Oil Markets Buckle as Middle East War Enters Day Six
Markets are down more than -0.3% as Middle East tensions continue to dominate sentiment, though a brief reprieve yesterday saw the Dow snap a three-day losing streak and both the S&P 500 and Nasdaq close in the green. The conflict, now in its sixth day, has rattled commodities and stocks alike, though oil prices steadied somewhat after Trump pledged naval escorts and risk insurance for ships navigating the Strait of Hormuz, with crude oil hovering around $77/barrel.
Broadcom Surges on Strong AI Outlook
Broadcom (AVGO) is up over +6% in premarket trading after Q1 revenue came in at $19.3B, up +29% YoY and ahead of the $19.2B consensus, with EPS of $2.05 beating the $2.03 estimate. AI revenue soared +106% YoY to $8.4B, driven by demand for custom accelerators and AI networking, with CEO Hock Tan projecting AI chip revenue alone exceeding $100B by 2027. Q2 guidance of $22B in revenue crushed the $21B consensus, with an profit margin of 68% also topping Street expectations. AVGO also authorized $10B in new share buybacks through 2026.
Berkshire Resumes Buybacks as Abel Puts Salary Into Stock
Berkshire Hathaway (BRK) is up over +1% in premarket trading after disclosing it resumed share repurchases for the first time since Q2 2024, while new CEO Greg Abel separately bought $15M in stock equal to his full after-tax annual salary. Abel confirmed he consulted with Warren Buffett on valuation and timing, and committed to repeating the purchase annually. The moves come after shares fell -3% YTD and -10% from their record high, pressured by a nearly -30% drop in Q4 operating earnings, and signal Abel's effort to demonstrate alignment with shareholders amid the leadership transition.
Record Profits, Vanishing Jobs at Morgan Stanley
Morgan Stanley (MS) is cutting 2,500 jobs, roughly 3% of its global workforce, despite wrapping up a record-breaking 2025 with a +13% revenue surge in wealth management alone. The cuts blend shifting priorities, geographic reshuffling, and performance reviews, but arrive at a curious time: when the firm has never made more money. It's also far from alone, with Block (XYZ), Salesforce (CRM), and Pinterest (PINS) among the growing list of companies slashing headcounts, as AI-driven productivity increasingly becomes the go-to explanation for leaner teams.
The Trade Desk (TTD) is up over +20% in premarket trading after reports that OpenAI held early discussions with TTD about a partnership to help build out its advertising business within ChatGPT, while CEO Jeff Green separately disclosed a $148M personal stock purchase of ~6.4M shares at $23.49-$25.08, near multi-year lows. The dual catalysts offer a meaningful lift to a stock down -34% YTD and -63% over the prior 12 months. OpenAI is targeting ads as a key lever to double its consumer ChatGPT revenue to $17B in 2026, and TTD's demand-side platform would allow it to scale ad placements without building infrastructure from scratch.
