Jamie Dimon warns on hidden leverage
episodeTranscript
jump: chapters · speakers · find in transcriptTranscript
Transcript generated automatically by AI and may contain errors.
What did Jamie Dimon say about hidden market leverage and its risks?
Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. Good morning. Today is Thursday, August 6th, and I'm your host, Kim Kahn, filling in for Julie Morgan, who's presenting Wall Street Lunch this week. JPMorgan Chase CEO Jamie Dimon said investors should be mindful that hidden borrowing in financial markets could amplify disruptions. Market debt is the highest it's ever been, he said on CNBC. There's a lot of margin debt you don't see because it's not called margin debt. It's called other things. It's that kind of leverage, some hidden, some public. Examples include borrowing through prime brokerages, hedge fund leverage, leveraged ETFs, and treasury arbitrage strategies.
The market leverage is pretty high, Diamond said.
How is SanDisk’s mixed earnings guidance affecting its stock price?
When you have that, you do have a higher chance that someone will disrupt the market in a quick way and people get rattled over it. I'm not going to say it's systemically high, it's going to cause a disaster, but it's high. JP Morgan was a prime broker for AI-focused hedge fund Situational Awareness, which was forced to sell its public equity portfolio to Citadel after suffering steep losses. But Diamond said the episode demonstrated that markets can absorb a failure like that without broader disruption. SanDisk is lower in pre-market trading after mixed guidance overshadowed better-than-expected quarterly results. While fiscal Q4 profit and revenue top forecasts, the outlook for fiscal Q1 disappointed.
SanDisk said it expects adjusted EPS of between $44 and $46, with the midpoint just above the $44.72 consensus. Revenue guidance of $10.3 to $10.8 billion, however, fell short of the $10.82 billion consensus. And while SpaceX shares aren't going to the moon, part of one of its rockets literally is. A spent SpaceX rocket stage slammed into the moon early Wednesday, ending a months-long journey that scientists had been tracking and giving researchers a rare opportunity to study the impact of human-made objects on the lunar surface.
Why did a SpaceX rocket stage impact the moon and what does it mean for investors?
European Southern Observatories said telescopes detected a plume containing sodium and lithium after the collision. Scientists said that sodium most likely came from the moon's surface, while the lithium may have originated from the Falcon 9 upper stage itself. In other crash concerns, about 900 million additional SpaceX shares, equal to roughly 140% of the current public float, became eligible for trading today after the company's first earnings report. The freely tradable float increases from 638.9 million shares to about 1.55 billion, lifting the public float from roughly 4.9% to 11.9% of total shares outstanding. Restrictions scheduled to expire through December 8th will eventually increase SpaceX's tradable float to about 40% of the company, with the remaining 60%, including Elon Musk's stake, locked up until mid-2027.
Now here's a look at what's trending on Seeking Alpha. President Trump has called Kevin Worsh repeatedly since he stepped into the role of Fed Chief. App Lovin' is plunging after Q2 revenue fell short of expectations. And it's what all the cool AIs are doing now, breaching other systems. This time, Meta's Muse Spark exploited a security vulnerability at an unnamed company.
What are the implications of the new 900 million SpaceX shares becoming tradable?
In pre-market trading, Sandisk and Applovin are weighing on NASDAQ 100 futures, while S&P and Dow futures are just barely in the green. Treasury yields are creeping higher, but remain well below their post-Fed meeting highs. On the economic calendar, at 8.30 a.m., Q2 unit labor costs and productivity numbers arrive. At the same time, there's also weekly initial jobless claims. At 10 a.m., June wholesale inventories figures are due.
How are Trump’s calls to the Fed chief and Meta’s AI breach influencing market sentiment?
That's all for today's Wall Street Breakfast. Look for links for stories in the show notes section. Don't forget, these episodes will be up with transcriptions at seekingalpha.com. And for a full suite of news, analysis, ratings, and data on stocks and ETFs, go to seekingalpha.com.
No segments match your search.
Select any passage to copy it with its citation or turn it into a shareable card.
Chapters
5 chapters
1
What did Jamie Dimon say about hidden market leverage and its risks?
0:06–0:45
2
How is SanDisk’s mixed earnings guidance affecting its stock price?
0:45–1:54
3
Why did a SpaceX rocket stage impact the moon and what does it mean for investors?
1:54–3:03
4
What are the implications of the new 900 million SpaceX shares becoming tradable?
3:03–3:27
5
How are Trump’s calls to the Fed chief and Meta’s AI breach influencing market sentiment?
3:27–3:44