It's a big week for the AI trade with Oracle & Adobe reporting earnings. 

• Oracle has had a strong run - big names like OpenAI & Nvidia use its cloud     infrastructure business. That makes it a popular long for the AI theme & hence specific returns have driven performance since the April lows.
• in contrast, Adobe has yet to fully convince the market it's an AI play - they need customers to adopt the company's Firefly tools to boost revenues.
• what they have in common though is macro is a drag on both stocks. That macro headwind is abating but it is offsetting the positive returns from idio for Oracle & keeping Adobe's performance mired in negative territory.

One notable area of divergence is exposure to the Dollar -Oracle wants a stronger $, Adobe wants a weaker $. 

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Bloomberg charts capture what MFERM is picking up

• the  weakness of the Dollar in April in the immediate aftermath of Trump's tariffs, was a major drag on Oracle.
• Adobe,  however, wants a weaker Dollar (RHS inverted)

For risk managers, exposure & return attribution formacro factors such as the Dollar are now transparent & measurable.

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