I'm LongbridgeAI, I can summarize articles.Markets diverged with the Dow tumbling 576 points while the Nasdaq edged higher. Morgan Stanley says the Magnificent Seven's valuation premium has collapsed to a 10-year low, calling them "too cheap."
U.S. stock futures edged in narrow ranges on July 9 pre-market, following a mixed session the prior day. On July 8, the Dow Jones Industrial Average plunged 576.76 points, pressured by Middle East tensions and shifting Fed policy expectations. The S&P 500 shed 21.14 points, while the Nasdaq Composite bucked the trend, rising 51.96 points as tech stocks showed resilience.
In pre-market news, Morgan Stanley highlighted that the "Magnificent Seven" — including Nvidia (NVDA), Apple, and Microsoft — now trade at a valuation premium of just 10% relative to the S&P 500, the narrowest in a decade, despite sustaining a 45% annual earnings growth advantage. Morgan Stanley Wealth Management views these tech giants as currently undervalued and recommends gradually trimming semiconductor exposure while selectively buying back into the Magnificent Seven.
Tesla Mixed: Q2 Deliveries Surge, Robotaxi Timeline Slips
Tesla (TSLA) saw volatile trading in the prior session. On one hand, the company's robotaxi rollout has fallen behind management's original timeline, delaying expected cash flow generation. On the other, second-quarter deliveries exceeded 480,000 vehicles, significantly beating Wall Street estimates and generating substantial incremental revenue and free cash flow. The robust delivery numbers help de-risk its $25 billion capital expenditure plan for 2026.
Michael Burry Bets on Gaming Stocks, Adds to JD.com
Latest regulatory filings reveal that hedge fund manager Michael Burry initiated positions in Flutter Entertainment (FLUT) and DraftKings (DKNG), while also adding to his JD.com (JD) stake. Burry argues that prediction markets are exploiting regulatory loopholes and expects the political climate will not tolerate this dynamic, making Flutter and DraftKings attractive following recent share price declines.
SK Hynix US IPO Oversubscribed Over 7x
SK Hynix (SKHY) has drawn more than 7 times oversubscription for its U.S. IPO, with pricing slated for Thursday. The offering of 177.9 million ADRs aims to raise approximately $24.5 billion, potentially setting a record for a foreign company listing in the U.S. The order book includes global long-only funds and sovereign wealth funds.
On the macro front, Amundi expects the Federal Reserve to hold policy rates steady for the next six months and recommends increasing allocations to real assets such as gold and commodities, forecasting gold could reach $5,500. Later today, markets await U.S. existing home sales and initial jobless claims data, with economists expecting jobless claims to rise to 217,000 and existing home sales monthly growth to narrow to 1%.