Edition #29-Monday, May 15th 2023
Summary 📝
Last week saw CPI drop below 5% for the first time in two years, indicating that inflation is getting closer to control, but still a long way from the Fed’s 2% target rate. Alongside this tension is the increasing debt levels of the US, closer by the day to the current debt ceiling, which could result in government shutdowns, or even a default in the debt. As always I expect this politically charged issue to be resolved at the 11th hour, but markets remain twitchy with so many variables to consider.
The week was fairly flat for the index, but many companies internally saw some solid movement, with regional banks continuing to move downwards, and AI specific stocks flying.
The Fear and Greed index was fairly flat, but remained in Greed category at 58/100.
The Volatility Index at 17.5 remains low when compared to the last few years, barely moving from the range of the last few weeks.
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Quiz Question of the Week ❓❓
Answer at the bottom!
This Week in History 📰
Provided by The History Place
May 17, 1792 - Two dozen merchants and brokers established the New York Stock Exchange.
May 18, 1804 - Napoleon Bonaparte became Emperor of France, snatching the crown from the hands of Pope Pius VII during the actual coronation ceremony, and then crowning himself.
May 20, 1927 - Charles Lindbergh, a 25-year-old aviator, took off at 7:52 a.m. from Roosevelt Field, Long Island, in the Spirit of St. Louis attempting to win a $25,000 prize for the first solo nonstop flight between New York City and Paris.
Major Events This Week 🔬
Economic Events (EST)
Provided by Unusual Whales
Monday
8:30 am Empire State manufacturing survey
8:30 am Chicago Fed President Goolsbee on TV
9:15 am Minneapolis Fed President Kashkari speaks
Tuesday
8:15 am Cleveland Fed President Mester speaks
8:30 am U.S. retail sales
8:30 am Retail sales minus autos
9:15 am Industrial production
9:15 am Capacity utilization
10:00 am Business inventories
10:00 am Home builder confidence index
10:00 am Fed Vice Chair Barr testifies
10:30 am Richmond Fed President Barkin speaks
12:15 pm New York Fed President Williams speaks
2:30 pm Chicago Fed President Goolsbee on TV
7:00 pm Atlanta Fed President Bostic and Chicago Fed President Goolsbee on panel
Wednesday
8:30 am Housing starts
8:30 am Building permits
Thursday
8:30 am Philadelphia Fed factory survey
8:30 am Initial jobless claims
9:15 am Fed Gov. Philip Jefferson speaks
9:30 am Fed Vice Chair for Supervision Barr testifies
10:00 am Existing home sales
10:00 am U.S. leading economic indicators
Friday
8:45 am New York Fed President Williams speaks
11:00 am Fed Chairman Powell and former Fed Chairman Bernanke on panel
Incoming Earnings Reports
Provided by Earnings Whispers
Notable Upcoming Earnings
Provided by Unusual Whales
Monday
MNDY (premarket) Implied move: +/- 12.5% Sector: Technology
TSEM (premarket) Implied move: +/- 6.4% Sector: Technology
NU (afterhours) Implied move: +/- 8.8% Sector: Financial Services
Tuesday
IQ (premarket) Implied move: +/- 17.8% Sector: Communication Services
HD (premarket) Implied move: +/- 5.1% Sector: Consumer Cyclical
BIDU (premarket) Implied move: +/- 7.3% Sector: Communication Services
CPRT (afterhours) Implied move: +/- 3.3% Sector: Industrials
Wednesday
TGT (premarket) Implied move: +/- 7.8% Sector: Consumer Defensive
CSCO (afterhours) Implied move: +/- 5.0% Sector: Technology
TTWO (afterhours) Implied move: +/- 7.9% Sector: Communication Services
SNPS (afterhours) Implied move: +/- 5.1% Sector: Technology
Thursday
BABA (premarket) Implied move: +/- 6.4% Sector: Consumer Cyclical
WMT (premarket) Implied move: +/- 4.1% Sector: Consumer Defensive
GRAB (premarket) Implied move: +/- 15.0% Sector: Financial Services
AMAT (afterhours) Implied move: +/- 5.3% Sector: Technology
ROST (afterhours) Implied move: +/- 6.3% Sector: Consumer Cyclical
Friday
DE (premarket) Implied move: 5.6% Sector: Industrials
FL (premarket) Implied move: 9.8% Sector: Consumer Cyclical
Upgrades/Downgrades
Provided by DeltaOne
Market Futures
Provided by Unusual Whales Futures
Follow my CNBC Watchlist at- Oak Investing Watchlist
Post of the Week 💌
✅ Tonight is the Eurovision Final, and to celebrate, I’ve put together the largest companies in each of the 26 competing countries. 📈
✅ Many are private companies, but plenty are public and tradable on exchanges in the UK, European markets and NYSE. 💰
✅ Part of good Investing is diversifying across a range of markets, and being able to turn over as many stones as possible to find a bargain. Have you looked in any of these markets yet? 🤔
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What’s Moving Markets? 🏃♂️
Provided by CNBC
Turkey faces unprecedented election runoff after Erdogan looks unlikely to win outright
A candidate must get more than 50% of the vote to win the highly-charged race. If no one passes that threshold, the vote goes to a runoff election two weeks later.
With more than 99% of votes counted, Erdogan is ahead with 49.46% of the vote while his rival Kemal Kilicdaroglu has 44.79%, according to Turkey’s Supreme Election Council (YSK).
Europe takes aim at ChatGPT with what might soon be the West’s first A.I. law. Here’s what it means
A committee of lawmakers in the European Parliament on Thursday approved the EU’s AI Act, making it closer to becoming law.
The regulation takes a risk-based approach to regulating artificial intelligence.
The AI Act specifies requirements for developers of “foundation models” such as ChatGPT, including provisions to ensure that their training data doesn’t violate copyright law.
Crypto companies are playing poker with the SEC as agency cracks down on the industry
Crypto companies have issued bold threats to leave the U.S., highlighting concern that the Securities and Exchange Commission’s industry crackdown is becoming too harsh.
They’re playing a game of poker with the SEC, testing the limits of their lobbying power in the hope that they can get it to back down.
But whether they’ll leave or not is debatable — the U.S. is a huge market with over 50 million Americans owning crypto.
Chart of the Week 📈
Provided by Statista
U.S. national debt currently stands at around $31.5 trillion, daily reporting from the Department of the Treasury shows. The U.S. officially hit its debt ceiling of $31.4 trillion on January 19. Secretary of the Treasure Janet Yellen has most recently said that financial manoeuvring could keep the country open until June 1.
During the coronavirus pandemic, countries all over the world had to mobilize additional resources - mostly through new debt - to help residents and the economy shoulder the extra cost of the crisis. For the U.S., St. Louis Fed data shows national debt jumping up in early 2020 and again during fall and winter 2021/22. The new debt is also financing tax cuts of the Trump era, which are set to run until at least 2025.
When U.S. debt hit $31 trillion for the first time last October, that debt milestone was expected, but - as reported by The New York Times - many feel more uneasy about it now as higher interest rates meant to fight inflation have made borrowing money more costly. As interest rates have been rising quickly, they have the ability to widen the national deficit even more as debt servicing costs are rising, which would in turn lead to the need for even more borrowing.
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Quiz Question of the Week- Answer ❓
Answer- A WiFi
Source- CNN
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.
Great in-depth write up!