ANOTHER thing I don’t understand: “An actor out on loan” ??
May 7, 2026
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–Oil lower, stocks to new record highs. What more is there to say? Nice bounce in rate futures yesterday with SFRM7 leading, +10 on the day to 9628.5. approaching the current EFFR of 3.64 or 9636. Tens down 6 bps to 4.353. Worth a mention is that the S&P dividend yield is at a new historic low at 1.08%, last around this level in 2000. There’s an Annual Dividend Future listed on CME, settled yesterday at 82.70 for Dec’26. ESZ6 settled 7504.75 so that’s 0.7%. Of course, I am not trying to imply that dividends are actually IMPORTANT in the AI world. Just a sidebar where I would also note that Fed Funds went from 6.5% at the start of 2001 to 1.75 by end of year as dot.com imploded.
–Exit seller of 70k 0QZ6 9750/9800cs from 2.75 to 2.5. Buyer of front June SFRM6 9631.25/9625ps for 0.25 (SFRM6 settled 9636).
–Of course, earnings ARE growing, hard to argue with THAT:
With 63% of S&P 500 companies have reported so far, blended EPS growth is +27.1% year-over-year (up sharply from earlier estimates around 13–15%). This would mark the highest quarterly growth since Q4 2021 and the 6th consecutive quarter of double-digit growth.” (source Grok).
–From FT: SpaceX is planning to float an initial $75bn of stock against a $1.75tn valuation — a mere 4.3 per cent of the company. Under the old Nasdaq rules, such a tiny free float would rule out index inclusion. But the new rules eliminate minimum free float criterion for new listings. The new rules would also allow SpaceX to join the Nasdaq-100 index after only 15 days, requiring funds that seek to track the index to buy the stock at their next rebalancing regardless of price.
Let’s just loosen the rules and makes sure these tech stocks maintain altitude. Support from passive index funds…
–But, from Doomberg’s latest: “DeepSeek has slashed prices on its artificial intelligence models, including its latest V4 which now costs 97 per cent less than OpenAI products, potentially triggering a price war in the highly competitive AI market…
–Remember when DeepSeek actually jolted the market?
Into this house we’re born
Into this world we’re thrown
Like a dog without a bone
An actor out on loan [??]
Riding out the storm….
