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Public.com presents the rundown, your daily market update in 10 minutes. My name is Zaidad Mani and Today is Monday, July 13th. In today's episode, we'll break down the weekend flare up between the US And Iran and preview a stacked week of inflation data and bank earnings. We'll also tell you why Apple is suing OpenAI and the details in this lawsuit are absolutely wild. Then stick around to the end of the show to find out how much the Seattle Seahawks just sold for. And the price tag is shocking. We got a great show for you today. Let's go. Stocks are coming off a winning week. The S P 500 gained 1.2% last week while the NASDAQ was up 1.7%. Now the Dow Jones did fall half a percent last week, breaking a four week winning streak. But nobody cares about the Dow. So now things are off to a bumpy start this week. The U.S. and Iran exchanged another round of strikes over the weekend, raising fear years of major escalation. Iran now says the Strait of Hormuz is closed again while the US Insists that it's open and commercial ships are still getting through. The fighting is weighing on the markets this morning. Oil prices are rising with Brent crude up 4% and trading near 80 a barrel while stocks are red across the board and pre market trading with tech stocks leading the decline. So the Iran war will be an interesting backdrop to what is going to be a stacked week coming up. I mean, just listen to all the stuff that we're expecting this week. Tuesday morning we get the June CPI inflation report. Then on Wednesday morning we're getting the wholesale inflation report. And then right in the middle of all of that, new Fed chair Kevin Warsh makes his first appearance before Congress on Tuesday and Wednesday and I'm sure he's going to get a ton of questions about where interest rates will go. The markets will be paying close attention to that. But that's not all. We're also getting a ton of earnings this week, including from major banks including JP Morgan, bank of America and Wells Fargo. And then we're going to be hearing from TSMC and Netflix later in the week. So this week kicks off earnings season and the bar is pretty high. Wall street expects earnings to have grown north of 20 last quarter with some estimates calling for a nearing 30 growth. So we'll have to see if the earnings live up to that expectation. We're going to be staying on top of all of this. So if you're new here, it's a great time to get subscribed to the podcast and tune in every day to stay in the loop. Let's run through some headlines and we're talking about the beef between Apple and OpenAI. Apple filed a lawsuit against OpenAI on Friday, accusing them of stealing trade secrets to help build their own consumer device. And I gotta say, the details of this lawsuit are wild. Now you gotta remember Apple and OpenAI were partners, and they still kind of are because Apple integrated chat GPT into Siri back in 2024. But these days the relationship has been pretty Rocky, especially after OpenAI announced plans to build their own consumer device to to compete with the iPhone. Last year, OpenAI even paid six and a half billion dollars to acquire a company called IO, which was founded by Jony I've, who worked for Apple for a long time and was responsible for designing the iPad, the iPhone and the ipod. And for the last year or so, OpenAI has been raiding Apple for talent. More than 400 former Apple employees now work at OpenAI, including Tang Tan, who spent 24 years at Apple leading the iPhone and Apple watch design. But he's now the chief hardware officer at OpenAI. Now Tang Tan is the main target of the lawsuit because Apple alleges that he asked some Apple employees interviewing for a job at OpenAI to bring unreleased hardware components to interviews for basically like show and tell sessions. So in the interview, these Apple employees were bringing things like batteries, logic boards and other components. But this lawsuit gets even crazier. Apple accused one of their former engineers, Cheng Lu, of exploiting a software bug to access Apple's internal servers after he had already joined OpenAI. So as Lou was working at OpenAI, he had access to Apple's presentations, hardware designs, manufacturing details and testing procedures. And what's wild here is that Lou texted a former colleague, quote, lol, I found out that I can access the network storage. So funny. And now that text is in a federal lawsuit. Now look, OpenAI is denying everything, saying that they have no interest in other companies trade secrets. And Sam Altman posted on X that he's not afraid of Apple. But look, the damage may already be done because this lawsuit could slow OpenAI's recruiting. They could spook suppliers and be a setback for their hardware ambitions. OpenAI was planning to ship their first device in 2027. That might not happen anymore. And all of this could also force OpenAI to delay their IPO plans. To me, this tells me two things. For one, Apple feels threatened from OpenAI's hardware ambitions to go through with this lawsuit. And number two, they might actually have a strong case here. Now I should point out it is a bit weird that Apple's internal security is so bad that it allowed a fake former employee to get access to internal file storage and confidential files. But that's a conversation for another day. Let me know in the comments on what you guys think. How do you see this playing out? I really hope that they don't settle because this is going to lead to some incredible discovery. By the way, I should mention Apple stock has been quietly near record highs. The stock has rallied 16% in the last three weeks and Apple has been the best performing Magnificent Seven stock this year. Yeah, I think one reason for that is because Apple hasn't spent a fortune on AI Capex like some of the hyperscalers, making them almost like a hedge against the AI trade and fears of an AI bubble. Let's talk about some stocks making moves today. Shares of MGM Resorts are up today after the Wall Street Journal reported the casino company is in deal talks with billionaire media mogul Barry Diller. Now some quick background here. Barry Diller's company, People Inc. Already owns roughly 26% of MGM and last month they offered to buy the rest of the company for $48.30 per share, valuing MGM at around $12.4 billion. Now, MGM didn't publicly accept that offer because they thought it was too low, but it did open up negotiations between the two sides. So now investors are betting there could be an even higher offer coming or potentially another bidder. As a result, MGM Stock is up around 2% this morning at the time of this recording. The bigger trend to watch here for me is that the valuation of these casino companies are taking a hit because of the rise of sports gambling apps and prediction markets. Now, because millions of people have a casino on their phone now, it gives them less reason to go to an actual casino. Now, Vegas has seen fewer visitors over the last few years, so these casino companies are taking a hit and they become an acquisition target as a result. Now moving on, SK Hynix is getting hammered this morning on its first full day of trading on the NASDAQ, the South Korean memory chip giant fell more than 15% in the South Korean Stock Exchange, which was its worst day ever. And their US listed shares are down around 9% at the time of this recording. Remember, SK Hynix just raised $26.5 billion in its US debut on Friday, which was the largest share sale ever by a foreign company. And there was a lot of demand for that listing. Shares popped 13% on the first day of trading. Well, it seems like the market is having second thoughts now. And SK Hynix shares are down this morning along with Micron shares as well, which are down 5%. So chip stocks are getting hit across the board today. But you know, we've seen this happen for the last few weeks now. One day these chip stock stocks go up 3 to 4%, and the next day they're down 3 to 4%. Then the following day they're up 4 to 5%. I mean, these names have been pretty volatile and it's pretty unusual to see for trillion dollar companies. I do wonder, though, with SK Hynix listed on the NASDAQ now, what does that do to Micron stock? Now that US Investors can directly invest in another memory company, will they take money out of Micron? As a Micron investor, that's definitely something I'm keeping my eye on. Let's wrap the show with the fun fact. The Seattle Seahawks are being sold for $9.6 billion, making that the most anyone has ever paid for an NFL team. The buyer is Silicon Valley billionaire Vinod Koshla, who co founded Sun Microsystems back in the day, and then he ended up becoming a venture capitalist and made some pretty solid early bets, including OpenAI, DoorDash, and Instacart. I think the returns from that $50 million check in OpenAI back in 2019 might be what's paying for the Seahawks now. By the way, the previous record for an NFL team sale was the Washington Commanders, which sold for $6 billion back in 2023. So I'm kind of surprised to see the Seahawks sell for nearly $10 billion. I guess it might have helped that the team just won the super bowl back in February. But yeah, the big takeaway here is that sports team valuations just keep going up. Here's a stat to really drive home this point. The Seahawks were last sold back in 1997 and bought by Microsoft co founder Paul Allen for $194 million. So over the last 29 years, the value of the team has nearly 50x. So it seems like the price of housing and sports teams just keep going higher and higher with no end in sight. Well, all right guys, that's the rundown for today. Hope you guys enjoyed today's episode. If you did and you have like five extra seconds, consider giving us a five star rating. Apple, Spotify, YouTube, wherever you listen to your podcast, all that engagement really does help us out and it helps other people find the show. Thank you guys so much for listening. Watching and commenting. Shout out to Mike for all the work behind the scenes and we'll see you guys back here tomorrow.