S&P 500 Hits All-Time High as Airline Stocks Soar After Strong Delta Earnings Report; Bitcoin Surges to Record

AMD Jumps as HSBC Upgrades Stock on AI Chip Strength

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The performance of Advanced Micro Devices’ (AMD) latest AI chips is on par with those from Silicon Valley rival Nvidia’s (NVDA), HSBC analysts said.

In a note Thursday, HSBC analysts upgraded their rating on AMD to a “buy” from a “hold” and doubled their price target to $200, noting that AMD’s latest series of chips can compete with Nvidia’s Blackwell GPUs. AMD launched its Instinct MI350 Series GPUs last month, claiming the chips offered four times more computing power than its previous generation.

AMD shares were up more than 4% in recent trading, pacing Nasdaq 100 gainers.

“With the recent launch of the MI350 series, we were pleasantly surprised with the performance upgrades which imply that the MI350 series can compete with Nvidia latest-gen HGX B200 AI GPU,” HSBC analysts wrote. “Owing to the performance enhancements, the pricing premium is much higher than expected earlier which could help drive upside to earnings in 2025 and 2026.”

The analysts, led by Frank Lee, also wrote that there was further upside possible for AMD shares when the chipmaker launches its MI400 series next year, which could compete with Nvidia’s next-generation Vera Rubin platform—scheduled for the second half of 2026. AMD unveiled the MI400 last month in an event hosted by CEO Lisa Su and Sam Altman, CEO of OpenAI, which has signed on as a customer for the next-gen chips.

–Nisha Gopalan

Bitcoin Price Levels to Watch After Latest Record High

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Bitcoin (BTCUSD) hit an all-time high on Thursday after powering past $112,000 yesterday for its first new high since late May.

In recent months, the cryptocurrency has received a boost from more companies adding it to their corporate treasuries and lawmakers working towards passing pro-crypto legislation.

Bitcoin’s price nudged above the top trendline of a descending channel on Wednesday, paving the way for a continuation move higher. Moreover, the relative strength index confirms bullish momentum and remains below overbought levels, providing ample room for the digital asset to move into price discovery mode.

However, it’s worth pointing out that trading volume continues to dwindle on Coinbase (COIN), the largest U.S.-based crypto exchange, suggesting that larger market participants, such as institutional investors, may be accumulating the asset through spot bitcoin exchange-traded funds (ETFs) rather than exchanges.

The measuring principle projects an upside target if $146,400. Investors should also watch major support levels on bitcoin’s chart around $107,000 and $100,000.

Bitcoin was trading at $112,900 recently.

Read the full technical analysis piece here.

–Timothy Smith

Kellogg Pops as Ferrero Buys Cereal Giant for $3.1 Billion

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Shares of WK Kellogg (KLG) surged 30% Thursday as the maker of Froot Loops and Frosted Flakes announced it had reached a deal to be acquired by Italian sweets company The Ferrero Group for $23 per share in cash, or about $3.1 billion.

WK Kellogg stock had soared overnight on a report from The Wall Street Journal that the companies could finalize a deal “as soon as this week.” Shares were recently trading for $22.85—a level they hadn’t hit in more than a year as shifting attitudes towards diet and price increases in the category ate into cereal sales. The stock had entered Thursday trading slightly negative for 2025.

“We believe this proposed transaction maximizes value for our shareowners and enables WK Kellogg Co to write the next chapter of our company’s storied legacy,” CEO Gary Pilnick said, adding that joining Ferrero would provide the firm “with greater resources and more flexibility to grow our iconic brands in this competitive and dynamic market.”

The transaction is expected to close in the second half of 2025. The New York Stock Exchange-listed cereal giant said once it does, it would become a privately held subsidiary of Ferrero, which has more than 14,000 employees in North America, where its portfolio includes Nutella, Tic Tac, and Butterfinger.

“Over recent years, Ferrero has expanded its presence in North America, bringing together our well-known brands from around the world with local jewels rooted in the U.S.,” Ferrero Group Executive Chairman Giovanni Ferrero said. “Today’s news is a key milestone in that journey, giving us confidence in the opportunities ahead.”

WK Kellogg emerged in 2023 when Kellogg split up its cereal lines and snack business, which became Kellanova (K).

–Sarina Trangle

Robotaxi Expansion, Grok Chatbot in Teslas Coming Soon

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Tesla (TSLA) will likely expand its robotaxi service in the coming weeks and months, and will also soon have Grok, the chatbot made by another Elon Musk-owned company, added to its vehicles likely by next week.

Musk made the statements in a pair of posts on X, the social media platform he owns, Wednesday night and into Thursday morning, responding to users discussing whether Grok would come to Tesla vehicles, and about Tesla’s robotaxi service that launched last month.

Musk said the area around Austin where its robotaxis can operate will get bigger this weekend, and said the EV maker is awaiting regulatory approval to expand to California’s Bay Area, which Musk said will likely happen in the next two months. The robotaxi launch has been relatively smooth, with some reported issues like vehicles stopping in the middle of an intersection and briefly driving on the wrong side of the road.

The looming addition of Grok to Tesla vehicles comes at a tense point for the chatbot, as earlier this week it was the center of its latest controversy surrounding dozens of antisemitic posts where the large language model referred to itself as “MechaHitler” and praised the German dictator.

The company removed the posts, and briefly took Grok offline for the public. In the days since, X CEO Linda Yaccarino announced her departure, with reports suggesting tensions were rising between her and Musk, and xAI also unveiled the newest version of the chatbot, Grok 4, on Wednesday night.

Also on Wednesday, Tesla said in a regulatory filing that it will hold its annual shareholder meeting on Nov. 6. The filing came after pressure from shareholders and elected officials as it remains uncertain whether Tesla’s meeting taking place in November violates a Texas law requiring annual meetings to take place within 13 months of the previous meeting, as Tesla’s was held last July.

Tesla shares were up nearly 3% in recent trading. They have lost a quarter of their value since the start of this year, with some analysts calling for Tesla’s board to act to curb Musk’s involvement in politics.

–Aaron McDade

MP Materials Stock Soars on Rare Earths DOD Deal

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Shares of MP Materials (MP) surged more than 50% in early trading Thursday after the rare earths miner announced a multibillion-dollar agreement with the Department of Defense.

The DoD is set to become MP Materials’ largest shareholder at 15% following an initial $400 million purchase of a new class of “preferred stock convertible into shares of the Company’s common stock, and a warrant permitting DoD to purchase additional shares of the Company’s common stock.”

MP Materials will use the government investment, along with a $1 billion funding line from JPMorgan Chase (JPM) and Goldman Sachs (GS) to fund the construction of its second domestic magnet manufacturing facility at a yet-to-be-decided location.

The company also agreed to a 10-year deal with the DoD establishing the government as a long-term customer of MP’s rare earths with a price floor of $110 per kilogram.

The Trump administration has stated that becoming less dependent on other nations like China for rare earths—metals used in production of a variety of commercial and military products—is a top priority and national security concern. Shares of MP and USA Rare Earth (USAR) have been boosted this year by that commitment.

MP Materials shares were up 56% recently, trading at their highest level in more than three years. USA Rare Earth shares were up about 15% this morning.

–Aaron McDade

Delta Leads Airline Stocks Higher After Strong Earnings Report

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Delta Air Lines (DAL) was the top-performing stock in the S&P 500 early Thursday after the carrier reported better second-quarter results than analysts had expected and reinstated its full-year outlook.

Delta posted adjusted earnings per share of $2.10 on revenue that was roughly flat year-over-year at $16.65 billion. Analysts polled by Visible Alpha had projected $2.08 and $16.41 billion, respectively. Last quarter, Delta said it expected revenue to be down 2% to up 2%, with adjusted EPS within a range of $1.70 to $2.30.

For the third quarter, the airline sees revenue between flat and up 4%, with adjusted EPS between $1.25 and $1.75. Analysts expect revenue roughly flat at $15.69 billion, with adjusted EPS of $1.36.

Delta also reintroduced its full-year projections, saying it expects adjusted EPS of $5.25 to $6.25, with the midpoint well above analysts’ consensus of $5.31. Last quarter, it said it would provide an update to its outlook once the “current uncertainty” passed.

“As we look to the second half of our centennial year, we remain focused on executing our strategic priorities and managing the levers within our control to deliver strong earnings and cash flow,” Delta CEO Ed Bastian said, adding that restoring its full-year guidance reflects “our confidence in the business.”

Delta shares were up roughly 13% recently, but they remain down about 6% since the start of the year. Shares of rivals United Airlines (UAL) and American Airlines (AAL) were also up sharply this morning.

–Aaron McDade

Microsoft Levels to Watch as Stock Above $500 for 1st Time

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Microsoft (MSFT) shares hit another record high on Wednesday as the tech giant’s market capitalization moves closer to $4 trillion. 

The stock closed at around $503 yesterday, putting its market cap at $3.74 trillion, trailing only Nvidia (NVDA), which briefly surpassed the $4 trillion level on Wednesday.

Investment bank Oppenheimer believes Microsoft has room for further upside, placing a $600 price target on the stock yesterday, in part due to the company’s AI revenue growth prospects. Meanwhile, Wedbush analyst Dan Ives told clients in a note Wednesday that he anticipates Microsoft to reach the $4 trillion mark this summer.

The stock has risen 46% from its early-April low and is nearly 20% higher year-to-date as of Wednesday’s close.

After bottoming near the 200-week moving average in early April, Microsoft shares have remained in a strong uptrend, gaining in 12 of the past 14 weeks.

While the relative strength index confirms bullish price momentum, it has recently crossed into overbought territory, an area on the indicator that has previously coincided with consolidation phases in the stock.

It’s worth noting that the volume has trended downward during the stock’s move higher in recent months, indicating that some larger institutional investors may be waiting for the tech giant’s next earnings report before deploying more capital.

Investors should watch crucial support levels on Microsoft’s chart near $468 and $425.

Read the full technical analysis piece here.

–Timothy Smith

Major Index Futures Holding Steady

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Futures tied to the Dow Jones Industrial Average were down 0.1%.

S&P 500 futures fell fractionally.

Nasdaq 100 futures were up less than 0.1%.