Wednesday, July 22, 2026

The Morning Call---The rapidly changing AI landscape

 

The Morning Call

 

7/22/26

 

The Market

         

    Technical

 

            Tuesday in the charts.

https://www.zerohedge.com/markets/black-gold-bond-yields-big-tech-bullion-bitcoin-buck-all-bounce-ahead-earnings-bonanza?gift=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJuaWQiOiIxMTE4ODMxIiwic2VuZGVyVWlkIjoiUUhnc3BaZVVFS2E3RHhXM216eFlKbjhaWEFoMiIsImlhdCI6MTc4NDY2NTI3NywiZXhwIjoxNzg3MjU3Mjc3LCJhdWQiOiJ6aC1naWZ0In0.3ro7g0hbHCQ5PV_L1-3DNpZvq-wzF_NkJXy-G1htKP0

 

            Tuesday in the technical stats.

            https://www.barchart.com/stocks/momentum

            https://www.barchart.com/stocks/market-performance

            https://www.barchart.com/stocks/sectors/rankings

            https://www.barchart.com/stocks/signals/new-recommendations

 

            The momentum bounce hits key resistance.

https://www.zerohedge.com/markets/fade-todays-record-move-btig-warns-momentum-bounce-hits-key-resistance?gift=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJuaWQiOiIxMTE4ODQ3Iiwic2VuZGVyVWlkIjoiUUhnc3BaZVVFS2E3RHhXM216eFlKbjhaWEFoMiIsImlhdCI6MTc4NDY2NTYwMiwiZXhwIjoxNzg3MjU3NjAyLCJhdWQiOiJ6aC1naWZ0In0.t9URmE4zsbXFsrZ1tOMi_s2yHYXvmknyHld24ag9iyY

 

            The Market’s dangerous bet.

https://www.zerohedge.com/the-market-ear/markets-most-dangerous-bet?gift=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJuaWQiOiIxMTE4OTA4Iiwic2VuZGVyVWlkIjoiUUhnc3BaZVVFS2E3RHhXM216eFlKbjhaWEFoMiIsImlhdCI6MTc4NDcyNDE2MCwiZXhwIjoxNzg3MzE2MTYwLCJhdWQiOiJ6aC1naWZ0In0.saMsgF_McOLwq3QmEzVJZajfvL4At7NiS7A36WFkioU

 

 

            The bond market is too complacent.

https://www.zerohedge.com/the-market-ear/bond-market-far-too-complacent?gift=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJuaWQiOiIxMTE4ODM4Iiwic2VuZGVyVWlkIjoiUUhnc3BaZVVFS2E3RHhXM216eFlKbjhaWEFoMiIsImlhdCI6MTc4NDY2MDY3NCwiZXhwIjoxNzg3MjUyNjc0LCJhdWQiOiJ6aC1naWZ0In0.stkp-OnTBhaiFSfDTycTChmF2qIL2z2wYyF6na-a9oE

 

            Momentum is brewing in bitcoin.

https://www.zerohedge.com/crypto/momentum-brewing-bitcoin?gift=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJuaWQiOiIxMTE4Nzk5Iiwic2VuZGVyVWlkIjoiUUhnc3BaZVVFS2E3RHhXM216eFlKbjhaWEFoMiIsImlhdCI6MTc4NDY2NDIyNiwiZXhwIjoxNzg3MjU2MjI2LCJhdWQiOiJ6aC1naWZ0In0.vme-dG3XwZxUhGLI9tfhFmBc46x9SEKwVl71Xkq28Lw

 

Wednesday morning setup: US futures are lower following a chipmaker-powered jump in Tuesday’s session, with Nasdaq 100 futures falling by 0.8%, which appears to be more of a retracement to yesterday’s strength than a move tied to oil or de-risking into today’s Tech earnings. Alphabet earnings are coming after the close. As of 7:00am ET, S&P futures are down 0.3% and Nasdaq futures slide 0.6%. In premarket trading,  Mag 7 stocks are mixed ahead of key earnings from Alphabet, Tesla and IBM due later in the afternoon. Nvidia is underperforming the group as chipmakers decline; GOOG leads. Defensives and Energy are leading; within Cyclicals Financials are outperforming.  Today’s macro focus is wholly on GOOG and the AI trade. Crude is leading the commodity complex with WTI at $88/bbl and Brent above $95/bbl for the fist time in 6 weeks, so far Equities have not been derailed as investors continue to think that Trump pivots back to a deal. In metals, Precious is leading Base; Ags are mixed but net higher. Dollar is indicated a touch lower as bond yields are flat. Looking at the day ahead, it’s a fairly quiet one. But we’ll get the UK CPI print for June, and earnings releases after the US close include Alphabet and Tesla.

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

Weekly mortgage applications were up 1.9% while purchase applications were up 6.0%.

 

Month to date retail chain store sales grew 7.8% versus +8.2% in the prior week.

 

                        International

 

                          The June UK CPI rose 0.1%, in line; core CPI was up 0.3%, also in line.

 

                        Other

 

            Overnight News

 

              US greenlights Saudi nuclear deal.

              https://www.zerohedge.com/geopolitical/trump-greenlights-saudi-nuclear-deal-uranium-enrichment-kingdom-possible

 

            Iran

 

Overnight news:

 

The US widened the scope of its airstrikes on Iran overnight, as President Donald Trump and officials in Tehran signaled a renewal of peace talks is unlikely in the near-term.

 

            Inflation

 

              Regional Fed reports indicate continued elevated inflation.

              https://bonddad.blogspot.com/2026/07/regional-fed-reports-indicate-elevated.html

 

            Tariffs

 

              The impact of politically (versus economic) motivated tariffs on the US economy.

              https://www.cato.org/research-briefs-economic-policy/macroeconomic-effects-tariffs-insights-180-years-us-trade-policy

 

            AI

 

              The battle for the future of AI:

 

                Summary.

        https://www.zerohedge.com/markets/battle-future-ai-open-source-models-101?gift=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJuaWQiOiIxMTE4NzgzIiwic2VuZGVyVWlkIjoiUUhnc3BaZVVFS2E3RHhXM216eFlKbjhaWEFoMiIsImlhdCI6MTc4NDY2MDUyMywiZXhwIjoxNzg3MjUyNTIzLCJhdWQiOiJ6aC1naWZ0In0.C5jASMJrLei9KnG5Q5ZX_ehcdx7rC2dUUbhDsfGRBfE

 

 

                Point.

                https://www.washingtonpost.com/opinions/2026/07/20/open-model-ai-is-good-competition-anthropic-openai/

 

                Counterpoint.

                https://stratechery.com/2026/whos-afraid-of-chinese-models/

 

              AI’s next breakthrough is looking scary

  https://www.bloomberg.com/opinion/articles/2026-07-21/self-improving-ai-models-look-genuinely-scary?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTc4NDY1Njk1NywiZXhwIjoxNzg1MjYxNzU3LCJhcnRpY2xlSWQiOiJUSUk4Q0tSS1YyVFQwMCIsImJjb25uZWN0SWQiOiJCMzFCNTRDQTI3MTE0NjAxOUQxMURCN0IxRUM4NTE2MyJ9.4u1WVif1-sfwGosG3VfNnxsxR5GCM8p0ffzyY-ZoNd4

 

                  And how about this: Open AI admits a model escaped containment.

              https://www.zerohedge.com/ai/openai-admits-model-escaped-containment-and-hacked-hugging-face-cheat-test

 

                  A generational transfer is taking place.

 https://www.zerohedge.com/markets/generational-transfer-taking-place-cash-crunch-coming-ai-hyperscalers?gift=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJuaWQiOiIxMTE4ODY0Iiwic2VuZGVyVWlkIjoiUUhnc3BaZVVFS2E3RHhXM216eFlKbjhaWEFoMiIsImlhdCI6MTc4NDcyNDY0NSwiZXhwIjoxNzg3MzE2NjQ1LCJhdWQiOiJ6aC1naWZ0In0.Ff9IplSBUWlhkTRd9fZmmExGybzKt-V6DQMHcx3zf9E

 

 

     Investing

 

            Dealing with the unknowns.

            https://alhambrapartners.com/weekly-market-pulse-its-always-something/?src=news

 

            Economic momentum flips from blessing to curse for S&P.

            https://www.advisorperspectives.com/commentaries/2026/07/21/home-affordability-better-headlines

 

                MedTech sector near lows.

            https://talkmarkets.com/article/medtech-sector-is-near-its-lows-what-is-going-on-1784651295

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today   

 

  Home affordability is better than the headlines suggest

  https://www.advisorperspectives.com/commentaries/2026/07/21/home-affordability-better-headlines

 

  The failure gap.

  https://klementoninvesting.substack.com/p/the-failure-gap

           

  Best World Cup photos.

  https://www.theguardian.com/football/ng-interactive/2026/jul/20/world-cup-2026-best-30-photographs-gallery

 

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