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It’s Monday, Dip Fam,
Time to cover some stories you might have missed last week: IBM suffers its worst trading day in company history, Wisconsin primary sees major PAC spending, and more.
Today’s estimated reading time is 2 minutes and 44 seconds.
- The Daily Dip Editor
Before We Dip In (TL;DR)
In today’s issue:
IBM stock plunges 25% in its worst day ever. 📊
GOP PAC targets Wisconsin primary. 🏛️
Senators grill DNI pick over 2020 election. 📜
BUSINESS
📊 IBM Stock Suffers Worst Trading Day in 115-Year History
IBM’s stock fell 25% last Tuesday, its worst one-day drop in 115 years, wiping out roughly $67 billion in market value. The plunge followed preliminary second-quarter results that missed Wall Street's revenue expectations, even as revenue rose 1%.
Analysts say the numbers weren’t disastrous on their own, but the reaction reflects a bigger shift: companies are redirecting spending toward AI hardware and software, leaving less for IBM’s traditional products.
The squeeze: Chipmakers Samsung, Micron, and SK Hynix shifted production toward AI memory chips, with prices projected to rise by as much as 355% by year’s end. Clients bought chips instead, delaying mainframe upgrades and consulting deals IBM expected.
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POLITICS
🏛️ GOP Super PAC Spends $2.2 Million Targeting Francesca Hong
A Republican super PAC has spent $2.2 million on ads targeting Francesca Hong, a Democratic Socialist running for Wisconsin’s governor nomination. The ads, airing in Madison and Milwaukee, criticize her opposition to Trump’s deportation policies and push to abolish ICE.
Wisconsin is a swing state, so a Democratic Socialist nominee carries general-election risk, and some say that’s the point: Republicans may be boosting Hong to face an easier matchup in the midterms. The Republican Governors Association says the ads are meant to inform voters about Hong’s record.
The reaction: Some Republicans call the ad opposition research, while critics describe it as an underhanded attempt to interfere in the primary. Hong thanked the PAC for highlighting her “Keeping Families Together” legislative package and said Republicans are underestimating her campaign.
LAW & POLICY
📜 Jay Clayton’s Nomination Faces Scrutiny From Senate Panel
Jay Clayton, President Trump’s nominee for Director of National Intelligence, faced a Senate confirmation hearing where Democrats repeatedly asked whether Joe Biden won the 2020 election. Clayton said Biden was certified as president and received the most electoral votes but did not directly answer whether Biden won.
Clayton was nominated after Trump appointed Bill Pulte as acting intelligence director, a move that drew bipartisan concern because Pulte lacks intelligence experience. The position oversees the nation’s intelligence agencies, including efforts to detect and counter foreign election interference.
The scrutiny: Lawmakers also questioned Clayton about subpoenas issued to New York Times reporters and whether he would be willing to challenge Trump when necessary. The Senate Intelligence Committee is expected to vote on his nomination next week, while Pulte continues serving in the acting role.
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Over and Out...
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