Edition #26-Monday, April 24th 2023
Summary 📝
Last week saw a fairly flat week for the market, with the S&P finishing down 0.09%, and the Dow Jones down 0.35%. Generally good performance by companies reporting was offset by a few notable declines, such as Tesla’s huge 10% slide on Thursday following earnings.
This week may prove to be another mammoth week, with 42% of the S&P set to report earnings. Expectations are mixed, but analysts and investors will be keen to see what CEOs think of the economy, the state of the consumer, and what might be next for interest rates.
The Fear and Greed index was also fairly flat, but remained in Greed category.
The Volatility Index remains low compared to the last few years, but saw some spikes during the earnings reporting last week.
As I said last week. this is always a point to be careful, so be sure to watch the most critical earnings reports, keep some cash ready, and don’t be afraid of taking profits!
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Quiz Question of the Week ❓❓
Answer at the bottom!
This Week in History 📰
April 26, 1986 - At the Chernobyl nuclear power plant in the Ukraine, an explosion caused a meltdown of the nuclear fuel and spread a radioactive cloud into the atmosphere, eventually covering most of Europe.
April 28, 1789 - On board the British ship Bounty, Fletcher Christian led a mutiny against Captain William Bligh, setting him and 18 loyal crew members adrift in a 23-foot open boat.
April 30, 1789 - George Washington became the first U.S. President as he was administered the oath of office on the balcony of Federal Hall at the corner of Wall and Broad Streets in New York City.
Major Events This Week 🔬
Economic Events
Provided by Unusual Whales
Monday
none
Tuesday
FHFA home price index
New home sales
Consumer Confidence
Wednesday
Durable-goods orders
Durable-goods minus transportation
Advanced U.S. trade balance in goods
Advanced retail inventories
Advanced wholesale inventories
Thursday
GDP
Initial jobless claims
Continuing jobless claims
Pending home sales
Friday
Employment cost index
Personal income (nominal)
Personal spending (nominal)
PCE index
Core PCE index
PCE (year-over-year)
Core PCE (year-over-year)
Chicago Business Barometer
Consumer sentiment (final)
Incoming Earnings Reports
Provided by Earnings Whispers
Notable Upcoming Earnings
Provided by Unusual Whales
Monday
KO (premarket) Implied move: +/- 2.1% Sector: Consumer Defensive
PHG (premarket) Implied move: +/- 13.3% Sector: Healthcare
FRC (afterhours) Implied move: +/- 27.6% Sector: Financial Services
CLF (afterhours) Implied move: +/- 7.2% Sector: Basic Materials
Tuesday
GM (premarket) Implied move: +/- 5.9% Sector: Consumer Cyclical
VZ (premarket) Implied move: +/- 4.0% Sector: Communication Services
DOW (premarket) Implied move: +/- 3.5% Sector: Basic Materials
MMM (premarket) Implied move: +/- 4.5% Sector: Industrials
GOOGL (afterhours) Implied move: 5.4% Sector: Technology
MSFT (afterhours) Implied move: 4.1% Sector: Technology
V (afterhours) Implied move: 3.5% Sector: Financial Services
CMG (afterhours) Implied move: 6.2% Sector: Consumer Cyclical
Wednesday
BA (premarket) Implied move: +/- 4.6% Sector: Industrials
UMC (premarket) Implied move: +/- 8.4% Sector: Technology
META (afterhours) Implied move: +/- 9.1% Sector: Communication Services
ROKU (afterhours) Implied move: +/- 13.6% Sector: Communication Services
TDOC (afterhours) Implied move: +/- 12.1% Sector: Healthcare
Thursday
AAL (premarket) Implied move: +/- 5.5% Sector: Industrials
MO (premarket) Implied move: +/- 2.0% Sector: Consumer Defensive
SIRI (premarket) Implied move: +/- 9.5% Sector: Communication Services
ABBV (premarket) Implied move: +/- 3.0% Sector: Healthcare
AMZN (afterhours) Implied move: +/- 7.0% Sector: Consumer Cyclical
INTC (afterhours) Implied move: +/- 6.9% Sector: Technology
ATVI (afterhours) Implied move: +/- 7.7% Sector: Communication Services
SNAP (afterhours) Implied move: +/- 15.8% Sector: Communication Services
Friday
XOM (premarket) Implied move: +/- 3.0% Sector: Energy
CVX (premarket) Implied move: +/- 2.9% Sector: Energy
Market Futures
Provided by Unusual Whales Futures
Follow my CNBC Watchlist at- Oak Investing Watchlist
Post of the Week 💌
✅ Most investors have heard of the S&P 500, made up of 11 distinct sectors. It helps to diversify a portfolio, and ensure investors can capture the growth of the largest companies in the USA.
✅ However, within that 500, there is a huge amount of variance in each company’s valuation, so an investor with experience may wish to pick a smaller group of companies with more potential. 📈
✅ We’ve selected a company that falls into each of the S&P’s 11 sectors. Some are in the US Markets, and some are international, but all offer major growth potential. 🥳
✅ We look at companies with strong cash reserves, resilient fundamentals, which we think have the ability to execute well during any financial conditions. 😌
✅ Plenty of these offer goods and services which are required regardless of bull markets or recessions.
Let us know what you think 🤔
What’s Moving Markets? 🏃♂️
Credit Suisse logged asset outflows of more than $68 billion during first-quarter collapse
Swiss authorities brokered the controversial 3 billion Swiss franc deal over the course of a weekend in late March, following a collapse in Credit Suisse’s deposits and share price amid fears of a global banking crisis.
The acquisition is expected to be consummated by the end of this year, if possible, but the full absorption of Credit Suisse’s business into UBS Group is expected to take around three to four years.
Brits warned they are not saving enough for retirement and face a ‘risky’ future
Workers in the U.K face a “risky” future when it comes to their pensions, according to a report released by the Institute for Fiscal Studies Thursday.
“Only 44% of those earning £5,000–£10,000 ($6,200–$12,500) per year participated in a pension in 2019,” the IFS says.
Increasing pension contribution rates for U.K. workers should be “top of the agenda” when it comes to reforming the pension system, according to Romi Savova, CEO of pension management platform PensionBee.
Bed Bath & Beyond files for bankruptcy protection after failed turnaround efforts
Bed Bath & Beyond filed for bankruptcy protection and has asked the courts for permission to auction its assets.
The struggling home goods retailer has been warning of a potential bankruptcy since early January.
The company’s 360 namesake stores and 120 buybuy Baby locations will remain open for the time being as it works to liquidate assets.
Chart of the Week 📈
Technology stocks are famously high in multiples such as price-to-earnings (P/E) ratios, as investors look to price in future earnings. However, with multiples currently an average of 25 times current earnings, the sector is taking a big gamble that the Fed will be cutting interest rates by as much as 300BPS this year.
The bond market is currently only expecting about a fifth of this cut. So again we see the stock market going head to head with the bond market in terms of expectations. Typically the bond market has been correct, but will this continue?
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Quiz Question of the Week- Answer ❓
Answer- D 86%
The majority of Americans believe financial education classes should be mandatory.
PR Newswire reports that 86% of Americans believe personal finance classes should be required in K-12 schools. But that’s pretty far from the reality of most schools across the US.
Thanks for reading, have a great day!
Gordon
Disclosure ✅
This newsletter provides general information only. Before making any financial or investment decisions, please consult a financial planner to take into account your personal investment objectives, financial situation and individual needs.