00:00So let's get more on that global market route, which one Wall Street strategist called a chip
00:05wreck. Our markets reporter, Anthony Stevens, joins us for more of this. That caught your eye
00:09too, right? It did for me as well. But really, it was a bad day for global markets. Of course,
00:14it started in Korea and it's looking ugly for Micron ahead of earnings.
00:20Yeah, it's not really that funny when you see a move of 8 to 10 percent on the downside of
00:24most of the U.S. chip makers. So what happened yesterday was a follow through from the Korean
00:29sell-off into the U.S. sell-off. And a lot of Asian, European and U.S. traders picked up
00:34on
00:34headlines in the Asian session from Korean domestic newspapers that Hynix was moving away from making
00:41HBM into focusing on the DRAM space. Now, DRAM is a much less complicated form of memory. And there
00:48were a lot of questions of why that was happening. Of course, DRAM has rallied a lot. But did that
00:53justify this move? And this fundamental shift rather than a flow shift kind of sparked a little bit of
00:59panic selling in the U.S. We saw semiconductor names but were led lower by the memory space.
01:06So names like Micron, Western Digital and so on were up down around 8 to 10 percent. So that was
01:12quite a significant move heading into the Micron earnings, as you mentioned. Now, the implied move
01:16for Micron earnings is about 10 percent. So it's a two, possibly we have two straight days of this
01:22kind of move. The downside on U.S. markets may be limited by the fact that economic growth is so
01:28diverse
01:28in the U.S. So quality names held up really quite well in the U.S. overnight. But since most
01:34of emerging
01:34market stock gains have been from these Asian chip makers, the concerns are much bigger coming over on
01:39our side of trading. For example, you see Taiwan futures significantly lower today, even though they were
01:44resilient yesterday.
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