After a week filled with AI selloffs, blockbuster chip earnings, hotter inflation, stronger economic data and endless debate over the Federal Reserve, Friday gave investors a chance to catch their breath. |
Stocks barely moved. |
But beneath the surface, sentiment quietly improved. |
Consumer confidence ticked higher, individual investors turned more bullish for the first time in six weeks, and traders spent less time reacting to headlines and more time digesting what the week’s events might mean going forward. |
The biggest takeaway wasn’t that the market found new answers. |
It was that Wall Street appears to be shifting from reacting to every AI headline toward asking a more important question: |
Where does the next phase of this market come from? |
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⚡ Closing Bell:
→ Dow Jones: ▼ -0.09% to 51,876.11 › Blue-chip stocks finished slightly lower after a quiet session.
→ S&P 500: ▼ -0.05% to 7,354.02 › The benchmark traded in a narrow range as investors paused following a busy week of economic data.
→ Nasdaq: ▼ -0.24% to 25,297.62 › Technology shares stabilized after several volatile sessions earlier in the week.
→ Russell 2000: ▲ +0.07% to 3,010.08 › Small caps quietly outperformed as investors continued broadening beyond the largest technology names. |
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Macro Moves:
→ 10-Year Treasury Yield: ▼ to 4.38% › Treasury yields eased as investors digested a week of inflation data and Fed speculation.
→ 2-Year Treasury Yield: ▼ to 4.09% › Short-term yields slipped as traders modestly dialed back near-term rate-hike expectations.
→ Dollar Index (DXY): ▼ to 101.32 › The dollar weakened after reaching a 13-month high earlier in the week.
→ Bitcoin: ▲ above $61,000 › Crypto rebounded as risk appetite improved.
→ Consumer Sentiment: ▲ 49.5 › Americans grew slightly less pessimistic in June, though confidence remained historically weak.
→ Goods Trade Deficit: ▲ $105.8B › The U.S. trade gap widened sharply as imports outpaced exports.
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❗❗❗ Looking Ahead:
One busy week deserves another. |
Investors now trade inflation headlines for employment data, with JOLTS, ISM Manufacturing, ADP, and Thursday’s June jobs report all packed into a shortened holiday week. |
Wall Street has spent weeks debating AI. This week, it may be the labor market that moves stocks. |
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#TRUTH:
❗❗❗ ❝ The quieter you become, the more you are able to hear. ❞
~ Rumi |
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Breaking the Lock |
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Building AI chips is hard. |
Convincing developers to use them is even harder. |
That’s why Qualcomm is spending nearly $4 billion to acquire AI software startup Modular. |
Modular has built a platform that lets AI models run across different chips without developers having to rewrite code for every processor. That may sound technical, but it solves one of the industry’s biggest problems. |
Today, much of the AI world runs on CUDA, Nvidia’s software platform that has become the default language for AI developers. The more developers build on CUDA, the more valuable Nvidia’s chips become. It’s a cycle competitors have struggled to break. |
Qualcomm wants another option. |
The acquisition strengthens its push into data centers and AI infrastructure while reducing its dependence on smartphones, still its largest business. It also follows reports that Qualcomm is exploring an acquisition of AI chip startup Tenstorrent, signaling the company is building far more than another chip business. |
The numbers: |
Deal value: $3.92 billion Payment: All-stock (up to 19.2 million Qualcomm shares) Focus: AI inference software across multiple chip architectures
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The AI race is becoming a battle over the software developers choose to build on.
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The BlackBerry Misunderstanding |
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BlackBerry has been remembered for the business it lost. |
Last week, investors started paying attention to the one it built. |
The former smartphone giant delivered a blowout quarter, with revenue climbing 26% to $152.9 million, earnings beating estimates by 44%, and management raising its full-year outlook. The stock has now gained nearly 180% over the past year. |
The surprising part isn’t the earnings. |
It’s that almost none of the story involves phones. |
BlackBerry’s QNX software now powers 275 million vehicles worldwide, making it one of the most widely deployed operating systems in the automotive industry. Beyond cars, it’s increasingly finding its way into robotics, medical devices, drones, and industrial automation—areas where software isn’t allowed to guess. |
That’s becoming an important distinction in the AI era. |
While generative AI excels at predicting the next likely answer, QNX is designed for environments where every decision has to be precise, reliable, and safety-certified. It’s one reason the platform has become a partner to companies including Nvidia, Qualcomm, and AMD as physical AI expands beyond data centers and into the real world. |
The numbers tell the story: |
• Revenue: $152.9M (+26%)
• EPS: $0.04 (44% above estimates)
• Cars running QNX: 275 million
• FY EPS guidance: Raised to $0.16–$0.20 |
Wall Street responded quickly, with multiple analysts raising price targets following the report. |
BlackBerry stopped trying to win the smartphone race years ago. |
It may have found a much bigger one.
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Less Car. More Market. |
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Cars have spent the last decade adding features. |
Slate is trying subtraction. |
The Jeff Bezos-backed startup says it has already attracted 180,000 reservations for its upcoming electric pickup, a bare-bones truck expected to start below $25,000—roughly half the price of the average new vehicle sold in the U.S. |
Manual windows. |
No built-in infotainment system. |
Bring your own Bluetooth speaker. |
Those omissions aren’t compromises. They’re the business model. |
Slate built its truck with fewer than 800 parts, compared with the 2,000 to 3,500 typically found in modern vehicles. It skipped expensive paint shops, simplified manufacturing, and designed the vehicle to be upgraded over time with accessories rather than loaded with options on day one. |
The company believes affordability—not luxury—is the biggest gap in today’s EV market. |
Early demand suggests that bet may be resonating. |
Reservation holders range from first-time buyers and families looking for a third vehicle to customers simply wanting an inexpensive truck they can customize over time. Slate says its Ohio factory will eventually produce up to 150,000 vehicles annually, with break-even expected at roughly 80,000 units. |
Whether those reservations become deliveries remains the biggest question. |
The auto industry spent years convincing buyers they needed more car. |
Slate is betting many were simply waiting for less.
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Gains & Pains: |
Gains:
→ SpaceX (SPCX): ▲ +0.15% › Confirmed to join the Nasdaq-100 on July 7, paving the way for billions in passive index buying. |
→ Alibaba (BABA): ▲ +3.40% › Chinese tech outperformed as investors rotated back into select international growth stocks. |
😬 Pains:
→ United Rentals (URI): ▼ -1.57% › Industrials lagged despite an otherwise quiet session. |
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Escapes: |
Monahans Sandhills State Park📍 Texas 🇺🇸 |
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Commodities Check : ✔️ |
→ WTI Crude: ▼ around $70/barrel › Oil finished the week lower as easing Middle East supply concerns removed much of the war premium. |
→ Gold: ▲ $4,096.30/oz › Gold rebounded after the dollar softened, though higher interest-rate expectations continued to cap gains. |
→ Silver: ▲ $59.22/oz › Silver climbed alongside gold as precious metals recovered into the weekend. |
→ Corn: ▼ $4.13/bushel › Prices slipped as traders positioned ahead of Tuesday’s closely watched USDA acreage and grain stocks reports. |
→ Soybeans: ▲ $11.25/bushel › Soybeans ended the week slightly higher as weather concerns offset cautious positioning before the USDA reports. |
→ Wheat: ▼ $5.78/bushel › Wheat extended its recent decline as Northern Hemisphere harvest pressure outweighed weather concerns. |
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The Stinger: |
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Disclaimer |
This letter is not offering investment, trading, or investment advice nor is based on any individual portfolio or business operation. We are not a registered investment, stock nor commodity advisor. One should consult with their own registered advisor to discuss investment strategies that are appropriate for their business or personal goals, risk tolerance and financial situation. Information in this report and on any website is derived from a variety of source believed to be reliable however no representation is made that the information is accurate, complete or correct. These lessons, newsletter and site content is not intended nor shall not constitute or be construed as an offer or recommendation to “buy”, “sell”, “trade” or invest in any securities, commodities, futures, options or other asset referred to in said lessons, reports or newsletters. Rather, this research is intended to identify situations and circumstances that those in the trading community should be aware of to better help assess and improve their own risk management skills. |
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Disclaimer |
This letter is not offering investment, trading, or investment advice nor is based on any individual portfolio or business operation. We are not a registered investment, stock nor commodity advisor. One should consult with their own registered advisor to discuss investment strategies that are appropriate for their business or personal goals, risk tolerance and financial situation. Information in this report and on any website is derived from a variety of source believed to be reliable however no representation is made that the information is accurate, complete or correct. These lessons, newsletter and site content is not intended nor shall not constitute or be construed as an offer or recommendation to “buy”, “sell”, “trade” or invest in any securities, commodities, futures, options or other asset referred to in said lessons, reports or newsletters. Rather, this research is intended to identify situations and circumstances that those in the trading community should be aware of to better help assess and improve their own risk management skills. |
This publication is for informational and educational purposes only. It does not constitute investment, trading, or financial advice and is not based on any individual’s financial circumstances, goals, or risk tolerance. We are not registered investment, stock, or commodity advisors. Always consult a licensed financial professional before making investment decisions. |
Information provided in this newsletter (and on any affiliated website) is obtained from sources believed to be reliable; however, accuracy and completeness cannot be guaranteed. Opinions expressed are those of the authors and are subject to change without notice. |
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