Wednesday, lifting the federal funds rate to 3.75%-4.00%.

Ask economists what happens next, however, and three different tightening cycles emerge.

An MNI compilation of analyst forecasts shows a median call for 50 basis points of increases. That means one hike Wednesday and another later in the year.

Yet forecasts range from no increase at all to three quarter-point hikes.

That gap could decide whether Treasury yields continue climbing or rate-sensitive stocks find some relief.

Ahead of the Fed decision, the S&P 500 - tracked by the SPDR S&P 500 ETF Trust (SPY ) - trades just 2-percentage-points from record highs.

The Spread Runs From Zero To Three

The Fed's target range has sat at 3.50% to 3.75% since December 2025. Here is where each camp thinks it lands.

Hikes Still Expected | Forecasters | Implied Target Range

Three (75 bps) | ANZ, Bank of America, RBC, Deutsche Bank, Société Générale, TD, BNY Mellon | 4.25%-4.50%
Two (50 bps) | JPMorgan, UBS, Barclays, Nomura, Wells Fargo, BMO, MUFG, UniCredit, Westpac | 4.00%-4.25%
One (25 bps) | Goldman Sachs, Citi, ING, NatWest, Rabobank, SEB, Swedbank | 3.75%-4.00%
None | Jefferies | 3.50%-3.75%

Source: MNI survey of analyst notes, September 2026

The Faster Cycle: Three Hikes

Seven institutions expect 75 basis points of tightening.

Bank of America, ANZ and RBC see consecutive increases in September, October and December. Deutsche Bank expects the third move in March, while Société Générale pushes it to May.

The destination is similar. The difference is speed.

"Markets are pricing close to 100bp of hikes in total, over the next year or so," Bank of America economist Aditya Bhave said.

"We remain comfortable with our view that the Fed will raise rates a bit less (75bp), but much faster (by end-2026)," he added.

Bhave sees an advantage in moving quickly. Faster hikes could prevent inflation from becoming entrenched and reassure the Treasury market that the Fed remains in control.

That could ultimately reduce the total amount of tightening required.

One Hike And Done

Seven institutions expect only Wednesday's quarter-point increase.

ING and Swedbank see rates stopping there. Citi, Goldman Sachs, NatWest, Rabobank and SEB expect the Fed to begin cutting again during 2027.

Jefferies is even more dovish. It expects no remaining hikes and a quarter-point cut in December.

Oxford Economics also expects the Fed to hold Wednesday.

"Our forecast is more dovish than current market pricing, which suggests a hike is overwhelmingly likely," Chief U.S. economist Michael Pearce said.

Pearce said tighter financial conditions are already doing part of the Fed's work.

Higher Treasury yields and borrowing costs can slow demand without another rate increase.

The Market Thinks They Are All Too Cautious

The median forecast places the policy rate near 4.1% at the end of 2026, 3.9% in 2027 and 3.4% in 2028. The longer-run estimate remains 3.1%.

In other words, Wall Street sees a rate hump, not an endless staircase.

Fed funds futures currently imply a benchmark rate near 4.2% by December and roughly 4.6% by September 2027.

Traders are betting on a full percentage point of tightening. The economists surveyed expect half of that.

One of the two is going to be badly wrong, and Wednesday's dot plot is the first piece of evidence either side gets.

S&P 500 Could Plunge 30% as AI Bubble Enters ‘Late Stages,’ Capital Economics Warns — 2027 Could Mark the Breaking Point

Benzinga News — Tue, 15 Sep 2026 08:32:13 -0400

The artificial intelligence (AI) boom may be entering its late stages, according to Capital Economics, which expects the bubble could start to burst in 2027.

"There are plenty of signs that we are now in the late stages of a bubble in AI," John Higgins, chief economic adviser for financial markets at Capital Economics, said in a report Monday. The firm expects the S&P 500 to end 2027 at 6,500, compared with 8,250 at the end of 2026, and says its eventual peak-to-trough decline could be at least 30%.

Capital Economics points to several signs behind its warning. U.S. technology capital expenditure has risen to a larger share of GDP than at the peak of the dot-com boom, while earnings expectations remain optimistic and valuations are stretched. Equity issuance has also surged, while the market has become increasingly concentrated in a small number of companies.

The firm also expects the eventual decline to be less severe than the roughly 50% fall during the dot-com bust because today's AI boom has been driven more by earnings growth than by investors simply paying higher prices for earnings.

Capital Economics, however, questions whether analysts' expectations for earnings growth can remain this strong.

Warnings Mount

That concern comes as investors have already raised questions about AI spending and valuations. J.P. Morgan Asset Management's Bill Eigen previously warned that investors should watch the rate at which AI growth accelerates and pointed to signs of slowing capital expenditure and private-market valuations.

A Bank of America survey also found that 48% of investors viewed AI hyperscaler capital expenditure as the most likely source of a systemic credit event, while 45% identified an AI bubble as the biggest tail risk.

Capital Economics senior markets economist James Reilly told CBS News that the earnings expectations for leading AI companies look stretched compared with U.S. economic growth, calling it "the dot-com bubble all over again." He said AI will be transformative and profitable, but profits may not reach analysts' expectations.

Costco Nearly Doubles Motor Oil Prices, Limits Purchases to '1 Transaction Per Membership' as Iran War Squeezes Supply

Benzinga News — Tue, 15 Sep 2026 08:32:07 -0400

Costco Wholesale Corp. (COST ) has raised prices on its private-label motor oil and introduced weekly purchase limits, as rising crude oil costs tied to the ongoing conflict in the Middle East ripple through the auto care aisle. Prices Nearly Double, Purchases Get Capped

Costco's Kirkland Signature full-synthetic motor oil 5-quart two-pack now costs $57.99, up from roughly $30 a year ago, according to The Associated Press, which first reported on the price increases.

Purchases have been limited to "1 transaction per membership, with a maximum of 2 units every 7 days," according to Coscto's product page.

Mobil 1's full-synthetic motor oil 1-quart six-pack, priced around $44, is now limited to five per membership.

Costco did not immediately respond to Benzinga's request for comment on the price hikes.

Why Motor Oil Is Getting Squeezed

Motor oil is made mostly from Group III base oils refined from crude, and the U.S. gets over 40% of that supply from the Middle East, which has faced repeated disruptions since the Iran war began in February.

At the time of writing, Brent Crude was up 0.82% at $107.34.

Gas and Diesel Prices Keep Setting Records

The national average for regular gasoline stood at $4.3163 a gallon Monday, up from $4.1505 a week earlier and $3.1752 a year ago, according to AAA.

Diesel hit a new all-time high of $6.2301 a gallon, up from $5.9015 a week earlier and $3.6923 a year ago.

Sen. Elizabeth Warren (D-Mass.) and Sen. Chuck Schumer (D-N.Y.) have both criticized President Donald Trump over rising energy costs, blaming the ongoing war in Iran for the increase.

Trump has said he expects gas prices to fall once the war ends, though he's acknowledged relief may not come until after the midterms.

It is unclear if other retailers, such as Amazon.com, Inc. (AMZN ), Walmart Inc. (WMT ), and AutoZone Inc. (AZO ) will also follow Costco's lead.

The three companies did not immediately respond to requests for comment.

Price Action: On Monday, Costco climbed 1.56% to close at $918.91 and gained 1.49% in after-hours trading.

Benzinga edge rankings indicate Costco's stock has a Momentum score in the 17th percentile and a Growth score in the 48th percentile.

No Prenup, $930 Million on the Line: Lululemon Founder Chip Wilson's Divorce Could Reshape His Stake in the Company

Benzinga News — Tue, 15 Sep 2026 08:31:59 -0400

Lululemon Athletica Inc. (LULU ) founder Chip Wilson's divorce from Shannon Gray could put his roughly $930 million stake in the company under scrutiny, though a recent report says it remains unclear whether he would need to sell any shares. Divorce Puts Wilson's Holdings Under Scrutiny

Wilson and Gray are divorcing after nearly 25 years of marriage and do not have a prenuptial agreement, according to a report on Monday by the Wall Street Journal, which estimates Wilson's fortune at about $6 billion. Lululemon's May cooperation agreement says Wilson and affiliated entities beneficially owned about 8.7% of the company.

British Columbia's Family Law Act generally gives separating spouses equal interests in family property. Property owned before a relationship is usually excluded, but the increase in its value during the relationship is generally divisible, according to the provincial government. Couples can also reach their own property-division agreement.

That leaves Wilson's Lululemon holding in question rather than automatically headed for sale. The Journal reported that high-net-worth couples can structure settlements using other assets to reduce the need for stock sales and related capital-gains taxes. Wilson also owns about 17% of Amer Sports Inc. (AS ), which the Journal valued at roughly $2.8 billion.

Proxy Settlement Keeps Founder Influence Alive

Any reduction in Wilson's Lululemon position could matter because he recently used his ownership to press for changes at the retailer. In May, Lululemon ended a proxy fight with Wilson by agreeing to appoint Laura Gentile and Marc Maurer to its board and add another apparel-focused director by Oct. 1. Wilson agreed to an 18-month standstill and limits on public criticism.

The settlement followed months of friction. Wilson argued that Lululemon had lost focus on product and brand, while the company accused him of holding "outdated perspectives". He remains the company's largest non-institutional shareholder.

Weaker Sales Raise Stakes For Lululemon

The company is also navigating weaker operating results. Lululemon said second-quarter revenue fell 4% to $2.4 billion, Americas revenue declined 8%, and Americas comparable sales dropped 12%. Former Nike executive Heidi O'Neill started as CEO this month.

Price Action: LULU shares were up 0.05% in after-hours trading on Monday, according to Benzinga Pro data.

Benzinga Edge Rankings indicate Lululemon's stock has a Momentum score in the 5th percentile and a Growth score in the 72nd percentile.

Epic Games’ Private Market Value Slides as Fortnite Struggles to Deliver its Next Growth Spurt

Benzinga News — Tue, 15 Sep 2026 08:31:53 -0400

Epic Games is one of the biggest names in gaming, but its private market shares are telling a more cautious story.

The Forge Price for Epic Games stood at $328.86 per share as of Sept. 14, down 26.92% over the past year and 31.45% over the past six months, according to Forge Global data. Epic is not publicly traded, and the Forge Price is a derived private market price rather than a conventional stock-market quote.

The decline comes as Epic faces pressure around Fortnite engagement and attempts to bring its costs more in line with its business.

Epic's recent private-market performance comes after a significant valuation reset. The company reached a $31.5 billion valuation in April 2022, when Sony Group Corp (SONY ) and Kirkbi, the family investment group behind Lego, each invested $1 billion in Epic.

Less than two years later, Epic's valuation had fallen. In February 2024, Walt Disney Co (DIS ) invested $1.5 billion in the company in a transaction that valued Epic at $22.5 billion, according to private market data. That represented roughly a 29% decline from Epic's 2022 valuation benchmark.

The current Forge Price adds another layer to that valuation story. While Forge's price is not directly comparable to a primary funding-round valuation, its nearly 27% one-year decline shows sentiment in the private secondary market has weakened further.

Fortnite Becomes a Problem

Fortnite remains a key driver of Epic's business - and a growing source of concern for investors.

In March, CEO Tim Sweeney told employees that a downturn in Fortnite engagement that began in 2025 meant Epic was "spending significantly more than we're making." The company announced more than 1,000 layoffs and said it had identified more than $500 million in savings through reductions in contracting, marketing and open positions.

The cuts followed another major round of layoffs in 2023, when Epic eliminated roughly 830 positions.

While Fortnite continues to attract a massive audience, engagement has weakened. Reuters reported that while Fortnite remained among the most-played games, average playtime had fallen, creating a challenge for a live-service business that depends on keeping players engaged and spending.

That makes the private market decline particularly notable. Investors aren't necessarily betting against Fortnite itself; they may be reassessing how much future growth can be generated from a franchise that has already reached enormous scale.

Epic's Next Growth Engine

Epic has been trying to build a business that extends beyond Fortnite, including through Unreal Engine, the Epic Games Store and its creator ecosystem.

The company has also been pushing toward a broader vision in which Fortnite functions more like a platform than a single game, giving creators more ways to build experiences and monetize content.

That strategy could ultimately help Epic diversify its revenue and reduce its dependence on the engagement cycle of one blockbuster title. But for now, the private market numbers suggest investors are taking a more cautious view.

Meta, Google, OpenAI, Snap in Focus as EU Reportedly Moves to Keep Under-15s off Social Media and ChatGPT

Benzinga News — Tue, 15 Sep 2026 08:31:46 -0400

The EU is reportedly preparing sweeping new digital safety rules that would restrict children under 15 from independently accessing social media, AI chatbots, video-sharing platforms and online games.

EU Plans Sweeping Child Safety Rules

The proposal is part of an EU Kids Act that European Commission President Ursula von der Leyen and EU tech chief Henna Virkkunen are expected to present Thursday, Reuters reported on Monday.

Von der Leyen could preview parts of the plan in her State of the Union address Wednesday.

Under the proposed framework, children 15 and older could create their own accounts, while those ages 13 and 14 could access social media and video platforms only through parent-created accounts with strict controls, limited contacts and time restrictions.

Children ages 3 to 12 would be limited to child-friendly services under parental control, while children under 3 would have no access.

European Commission did not immediately respond to Benzinga's request for comment.

Tech Platforms Face Tougher Requirements

The proposal would require companies to address addictive designs and potentially harmful recommendation feeds, while providing easier ways for children to report harmful content and stronger parental controls.

Social media and video-sharing platforms would also have to verify users' ages when creating accounts. Gaming platforms would be required to conduct age checks before allowing games to be downloaded.

Companies would also pay supervisory fees to help regulators enforce the rules.

EU Targets Big Tech Over Online Risks

The proposed restrictions come amid growing concerns over children's online safety and the effects of platforms including Meta Platforms, Inc.'s (META ) Facebook and Instagram, Elon Musk's X, TikTok, YouTube, a subsidiary of Alphabet Inc.'s (GOOG ) (GOOGL ) Google and OpenAI's ChatGPT.

Previously, Musk criticized the U.K.'s under-16 social media restrictions, calling the policy a "censorship law" meant to enable government tracking.

Meta, YouTube, Snap Inc.'s (SNAP ) Snapchat and TikTok have also pushed back against social media bans, warning they could isolate teens and drive them toward less-regulated platforms.

According to a survey conducted by GfS Bern for the Mercator Foundation, an overwhelming 94% of people in Switzerland supported stricter safeguards for children and teenagers on social media.

Benzinga Edge Stock Rankings show Meta trending upward across the short, medium, and long term, with a Growth score in the 79th percentile.

Meta Muse Monetization ‘Somewhat Limited’ In Near Term: Analyst

Benzinga News — Mon, 14 Sep 2026 12:44:28 -0400

While Meta Platforms Inc's (META ) Muse consumer AI agent represents a significant advance in AI product execution, monetization remains "somewhat limited" in the near term, according to Wedbush analyst Ygal Arounian.

The Meta Platforms Analyst: Arounian maintained a Neutral rating and raised the price target from $595 to $650.

Meta's stock rallied around 6% following the release of its personal AI agent, Muse.

He added the following about Muse:

Will operate as a freemium model, with subscriptions of $20 per month or $100 per month depending on usage.
Proactively assists users with personal goals and provides tailored suggestions.
Interacts with conversational language to help manage daily lives.

Meta Muse is an interesting development at the intersection of AI and commerce, Arounian said. It is a "brand-new-to-world product" that requires consumers to learn what an agent can do for them, he added. Any meaningful paid adoption could take time and even management has positioned the personal agent as a longer-term AI monetization opportunity.

Muse subscriptions could reach around $5 billion in 2027, representing about 1.5% of Meta Platforms' total revenue estimate, Arounian said. For what Meta calls "Business AI," the analyst's base-case assumption is roughly $1 billion in revenue in 2027.

He added that the geographic distribution could be:

The US and Canada creating a $3.3 billion opportunity
Europe representing an opportunity of $2.1 billion

Explaining the reason for the target price being raised, Arounian said, "While still taking a more measured approach on monetization, we do acknowledge progress on Meta's AI model and product improvement cadence and reflect that in our target multiple."

META Price Action: Shares of Meta Platforms had risen by 0.64% to $652.16 at the time of publication on Monday.

Exxon Sees the US Supplying Nearly a Third of the World's LNG by 2030

Benzinga News — Mon, 14 Sep 2026 12:44:20 -0400

ExxonMobil Holdings Corporation (XOM ) shares are trading higher by over 1% on Monday. At an energy forum in Bangkok, Peter Clarke, senior vice president of LNG at ExxonMobil Upstream, reportedly said that the company expects U.S. liquefied natural gas supply to expand and account for about 30% of global LNG supply by 2030, according to Reuters. He added that the U.S. has become a major LNG supplier, with North America among the world's largest gas-producing regions.

Details

Clarke said North America has sufficient gas resources to meet both domestic consumption and export demand.

The outlook points to continued expansion in U.S. LNG supply through the rest of the decade as new liquefaction capacity comes online and natural gas output increases. The U.S. Energy Information Administration (EIA) expects dry natural gas production to rise from 107.6 billion cubic feet per day (bcf/d) in 2025 to 111.7 bcf/d in 2026 and 115.9 bcf/d in 2027.

U.S. LNG exports are projected to increase to 17.4 bcf/d in 2026 and 18.6 bcf/d in 2027, from 15.1 bcf/d in 2025, with the EIA citing higher production from the Permian and Haynesville regions as one factor behind the output growth.

Technical Setup: XOM Above Key Moving Averages Near Highs

From a longer-term trend perspective, ExxonMobil remains in a clear uptrend: the stock is trading 3.4% above its 20-day SMA ($162.74), 8% above its 50-day SMA ($155.79), and 15.3% above its 200-day SMA ($145.93). That "stack" of rising moving averages (with the 20-day above the 50-day, and the 50-day above the 200-day) is a classic bullish structure that tends to attract dip buyers.

Momentum is also leaning constructive: MACD is above its signal line and the histogram is positive, which suggests downside pressure is easing and the latest push higher is gaining traction versus the prior downswing. In plain English, when MACD is above the signal line, it often means buyers are starting to win more of the day-to-day battle.

The chart context matters here because the stock's recent swing low formed in June and the most recent swing high printed in August, framing the current move as a "higher-high/higher-low" attempt rather than a dead-cat bounce. With the 52-week high at $176.41 (reached in March), traders will often watch whether price can build acceptance above nearby pivots without quickly fading back into the mid-$160s.

Key Resistance: $168.50 - a nearby pivot area that can act like a "speed bump," especially with price currently pressing just above it
Key Support: $155.50 - a prior buyer-defense zone that sits close to the 50-day moving average area, making it a logical trend support level

XOM Earnings Preview and Analyst Price Targets to Watch

Looking further out, the next major catalyst for the stock arrives with the October 30, 2026 (estimated) earnings report.

EPS Estimate: $3.68 (Up from $1.88 YoY)
Revenue Estimate: $99.80 Billion (Up from $85.29 Billion YoY)
Valuation: P/E of 21.4x (Suggests fair valuation relative to peers)

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $170.33. Recent analyst moves include:

Piper Sandler: Neutral (Raises Target to $185.00) (Sept. 3)
Morgan Stanley: Overweight (Raises Target to $177.00) (Aug. 19)
Barclays: Overweight (Lowers Target to $177.00) (Aug. 17)

Top ETF Exposure: WR, HDV, and IGE Weighting in XOM

Corgi U.S. War Machine ETF (WR ): 8.32% Weight
iShares Core High Dividend ETF (HDV ): 7.81% Weight
iShares North American Natural Resources ETF (IGE ): 9.99% Weight

Significance: Because XOM carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

XOM Stock Today: ExxonMobil Shares Higher on Monday

XOM Stock Price Activity: ExxonMobil Holdings shares were up 1.04% at $167.71 on Monday, according to Benzinga Pro data.

Larry Ellison Cancels Massive $7.5 Billion Oracle Stock Sale Plan

Benzinga News — Mon, 14 Sep 2026 12:44:14 -0400

Larry Ellison has scrapped a plan to sell as much as $7.5 billion worth of stock in Oracle Corp. (ORCL ), reversing course just one day after the arrangement became public.

Oracle disclosed in a regulatory filing on Friday, Sept. 11, that its co-founder and executive chair had adopted a Rule 10b5-1 trading plan on June 22 permitting him to sell up to 50 million shares.

The company confirmed the cancellation in a statement Saturday, Sept. 12.

"No Oracle stock was sold under that plan, and he has no other plans to sell any of his Oracle stock," Oracle said. The company offered no explanation for the reversal.

The plan was scheduled to run through Oct. 24. At Friday's closing price, the full 50 million shares carried a value of roughly $7.5 billion. Rule 10b5-1 plans let corporate insiders schedule stock trades in advance, shielding them from allegations of trading on nonpublic information. A cooling-off period typically applies before trades can execute.

Ellison's decision stands out against his own trading history. He has not sold more than 25,000 Oracle shares in any single instance since the start of this century, according to CNBC, citing FactSet data.

Had he executed the full sale, Ellison would still have retained roughly 1.1 billion shares. He currently controls more than 40% of the company.

Oracle chose to issue its cancellation statement on a Saturday, an unusual timing choice for corporate disclosures. The three-sentence release gave no further detail beyond confirming zero shares changed hands and no new sale plans exist.

CNBC's Jim Cramer sees a possible short squeeze brewing after Ellison's move to scrap his Oracle stock sale plan.

"Larry's going to jam up the shorts but good with that cancellation of his Oracle sell plan. He's one canny fellow," Cramer posted on X.

The AI-Spending Backdrop

The episode unfolded against a backdrop of investor scrutiny over Oracle's aggressive spending on AI infrastructure. Shares have faced pressure in recent months as the company has ramped up capital commitments tied to data-center buildouts, and the Wall Street Journal noted Oracle stock fell further following the cancellation news.

Whether the reversal reflects confidence in Oracle's valuation, sensitivity to how a large insider sale might be perceived amid AI-spending concerns, or another factor entirely remains unclear. Ellison built his stake as Oracle's co-founder and has held on to the bulk of it through decades of the company's growth into a database and cloud-computing giant.

For now, the withdrawn plan removes a potential overhang tied to insider selling, even as broader questions about Oracle's AI-related spending trajectory persist among investors watching the stock closely.

ORCL Stock Price Activity: Oracle shares were down 3.77% at $144.61 on Monday, according to Benzinga Pro data.

SpaceX Faces Starship Dilemma: Starlink Revenue or Moonshot R&D?

Benzinga News — Mon, 14 Sep 2026 12:44:08 -0400

Space Exploration Technologies Corp. (SPCX ) is about to turn Starship into a revenue-generating rocket for the first time, raising a new question for Elon Musk: how much launch capacity goes to Starlink, and how much goes to reaching the Moon? SpaceX has spent more than $15 billion developing Starship. Now the rocket could quickly expand Starlink, its biggest source of revenue.

NASA, meanwhile, still needs SpaceX to prove Starship can refuel in orbit and safely carry astronauts before it can return humans to the Moon.

Starlink Starts Paying Back

CFO Bret Johnsen said Thursday at Goldman Sachs' Communacopia and Technology Conference that Flight 14 will carry production Starlink V3 satellites and become Starship's first "revenue-generating flight."

Starlink generated $11.4 billion in revenue last year, more than twice the roughly $4.3 billion value of SpaceX's NASA lunar contracts.

Musk said on SpaceX's second-quarter earnings call that V3 satellites are more than 10 times as capable as V2, with SpaceX planning to launch roughly 10 times as many.

"I think people are really underestimating Starlink here," Musk said. "This is a big deal."

NASA Needs a Different Starship

Each launch gives engineers another chance to test reliability, reentry and reuse, all of which are needed before humans can fly.

Starlink missions can do some of that work while also generating revenue. But reaching the Moon requires additional tests that ordinary Starlink launches cannot provide. SpaceX still needs to prove Starship can refuel another spacecraft in orbit and operate for long periods in space.

NASA's lunar lander is also a separate version of Starship, requiring additional development and testing. Bloomberg reported that a single Moon mission could require a dozen or more refueling launches.

SpaceX has warned investors that it may prioritize its own payloads over government or third-party missions. But NASA remains an important customer. Roughly a fifth of SpaceX's reported revenue comes from U.S. government contracts.

NASA is targeting a lunar landing in early 2028, while Blue Origin is developing a rival lander.

Traders Bet on Flight 14

Polymarket traders put a 92.5% chance on Flight 14 launching by Sept. 30 and a 79% chance on a successful splashdown, with roughly $516,000 traded across the Flight 14 markets.

Pivotal Research initiated SpaceX coverage last week with a Buy rating and $220 target, arguing its roughly $2 trillion valuation rests heavily on rapid Starship reuse.

That target sits about 45% above SpaceX's $151.21 Friday close.

OpenAI, Anthropic Call for AI Slowdown: Chips Sink, Cybersecurity Stocks Jump

Benzinga News — Mon, 14 Sep 2026 12:43:56 -0400

The loudest calls to slow down or govern artificial intelligence are coming from the few people who have already built multi-billion-dollar empires on it.

In a Saturday essay titled "We Must Pace the Frontier," Anthropic CEO Dario Amodei urged the industry to "slow the pace" of model capability gains, warning that rogue AI agents could form a massive botnet and cause hundreds of billions in damage within six to 12 months. To mitigate the risk, Anthropic will give external evaluators employee-level system access.

OpenAI's Sam Altman, DeepMind's Demis Hassabis, and Tesla's Elon Musk all backed the proposal, with OpenAI committing to similar third-party testing.

When the biggest - and wealthiest - names in AI call their own growth rate a threat, Wall Street listens.

The Tape Repriced Before The Bell

Nasdaq-100 futures tumbled 1.5% and S&P 500 futures lost 0.6%, while Dow Jones Industrial Average futures fell 114 points, or 0.2%.

In Asia, SoftBank closed nearly 11% lower and South Korea's Kospi sank 3.3%, hurt by a 6.4% drop in SK Hynix Inc. (SKHY ). In Europe, ASML Holdings N.V. (ASML ) fell 6%.

NVIDIA Corporation (NVDA ) dropped roughly 3% on unusually heavy premarket volume.

The semiconductor selloff reflects a fear that slower model development could reduce demand for training chips, memory, networking equipment and data-center capacity.

Company | Premarket Change at 8:30 a.m. Monday

Corning Inc. (GLW )-9.5%
Lam Research Corp. (LRCX )-8.2%
Marvell Technology Inc. (MRVL )-8.0%
Vertiv Holdings Co (VRT )-7.9%
Hewlett Packard Enterprise Co. (HPE )-7.7%
Coherent Corp. (COHR )-7.4%
Applied Materials Inc. (AMAT )-7.3%
Intel Corp. (INTC )-6.6%
GE Vernova Inc. (GEV )-6.5%
Micron Technology Inc. (MU )-6.0%
Advanced Micro Devices Inc. (AMD )-5.8%
Eaton Corp. plc (ETN )-5.8%

Cybersecurity: The Other Side Of The AI Trade

The strongest buying appeared in companies positioned to protect enterprises against increasingly capable AI systems.

CrowdStrike Holdings, Inc. (CRWD ), SailPoint, Inc. (SAIL ) and Palo Alto Networks, Inc. (PANW ) each gained roughly 5.1%.

ServiceNow, Inc. (NOW ) rose 4.9%, alongside HubSpot, Inc. (HUBS ).

Amodei's warning was not about slower revenue. It was about autonomous agents behaving badly at scale.

If you believe that risk is real enough for the people building the models to say it out loud, the budget line that grows is security, regardless of what happens to chip orders.

Is The AI Trade Really Cracking?

The AI trade has survived bubble talk, capex scares and a bad earnings print. It has never been asked to slow down by the billionaires selling it.

Yet, Amodei's proposal isn't an abandonment of progress; it's a push for mandatory safety testing, external evaluation, and governance. Unintentionally or not, these proposals also construct massive regulatory moats that entrenched, multi-billion-dollar incumbents are uniquely positioned to navigate-even as intense U.S.-China rivalry and unyielding data-center commitments make a true global halt nearly impossible.

Monday's move may not mark the end of the AI capital-expenditure cycle. It could represent its first major broadening into cybersecurity and governance.

The AI trade is no longer only about who provides the most computing power.

It is increasingly about who prevents that power from becoming a liability.

Anthropic Is Reportedly RUM’s $13.7 Billion Mystery Customer

Benzinga News — Mon, 14 Sep 2026 09:30:54 -0400

RUM Group Inc. (RUM ) stock jumped in Monday's premarket session. The move followed a report identifying Anthropic as the customer behind RUM Group's $13.7 billion GPU services contract. The Information reported Sunday that Anthropic signed the six-year compute agreement with the Trump-linked company.

RUM Group had previously disclosed the contract in an August regulatory filing. However, it identified the customer only as an unaffiliated U.S.-based third-party cloud customer.

$13.7 Billion GPU Deal

Under the six-year agreement, the customer will buy GPU services from the company's Maysville, Georgia, data center, which remains under development.

The roughly $13.7 billion order is split evenly across three tranches. The third tranche remains subject to the customer approving RUM Group's proposed delivery date.

The deal also includes a warrant allowing the customer to buy up to 50.8 million RUM Group Class A shares for 1 cent each. Half of those shares can vest as the customer purchases the three initial GPU tranches. The remaining shares could vest through additional GPU-service agreements.

Financing Risk Remains

However, the company faces a major funding requirement. It said it must build and operate the data center while buying large quantities of GPUs and related equipment.

The company said it did not have financing in place for those expenditures when it filed the 8-K. It expects to rely substantially on debt, equity or both.

That creates execution risk. New equity could dilute existing shareholders, while additional debt could increase leverage. A financing shortfall could also delay construction, GPU purchases and delivery milestones.

RUM Group Raises Northern Data Stake

Separately, RUM said Thursday it expects to increase its stake in Northern Data AG from 85.2% to about 98%.

RUM Group plans to acquire additional shares from Tether Investments under an existing agreement. Tether recently agreed to acquire about 8.26 million Northern Data shares.

RUM Group also plans to start squeeze-out proceedings under German law to acquire the remaining roughly 2%. That would give the company full ownership of Northern Data.

RUM Group Price Action

RUM Price Action: RUM Group shares were up 10.88% at $7.95 during premarket trading on Monday, according to Benzinga Pro data.

Oracle’s AI Fortress Goes Beyond OpenAI, Analyst Calls Stock ‘Essential’

Benzinga News — Mon, 14 Sep 2026 09:30:46 -0400

Oracle Corp. (ORCL ) stock fell nearly 4% in Monday premarket trading as weakness across technology stocks weighed on sentiment. Nasdaq futures dropped 1.85%, while S&P 500 futures fell 0.77%. The stock fell as investors reassessed the outlook for artificial intelligence infrastructure spending. The Financial Times reported that investors are concerned calls to slow AI development could eventually translate into lower infrastructure and capital spending.

Those concerns intensified after Anthropic CEO Dario Amodei called for leading AI companies to work together on managing the technology's development and safety. OpenAI CEO Sam Altman and SpaceX (SPCX ) CEO Elon Musk supported the effort, according to the Financial Times.

Barclays strategist Emmanuel Cau said a greater focus on AI safety could raise questions about the pace of capital spending. Investors are also weighing what slower investment could mean for global growth and corporate earnings.

However, the premarket weakness comes as some investors remain bullish on Oracle's longer-term artificial intelligence opportunity.

Oracle An 'Essential' AI Stock, Kilburg Says

KKM Financial founder Jeff Kilburg called Oracle an "essential" stock to own as the software giant expands its role in AI infrastructure.

Speaking on CNBC Friday, Kilburg pointed to Oracle's latest quarterly results and growing backlog as evidence of strong demand.

"They beat on so many metrics," Kilburg said. He highlighted remaining performance obligations, or RPO, which he said increased by about $26 billion.

Oracle shares initially jumped about 7.5% to 8% following the results, Kilburg said. However, the rally faded after the stock stalled around $164 to $166.

Kilburg attributed part of the reversal to heavy options activity. Traders had bought more calls than puts ahead of the report, raising expectations for a move toward $175. When the rally stalled, short-dated options activity helped drive the shares lower, he said.

Still, Kilburg said the longer-term investment case remains intact. "We believe it's an essential name," he told CNBC.

AI Opportunity Extends Beyond OpenAI

Kilburg also pointed to Oracle's deep presence across Fortune 500 companies. Its software can be costly and difficult for customers to replace. That installed base also gives Oracle an opportunity to sell customers more AI computing capacity.

He also played down concerns about Oracle's exposure to OpenAI.

Even if OpenAI were to falter, Kilburg argued that demand for computing infrastructure would remain. Another AI company could potentially use that capacity instead.

His comments underscore the broader investment thesis around Oracle. Individual AI winners may change, but demand for the infrastructure powering AI could remain strong.

Oracle Technical Analysis

Oracle's technical picture remains mixed. The stock is about 3% below its 20-day simple moving average of $149.38. However, it remains about 3% above its 50-day SMA of $140.68.

Longer-term signals remain bearish. Oracle trades about 11.7% below its 100-day SMA of $163.93 and 13.6% below its 200-day SMA of $167.64.

The relative strength index stands at 51.53. That is a neutral reading and suggests neither buyers nor sellers have a clear momentum advantage.

Meanwhile, the 20-day SMA remains above the 50-day SMA, supporting the near-term trend. However, the 50-day SMA remains below the 200-day SMA following a January death cross.

Oracle has fallen 50.26% over the past 12 months.

Key resistance stands near $159.50, while support is around $137.

Analyst Outlook

Oracle carries a Buy consensus rating and an average price forecast of $252.65.

On Sept. 11, Stifel maintained a Buy rating but lowered its price forecast to $200. TD Cowen maintained its Buy rating and $240 forecast. UBS maintained a Buy rating and raised its forecast to $250.

Oracle Benzinga Edge Rankings

Oracle's Benzinga Edge rankings show a sharp divide between growth and market momentum. The stock scores 96.46 for Growth but just 6.8 for Momentum and 18.68 for Value.

The combination points to strong underlying growth metrics but weak stock-price momentum. A move above longer-term resistance could strengthen the technical picture. However, a break below $137 could increase downside risk.

Price Action

ORCL Stock Price Activity: Oracle shares were down 3.55% at $144.95 during premarket trading on Monday, according to Benzinga Pro data.

Fed Hike, 5% Yields, $100 Oil: Why Wall Street Won't Crack

Benzinga News — Mon, 14 Sep 2026 09:30:39 -0400

The Federal Reserve is widely expected to raise interest rates Wednesday. The 10-year Treasury yield is flirting with 5% and crude is north of $100 a barrel. When you hear those three headlines together, you picture Wall Street sinking and tech getting dumped.

That is not what is happening. The S&P 500 - tracked by the SPDR S&P 500 ETF Trust (SPY ) - remains just 1.8% below its record close of 7,798.99 set Aug. 13 and is up 11.85% year-to-date.

The gap between tightening financial conditions and an equity market that refuses to break comes down to one thing, and it is visible in the data rather than in sentiment.

Earnings Are Outrunning The Macro Shock

"Either development would normally be enough to break a global bull market in stocks. Neither has so far. That's because corporate earnings keep climbing," Ed Yardeni, president of Yardeni Research, wrote Sunday.

Higher bond yields reduce the present value of future corporate profits and make government debt more attractive relative to stocks. But that valuation pressure becomes less damaging when the earnings being discounted are increasing rapidly.

Analysts expect S&P 500 earnings to grow 28.7% year over year in the third quarter and 26.3% in the fourth, according to FactSet.

This would mark the third consecutive quarter above 25% and the eighth straight quarter of double-digit growth.

Full-year earnings are projected to rise 32%.

The strength is not limited to America.

Yardeni noted that forward earnings for the MSCI All Country World ex-U.S. Index have increased 40.4% over the past year, compared with 10.5% revenue growth. Its forward profit margin has reached a record 12.6%.

Why A Fed Hike May Not Break The Rally

Fed-funds futures have already incorporated most of the move, allowing Treasury yields and equity valuations to adjust before Wednesday's announcement.

The CME FedWatch Tool put the probability of a 25-basis-point hike at 85.5% as of Sept. 12, which would lift the target range off its current 3.50%-3.75%.

A second hike is almost fully priced in by year-end.

The Market Absorbs Higher Rates, But Isn't Immune To Them

A sustained move in the 10-year yield above 5%, another surge in oil or unexpectedly hawkish guidance from Fed Chair Kevin Warsh could force investors to reconsider the valuation maths.

Wednesday is a Summary of Economic Projections meeting, so the dot plot lands alongside the decision. A hike is priced; a dot plot pointing to several more is not.

The market can absorb a higher discount rate while earnings grow 28%.

It cannot absorb a higher discount rate while earnings estimates start falling. The third-quarter reporting season, which begins in three weeks, will test that.

For now, however, earnings growth is winning the tug-of-war.

Cybersecurity Stocks Rally as AI Safety Debate Heats Up

Benzinga News — Mon, 14 Sep 2026 09:30:30 -0400

CrowdStrike Holdings Inc. (CRWD ) and Palo Alto Networks Inc. (PANW ) shares are trading higher Monday, along with cybersecurity stocks broadly, following fresh warnings from top AI executives about the risks of advancing AI capabilities. CrowdStrike CEO George Kurtz pushed back directly on those warnings, arguing that securing AI's progress matters more than slowing it down.Debate Over AI Speed Gains Momentum

On September 12, Anthropic CEO Dario Amodei published an essay arguing that fully addressing AI risks requires not just investment in risk prevention but also "pacing" the rate of capabilities advancement so that safety measures can keep up. OpenAI CEO Sam Altman voiced agreement, saying the question of pacing AI development has become a major internal discussion topic at OpenAI.

Cramer Calls CrowdStrike a Must Buy

Kurtz responded that frontier AI labs will continue advancing their technology regardless of any individual company's restraint, arguing that the cybersecurity industry's role is to make that development safer rather than slower. The response drew attention from CNBC's Jim Cramer, who called CrowdStrike a "MUST BUY" following Kurtz's post.

The warnings have lifted cybersecurity stocks broadly, with Okta Inc. (OKTA ) gaining roughly 4% as investors rotate into names seen as less exposed to a potential AI slowdown while still benefiting from rising security spending.

Cybersecurity Shares Rush Higher

Price Action: At the time of publication, CrowdStrike shares are trading 6.08% higher at $219.30, Palo Alto shares are trading 4.95% higher at $347.02 and Okta shares are trading 3.57% higher at $172.45, according to data from Benzinga Pro.

CLARITY Act Failure Would Be 'The Worst Outcome,' Bernstein Says

Benzinga News — Mon, 14 Sep 2026 09:30:20 -0400

Bernstein analysts told clients Monday that the CLARITY Act has made more progress than markets expected and that investors have not priced in any positive surprise ahead of Tuesday's cloture vote.

Why Bernstein Thinks the Market Is Wrong

In a note cited by The Block, Bernstein analysts led by Gautam Chhugani wrote that prediction markets have been too pessimistic on the CLARITY Act, with Kalshi odds climbing back above 30% after Senate Republicans released what they called a final draft Sunday night.

The draft incorporates 126 substantive changes Democrats requested, and President Donald Trump agreed to most of a bipartisan ethics proposal, including giving state attorneys general an enforcement role and adding crypto divestment and blind trust conditions for public officials.

"Any positive surprise is definitely not priced in," the analysts wrote. Bernstein called the ethics offer "probably as good as it gets," arguing the concessions could win over enough Democrats to clear Tuesday's 60-vote cloture threshold.

Republicans hold 53 seats, meaning seven to 10 Democrats need to cross over. Bloomberg reported that roughly that many Democrats "sound like they want to ultimately pass a bill."

Why Everyone Loses If the Bill Fails

Bernstein argued that a failure hurts the banking lobby just as much as the crypto industry.

The latest draft gives banks guardrails around stablecoin yield and deposit flight during a potential banking crisis.

Without that language, third-party platforms keep offering full yield on idle stablecoin balances with no restrictions, the exact outcome banks have been pushing to prevent.

The analysts also noted that Senate Democrats face their own political risk heading into the midterms.

The crypto lobby has backed candidates from both parties, and voting against the bill risks being cast as anti-crypto in competitive races.

What This Week Could Mean for Crypto Prices

Bernstein warned that this week stacks two major catalysts back to back: Tuesday's CLARITY Act cloture vote and Wednesday's Fed rate decision.

A hawkish Fed combined with a failed vote could trigger a major drawdown across both crypto assets and crypto stocks.

Current positioning carries a bearish bias, so a positive outcome on either front would hit an underpositioned market hard to the upside.

If the bill fails, Bernstein said the SEC and CFTC would likely accelerate their own crypto rulemaking, which could help crypto stocks recover after an initial selloff.

CFTC Chair Michael Selig has warned that regulators could end up writing all the rules themselves if Congress does not act.

AI Books Are Flooding Amazon — 63% of Religious Titles Flagged as AI, While Human Authors Face a Revenue Squeeze: Report

Benzinga News — Mon, 14 Sep 2026 09:29:38 -0400

AI-generated books are proliferating across Amazon (AMZN ), with research pointing to growing competition for human authors and lower revenue per selling book.

An Originality.AI analysis of 2,034 religious books published on Amazon found that 1,272, or 63%, were flagged as likely written by large language models. Separately, a Stony Brook University-led study examined 14,419 self-published genre-fiction books sold on Amazon from 2023 through 2026 and found 2,880 had more than 25% of their prose flagged as AI.

The Stony Brook study found the number of books with observed quarterly sales increased 19.2-fold over three years, while quarterly revenue rose 8.9-fold, indicating lower revenue per selling book. Books without detected AI text lost the most ground in genres with higher AI diffusion.

Human Authors Squeezed

"The crowding-out effect generated by these books-most of which are low quality, but some of which are still good enough that they lead to higher ranks-due to this increased competition, they're likely to get squeezed, and their revenues are reduced," Paramveer Dhillon, an associate professor of information at the University of Michigan and study coauthor, told Fortune in a report published Monday.

Tuhin Chakrabarty, an assistant professor of computer science at Stony Brook University and study coauthor, told Fortune that an "algorithmic bubble" could make it harder for lesser-known human authors to appear in related-book listings as AI-generated titles gain visibility.

Amazon requires self-published authors to disclose AI-generated text and limits uploads to three titles per day. An Amazon spokesperson told Fortune the company uses safeguards to prevent, detect and remove books that violate its content guidelines.

The findings add to a debate over AI and copyrighted works. Coverage has highlighted legal disputes over whether AI companies can use copyrighted books and other material to train models, while an AI-generated reading-list incident showed how fabricated titles could surface in online search results.

Anthropic Picks Nasdaq for Its $2 Trillion IPO, Tells Investors It Expects a Second Consecutive Profitable Quarter: Reports

Benzinga News — Mon, 14 Sep 2026 09:29:29 -0400

Anthropic has reportedly selected Nasdaq as the venue for its planned initial public offering and has told a small group of investors it expects positive adjusted operating income for a second straight quarter.

Nasdaq Wins Another Major AI Listing

Anthropic is targeting an October listing on Nasdaq, Business Insider reported on Sunday, citing a person familiar with the matter.

A listing there would also make the company eligible for inclusion in the Nasdaq 100 Index.

The IPO could value Anthropic at $2 trillion or more, surpassing the $1.75 trillion valuation of Elon Musk's Space Exploration Technologies Corp.'s (SPCX ) listing in June.

Its Series H funding round in May valued the company at $965 billion, though secondary-market transactions have reportedly pushed its implied valuation higher since, with estimates currently ranging from roughly $1.05 trillion to $1.5 trillion.

Strong Margins And Surging Revenue

The Claude maker expects positive adjusted operating income for a second consecutive quarter, with gross margins above 80% before accounting for revenue shared with distribution partners like Amazon.com Inc. (AMZN ) and the cost of training its models, according to a Financial Times report from Sunday.

Amazon is Anthropic's largest cumulative investor, with a stake of roughly $8 billion, and AWS serves as the company's primary training cloud.

Rather than releasing its IPO prospectus publicly last week as expected, the company shared documents with a small group of investors first, fielding their questions before making the filing public, the FT report added, citing people familiar with the matter.

The company's revenue rose roughly 14-fold year over year in the second quarter to $11.5 billion, with annualized revenue reaching $65 billion by the end of July, up from $9 billion at the end of last year.

Investors are forecasting Anthropic will end the year with $120 billion in annualized revenue and close 2027 with nearly triple that figure, FT said, citing Joey Brookhart, an analyst covering AI labs at SemiAnalysis.

Anthropic did not immediately respond to Benzinga's request for comment on the Nasdaq IPO plans and its reported financial results.

The Listing Comes Amid Broader AI Safety Concerns

The company's CEO Dario Amodei called on the industry to "pace the frontier," a position echoed by OpenAI's Sam Altman, who said the ChatGPT maker will remain private this year because of AI safety concerns.

According to Benzinga edge rankings, Amazon's stock has a Momentum score in the 67th percentile and a Growth score in the 93rd percentile.

America Is Short 1.2 Million Homes and Hundreds of Thousands of Construction Workers—Robots Are Starting to Fill the Gap: Report

Benzinga News — Mon, 14 Sep 2026 09:28:45 -0400

Construction robots are beginning to help address America's housing and construction-worker shortages, but their role remains focused on specific tasks rather than replacing human builders.

The U.S. is short roughly 1.2 million homes and nearly 300,000 construction workers, while labor shortages add about two months to average building timelines. Robotics is producing its clearest gains in repetitive, structured work such as layout, drilling, fastening and material handling, with the biggest benefits coming from greater precision, fewer errors and higher productivity, according to a CNBC report published Saturday.

Targeted Automation

Construction sites remain difficult to automate because projects vary in design, materials, subcontractors and site conditions. University of Michigan professor Vineet Kamat said the key question is whether robots can operate reliably across those conditions with a positive business case.

Tessa Lau, founder of Dusty Robotics, told CNBC the deeper problem is not labor replacement but standardization. Its FieldPrinter puts digital building plans directly onto floors, helping multiple trades work from coordinated layouts. Dusty says one operator can lay out 10,000 to 15,000 square feet a day.

Factory Advantage

The biggest near-term gains may come from moving more construction into controlled factory environments. In Japan, some homebuilders use highly automated factory production for substantial portions of the construction process before final assembly on site.

The trend comes as builders continue facing a severe labor shortage that slows projects and raises costs. Industry estimates also point to a need for more than 700,000 new construction workers annually to keep pace with demand.

Deere & Co. (DE ) executives similarly said construction labor remains constrained and customers are increasingly turning to technology to "do more with less."

Kamat expects robotics to increase housing output over the next five to 10 years through targeted productivity gains, not wholesale worker replacement.

Nvidia in Focus as Musk, Altman and Amodei Call for AI Slowdown

Benzinga News — Mon, 14 Sep 2026 09:28:36 -0400

Nvidia (NVDA ) stock will be in the spotlight when markets open on Monday as calls to slow the growth of artificial intelligence (AI) models continue. The scrutiny comes as the stock has slumped for five consecutive days, leaving it hovering at its lowest level since September 2. Dario Amodei, Sam Altman, Elon Musk Urge AI Model Slowdown

Nvidia has become the poster child of the artificial intelligence industry because of its GPUs and its large investments. Its annual revenue is expected to jump to over $411 billion this year and $677 billion next year.

The company has also become the biggest investor in the AI industry. It has invested in top companies like Anthropic and OpenAI. In addition to this, it has invested in top companies like Marvell Technologies, Lumentum, CoreWeave, Nebius, Intel, SpaceX, Arm, IREN, and Nokia.

Therefore, its stock will be affected by the recent calls by top players in the AI industry to slow down AI model growth. In a long post on Saturday, Anthopic's Dario Amodei said that the current phase will likely put people at risk. He said, "We must slow the pace at which we improve the capabilities of AI models. Progress will still seem fast, and we must make wise use of the time we gain."

His statement comes a few days after an Anthropic employee resigned, warning that unchecked growth may lead to human extinction by 2030. Other top players in the industry like Sam Altman and Elon Musk have also warned about the growth.

Consequently, Altman said that OpenAI will not go public this year, citing the safety issue. This is important for Nvidia is one of OpenAI's biggest shareholders. It has invested over $30 billion and has committed to providing a financial backstop of its Ohio data center.

Nvidia Stock Has Slipped This Month, But Analysts Expect a Rebound

The new worries come at a time when Nvidia's stock has come under pressure in the past few days. It has slipped from this month's high of $234 to the current $218 and is sending mixed signals.

On the positive side, it has formed a cup-and-handle pattern and remained above the 50-day and 100-day Exponential Moving Averages (EMA). On the other hand, it has formed a rising wedge pattern, which is made up of two ascending and converging trendlines.

The stock has formed a bearish divergence pattern as the Percentage Price Oscillator (PPO) has continued falling. Therefore, there is a risk that the stock will drop to the psychological level of $200.

Top analysts remain optimistic about Nvidia shares, with the consensus target among analysts being $324, up by 48% from the current level. Raymond James' analysts have a target of $515, up by 130% from the current level.

Shopify Stock Lags the Market, But Top Analyst Sees a Buying Opportunity

Benzinga News — Mon, 14 Sep 2026 09:28:31 -0400

Shopify (SHOP ) stock has slumped in the past few weeks, falling from its August high of $158 to $128 today. The stock has underperformed the broader market this year, dropping 19% since January while the S&P 500 has gained more than 10%. This performance has pushed some analysts, including one from Bernstein, to boost their outlook. Bernstein Upgrades Shopify Stock

In a note this week, Mark Shmulik, a Bernstein analyst, said that the company was primed for a rebound. He noted that the sell-off was mostly because of the sector-wide retreat of software companies, which is widely known as SaaSpocalypse.

He added that the company's fundamentals were still strong, with its revenue and profitability continuing to rise. He now expects that the stock will jump to $160, implying a 25% upside from the current level, saying:

"For whatever headwinds Shopify faces. AI further reduces the entry barriers for the next generation of builders and expands the market. Expect Shopify to be there, enabling those commerce dreams."

Other top analysts are bullish on Shopify stock. Piper Sandler's James Callahan hiked his target from $172 to $180, while Rosenblatt Securities' Scott Devitt hiked to $175. Royal Bank of Canada sees the stock rising to $180. Benzinga data shows that the consensus target among analysts is $168.

Shopify's Business is Still Growing

The most recent results showed that Shopify's revenue jumped by 34% in the second quarter to $3.58 billion. Its gross profit soared to $1.7 billion, while its free cash flow rose from $422 million to $654 million.

Analysts expect that its organic growth will continue in the coming quarters. Its third-quarter revenue is expected to grow by 31.4% to over $3.74 billion. The annual revenue this year is expected to grow by 31.8% to $15.2 billion, with its earnings per share (EPS) continuing its strong trajectory.

A key challenge, however, is that the forward price-to-earnings multiples show that it is a highly expensive company. It has a trailing twelve-month (TTM) price-to-earnings ratio is 80, while the forward multiple is 67. These numbers are much higher than that of other companies.

Shopify Shares Landed at a Crucial Support

The daily chart shows that SHOP stock has pulled back from a high of $158.7 to the current $128.80. It has landed at a crucial support that coincides with the ascending trendline that connects the lowest swings since May this year.

Shopify also settled along the 200-day Exponential Moving Average (EMA) and the Major S/R pivot level of the Murrey Math Lines tool. Therefore, the stock will likely rebound, potentially to the Ultimate Resistance level of $150.

Apple Passes Less Inflation to iPhone Buyers Than Trump Mobile's 50% Price Jump

Benzinga News — Fri, 11 Sep 2026 13:08:44 -0400

Rising costs for parts inside smartphones have been a trending topic ahead of the latest iPhone launch from Apple Inc (AAPL ). The tech giant is raising prices for consumers, but not as much as a phone named after the current president.

iPhone vs. Trump Phone: Tale of Two Strategies

Apple recently unveiled the iPhone 18 Pro and iPhone 18 Pro Max, new smartphones that will begin shipping to consumers this month.

The iPhone 18 Pro costs $1,199, and the iPhone 18 Pro Max costs $1,299. Both phones cost $100 more than the previous iPhone Pro and Pro Max models.

On a percentage basis, the iPhone 18 Pro will cost 9.1% more, while the Pro Max will cost 8.3% more.

The rising costs come with reports that Apple is paying 38% more for parts for the latest iPhone, including a 400% increase in memory prices.

Apple and other smartphone giants must decide how much of the costs to pass on to consumers, potentially hurting their own margins.

Trump Mobile, home of the $47.45-per-month plan named in honor of 45th and 47th President Donald Trump, also raised its phone price.

According to The Verge, Trump Mobile quietly changed the price of the T1 Phone. The price went from $499 to $749. The $250 increase marks a 50.1% price increase for consumers.

Executives at Trump Mobile previously said the $499 price was an "introductory" price, which could mean the increase was expected for some time.

What it Means for Consumers

As The Verge points out, the Trump Mobile T1 Phone now compares directly in cost to the iPhone 17E and Galaxy S26E, phones that have better features and quality.

This could lower demand for the Trump Mobile T1 Phone.

Apple raising the price minimally could be seen as a win for consumers and could help the company keep demand high.

The real question will likely be when Apple unveils the flagship iPhone 18 model and pricing, as the company chose to release the Pro and Pro Max models first.

Oracle's $664 Billion Backlog Is Finally Starting to Convert, Analyst Says

Benzinga News — Fri, 11 Sep 2026 13:08:37 -0400

Oracle Corp (ORCL ) Thursday reported upbeat fiscal first-quarter results. Here are some key analyst takeaways:

Guggenheim Securities analyst John DiFucci reiterated a Buy rating and price target of $400.
Citizens JMP Securities analyst Patrick Walravens maintained a Market Outperform rating and price target of $285.
Stephens analyst Brett Huff reaffirmed an Equal Weight rating and price target of $175.
Cantor Fitzgerald analyst Thomas Blakey maintained an Overweight rating and price target of $284.
DA Davidson analyst Gil Luria reiterated a Buy rating and price target of $225.

Guggenheim Securities: Oracle reported strong quarterly results, with total revenue of $19.3 billion and non-GAAP earnings of $1.92 per share coming in higher than consensus estimates of $19.2 billion and $1.74 per share, respectively, DiFucci said in a note.

Cloud Services revenue, which includes IaaS and SaaS, grew by 61% in constant currency terms to $11.6 billion, topping consensus of $11.5 billion, the analyst stated. "ORCL signed more than $30B in new AI infrastructure contracts which further diversified its customer base across a diverse set of data center campuses," he further wrote.

Citizens JMP Securities: Oracle's revenue grew 30% year-on-year and 21% sequentially to $19.3 billion, topping consensus of $19.1 billion, Walravens said. Operating margin of 42.5% came in higher than estimates of 40.9%, he added.

Oracle Cloud Infrastructure (OCI) growth accelerating to 121% year-on-year, from 93% in the previous quarter, was "impressive," the analyst stated. While management's second-quarter guidance came in-line with expectations, they raised their fiscal 2027 projection to revenue of $90 billion, implying around 34% growth and non-GAAP earnings of $8.10 per share, both of which were higher than consensus estimates, he further noted.

Stephens: Oracle reported a modest beat across most metrics, Huff said. The company hit record totals and cloud revenues, both in absolute dollar terms and on a growth basis, he added.

With demand continuing to outpace supply, Oracle booked more than $30 billion of additional AI cloud contracts in the first quarter, pushing RPO (remaining performance obligation) to $664 billion, the analyst stated. Management raised their fiscal 2027 pro forma earnings guidance by 5 cents per share, he further noted.

Cantor Fitzgerald: This was the first time in Oracle's history that it grew revenues sequentially from the fourth quarter, Blakey said. While revenue growth was strong, at 30% year-on-year, gross margin came under pressure due to "the ongoing data center ramp and mix shift toward infrastructure," he added.

Capex of $28.5 billion in the first quarter was significantly higher than Street's estimate of $19.3 billion, the analyst stated. The company's reaffirmation of its fiscal 2027 capex of $90-$95 billion indicates that "Oracle continues to fund its build disproportionately with customer and supplier capital," he further wrote.

DA Davidson: Oracle's results exceeded expectations on both revenue and earnings, Luria said. RPO increased by $26 billion sequentially to reach $664 billion, he added.

"Importantly, RPO conversion is beginning to inflect higher as Oracle executes against its capacity buildout, deploying approximately 850 MW of capacity during the quarter, nearly 75% of FY26's total capacity additions," he further wrote.

ORCL Stock Price Activity: Oracle shares were up 0.73% at $154.06 on Friday, according to Benzinga Pro data.

Morgan Stanley Sees $80 Billion Tesla Semi Opportunity as Diesel Hits Record $6.06

Benzinga News — Fri, 11 Sep 2026 13:08:28 -0400

Tesla Inc. (TSLA ) could add roughly $80 billion in value from its Semi business, Morgan Stanley says, as U.S. diesel prices hit a record $6.06 per gallon. Analyst Andrew Percoco says the bigger prize may eventually come from autonomy, with Tesla potentially charging fleets as much as $18,000 a month per truck for self-driving software.

Morgan Stanley Sees $17 Billion Software Business

Percoco put diesel front and center in his Friday note: "$6 Diesel...Enter Tesla Semi."

Morgan Stanley estimates Tesla could have 82,000 Semis on the road by 2040, generating roughly $17 billion in software revenue and $7.5 billion in earnings before interest and taxes.

Tesla could charge $12,000 to $18,000 per month for autonomous software on each truck, or about $0.85 to $1 per mile.

That opportunity adds $20 per share to Morgan Stanley's Tesla bull case, equivalent to roughly $80 billion in market value. Percoco raised his bull-case target to $840, while keeping an Equal-Weight rating and $400 base-case target.

Tesla is trading at $366 at time of writing.

$6 Diesel Changes the Math

Morgan Stanley estimates autonomous trucks could cut fleet costs by roughly 20%, largely through lower labor, fuel and insurance expenses.

AAA puts the national diesel average at a record $6.06 per gallon, up about 63% from $3.71 a year ago.

Morgan Stanley estimates an autonomous electric truck could eventually generate around $202,000 in annual profit for an operator, compared with nearly $37,000 for a human-driven diesel truck.

The bank's model, however, assumes each autonomous truck travels 18,000 miles a month, more than double typical industry utilization.

Traders Still Doubt the Ramp

Tesla has yet to operate autonomous Semis. Elon Musk said in July that Tesla expects to get self-driving working on the truck around the end of 2026 or early 2027.

Production is also only starting to ramp. Kalshi traders give Tesla a 37% chance of producing more than 1,000 Semis in any quarter this year and just a 16% chance of topping 5,000.

Swedish electric freight company Einride has ordered 500 Tesla Semis, but expects only around 75 to enter service this year. That gives investors a near-term test of how quickly Tesla can turn Morgan Stanley's long-range forecasts into actual production.

Meta Courts European Bond Investors to Help Bankroll AI Boom

Benzinga News — Fri, 11 Sep 2026 13:08:23 -0400

Meta Platforms Inc. (META ) stock rose more than 1% Friday as investors moved into mega-cap growth stocks. Communication Services was among the market's strongest sectors. The Nasdaq gained more than 1%, while the S&P 500 rose 1.06%. Separately, Meta has been meeting with European bond investors for at least a week as Big Tech companies seek more funding for the AI infrastructure boom, Bloomberg reported, citing people familiar with the matter.

The company has not provided a timeline for a potential bond sale. The meetings are part of a non-deal roadshow, which does not guarantee an offering.

A European deal would mark Meta's first debt issuance outside the U.S. dollar market. The company last raised debt in April through a $25 billion, six-part bond offering.

The move comes as other technology giants tap overseas debt markets. Amazon.com Inc. (AMZN ) recently raised 4.25 billion pounds ($5.75 billion) in its U.K. sterling bond market debut. Alphabet Inc. (GOOGL ) (GOOG ) has also raised debt across several international markets this year.

Technical Analysis

Meta shares are trading 11.3% above their 20-day simple moving average of $586.69. The stock is also 4.7% above its 200-day SMA of $623.25.

That setup points to improving short-term momentum. However, the longer-term technical picture remains mixed. Meta's 20-day SMA is below its 50-day SMA, while its 50-day SMA remains below the 200-day SMA.

The stock formed a death cross in December 2025.

Meanwhile, MACD is above its signal line, and the histogram is positive. That suggests buying momentum is improving.

Resistance sits near $686, while support is around $556.50.

Meta Analyst Outlook

Meta carries a Buy consensus rating and an average price forecast of $772.46.

JPMorgan upgraded the stock to Overweight on Sept. 10 and raised its price forecast to $820. Wedbush maintained a Neutral rating and $595 forecast on Sept. 1. Rosenblatt maintained Buy and raised its forecast to $886 on Aug. 27.

Benzinga Edge Rankings

The Benzinga Edge scorecard gives Meta a Growth score of 79.38 out of 100. Quality stands at 67.21, while Value is 50.21.

The scores point to a growth-heavy profile with more moderate readings for quality and valuation.

Meta ETF Exposure

The stock is a major holding in the First Trust Dow Jones Internet Index Fund (FDN ), with a 9.46% weighting. It also accounts for 8.91% of the Invesco AI and Next Gen Software ETF (IGPT ) and 8.76% of the Global X Social Media ETF (SOCL ).

Its large weighting means significant fund flows into or out of these ETFs can influence demand for Meta shares.

Price Action

META Price Action: Meta Platforms shares were up 1.27% at $652.57 at the time of publication on Friday, according to Benzinga Pro data.

Michigan Consumer Sentiment Drops To Second-Lowest Reading Ever: Here's Why

Benzinga News — Fri, 11 Sep 2026 13:07:54 -0400

Sentiment among U.S. consumers deteriorated further in September.

The University of Michigan's Index of Consumer Sentiment fell to 47.8 in the preliminary September reading from 51.7 in August, a 7.5% monthly drop that leaves it the second-lowest print in the survey's history and 13.2% below where it stood a year ago.

The damage was almost entirely forward-looking. The Index of Consumer Expectations plunged 11.1% to 45.8, while Current Economic Conditions slipped just 1.9% to 50.9.

Index | Sep 2026 | Aug 2026 | MoM | YoY

Consumer Sentiment | 47.8 | 51.7 | -7.5% | -13.2%
Current Conditions | 50.9 | 51.9 | -1.9% | -15.7%
Consumer Expectations | 45.8 | 51.5 | -11.1% | -11.4%

Source: University of Michigan Surveys of Consumers, preliminary September 2026

Fuel Prices Did The Damage

Surveys of Consumers Director Joanne Hsu said sentiment has now fallen for a second consecutive month, with Democrats and Republicans both posting sizable declines while independents were little changed.

Year-ahead expectations for personal finances and for business conditions both plunged.

"With a resurgence in fuel prices and trade tensions, consumers anticipate greater pressures on their pocketbooks to come," Hsu said.

AAA put the national diesel average at a record $6.06 a gallon on Friday, the first time it has crossed $6 and a 63% increase from a year ago. Regular gasoline averaged $4.30, up 13 cents in a week and 34% over 12 months,

Diesel matters disproportionately because it prices freight, farming and construction rather than commuting, which is how an energy shock migrates into the cost of everything else.

In August, the consumer price index rose by 3.4% from a year earlier, as energy costs rose more than 16% annually.

The Number The Fed Cannot Ignore

The survey's year-ahead inflation expectations jumped to 4.6% from 4% in August, the highest since June and far above the 3.4% recorded in February before the Iran conflict began.

Long-run expectations ticked up to 3.4%, breaking three straight months at 3.3% and sitting above the 2.8% to 3.2% range that prevailed through 2024.

Policymakers watch the series for signs that expectations are drifting away from the 2% target.

The Fed Is Now Expected To Hike Next Week

Odds of a rate hike at next week's meeting climbed to roughly 86% after the CPI release, from about 70% before it.

Despite higher rate-hike expectations, equities rallied.

By late morning the Dow was up 492 points, or 0.9%, the S&P 500 and Nasdaq 100 were both higher and the CBOE Volatility Index had dropped 10.5% to 15.96.

The relief came from crude, which reversed hard after Gulf foreign ministers were reported to be meeting their Iranian counterparts in Oman on Monday to negotiate shipping through the Strait of Hormuz, and after the International Energy Agency cut its 2026 demand outlook.

WTI fell 2.8% to $99.63, though it remains up roughly 9% on the week.

Separately, Oracle Corp. (ORCL ) jumped after reporting $664 billion in remaining performance obligations, lifting the AI hardware complex.

Sam Altman Weighs AI Slowdown as Bridgewater Co-CIO Warns AI Will Kill People Before Anyone Acts

Benzinga News — Fri, 11 Sep 2026 13:07:47 -0400

OpenAI CEO Sam Altman is reportedly weighing whether the company should slow development of its most advanced artificial intelligence systems, potentially alongside rival labs, as Bridgewater co-CIO Greg Jensen warns little may be done about AI risk until it causes deadly harm.

"Until the AI starts killing people, unfortunately, history would suggest we're not going to do anything," Jensen said on Bloomberg's Odd Lots podcast, comparing the moment to February 2020.

Jensen is no AI skeptic. He backed OpenAI early and said he wrote "literally the first check to Anthropic," helping the startup make payroll during its first week.

OpenAI Talks About Hitting the Brakes

Altman told employees this week that OpenAI could pace frontier AI development alongside other labs, Bloomberg reported.

OpenAI chief scientist Jakub Pachocki has separately argued companies may need coordinated slowdowns until shared safety standards are in place. OpenAI also paused much of its model development for two weeks in August following safety concerns.

The alarm grew after nearly 700 OpenAI-based agents breached Hugging Face during cybersecurity testing in July. Jensen called the incident a warning shot, pointing to agents coordinating, hiding their actions and finding unexpected ways to pursue their goals.

Former OpenAI and Anthropic researcher Jacob Coxon also quit Anthropic this week, accusing both companies of "gambling with our lives." His post drew more than 165 million views.

Why Nvidia and Microsoft Investors Should Care

A coordinated slowdown could also affect companies supplying and financing the AI buildout.

Nvidia Corp. (NVDA ) invested $30 billion in OpenAI this year, while Microsoft Corp. (MSFT ) owns roughly 27% of the company.

A slower pace of frontier-model development could temper growth in demand for Nvidia's training chips, while Microsoft's stake leaves it directly exposed to any slowdown in OpenAI's expansion.

The Problem With Slowing Down

Jensen said competition makes it difficult for AI labs to slow development voluntarily, even when they share concerns about safety.

"It better be us. Not Sam, not Elon," he said of the mindset driving the race between Anthropic, OpenAI and Elon Musk's xAI.

U.S. AI companies have warned that slowing development could give Beijing an advantage, but Jensen argued the opposite. He said the U.S. still leads in computing power and that slowing progress at the frontier would also make it harder for Chinese labs to catch up.

"One of the reasons China's moving as fast on AI as we are is because we're moving so fast," Jensen said.

Prediction markets support Jensen's view that China remains behind. Polymarket traders give a Chinese company just a 9% chance of holding the world's top AI model by Dec. 31.

OpenAI has also asked lawmakers whether coordinating an industry-wide slowdown could violate U.S. antitrust law, Wired reported.

Jensen said the bigger danger is waiting until AI causes obvious harm before acting.

"That's going to happen," he said. "And it'd be much better if we started dealing with it before then."

Eli Lilly Utilizes Weight-Loss Drug Profits To Fund Women's Health Initiatives: Report

Benzinga News — Fri, 11 Sep 2026 13:07:40 -0400

Eli Lilly & Co. (LLY ) is reportedly preparing to expand into the women's health sector. The pharmaceutical giant is gathering specialists and researching new treatments for conditions like endometriosis and bone health.

Strategic Shift

Bloomberg on Thursday highlighted that the initiative highlights how the company is utilizing the substantial profits from its popular diabetes and weight-loss medications to finance its next major ventures.

Historically, the company concentrated on immunology, cancer, neuroscience, and cardiometabolic health.

However, recent hires and early-stage acquisitions indicate a shift toward areas where the business can make a significant impact, such as emerging therapeutic platforms, psychedelics, infectious diseases, and now, women's health, the report added.

On Friday, Eli Lilly completed its acquisition of AtaiBeckley, a clinical-stage biopharmaceutical company developing rapid-acting neuroplastogens for mental health conditions.

Building New Portfolio

The drugmaker already maintains a substantial breast cancer division and previously developed prominent osteoporosis medications, including Evista and Forteo.

The current strategy signals a broader commitment to conditions that traditionally receive less research attention, such as endometriosis and pregnancy-related disorders.

"Too many women's health conditions have gone under-researched for too long, and we are committed to broadening the women's health ecosystem and to advance science in areas of serious unmet need," Ruth Gimeno, group vice president of Cardiometabolic Health Research at Lilly, told Bloomberg.

Strategic Investments

Instead of immediately pursuing massive acquisitions, the drugmaker is cautiously establishing the necessary infrastructure and talent to ensure long-term success.

The organization is also seeking external opportunities. It recently executed a $40 million strategic investment in Absci Corp. (ABSI ).

Absci is currently designing an early-stage experimental therapy to block biological signals that cause the pain and lesions associated with endometriosis. As part of this partnership, the pharma giant secured a seat on Absci's endometriosis advisory board.

LLY Stock Price Activity: Eli Lilly shares were down 0.39% to $1118.64 at the time of publication on Friday, according to Benzinga Pro data.

Oracle Says Its AI Buildout Will Pay for Itself. Can It?

Benzinga News — Fri, 11 Sep 2026 13:07:34 -0400

Oracle Corp. (ORCL ) posted record revenue Thursday, but the more revealing numbers came from how the company is paying for its AI buildout. CFO Hilary Maxson told analysts that remaining performance obligations, or RPO, increased $26 billion from Q4. She was quick to explain the mechanics behind that growth: The vast majority of the new contracts were via prepay or bring-your-own hardware, so will not require incremental capital from Oracle.

She added that the new RPO will not impact capex or revenues until fiscal 2028 or beyond.

Co-CEO Clay Magouyrk reinforced the point on the infrastructure side, noting: "We closed more than $30 billion of additional AI contracts in Q1 without requiring additional capital from Oracle."

Asked in the Q&A how the arrangements actually work, Magouyrk didn't detail the structure, pointing back to his earlier framing: "We said it doesn't require additional cash from Oracle."

He described the broader strategy as ongoing rather than new, telling Deutsche Bank's Brad Zelnick that Oracle is constantly finding interesting ways to fund the business and that new capacity does not have to be Oracle capex.

Maxson went furthest in describing where this leads. Asked about free cash flow timing, she said completed projects are delivering a free cash flow conversion ratio of "something like 100% to post-tax EBITDA" shortly after ramping up, adding that the business, by nature, is somewhat "self-funding" at some point.

The numbers behind those characterizations are important. Maxson disclosed that Oracle's capex for the quarter was $28 billion, resulting in negative free cash flow of $5 billion, while full-year guidance holds at $90 billion-$95 billion in capex, with no more than $70 billion in net cash capex.

Management still expects around half of Oracle's RPO to convert into sales over the next 36 months - a long runway resting on prepay commitments and bring-your-own-hardware deals that shift financing risk onto customers, suppliers and lessors rather than eliminating it.

ORCL Stock Price Activity: Oracle stock was up 0.55% at $153.78 at the time of publication Friday, according to data from Benzinga Pro.

Apple CEO John Ternus Enters Role More Like Steve Jobs Than Tim Cook: Here's How

Benzinga News — Fri, 11 Sep 2026 13:07:17 -0400

Apple Inc (AAPL ) was front and center this week with a new event unveiling the iPhone Duo foldable phone and the latest iPhone model. The "Surprise and Shine" event also put new CEO John Ternus front and center, allowing him a chance to show what style he will bring to the company. More Steve Jobs, Less Tim Cook

Tim Cook left the Apple CEO role after decades of leading the company through new products and growing the company's market capitalization. Known for his leadership and diversification skills, Cook's successor may be a change from recent years.

Ternus' first Apple event is drawing flashbacks to company co-founder and CEO Steve Jobs for some, with the new CEO more focused on one individual product instead of the company's diversification.

"There's no product in the world better designed to be your intelligent personal hub than iPhone," Ternus said at the event.

Ternus' focus on the iPhone differs from Cook, who tried to convince investors that there's more to Apple than just the smartphone, as reported by TechCrunch.

The new CEO put the iPhone front and center of the company's forward strategy, including the "intelligent personal assistant" AI-focused strategy.

This follows past times when Jobs put the company's emphasis on one product for years, including the Mac.

Similar to Jobs brushing off the naysayers who thought the Mac was dead, Ternus is putting all the attention and focus on the iPhone and brushing off concerns that the smartphone is past its prime.

While Ternus may be judged on other Apple products in the future, right now he is comfortable putting the emphasis and company's future in the hands of the iPhone.

What's Next for iPhone

The iPhone was first unveiled on Jan. 9, 2007, by Jobs at Apple's Macworld event.

The smartphone is now a key product for the company year after year.

Apple will release the highly anticipated iPhone Duo on Oct. 23. The foldable smartphone starts at $1,999 and will begin preorders on Oct. 16.

The iPhone 18 Pro and iPhone 18 Pro Max will be released on Sept. 18 ,with preorders beginning on Sept. 12.

Apple Stock Price Action

Apple stock is up 2.47% to $334.62 on Friday versus a 52-week trading range of $229.02 to $344.57. Apple shares are up 9% over the last month and up 22.5% year-to-date in 2026.

Kroger Says Shoppers Are Cutting Back As $4 Gas, SNAP Cuts Squeeze Household Budgets

Benzinga News — Fri, 11 Sep 2026 13:07:11 -0400

Kroger Company (KR ) stock traded higher Friday after the grocer reported second-quarter results that topped Wall Street expectations. Adjusted earnings were $1.09 per share, beating the $1.06 estimate.

Sales of $34.621 billion also topped the $34.580 billion estimate.

Identical sales excluding fuel rose 0.2%, with customer traffic increasing both in stores and online.

During the earnings call, Kroger said a Cyclospora outbreak reduced identical sales by about 35 basis points, mainly due to weaker produce sales. Lower pharmacy drug prices created another roughly 140-basis-point drag.

Meanwhile, fuel prices above $4 pressured household budgets. Management said unit growth has slowed since the start of the year as SNAP benefit cuts and higher fuel costs push consumers toward more need-based purchases.

Food inflation was moderately higher than in the first quarter. Kroger also said additional fuel-rewards promotions helped boost demand at its pumps.

Earnings Snapshot

Natural foods, meat and seafood, and bakery performed well during the quarter.

Pharmacy trends remained healthy, supported by prescription growth and continued GLP-1 demand. However, the Inflation Reduction Act, branded-to-generic prescription shifts, Cyclospora and egg deflation created a combined 265-basis-point sales drag.

FIFO gross margin, excluding rent, depreciation and amortization and fuel, increased 13 basis points. E-commerce, retail media, pharmacy mix, tariff refunds and sourcing helped margins. Higher shrink, transportation costs and customer-value investments partly offset those gains.

Adjusted FIFO operating profit totaled $1.1 billion.

Kroger exceeded its cost-savings plan and expects further benefits from sourcing, procurement, simplification and productivity.

Fuel gallons outperformed the broader market by about 520 basis points, while fuel redemptions increased nearly 6%.

Kroger repurchased about $1.2 billion of stock during the first half under its $2 billion authorization. It expects to complete the remaining repurchases in the second half.

E-Commerce Growth Accelerates

Adjusted e-commerce sales rose 20%, marking a second consecutive quarter of profitable growth. New customers also increased 20% year over year.

Kroger is expanding faster delivery options, with a growing share of orders completed in less than an hour. The company expects e-commerce to drive most industry growth in the coming years.

Kroger added more than 600 natural and organic products during the quarter. It also launched grocery and prescription delivery with Instacart in August.

Retail media revenue increased 24%, its strongest growth since 2021, while monetization improved 88 basis points.

Private Selection sales climbed more than 14%. Kroger's brands also outpaced national brands, with penetration increasing about 50 basis points.

Kroger continues to expect its Giant Eagle acquisition to close in 2027, subject to regulatory review.

Outlook

Kroger reaffirmed fiscal 2026 adjusted EPS guidance of $5.10 to $5.30, compared with the $5.21 estimate.

The company expects second-half earnings growth to benefit from cost savings, pharmacy margins, improving e-commerce profitability and continued retail media growth.

However, Kroger lowered its full-year identical-sales growth forecast, excluding fuel, to 0.2% to 0.8% from 1% to 2%. The revised outlook reflects first-half performance and continued consumer pressures.

Cyclospora is expected to remain a third-quarter headwind, although trends are improving.

The Inflation Reduction Act is expected to create an approximately 150-basis-point sales drag in the fourth quarter as new high-cost drugs, including GLP-1s, enter the formulary in January. Kroger expects the pharmacy-related sales pressure to have no impact on profit in the fourth quarter or 2027.

Management expects third-quarter identical sales excluding fuel to be slightly stronger than in the fourth quarter.

KR Price Action: Kroger shares were up 3.04% at $58.68 at the time of publication Friday, according to Benzinga Pro data.

Macy’s Q2 Sales Beat Estimates, But Tariff Refunds Mask Margin Pressure

Benzinga News — Fri, 11 Sep 2026 13:06:56 -0400

Macy's Inc (M ) Thursday reported its second-quarter results. Here are some key analyst takeaways:

Guggenheim Securities analyst Simeon Siegel reiterated a Neutral rating on the stock.
BTIG analyst Robert Drbul maintained a Neutral rating.

Guggenheim Securities: Macy's reported total sales of $4.866 billion, above Street expectations of $4.805 billion, Siegel said in a note. Although gross margins expanded by 180 basis points (bps) year-on-year to 41.5%, topping consensus of 39.6%, this included tariff refunds; excluding them, the gross margin would have missed estimates, he added.

The analyst stated that management's third-quarter guidance came at:

Net Sales of $4.650-$4.700 billion, bracketing Street expectations of $4.654 billion
Adjusted EBITDA margin of 3.7%-4%, below consensus of 5.1%
Adjusted earnings showing a loss of between 19 and 23 cents per share, below estimates of a loss of six cents per share

These forecasts imply fourth-quarter guidance of sales of $7.477-$7.577 billion, in line with expectations, and adjusted earnings of $1.62-$1.78 per share, below Street's forecast of $1.81 per share, he further noted.

BTIG: Macy's adjusted earnings of 63 cents per share included $98 million of tariff refunds, which impacted earnings by a net 23 cents per share, Drbul said. Excluding this, earnings were 40 cents per share, he added.

Comps grew by 2.7%, with go-forward comps up 2.8%, making this the fifth consecutive quarter of positive comp growth, the analyst stated. "While some of the tariff refund proceeds will be used to sharpen pricing in select categories like furniture and jewelry, mgmt. indicated that the majority of reinvestment is being directed toward brand building, additional Reimagine pilots, and more customer-facing initiatives," he further wrote.

M Price Action: Shares of Macy's had risen by 2.29% to $20.97 at the time of publication on Friday.

Iran War Added $115 Billion to US Energy Costs, Top Economist Says — '$860 Per Household'

Benzinga News — Fri, 11 Sep 2026 13:06:32 -0400

Moody's Analytics Chief Economist Mark Zandi said the Iran war is costing American households more as energy prices ripple through gasoline, diesel and jet fuel.

Zandi made the remarks in an interview with Fox Business published Thursday. He said the conflict has added about $115 billion in energy costs, or roughly $860 per household.

Zandi said the burden is heavier for lower-and middle-income Americans, who have less stock-market wealth and more debt. "And the high energy costs, the fact that we're paying over $4 a gallon, you know, really matters to those folks," he said.

He said the quickest relief would come from the war winding down and more oil moving through the Strait of Hormuz. With oil prices approaching $100 a barrel, Zandi said gasoline could reach $4.50 a gallon.

Rates Add Pressure

Higher interest rates are another cost, Zandi said. The 10-year Treasury yield has risen from below 4% before the war to about 4.75%, increasing borrowing costs for households and small businesses.

The yield subsequently climbed closer to 5%, closing Thursday at 4.943%, its highest close since October 2023.

He said the Federal Reserve is increasingly focused on inflation risks as energy costs filter into expectations and wages. "So they're on the verge of raising interest rates," Zandi said, adding that he could see the Fed's decision going either way. He said the consensus was for a quarter-point hike in a couple of weeks.

Oil Shock Persists

Brent crude recently moved above $100 a barrel amid continued disruption around the Middle East, while U.S. gasoline prices climbed above $4 a gallon. The Energy Information Administration has also raised its 2026 Brent forecast to about $91 a barrel.

Zandi said alternative oil supplies and production could ease the pressure, but warned that adjustment "takes time" and could unfold over several years.

Microsoft’s AI Crunch Forced It to Turn Away Business, Now It Wants to Triple Computing Power

Benzinga News — Fri, 11 Sep 2026 13:06:27 -0400

Microsoft Corp. (MSFT ) stock traded higher Friday as a broad market rally lifted large-cap technology stocks. Microsoft gained about 0.4%, while the Nasdaq rose 1.23% and the S&P 500 climbed 1.11%. The technology sector led the market with a 1.77% gain.

Microsoft Plans Major Data Center Expansion

Separately, Microsoft is planning a major expansion of its global data center network as strong AI and cloud demand strains its available computing capacity.

Microsoft aims to increase data center capacity to more than 38 gigawatts by 2032 from about 12 gigawatts currently, Bloomberg reported Friday, citing people familiar with the plans.

Computing shortages have forced Microsoft to restrict some new cloud subscriptions and have pushed certain customers toward rivals, according to the report.

Microsoft's latest fiscal-year capital spending reached $145 billion as the company invested heavily in infrastructure. However, a Microsoft spokesperson told Bloomberg that the reported capacity projections were inaccurate and did not provide alternative figures.

The company currently has about 2 gigawatts of capacity focused on AI-specific chips. That could account for roughly one-third of the reported 38-gigawatt footprint by 2032.

Microsoft is also bringing new capacity online near Atlanta as it works to ease pressure on its existing data center network.

Technical Analysis

MSFT shares are down about 0.9% over the past 12 months. As a result, traders may focus on whether the stock can hold key moving averages and break through nearby resistance.

The stock is hovering near its short-term trend line. It is about 0.4% above its 20-day simple moving average of $494.47.

The longer-term trend remains stronger. MSFT is 9.5% above its 50-day SMA of $453.68. It is also about 15% above its 100-day and 200-day averages of $430.98 and $431.26, respectively.

However, momentum has cooled. The MACD is below its signal line, while the histogram is negative. That could signal consolidation following the stock's previous advance.

The broader trend remains constructive. The 20-day SMA is above the 50-day SMA. MSFT also formed a golden cross in August when its 50-day average moved above the 200-day average.

Key resistance sits near $513.50. Support is around $477. A break below that level could shift attention toward the 50-day SMA.

Microsoft Analyst Outlook

MSFT trades at about 27.4 times earnings. The stock carries a Buy consensus rating with an average price forecast of $559.60.

Stifel recently maintained a Hold rating and raised its price forecast to $530. Bank of America maintained a Buy rating and lifted its forecast to $600. Wells Fargo maintained an Overweight rating and raised its forecast to $700.

Benzinga Edge Rankings

Microsoft's Benzinga Edge rankings point to strong growth and quality, but weaker value.

The stock scores 96.89 for Growth, 86.36 for Quality and 77.35 for Momentum. Its Value score stands at 23.52.

The combination suggests Microsoft retains strong growth characteristics. However, its premium valuation could limit upside if growth expectations weaken.

Microsoft Top ETF Exposure

Microsoft has significant weightings in several major technology and growth ETFs.

The Technology Select Sector SPDR Fund (XLK ) has a 9.91% Microsoft weighting. The iShares Core S&P U.S. Growth ETF (IUSG ) has a 9.45% weighting, while the iShares Expanded Tech-Software Sector ETF (IGV ) has a 9.42% weighting.

That exposure means large ETF inflows or outflows can contribute to buying or selling pressure in Microsoft shares.

MSFT Price Action

Microsoft shares were up 0.39% at $494.35 at the time of publication Friday, according to Benzinga Pro data.

AI Demand Keeps Breaking Records at Taiwan Semiconductor

Benzinga News — Fri, 11 Sep 2026 13:06:11 -0400

Taiwan Semiconductor Manufacturing Co. Ltd. (TSM ) said Thursday that August revenue jumped more than 53% from a year earlier, hitting a record monthly high as booming artificial intelligence demand continued to fuel growth. AI Demand Drives Record August Revenue

Taiwan Semiconductor reported consolidated August revenue of about 514.81 billion New Taiwan dollars, up 53.3% year over year and 10.1% from July.

Revenue for January through August reached 3.387 trillion New Taiwan dollars, up 39.3% from a year earlier.

During its July earnings call, management described AI-related demand as "extremely robust," CNBC reported Thursday. The company also reported second-quarter profit growth of more than 77% and forecast third-quarter revenue of $44.6 billion to $45.8 billion.

Analysts expect current-quarter sales to rise 46.8%, according to Bloomberg.

Capacity Expansion Struggles To Catch Demand

Deputy Co-Chief Operating Officer Cliff Hou told Bloomberg that Taiwan Semiconductor is simultaneously building and equipping about 20 factories worldwide, compared with four or five projects historically.

"Right now you're almost 4x or 5x, trying to catch up, but still you cannot meet demand," Hou said.

The company expects 2026 capital spending of $60 billion to $64 billion and full-year U.S. dollar revenue growth slightly above 40%.

Analyst Sees Margin Resilience

Bloomberg Intelligence analyst Charles Shum said consensus estimates may underestimate the company's ability to protect margins in 2027.

Consensus estimates call for 35% revenue growth and 31% earnings growth next year. That implies a gross margin of 65.5%, down from 66.4% in 2026.

However, Shum said pricing could partly offset pressure from 2-nanometer production, overseas factories and higher depreciation.

Taiwan Semiconductor carries a Buy consensus rating. Analysts have an average price forecast of $547.38.

Stifel initiated coverage with a Buy rating and $515 price forecast on Sept. 2. Bernstein raised its price forecast to $554 while maintaining an Outperform rating on Aug. 11. Needham maintained Buy and raised its forecast to $530 on July 27.

Taiwan Semiconductor Top ETF Exposure

VanEck Semiconductor ETF (SMH ): 9.28% Weight
Brown Advisory Flexible Equity ETF (BAFE ): 5.96% Weight
Harbor International Compounders ETF (OSEA ): 6.77% Weight

Significance: Because TSM carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

Taiwan Semiconductor stock rose 0.19% to $428.85 in Friday premarket trading, according to Benzinga Pro data.

Apple’s Customers Can Take a Price Hike, Analyst Says Retention Hardly Moves

Benzinga News — Fri, 11 Sep 2026 13:06:03 -0400

Apple Inc. (AAPL ) could be entering a stronger multiyear upgrade cycle as new hardware, artificial intelligence features and a foldable iPhone give consumers more reasons to replace aging devices, according to two technology analysts. Munster Sees Revenue Shifting Into 2027

Deepwater Asset Management's Gene Munster told CNBC Apple's decision to split its iPhone upgrade cycle could pressure near-term growth. However, it may push more revenue into the March and June quarters.

Munster said Wall Street expects roughly 14% to 15% growth for the March quarter. He believes growth could approach 20% as the delayed launches contribute to sales.

He is also watching Apple's Siri rollout and pricing strategy. Munster said past price increases across Apple products have caused little change in customer retention. That suggests the company still has room to raise prices without significantly hurting demand.

Ives Sees AI, Foldable iPhone Driving Next Cycle

Yorkville Ives founding partner, Dan Ives, said Apple's next growth phase will depend heavily on hardware innovation and its AI strategy.

Ives estimates about 300 million iPhones have not been upgraded in more than four years. He expects Apple to gradually add AI capabilities as it moves toward the iPhone's 20th anniversary.

He also sees significant potential for Apple's foldable iPhone. Ives said the device could eventually represent 15% to 20% of sales among Pro and Pro Max users.

He also pointed to Apple's massive installed base of about 1.5 billion iPhones and 2.5 billion iOS devices as a key advantage.

Still, pricing remains a balancing act. Ives expects limited customer churn from an increase of roughly $100, but said Apple does not have unlimited pricing power as higher memory costs pressure margins.

AAPL Price Action: Apple shares were down 0.12% at $326.19 during premarket trading on Friday, according to Benzinga Pro data.

Uber, WeRide Move Closer to Driverless Rides in Spain

Benzinga News — Thu, 10 Sep 2026 11:16:26 -0400

WeRide Inc. (WRD ) and Uber Technologies Inc. (UBER ) secured Spain's first national operating permit for Level 4 autonomous passenger vehicles. The companies announced the approval Thursday alongside AVOMO, the autonomous vehicle unit of Moove Cars Group.

Spain's Directorate General of Traffic granted the permit under its ES-AV framework. It allows the companies to test WeRide's GXR autonomous vehicles on public roads.

Madrid Launch Planned For 2026

The partners will initially deploy 20 vehicles across high-demand areas in Greater Madrid. An in-car vehicle specialist will supervise each vehicle during the initial phase.

The permit allows the companies to begin mapping, route validation and operational readiness testing. Commercial operations are expected to start by the end of 2026, subject to regulatory and operational milestones.

The approval is also WeRide's first national permit for its GXR autonomous vehicle in the European Union. It could support future certification and commercialization across the region.

WeRide, Uber Expand Global Partnership

Madrid will become the fourth of 15 cities covered by WeRide and Uber's strategic partnership. The companies plan to enter another 11 cities by 2030.

Under the partnership, WeRide provides autonomous driving technology. Uber contributes its ride-hailing platform, while AVOMO handles fleet operations.

The companies plan to eventually deploy tens of thousands of autonomous vehicles globally.

"Receiving this permit is a significant achievement for WeRide as it marks our ninth autonomous driving permit worldwide," said Jennifer Li, WeRide's CFO and head of international.

The Madrid service will mark Uber and WeRide's first planned autonomous vehicle deployment in Europe.

Price Action: WeRide shares were down 0.69% at $5.78 and Uber Technologies shares were down 0.27% at $70.89 at the time of publication on Thursday, according to Benzinga Pro data.

Ford Blasts Transportation Secretary Duffy Over China Claims

Benzinga News — Thu, 10 Sep 2026 11:16:21 -0400

Ford Motor Company (F ) stock traded higher Thursday after the automaker pushed back against criticism from Transportation Secretary Sean Duffy over its ties to China. Ford Defends Michigan Battery Plant

Ford said Duffy's letter contained factual errors about its BlueOval Battery Park Michigan and its agreement with China's CATL.

"Secretary Duffy's letter is a wrongheaded attempt to capture headlines at the expense of a company that has done more for American manufacturing than virtually any other in the nation's history," Ford said.

The automaker said the CATL arrangement is a limited technology licensing and services agreement. It is not a joint venture or foreign-owned manufacturing operation. Ford owns and operates the Michigan plant and employs its workforce.

The company also disputed Duffy's claims about Lincoln and said it plans to increase U.S. production for the luxury brand.

White House Touts Ford Investment

Ford's response comes after its shares fell earlier this week following Duffy's criticism.

Meanwhile, the White House has highlighted Ford's domestic investments. Its @RapidResponse47 account said Wednesday that Ford has increased U.S. investment and brought production back to the country.

The White House also recently highlighted Ford's $3 billion investment in its Marshall battery plant, which is expected to create about 1,700 jobs.

Ford said it produces, employs and exports more vehicles and hourly manufacturing workers in the U.S. than any other automaker. The company also said it supports the Trump administration's push to expand American manufacturing.

Duffy Targets Ford's China Ties

Duffy urged Ford last week to reduce its reliance on Chinese technology and manufacturing, citing national security concerns.

He specifically pointed to Ford's licensing agreement with Chinese battery maker CATL, its reported partnership with Geely Auto in Spain and its decision to delay reshoring some Lincoln production until 2030.

Duffy argued that the moves deepen Ford's dependence on China and called on the automaker to prioritize U.S. manufacturing and technological self-reliance.

F Price Action: Ford Motor shares were up 3.09% at $13.86 at the time of publication on Thursday, according to Benzinga Pro data.

American Eagle Stock Hits 11-Month Lows, Analyst Praises Aerie But Remains In ‘Wait-And-See Mode’

Benzinga News — Thu, 10 Sep 2026 11:16:12 -0400

American Eagle Outfitters (AEO ) stock hit 11-month lows on Thursday after reporting quarterly financial results after Wednesday's market closed. Needham analyst Tom Nikic remains cautiously neutral, maintaining a Hold rating on the stock with no price target.

American Eagle: Mixed Bag

The apparel company's intimate line, Aerie, remains the highlight, Nikic said.

"AEO remains a tale of two brands, with Aerie remaining red-hot, but the larger American Eagle brand is still a bit of a mixed bag," Nikic said.

The analyst said the company will face tougher comparable sales in the second half of the fiscal year, alongside a "volatile macro environment."

"We remain in wait-and-see mode here," he added.

Second-quarter results showed earnings per share beating estimates, with tariff refunds providing an estimated 50-cent-per-share benefit - a net gross of $179 million and a $161 million net operating income benefit.

But American Eagle's earnings per share would still have beaten estimates without the refund. The company also beat analyst estimates for revenue.

Aerie is the Big Positive

Nikic highlighted poor results from the women's segment of the American Eagle brand, particularly with pants and shorts.

The positives in the quarter were the American Eagle brand men's segment posting its fourth straight quarter of positive comps and the Aerie brand posting 19% comp growth year-over-year.

Nikic said the Pittsburgh-based company's real test could be the upcoming Aerie comps in the third and fourth quarters.

"Aerie is one of the strongest growth stories in retail at the moment, but it faces difficult compares, and the outlook for the core American Eagle brand is unclear."

Price Action

AEO shares are down 13.2% to $14.64 on Thursday. The stock hit an intraday low of $14.14, nearing the 52-week low of $14.06 set back on Oct. 10.

The Jay Schottenstein-led company's stock is down 44% year to date in 2026.

Meta’s AI Agents Are Coming for Your Shopping Cart. These ETFs Could Cash In

Benzinga News — Thu, 10 Sep 2026 11:08:35 -0400

Meta Platforms Inc's (META ) latest AI push is moving beyond chatbots, creating a potential new catalyst for ETFs with sizeable exposure to the social-media giant. The Facebook parent company's new Muse personal AI agent is designed to move from answering questions to completing tasks. The pitch is that Muse can help users research products, negotiate and, with permission, complete purchases.

That gives Meta a potential second AI growth engine beyond advertising, according to T. Rowe Price portfolio manager Tony Wang, who told CNBC that Meta now has a "distribution advantage."

FDN: A Direct META Play

The First Trust Dow Jones Internet Index Fund (FDN ) is one of the most direct ETF plays on Meta's AI ambitions. Meta accounted for about 10.5% of the portfolio, making it FDN's largest holding.

The fund owns 40-plus internet and technology companies, including Amazon.com, Inc (AMZN ), Alphabet, Inc (GOOGL ) (GOOG ), Salesforce Inc (CRM ), Oracle Corp (ORCL ), and Cisco Systems Inc (CSCO ). That gives investors exposure to companies that could benefit from growing digital commerce and AI infrastructure spending alongside Meta.

IGPT Combines Meta With The AI Chip Trade

The Invesco AI and Next Gen Software ETF (IGPT ) offers a different angle. Meta represents roughly 8.7% of the fund, while other major holdings include Nvidia Corp (NVDA ), Alphabet and Micron Technology Inc (MU ).

That mix makes IGPT particularly interesting if agentic AI drives another wave of computing demand. Wang said greater use of AI agents could increase demand for bottlenecks such as memory and networking, potentially benefiting the semiconductor holdings alongside Meta.

SOCL: The Purest Social-Media Bet

The Global X Social Media ETF (SOCL ) held about 10.6% in Meta. Its other holdings include Reddit Inc (RDDT ), and Tencent.

SOCL therefore offers the most focused exposure to the broader social-media ecosystem, while FDN is more diversified across internet companies and IGPT is more heavily tilted toward AI.

XLC Gives the Biggest META Punch

The Communication Services Select Sector SPDR Fund (XLC ) is arguably the strongest addition. Meta accounts for 19.3% of the ETF, making it the fund's largest holding. Alphabet's two share classes together account for another 18.2%.

That makes XLC a cleaner way to play Meta's AI-agent push than a broad Nasdaq fund. If Muse succeeds in turning Meta's huge user base into an AI distribution advantage, XLC investors have substantial direct exposure to that thesis.

The trade-off is concentration. XLC has only 27 holdings, and its portfolio is dominated by communication-services companies, so investors are making a much more targeted sector bet.

QQQ: The Broader AI Ecosystem

The Invesco QQQ Trust (QQQ ) is a less concentrated META play, but it may be more interesting for investors who believe agentic AI will benefit the broader technology ecosystem.

Meta represents 2.9% of QQQ, alongside much larger positions in Nvidia, Apple, Inc (AAPL ) and Microsoft Corp (MSFT ).

That gives QQQ exposure not just to Meta's potential AI-agent monetization, but also to the chips, cloud infrastructure and software companies that could benefit if AI agents drive higher computing demand.

ETF Trade Depends On Agent Adoption

The bigger question is whether Muse turns AI agents into a meaningful consumer behavior across its platforms, like Instagram and WhatsApp.

If users begin delegating shopping, bookings and other transactions to AI agents, Meta's massive distribution network could become an important competitive advantage. That would give META-heavy ETFs another potential growth driver beyond advertising.

A Possible eBay Retreat and a Q2 Revenue Beat — GameStop's Month, Explained

Benzinga News — Thu, 10 Sep 2026 11:07:53 -0400

GameStop Corp. (GME ) is trending following the past month which kicked off with the company reportedly considering pulling its bid for eBay and closed with second-quarter earnings. The eBay Bid Reconsideration

The past month opened on August 10 with a Bloomberg report that GameStop CEO Ryan Cohen was considering withdrawing the company's $56 billion bid for eBay in favor of a potential partnership or joint venture instead. Under the alternative proposal, eBay would leverage GameStop's roughly 1,600 U.S. retail locations, potentially helping both companies expand market share in higher-margin categories such as trading cards and collectibles. GameStop, which held a 9.8% stake in eBay at the time, would also seek board representation as part of any such partnership. The report noted GameStop had not made a final decision and could still pursue other options.

Q2 Results Highlight Debt Moves, eBay Stake

GameStop reported second-quarter results on September 8. Adjusted earnings per share came in at 27 cents, in line with the consensus estimate. Quarterly revenue fell to $790.2 million from $972.2 million a year earlier, which GameStop attributed to the absence of a Nintendo Switch 2 launch tailwind, ongoing store closures and the sale of its French business - though the figure still beat the consensus estimate of $756.85 million.

As of August 1, GameStop held approximately 43.4 million shares of eBay common stock with a fair value of approximately $4.9 billion. The company also disclosed on September 3 that it completed exchanges retiring approximately $1.4 billion in convertible notes, reducing total long-term debt to approximately $2.8 billion.

GameStop Shares Trade Flat

GME Price Action: At the time of publication, GameStop shares are trading 0.65% higher at $20.02, according to data from Benzinga Pro.