As the final four months of the year begin, markets are showing signs of what hosts Andrew Horowitz and John C. Dvorak describe as "elephanty" behavior. In Episode 816 of DH Unplugged, titled "Strikes, Spikes, Hikes," the duo navigates a landscape marked by renewed U.S. bombing of Iran, a sharp spike in crude oil, and rising bond yields. The episode, published September 1, 2026, frames September's classic volatility against a backdrop of eroding institutional trust and a Federal Reserve caught between political pressure and a wobbly labor market.
Listeners are treated to a wide-ranging tour of the tape, with the hosts identifying specific threads to watch. Crude oil has surged roughly 13% in two weeks to about $91.80, with diesel crack spreads flashing inflation warnings. This geopolitical premium comes as President Trump threatened on Fox News that Iran will be "totally wiped out as a country" if it retaliates again, escalating tensions in the region.
In corporate news, Dell provided blowout guidance, projecting fiscal 2027 EPS near $25.50 versus prior estimates of $18.99, on the back of a 40% data center share. Nvidia is reportedly pursuing a $12.9 billion acquisition of Hugging Face, though the Jensen Huang/Sam Altman fallout adds a layer of intrigue. On the downside, Dick's Sporting Goods plunged roughly 30% as Foot Locker comps fell 3.6%, and Target faced a Halloween clown costume backlash, highlighting the landmines of brand management.
The hosts' skeptical, unfiltered voice comes through when Horowitz turns to Treasury Secretary Scott Bessent and Fed nominee Kevin Warsh. "The administration is the boy who cried wolf right now," Horowitz says, adding that "Bessent has really gotten a little bit crazed trying to manipulate the markets." Dvorak connects the dots to bond yields and the dollar, noting that currencies, equities, and even private valuations ultimately rest on one thing: trust. "It's a series of very large trust factors," he argues, warning that tariff escalation echoing Smoot-Hawley would signal that America no longer believes it can compete.
The deeper discussion digs into government equity stakes in Intel, MP Materials, and Trilogy Metals, and the lawsuit now challenging the Intel arrangement. Horowitz, who discloses a personal short position in Intel, questions why Washington gets discounted shares that retail investors never see. Dvorak contrasts the U.S. approach with China's state-owned enterprise model and flags GLM 5.3 Flash from Chinese lab Z.ai, reportedly trained without a single Nvidia chip.
Other topics include LEGO's 21% first-half revenue jump, and the baseball-card casino economy drawing scrutiny from Japanese regulators. Friday's August payrolls, ADP, JOLTS, and ISM data cap the preview, offering a full slate of economic indicators to watch.
