Stocks are rallying (again) while oil prices are sliding (again) in early trading. Gold and silver are higher along with Treasuries, while the dollar is dipping. Bitcoin is trading above $76,000, its highest since early February.
News out of Iran today that the Strait of Hormuz is "completely open" to commercial vessels is sending risk assets through the roof. But the rally has been going on for a while. The S&P 500 Index (^SPX) and the Nasdaq Composite Index are on track for their biggest three-week rallies since 2020. In fact, the Nasdaq has gained ground 12 sessions in a row – the longest win streak since 2009.
SOXX, UFO, NFLX (YTD % Change)
Data by YCharts
Stocks have rallied and oil prices have slid on optimism the US, Iran, and Israel will extend their current ceasefire and come to some kind of longer-term arrangement. Tech names have been particularly strong, with semiconductors and space-levered equities some of the biggest standouts. The iShares Semiconductor ETF (SOXX) has rallied 34.8% year-to-date, while the Procure Space ETF (UFO) has surged 41.5%.
Still, one of the original “FAANG” names just got de-fanged after its Q2 earnings forecast missed analyst estimates. Netflix Inc. (NFLX) said it would earn only 78 cents per share in the current quarter, while Wall Street was looking for 84 cents. The streaming entertainment service provider’s revenue forecast of $12.57 billion also missed targets by a modest amount. Plus, company chairman and co-founder Reed Hastings said he’d step down. Netflix stock tanked 10% in early trading after coming into the earnings report up 14.9% YTD.
Finally, old-school home shopping network operator QVC Group filed for Chapter 11 bankruptcy in Texas. The operator of QVC and HSN plans to cut more than $5 billion in debt through the process, then continue operating. But the 50-year-old company’s model of selling products on-air has been challenged for years by online shopping.
