‘ROC’-ing the AI Trade, JetBlue Founder on Airlines, and a Chips Pair Trade 7/9/26

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**Kelly Evans** (1:03)
The chips are up, oil is down and Costco is one of the worst performers in the S&P 500 today. I'm Kelly Evans. WTI is back at $72 a barrel today. We'll talk to Amrita Sen in just a moment about the problems that could still be lingering for gasoline and diesel though. Plus the rocks, receivers of capital. That's the catchy phrase Victoria Green used to describe the AI winners on this show yesterday. One such receiver, Lumentum, the best in the S&P today. It's up 11 percent. Cloud Capital's Vince LaRusso will weigh in on that. Speaking of chips, Pepsi shares under pressure after its earnings are down about 3 percent. While Costco was also selling off after its comp sales, which were up nearly 9 percent year on year, still failed to impress investors. We'll have more on that coming up. But let's begin with the latest in oil markets with Amrita Sen. She is Energy Aspects founder and Director of Market Intelligence and joins us for our opening exchange. Amrita, I'll start with you broad level speaking here. This is a very quick sell-off, I guess we could call it in the oil markets.
We perceive that despite all of the headlines, the market is not overly concerned about losing more barrels of oil as this renewed tension in Iran plays out.

**Amrita Sen** (2:15)
Look, to be fair, we have had some pretty significant move up in the last couple of days. I think today is taking a breather, I think people are trying to reassess where this is headed. So far, both sides have avoided hitting energy infrastructure. I think that is very critical for the market to figure out where this is going next and price the next leg in.
I will still say, like you said at the start as well, by no means is Hormuz traffic back to normal. I mean, it wasn't even prior to the escalation, but we've seen our maritime analytics has seen quite a few ships either stall, turn around or even some cancellation. So things are slowing down. Of course, dark transits will continue. Some of the countries in the region will continue to push out their ships with AIS has turned off, but it is going to be at a slower pace than it was just a week ago.

**Kelly Evans** (3:07)
Talk about what's going on with diesel and gasoline. What are some of the developments that we see? You know, we read diesel prices up 11% yesterday.

**Amrita Sen** (3:15)
Yes, and I think that's where really the story is. And look, we've been saying this for months now that gasoline and diesel are actually, and jet as well, are actually a lot tighter than crude because we just don't have enough refining capacity globally outside of China. And China initially banned product exports. Now they're starting to allow more normal exports, but it's still not enough. And of course, yesterday we had Russia come out and ban diesel exports because of continuous Ukrainian attacks on its refineries. July is on track to be at a record high in terms of the number of hits. And diesel exports had already been falling. You know, it used to be well above a million barrels per day. Last week, it was only 270,000 barrels per day. And now it's going to go down to a negligible level. So that's what really drove the crazy move higher yesterday. But, you know, we've been warning that a Russian diesel ban is likely given what's going on to the refineries there. And I think, you know, my worry is hurricane season, right? We just, you know, one refinery issue away for both gasoline and diesel in the US to go even higher.

**Kelly Evans** (4:18)
So in other words, after those attacks on Russian refineries, the country is banning exports of diesel because it's worried about being able to meet supplies.