Syz the moment

WalMart reported ugly same store sales, which grew below the lowest Wall Street estimate, a slowdown the company blamed on disappointing sales at its Health & Wellness pharmacy division. As a result, $WMT stock plunged more than 10%, Source: Zerohedge

Treasury's move initially compressed the long end, which should ordinarily have supported tech through lower discount rates, but tech underperformed the rates rally. Now the 10-year yield is back where it started and tech is rolling over again. With AI increasingly capital-intensive, hyperscaler CDS widening and semis vol having collapsed, the setup is worth watching. Rates relief didn't do much for tech. Now that relief is disappearing. Source: The Market Ear

Bloomberg reported today that Broadcom is preparing another gargantuan SPV deal, and is in talks with a group of lenders to raise more than $60 billion in debt for an AI chip financing deal that will benefit Anthropic PBC and other companies. The financing, which is still being ironed out, may also include a roughly $30 billion junior debt tranche, said some of the people, who asked not to be identified because the information is private. Under the proposed plan, Broadcom would guarantee a portion of the senior-secured tranche, which could range from about $60 billion to $70 billion. The numbers under discussion would potentially bring the total to as much as $100 billion, which would make it the largest SPV deal ever funded. The agreement would add to a rush of deals aimed at financing artificial intelligence infrastructure. AI companies like Anthropic are taking a bigger role in the build-out, aiming to ensure they have enough computing capacity. Broadcom, meanwhile, is looking to sell more chips and other data center equipment, challenging Nvidia in this lucrative market. Broadcom’s debt is interesting because its recent competition for Google’s TPU business has been accompanied by a spike in CDS. And, as Bloomberg notes, the monster debt deal will do little to alleviate that pressure and will likely feed down to the CDS of other chip / hyperscaler credit. Source: zerohedge

Source: zerohedge

Source: Barchart

Short sellers lost $3 billion in a single day. Bitcoin hit $71,000, up +11.50%, and $236 billion was added to the crypto market. Here is the full move: Source: Bull Theory

Over $650 BILLION has been wiped out from Asian stocks as semiconductor and tech stocks sell off across Asian markets. 🇰🇷 South Korea's KOSPI -5.5%, wiping out ₩279.7T ($186B). 🇯🇵 Japan's NIKKEI -3.1%, wiping out ¥36.7T ($232B). 🇨🇳 China's SSE -2%, wiping out ¥1.29T ($180B). 🇹🇼 Taiwan's stock market -1.5%, wiping out NT$1.80T ($55B). Source: Bull Theory

The US diesel crack spread — the margin between crude oil and diesel — just hit a record $102/barrel, setting new highs in five of the last six sessions. Why it matters: ⛽ US diesel inventories are at their lowest seasonal level since 1996. 🏭 Global refinery output is down ~5 million barrels/day YoY amid disruptions linked to Iran and Ukraine. 🇷🇺 Russia has restricted diesel exports through January. 🚜 And Northern Hemisphere harvest season is starting — exactly when diesel demand from agriculture rises. Most investors watch crude oil. But diesel is arguably more important for the real economy. Trucks, tractors, ships and heavy machinery depend on it. One study estimates diesel prices explain 46% of trucking costs. Higher diesel → higher freight costs → higher food and goods prices. And with producer prices already rising faster than consumer prices, some of those costs could still be waiting to reach consumers. Oil may drive the headlines. Diesel could be the one driving inflation higher. Source: Hedgie