Anthropic IPO Filing Lifts Chip Stocks; Tesla Jumps as Brazil Stocks Crash

It's Monday, October twenty-sixth. This is Trade and Ticker, the lunch report. Here's your midday check on U.S. stocks.

Three things still matter into the afternoon. First, A-I and chip stocks are bouncing back after Anthropic filed to go public. Second, Tesla is jumping after an upgrade. Third, U.S.-listed Brazilian stocks are crashing after Sunday's election.

Here's the picture at midday. Tech is carrying the market. Just before one o'clock Eastern, the Nasdaq is up a little under nine-tenths of a percent, and the S-and-P is up about two-thirds of a percent. The Dow is lagging, up about two-tenths of a percent, or roughly ninety points. The Russell two thousand is up about two-thirds of a percent. With today's gain, the S-and-P has more than made up last week's loss, and it's back within about two percent of its record high.

Technology is the best group, up about one and a half percent, with industrials and retailers and other consumer names each up more than one percent. Communication services is the worst, down more than one percent. Netflix and Charter are each down about four percent, and Disney and Comcast are down two to three percent. Health care and consumer staples are slightly lower.

Now the big story. A-I company Anthropic filed its paperwork to list on the Nasdaq under the symbol A-N-T. The filing shows revenue of about sixteen-point-three billion dollars in the first half of this year, up from about one-point-two billion a year earlier. It also shows a net loss of about eighty-point-seven billion dollars, but most of that, roughly seventy-two billion, came from accounting charges tied to the rising value of its convertible notes. The price range and share count are not set yet. That filing is giving A-I stocks a lift after last week's selloff. The Philadelphia chip index is up almost three percent. Intel is up almost five percent, Seagate more than four and a half, Micron more than three, and Nvidia, Broadcom, and A-M-D are each up more than two. A-I cloud names have turned around too. CoreWeave is up about four percent and Iren about five, after both fell early on Elon Musk's warning about funding for smaller A-I cloud companies.

Meta is about flat. It launched about thirty-five billion dollars in stock offerings this morning and plans up to sixty billion more later, for up to ninety-five billion in all to pay for A-I buildout.

Tesla is up about six percent, at more than a three-month high, after Barclays upgraded the stock to overweight. Apple is down more than one percent.

Now the losers. U.S.-listed Brazilian stocks are in free fall after President Lula won a fourth term. A big U.S. fund that tracks Brazilian stocks is down more than twenty percent. Brokerage X-P is down almost half. Nu Holdings is down almost nineteen percent, Itau more than twenty, Petrobras about sixteen, and MercadoLibre about nine. Fair Isaac, the credit-score company, is down about seventeen percent after Wells Fargo downgraded it over its mortgage score pricing plan. Verizon is down almost three percent, even after raising its profit forecast this morning.

On deals, Surgery Partners is up about forty-seven percent after agreeing to be bought by an affiliate of Bon Secours Mercy Health for twenty-three dollars and fifty cents a share in cash, in a deal valued at about five-point-seven billion dollars. And Range Resources is up about sixteen percent on E-Q-T's all-stock deal to buy it. E-Q-T is down almost three.

U.S. crude is slightly lower, near one hundred three dollars a barrel, and the ten-year Treasury yield is just under five percent. The Fed meeting starts tomorrow, with a decision Wednesday afternoon.

After the close today, chip design software company Cadence Design Systems reports, and the stock is up almost four percent into the print. Steelmaker Nucor and senior housing owner Welltower also report. Cadence matters because it sells the tools used to design A-I chips, so its outlook could move chip stocks tomorrow. Then the big ones come later this week, with Alphabet and Microsoft on Wednesday and Amazon on Thursday.

Watch three things into the close. First, whether the chip rally holds all afternoon. Second, whether the Dow can catch up with the Nasdaq. Third, whether Brazilian stocks find any footing.

That's the midday picture. We'll be back this evening with a company deep dive on the day's biggest stories. Thanks for listening. I'm Trade and Ticker.