Unusual Whales

**Morgan Stanley** released new projections showing AI could generate **$920 billion in yearly net benefits** for S&P 500 companies. The investment bank estimates long-term value creation could reach **$1.316 trillion**, representing approximately **25% of current market capitalization**. Key highlights: - Annual benefits of $920B across S&P 500 firms - Long-term value potential of $1.316T - Represents quarter of total market cap This follows previous bullish AI projections, including Wells Fargo's estimate that Microsoft's AI business alone could reach $100 billion in revenue. The projections underscore Wall Street's growing confidence in AI's potential to drive significant corporate value creation across major public companies.

**Goldman Sachs reports exceptional Q2 earnings performance** across S&P 500 companies, marking one of the strongest seasons on record. **Key highlights:** - Q2 EPS grew **11% vs. 4% expected** - nearly triple forecasts - **60% of companies beat estimates by wide margins** - Earlier data showed 80% beat earnings forecasts with 8.4% surprise - 69% exceeded revenue estimates with 2.8% surprise The results demonstrate **broad-based corporate strength** across major US companies, with earnings growth significantly outpacing analyst expectations.

**57% of millennials** spend more money due to financial FOMO, according to new data from Empower. This exceeds the national average, where **51% of all Americans** have made purchases or investments driven by fear of missing out. **Key findings:** - Millennials show higher susceptibility to FOMO-driven spending - Over half of Americans make financial decisions based on missing out fears - Financial FOMO affects both everyday purchases and investment choices The data highlights how social pressure and fear of missing opportunities drive significant financial behavior across age groups, with millennials particularly vulnerable to these psychological triggers.

**First-time homebuyers now represent just 24% of the housing market** - the lowest share ever recorded according to the National Association of Realtors (NAR). This marks a significant shift in the real estate landscape, with **repeat buyers and investors dominating** three-quarters of all home purchases. The historic low suggests: - **Affordability barriers** are keeping new buyers out - **Existing homeowners** have advantages in competitive markets - **Market dynamics** continue favoring experienced buyers This trend has remained consistent, with the same 24% figure reported earlier this year, indicating **persistent challenges** for those trying to enter homeownership for the first time.

Florida's housing market has dramatically shifted from one of the hottest in the nation to among the coldest, according to Business Insider. **Key Market Indicators:** - More than half of Tampa homes now show price reductions - Florida ranks as one of the hardest-hit metropolitan areas nationally - Sharp contrast from previous red-hot market conditions **Market Context:** The dramatic cooling represents a significant reversal for a state that was previously experiencing explosive growth in home values and sales activity. This trend reflects broader housing market adjustments as elevated interest rates and affordability concerns impact buyer demand across major metropolitan areas.

**Nvidia is in discussions with the US government** to sell AI chips to China, offering to share revenue from Blackwell chip sales as part of the negotiations. - The talks involve Nvidia's advanced **Blackwell AI chips**, which have been subject to regulatory restrictions - Company is willing to give the **US government a cut of Chinese sales** to gain approval - Negotiations come amid ongoing **regulatory scrutiny** over AI chip exports to China This development could significantly impact Nvidia's access to the Chinese market while addressing US national security concerns about advanced AI technology exports.

**Companies are reverting to analog hiring practices** as AI tools increasingly infiltrate the job application process. Employers are now requesting **paper resumes** to prevent candidates from using AI to generate applications, according to Business Insider. This follows a broader trend of companies returning to **in-person interviews** to combat AI-driven cheating in the hiring process. Key developments: - Paper resumes eliminate AI-generated content - In-person interviews reduce remote AI assistance - Companies seeking authentic candidate evaluation The shift represents a **significant reversal** from digital-first hiring practices adopted during the pandemic. Employers are prioritizing genuine human interaction over efficiency as AI tools become more sophisticated and widespread in job applications.

**Uber users in Atlanta are actively canceling rides** with human drivers, choosing to wait until they can match with one of Waymo's self-driving vehicles instead. This behavior shift highlights a **growing consumer preference** for autonomous vehicle technology over traditional rideshare options. The trend suggests that **self-driving cars are gaining mainstream acceptance**, with users willing to inconvenience themselves to experience the technology. - Users cancel human driver rides repeatedly - Wait specifically for Waymo autonomous vehicles - Demonstrates shifting consumer preferences This development marks a **significant milestone** in the adoption of self-driving technology in everyday transportation.

**Three-quarters of potential homebuyers are hitting pause** on their purchasing plans, according to new Bank of America data. The reason? **Widespread expectations that both home prices and interest rates will decline** in the coming months. This represents a significant shift in buyer sentiment: - 75% are actively waiting for better market conditions - Buyers anticipate falling prices AND lower rates - The waiting game reflects growing market uncertainty This trend builds on earlier data showing increasing confusion among buyers - with 60% unable to determine if it's a good time to purchase, up from 48% in 2023. **The housing market standoff continues** as buyers bet on future improvements while sellers maintain current pricing expectations.

**Aging Infrastructure Takes Priority** US utilities allocated **$63 billion** to grid replacements and upgrades in 2024, representing 67% of total transmission and distribution spending according to Bank of America. This maintenance focus significantly outpaced new infrastructure investment: - $63 billion for replacements and upgrades - $32 billion for new lines and substations **Grid Modernization Challenge** The spending pattern highlights the challenge facing America's aging electrical grid. While the clean energy transition requires an estimated **$21 trillion** in grid upgrades globally, utilities are currently focused on maintaining existing infrastructure rather than expanding capacity. This maintenance-heavy approach may slow integration of renewable energy sources and grid expansion needed for electrification goals.