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Alphabet looks to meet AI demand with nuclear power. (0;15) Southwest surges after introducing bag fees. (2:34) Trump looking to peruse the Tesla lot. (3:31)
This is an abridged transcript of the podcast:
Our top story so far, Alphabet (NASDAQ:GOOG) (GOOGL) is looking to lower the cost of building new nuclear reactors by deploying smaller ones through its deal with Kairos Power.
President Ruth Porat told CNBC the deal, signed in October, is part of Alphabet’s efforts to meet surging electricity needs to power AI work. The first small modular reactor under the deal is expected to be brought online by 2030, followed by more deployments through 2035.
Porat highlighted need to move quickly to build new plants that replicate the construction process to drive down the cost curve.
“If we don’t start now in a focused way and replicate a number of them, which is why the Kairos multi tranche is an important kind of proof point, we’re not going to be able to drive down the cost curve,” she said.
NextEra Energy (NEE) CEO John Ketchum said nuclear energy is unlikely to become a power solution till 2035 or after. NextEra, the world’s largest producer of wind and solar energy, owns five nuclear power plants.
In today’s trading, stocks are choppy after another shakeout. But the VIX (VIX) volatility index continues to move to new highs for the year.
But are the buyers starting to see opportunities?
David Morrison, senior market analyst at Trade Nation, says: “Yesterday’s stock market sell-off followed on from last week’s negative performance. Yet little has really changed. Non-Farm Payrolls were fine, and most economic data points are holding up. Retail Sales were weak, and confidence indicators are a concern.”
“But for now, the sell-off looks like an overdue correction which could reset some overvalued stocks and restore some sanity to the market. That’s not to say there aren’t dangers. But it could also prove to be a short-term opportunity should investors now broaden out their portfolios by including some of the overlooked S&P constituents, having reduced their ‘Mag Seven’ exposure,” he added.
John Creekmur, CIO at Creekmur Wealth Advisors, says: “The speed at which markets have declined over the past few days and weeks is a key sign that we are in a correction and not a bear market. Corrections tend to be very short in duration and fast moving, while bear markets take longer to play out and their moves are not as noticeable over the very short term.”
“From a valuation standpoint, the technology sector is looking attractive, especially since it began 2025 with somewhat lackluster performance even before this recent market correction.”
Among active stocks, Southwest Airlines (LUV) is among the top S&P gainers after the carrier announces it will begin charging passengers for checked luggage for the first time. The decision is expected to send shockwaves with some of the carrier’s long-time customers.
The new policy will go into effect for tickets purchased on or after May 28, and will apply to all passengers except those with A-List Preferred status or who purchase a Business Select ticket.
And Verizon (VZ) is sinking after the company’s chief revenue officer warned he expects Q1 results will reflect softening consumer demand and an elevated level of competition in the telecommunication business.
Speaking at the Deutsche Bank conference, CRO Frank Boulben said Verizon expects “tough” year-over-year comparisons to the first quarter of last year, as well a headwind on churn during the early part of 2025.
“When we see less demand, we pull out of promotion,” Boulben said, adding that when demand picks up, the company will come back with a new promotion.
In other news of note, President Donald Trump said he would buy a “brand-new Tesla” in a show of support for Elon Musk, whom he called “a truly great American.”
Trump’s announcement came after Tesla (TSLA) shares tumbled to close all their post-election gains. Investors started to prepare for what could be a disappointing Q1 deliveries report in a few weeks. The decline stood as the largest since September 2020.
Musk posted on X, the former Twitter, that Tesla “will be fine long-term”, but investors lately have feared boycotts and buyer backlash over his association with Trump, following the tech leader’s foray into politics, including his backing of Trump.
And in the Wall Street Research Corner, the momentum factor has been beaten up in 2025 after a scorching 2024, but the end of pain may be in sight. That’s according to veteran market strategist Marko Kolanovic.
He sees potential for the factor’s rebound after the Nasdaq-100’s (NDX) tumble.
Momentum in 2024 was the best-performing factor for U.S. stocks, with investors flocking to high-growth companies with quality balance sheets, among other draws.
Crowded positioning and “changing macro landscape” have hurt the momentum factor this year, but now it is “entering a buy zone,” Cantor Fitzgerald said Monday.
The iShares MSCI USA Momentum Factor ETF’s (MTUM) top 5 holdings are Apple (AAPL), Meta (META), Nvidia (NVDA), Broadcom (AVGO) and JPMorgan Chase (JPM).
Editor’s Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.
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