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Role reversal - It already happened once during the intraday session on Mon= day, but Saudi Aramco (ARMCO) has officially topped Apple (NASDAQ:AAPL) as = the world's most valuable company. The state-owned energy giant closed the = session yesterday with a market capitalization of $2.43T, while the iPhone = maker ended the day valued at $2.37T. In fact, it's a trend that has accele= rated this year, with the energy sector buoyed by a surge in oil prices fol= lowing an inflation surge that has curbed demand for high-flying tech stock= s (Aramco shares are up 30% YTD, while Apple's stock has slid 20% since the= start of the year).Commentary: "While Apple's stock has held up better tha= n most peers, it is still subject to the great tech multiple compression, w= hich has been witnessed as a result of central bank tightening and ramping = inflation," explained Neil Campling of Mirabaud Securities. "Investors will= now worry if consumers' belt tightening will lead to lower appetite to buy= the ultimate consumer accessory, the iPhone."Some say the correlation is n= ot exactly identical since Aramco's float is less than 2%, compared to the = 84% of Apple shares that are held by the public. Others point out that Aram= co only trades on the Saudi Stock Exchange, known as Tadawul, making the co= nnection somewhat of an apples (no pun intended) to oranges comparison. Sau= di Aramco is also the only non-American company in the top 10 market cap ra= nkings, and if U.S. investors want to scoop up shares they face limited cho= ices, such as buying into the iShares MSCI Saudi Arabia ETF (NYSEARCA:KSA) = that has Aramco as 5% of its holdings.Go deeper: For the past two years, in= vestors have been laser-focused on "pandemic winners" in the technology sec= tor. However, a historic collapse in energy investment during the coronavir= us crisis has led to shortages of oil, gas, coal and refining capacity, lea= ding some to believe the energy sector could be the next "pandemic winner."= In addition, the Saudis, who are one of the world's top crude exporters, h= ave been under pressure to raise output following Russia's invasion of Ukra= ine and subsequent sanctions against Vladimir Putin's regime. (5 comments)
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<= /a> Read in Browser
 
Top News
Role re= versal
Shutterstock

It already happened once during the intraday se= ssion on Monday, but Saudi Aramco (ARMCO) has officially topped Apple (NASDAQ:AAPL) as the world's most valuable company. The state-owned = energy giant closed the session yesterday with a market capitalization of $= 2.43T, while the iPhone maker ended the day valued at $2.37T. In fact, it's= a trend that has accelerated this year, with the energy sector buoyed by a= surge in oil prices following an inflation surge that has curbed demand fo= r high-flying tech stocks (Aramco shares are
Some say the correlation is not exactly iden= tical since Aramco's float is less than 2%, compared to the 84% of Apple sh= ares that are held by the public. Others point out that Aramco only trades = on the Saudi Stock Exchange, known as Tadawul, making the connection somewh= at of an apples (no pun intended) to oranges comparison. Saudi Aramco is al= so the only non-American company in the top 10 market cap rankings, and if = U.S. investors want to scoop up shares they face limited choices, such as b= uying into the iShares MSCI Saudi Arabia ETF (NYSEARCA:KSA) that has Aramco= as 5% of its holdings.

Go deeper: For the past= two years, investors have been laser-focused on "pandemic winners" in the = technology sector. However, a historic collapse in energy investment during= the coronavirus crisis has led to shortages of oil, gas, coal and refining= capacity, leading some to believe the energy sector could be the next "pan= demic winner." In addition, the Saudis, who are one of the world's top crud= e exporters, have been under pressure to raise output following Russia's in= vasion of Ukraine and = subsequent sanctions against Vladimir Putin's regime. (5 comments)

     
Economy
Inflation nation
Tech stocks got hammered again on Wednesday after the closely-watched Consu= mer Price Index soared 8.3% in April, which was more than the 8.1% estimate= and close to the highest level in more than 40 years. Furthermore, core CP= I (excluding food and energy) was higher than expected, rising 6.2%, while = shelter costs - which account for one-third of the CPI - advanced at their = fastest pace since 1991. There was also a big jump in underlying services i= nflation, which has been climbing in recent months, suggesting that price p= ressures are becoming more entrenched in the economy.

Quote: "We're starting to= see energy pull back a little bit, but it's not enough," said Kathy Jones,= chief fixed income strategist at Charles Schwab. "The markets were hoping = for a better number and it's not good enough to rule out more Fed tightenin= g."

Some even think that deep-rooted inflation could prompt a 75= basis point move from the central bank, though Fed Chair Jerome Powell has= set the bar quite high for such an increase. The likelihood is for 50 bps = boosts at coming meetings until the price pressures display a real peak and= make their way out of the economy. Meanwhile, the 10-year Treasury yield c= limbed back above 3% following the release of the CPI report, but then ease= d back below the threshold.

More commentary: "With the annual rate ticking down from= 8.5% to 8.3%, it can be tempting to say we've seen the peak, but we've als= o been head-faked before as was the case last August," declared Greg McBrid= e, chief financial analyst at Bankrate. (244 comments)
     
Featured
When will = the market sell-off end?
Amazon dropp= ed 38% this year, Facebook tumbled 44% and Netflix lost a sobering 72%. Eve= n Apple is down 13% over the past month.

But it=E2=80=99s almost= impossible to time the bottom. When stocks rebound, it's often extremely s= udden, before you have a chance to buy.

The question is: Which stocks are becoming attractive to buy now?=

On Seeking Alpha, you can evaluate any stock in seconds by its = Quant rating, and the valuation, growth, and profitability grades. Our =E2=80=98Strong Buy=E2=80=99 stock picks are beating the marke= t by more than 4-to-1.

Find =E2=80=98= Strong Buy=E2=80=99 stocks now =C2=BB
Earnings
House of Mo= use
Shares of Disney (DIS) = initially moved higher after the bell on Wednesday, but then extended a sel= loff seen in the prior session by falling 2= .6% to $102.40 in AH trading. The new 52-week low saw investors focu= s on the company's top and bottom line m= isses, as well as widening losses at its direct-to-consumer segment. Op= erating losses for Disney's streaming business, which also includes ESPN+ a= nd Hulu, tripled to $877M from a year ago, driven by higher programming and= production expenses.

On the bright side: The House of Mouse reported 7.9M new= Disney+ subs to reach 137.7M subscribers, avoiding a slowdown that has rec= ently plagued streaming rival Netflix (NFLX). CEO Bob Chapek also affirmed the = "very achievable" targets of signing up between 230M-260M subscribers to Di= sney+ by September 2024, and having the streaming video-on-demand business = achieve profitability before then. A slate of big-budget productions will a= dditionally be released in the coming months, like Black Panther and Avatar sequels, Toy Story prequel Lightyear, and a = new Star Wars franchise series called Obi-Wan Kenobi.

"To get their streaming = business to scale, at least the way they've built it, they need to expand t= he aperture of the service beyond Disney-branded content," wrote Morgan Sta= nley analyst Ben Swinburne. "They're spending significantly less than Netfl= ix is. There=E2=80=99s an opportunity for them to spend more efficiently on= content, and lean on this strong library of familiar IP that they have, bu= t they just have to go out and prove it."

More magic: A strong rebound was seen at D= isney's parks, experiences and products segment, with revenue more than dou= bling to $6.7B during the quarter. Operating profit of nearly $1.8B, which = was close to pre-pandemic levels, beat analyst estimates by 18% and compare= d to a year-ago loss of $406M. With regards to the legal tussl= e down in Florida... Disney leadership wasn't asked any questions on th= e conference call after the state's legislature repealed special tax privil= eges related to the district that houses the Walt Disney World theme park. = (104 comments)
     
Trending
Defense spending

Finland's President Sauli Niinisto and Prime Ministe= r Sanna Marin have announced that the country should apply to join NATO "wi= thout delay," forgoing a decades-long policy of military neutrality followi= ng Russia's war in Ukraine. That position is sure to be seen as an escalati= on by Russia, which shares an 830-mile border with Finland (and would doubl= e the amount of "land borders" it shares with NATO territories). The Finnis= h government is set to debate the NATO application over the weekend, while = parliament is expected to give its final approval as early as Monday.
=
Upping the rhetoric: Overnight, European Commission Presiden= t Ursula von der Leyen warned that Russia was the "most direct threat to th= e world order with the barbaric war against Ukraine." She also cited Moscow= 's "worrying pact" with China and "their call for new, and very much arbitr= ary, international relations." Meanwhile, G7 nation Japan voiced its agreem= ent at the EU-Japan summit in Tokyo, with Prime Minister Fumio Kishida sayi= ng the situation "must not be tolerated."

"The pumping of Ukrain= e by NATO countries with weapons, the training of its troops to use Western= equipment, the dispatch of mercenaries and the conduct of exercises by the= countries of the alliance near our borders increase the likelihood of a di= rect and open conflict between NATO and Russia instead of their 'war by pro= xy,'" responded Dmitry Medvedev, Deputy Chairman of Russia's Security Counc= il (he also served as Russia's president from 2008 to 2012). "Such a confli= ct always has the risk of turning into a full-fledged nuclear war. This wil= l be a catastrophic scenario for everyone."

Outlook: Sweden is also anticipated to make a decision on joining NATO this we= ekend, with the alliance expected to take an expedited track to approve the= ir membership. All 30 NATO nations have agreed to spend at least 2% of thei= r GDPs on defense by 2025, and while only a third of those members have met= the threshold, the latest developments should accelerate a drive for achie= ving their targets. The buildup is also likely to be another boon for defen= se stocks like Lockheed Martin (NYSE:LMT) and Northrop Grumman (NYSE:NOC), which have had a phenomenal year on t= he back of the increases in military spending. (52 comment= s)

     
Today's Markets
In Asia, Japan = -1.8%. Hong Kong -2.2%= . China -0.1%. = India -2.3%.
I= n Europe, at midday, London -2.4%. Paris -2.4%<= /span>. Frankfurt -2.4%.
Futures at 6:20, Dow -0.5%. S&P = -0.7%. Nasdaq -1.1%. Crude -2.3% to $= 103.24. Gold -0.2% to = $1849.30. Bitcoin -10.6% to $27,960.
Ten-year Treasury Yield -8 bps to 2.83%
Today's Economic Calendar
8:30 = Initial= Jobless Claims
8:30 Producer Price Index
10:30 EIA Natural Gas Inventory1:00 PM R= esults of $22B, 30-Year Note Auction
4:00 PM Fed's Daly Speech
4:30 PM Fed Balan= ce Sheet

Companies report= ing earnings today =C2=BB
What else is happening...
FDA allows Abbott (ABT) to = release baby formula from plant amid shortage.

Robinhood (HOOD), Block (SQ) fall as COIN outlook = dims crypto swoon.

Rivi= an (RIVN) backs produc= tion guidance despite supply chain headwinds.

Lorie Logan, head of Fed's balanc= e sheet, named Dallas Fed president.

Google (GOOGL) shows off= smartwatch, phones at I/O developer conferenc= e.

Coming in 2022? Instacart (ICART) said to file confidentially for U.S. IPO.

Internal prob: Moderna's (MRNA) new CFO departs just 2 days into = the job.

Duke Realty (DRE) rejects $24B buyout offer from Prologis (PLD).

Beyond Meat (BYND) extends losses as margins col= lapse, losses widen.

Musk reportedly dra= ws SEC probe over Twitter (TWTR)= stake disclosure.
Seeking Alpha=E2=80=99s Wall Street Breakfast Podcast
Seeking Alpha's Wall Street Breakfast podcast brings you all the news you n= eed to know for your market day. Released by 8:00 AM ET each morning, it is= a quick listen that you can put on as you get ready to start your working = day.
 
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