By Mark DeCambre

SpaceX's booming AI business has investors hyped. Now a possible combination with Tesla raises a much bigger question.

Tesla Cybertruck vehicles parked earlier this year at a SpaceX facility in Texas.

Here's what I'm watching this morning: Apparently, building rockets is no longer enough for SpaceX. The space-exploration company's latest results gave investors plenty to chew on, including strong demand for its artificial-intelligence computing services. Then came another plot twist: Elon Musk revealed that SpaceX and Tesla have formed independent committees to explore a possible merger.

To be sure, a deal isn't assured. But the suggestion does leave investors with an intriguing question: What's a combined Tesla and SpaceX actually worth?

I write Need to Know each morning to cut through the noise and focus on the market moves, investing ideas and economic developments affecting your money. Sign up here to get it.

Three stories worth your time ...

-- Investors' search for safety has made toothpaste stocks more expensive than tech

-- Wall Street researchers just used Claude to design a drug. The experiment has spawned a new investment thesis.

-- The Social Security Administration corrected millions of records, and it says there's more to fix

On markets: What does a bull market look like just before it peaks? Mark Hulbert found that stocks have tended to move sideways ahead of previous market tops, rather than experiencing spectacular collapses. That doesn't mean we're approaching one now, but it does suggest that the warning signs of a dramatic S&P 500 SPX unwind aren't always obvious.

-- Check out a recap of MarketWatch's coverage of SpaceX's earnings.

On trading: What a difference a few days make. SpaceX's results and a surprise update from the AI server maker Super Micro have helped to restore some enthusiasm to the artificial-intelligence trade on Wall Street after last week's tech wreck.

Next up: Earnings results are on tap today from Meta Platforms and Tesla.

-- Here's our live coverage of Facebook and Instagram parent Meta.

-- And check out our Tesla live coverage.

-- Follow MarketWatch's real-time stock-market updates.

A surprise boost for the AI trade ...

Super Micro surprised investors.

Super Micro's (SMCI) gave investors an unexpected new reason for optimism Tuesday. The maker of AI servers released a surprise update ahead of its earnings report that signaled stronger-than-expected revenue and profitability. Its shares surged in after-hours trade - a welcome development for an AI trade that has been dogged by questions about the cost of its massive build-out. Shares of Dell (DELL) and HP Enterprise (HPE) were swept up in the after-hours rally.

Retirement decisions we'd rather ignore ...

Saving for retirement is one thing. Figuring out how to make our money last - and what happens if you need long-term healthcare - is another matter.

Annuities and insurance aren't the most scintillating subjects, but ignoring them could prove costly, writes MarketWatch columnist Beth Pinsker. She explores why so many people eschew these products and discusses how to tell whether they make sense for you.

A father's will contested ...

Quentin Fottrell, our Moneyist.

The Moneyist tackles a thorny question after a woman's longtime partner died and left her his house - much to the chagrin of his grown children from a past marriage. Now she's being pressured to sell the house and split the proceeds with the kids. Read his advice on what her next step should be.

Wealth on the ballot ...

U.S. Senate independent Bernie Sanders.

It's not just California. Voters in several states are weighing measures that would raise - or roll back - taxes targeting the rich. One of the biggest decisions involves a proposed one-time 5% wealth tax on California's billionaires. MarketWatch's Andrew Keshner and Victor Reklaitis dig into why various initiatives are being considered and precisely what voters are being asked to decide.

'Let our onions speculate' ...

Students at a "For Our Futures" protest in Chicago.

You can trade futures on everything from pork bellies to orange juice. But onion futures? Well, that's been banned in the U.S. for decades.

Now, a group of students from the University of Chicago are pushing to repeel - ahem, repeal that law. MarketWatch's Joseph Adinolfi explains how the lowly onion (Chicago's namesake) ended up on Wall Street's forbidden trading list, and why these enterprising students want it back.

About the new look ...

You've undoubtedly noticed that Need to Know looks different this week. We've given it a fresh look and a new approach.

Why?

There's a lot of financial news out there jockeying for your attention each morning. My aim is to help you figure out what's worth reading, and occasionally point you toward something you might have otherwise missed.

I'll bring my perspective and, I hope, a healthy dose of deadpan humor. But, above all, I want to make this newsletter even more useful while showcasing the very best from MarketWatch's newsroom.

We've heard from some of you already, and I'd love to hear more. What's working? What's not? What can we do better?

Contact me: mark@marketwatch.com.

Rates are too damn high ...

Mortgage rates in the 7% range and stubbornly high home prices have made buying (and selling) a house a challenge for many. MarketWatch's Aarthi Swaminathan examines the latest trends in the housing market and offers a few tips for prospective buyers.

About me

Mark DeCambre is editor in chief of MarketWatch. He has spent more than 20 years covering Wall Street, markets and personal finance, and writes Need to Know, drawing on the award-winning analysis and journalism of the newsroom.

-Mark DeCambre

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

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