Tuesday Morning Rebel Brief — Oracle Earnings Beat

Stocks are trading tepidly higher this morning as the market attempts to shake off yesterday’s plunge. The question on every investor’s mind: Will it be the beginning of a turnaround, or a bull trap in a bear market? 

Let’s look at what’s moving the market this morning.

Oracle Earnings Beat Expectations

Oracle reported earnings Monday night, posting an EPS beat of 11.25% ($1.54 vs $1.38 expected) and a revenue beat of 1.43% ($11.84B vs $11.67B expected). Oracle (ORCL) is up more than 11% in the premarket as a result. 

A large part of Oracle’s stock surge was due to their continued growth in cloud revenue ($2.9B, up 19% in USD), with subsets like infrastructure cloud revenue up 36% in USD and ERP SAAS cloud revenue up 27% in USD. 

This positive cloud news has caused some cloud-related names like Salesforce (CRM), DataDog (DDOG), and Snowflake (SNOW) to rise in the premarket in sympathy. However, it’ll take a lot more than this morning’s move to shake off yesterday’s plunge in these three growth names.

Producer Price Index Numbers Come In Hot

“Just what we all wanted!”, thought equity investors everywhere, “More hot inflation data ahead of the FOMC meeting!”

What it is: PPI tracks the rate of change in prices paid to domestic producers of goods and services. 

The numbers: 

• Headline PPI: 10.8% increase year over year, 0.8% increase month over month.
• Core PPI (ex. Food, energy, and trade): 6.8% increase year over year, 0.5% month over month

Though these figures were in line with estimates from Dow Jones, they represent a near-record for the pace of wholesale prices — the records were set in March of this year, at 11.5% headline and 7.1% core.

Binance and Celsius Pause Withdrawals, Crypto Crash Continues

One market that has not yet seen a reprieve from the selloff is crypto. Bitcoin fell below 21,000 for a brief moment in early morning trading as investors weighed their confidence in the asset class. This comes against a backdrop of two large crypto firms, Binance and Celsius, pausing withdrawals on Monday. 

Binance, the world’s largest crypto exchange by trade volume, paused bitcoin redemptions over “stuck transactions”, though after a few hours the exchange began allowing redemptions once again. Crypto-lending platform Celsius also froze redemptions, citing “extreme market conditions”. Binance’s native token, BNB, and Celsius native token CEL have taken a substantial amount of damage as a result.

For more quick takes on this morning’s market-moving news, check out 60 Seconds With Jon Najarian!