PPI Data Keeps Inflation in Focus, Adobe on Deck 11/06/2026

 HOT stories for today

Market wrap:

• Stocks retreated sharply Wednesday as renewed weakness in semiconductor shares combined with escalating U.S.-Iran tensions to weigh on investor sentiment. The Dow Jones Industrial Average fell 953 points, or 1.9%, while the S&P 500 dropped 1.6%. The Nasdaq Composite led losses, sliding 2% as pressure across AI and chip stocks intensified. Geopolitical concerns added to the risk-off mood after President Donald Trump said Iran was taking “too long” to reach a deal and warned that Tehran would “pay the price.” Trump also signaled the possibility of further U.S. military action, raising doubts about the durability of the already fragile ceasefire. Semiconductor stocks remained at the center of the selloff, extending the sector’s recent pullback after months of AI-driven gains.
• The weakness spilled into overseas markets, with Asia-Pacific equities trading lower Thursday, led by declines in South Korea’s Kospi. On the economic front, inflation data offered a mixed picture. Core CPI, which excludes food and energy, rose 0.2% in May, below economists’ expectations for a 0.3% increase. On an annual basis, core inflation came in at 2.9%, matching forecasts but remaining above the Federal Reserve’s 2% target. Meanwhile, headline inflation climbed above 4% for the first time in three years, reinforcing concerns that price pressures remain stubborn despite signs of moderation in some underlying categories. Investors now turn their attention to Thursday’s producer price index report and weekly jobless claims data for further clues on inflation trends and the outlook for Federal Reserve policy.

Oracle Beat Overshadowed by AI Funding Concerns

• Oracle (ORCL) beat fiscal fourth-quarter earnings and revenue expectations and raised its profit forecast, but shares fell 10% after hours as investors focused on the company’s massive AI funding needs. Adjusted earnings came in at $2.03 per share, above estimates of $1.96, while revenue rose 21% year over year to $19.18 billion, slightly ahead of expectations. Oracle kept its fiscal 2027 revenue target at $90 billion and raised its adjusted earnings forecast to $8.05 per share, above Wall Street estimates. The concern came from financing. Oracle said it expects to raise $40 billion through debt and equity, including a previously announced $20 billion share sale, to fund its AI and cloud infrastructure buildout.
• Cloud infrastructure revenue jumped 93% to $5.8 billion, while remaining performance obligations surged 363% to $638 billion, driven largely by major AI contracts. Still, investors remain wary of the cost. Oracle reported negative free cash flow of $23.7 billion for the year, while capital expenditures jumped 162% to $55.7 billion. For now, Oracle’s AI demand story remains strong, but the market is questioning how expensive it will be to deliver on that growth.

Stocks on the move:

• Super Micro Computer (SMCI): Shares plunged 18% after the AI server maker announced plans to raise $7 billion through equity and equity-linked securities to help fund hardware component purchases.
• Micron Technology (MU), Advanced Micro Devices (AMD), Broadcom (AVGO): Chip stocks extended their recent selloff, with Micron down 4%, AMD off nearly 5% and Broadcom losing 5%.
• Devon Energy (DVN): Shares rallied more than 6% after Evercore ISI upgraded the stock to outperform, citing the company’s better-than-expected mid-month update following its Coterra Energy acquisition.
• DraftKings (DKNG), Rush Street Interactive (RSI), Flutter Entertainment (FLUT), SGHC Ltd. (SGHC), Penn Entertainment (PENN): Gambling stocks gained after DraftKings said it sees no material revenue cannibalization from prediction markets and expects the World Cup to boost engagement later this year.
• Robinhood Markets (HOOD): Shares jumped 5% after platform assets rose 9% in May from April and 48% year over year. Robinhood also said it received regulatory approval to act as an IPO underwriter.

Watchlist: HOOD, MRVL, ORCL, DKNG, SMCI, ADBE, USO, SNDK, COIN

Key Economic Events Today:

EST time

08:30 am: USD PPI, Core PPI
08:30 am: USD Unemployment Claims
01:01 pm: USD 30-y Bond Auction


Earnings

BMC (Before Market Open): The Lovesac Company (LOVE), Aurora Cannabis (ACB), McGraw-Hill (MH)

AMC (After Market Close): Adobe Inc. (ADBE), Lennar Corp. (LEN), RH (RH)
 

The TEFS Analyst team wishes you a successful day!