Edition #35- Monday, July 17th 2023
Hi Oak Investors,
Welcome to another recap on the week’s action and events!
At Oak Investing, I look to provide value for all levels of investor, whether it’s pulling together the week’s best articles, insights and breaking news, or clarifying new concepts for beginners.
I hope you enjoy this week’s recap, please get in touch if there’s anything more you’d like to see in The Acorn. If you like what you see, please like, subscribe and share to keep growing the Oak Investor community! 🌳
Thanks,
Gordon
Summary 📝
Last week saw markets soaring as big banks beat on the early earnings reports, as inflation data impressed the market, and as the SEC delivered a favourable ruling on XRP, boosting the crypto market.
Markets rose over 2% in the last week, with investors excited about the continued move towards all time highs!
The Fear and Greed index remained in the Extreme Greed category at 80/100.
The Volatility Index continued to slide as good news came in. Anything below 20 sends alarm bells ringing for me, so be careful of getting carried away in case bad news comes in as a surprise!
Quiz Question of the Week ❓❓
Answer at the bottom!
This Week in History 📰
Provided by The History Place
July 18, 1918- Nelson Mandela was born the son of a Tembu tribal chieftain on July 18, 1918, at Qunu, near Umtata, in South Africa.
July 20, 1969 - A global audience watched on television as Apollo 11 Astronaut Neil Armstrong took his first step onto the moon.
July 21, 1898 - Guam was ceded to the United States by Spain.
Major Events This Week 🔬
Economic Events (EST)
Provided by Unusual Whales
Monday
8:30 am Empire State manufacturing survey
Tuesday
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
Wednesday
8:30 am Housing starts
Thursday
8:30 am Initial jobless claims
8:30 am Philadelphia Fed manufacturing survey
10:00 am Existing home sales
10:00 am U.S. leading economic indicators
Incoming Earnings Reports
Provided by Earnings Whispers
Notable Upcoming Earnings
Provided by Unusual Whales
Monday
ELS (afterhours) Implied move: +/- 4.6% Sector: Real Estate
Tuesday
BAC (premarket) Implied move: +/- 3.7% Sector: Financial Services
SCHW (premarket) Implied move: +/- 4.0% Sector: Financial Services
MS (premarket) Implied move: +/- 3.1% Sector: Financial Services
PNC (premarket) Implied move: +/- 3.8% Sector: Financial Services
LMT (premarket) Implied move: +/- 2.5% Sector: Industrials
IBKR (afterhours) Implied move: +/- 4.1% Sector: Financial Services
Wednesday
USB (premarket) Implied move: +/- 4.8% Sector: Financial Services
GS (premarket) Implied move: +/- 3.1% Sector: Financial Services
ALLY (premarket) Implied move: +/- 6.8% Sector: Financial Services
ASML (premarket) Implied move: +/- 4.1% Sector: Technology
NDAQ (premarket) Implied move: +/- 2.5% Sector: Financial Services
TSLA (afterhours) Implied move: +/- 6.9% Sector: Consumer Cyclical
NFLX (afterhours) Implied move: +/- 7.5% Sector: Communication Services
IBM (afterhours) Implied move: +/- 3.3% Sector: Technology
Thursday
AAL (premarket) Implied move: +/- 4.6% Sector: Industrials
TSM (premarket) Implied move: +/- 4.6% Sector: Technology
JNJ (premarket) Implied move: +/- 1.9% Sector: Healthcare
BX (premarket) Implied move: +/- 3.9% Sector: Financial Services
ABT (premarket) Implied move: +/- 2.8% Sector: Healthcare
COF (afterhours) Implied move: +/- 4.4% Sector: Financial Services
Friday
AXP (premarket) Implied move: +/- 3.1% Sector: Financial Services
Post of the Week 💌
✅ Uncertainty within the financial sector is never far away. To be ready for almost anything, banks and certain companies are legally required to conduct Stress Tests🤯
✅ These tests assess how the bank would perform during certain scenarios, ensuring that they would have enough cash, access to money, and general preparation if the worst happened 🌋
✅ Of course, not all banks pass these, and some find creative ways to look more resilient than reality, but they have been a highly important part of the markets since the 2008 financial crisis. 👏
What’s Moving Markets? 🏃♂️
Three stories I’m watching carefully this week. Provided by CNBC
U.S. lawmakers extend social media investigation to Meta’s Threads
House Judiciary Chair Jim Jordan, R-Ohio, asked Meta CEO Mark Zuckerberg to hand over documents about content moderation on Threads as part of the panel’s ongoing investigation of tech platforms’ policies and contact with the Biden administration.
The letter, obtained exclusively by CNBC, is an early indication of the added spotlight Meta’s newest product could bring to the company in Washington.
The notice comes as the Biden administration grapples with a court case about its ability to communicate with tech platforms about potentially harmful information on their services.
Elizabeth Warren urges SEC to investigate Tesla over Twitter ties, corporate governance
Sen. Elizabeth Warren, D-Mass., is urging the U.S. Securities and Exchange Commission to investigate Tesla and its board of directors over possible “conflicts of interest, misappropriation of corporate assets, and other negative impacts to Tesla shareholders” related to CEO Elon Musk’s Twitter takeover.
The nine-page letter, first obtained by CNBC, was sent to SEC Chair Gary Gensler on Monday.
Sen. Warren wrote that the Tesla board’s “apparent lack of independence” from Musk, combined with “inaction and incomplete disclosures, raise questions about possible violations of securities laws and exchange rules which fall under SEC’s jurisdiction.”
Ripple says U.S. banks will want to use XRP cryptocurrency after partial victory in SEC fight
Ripple is confident U.S. banks will start wanting to use XRP for cross-border transactions after a judge gave the firm a partial victory in its fight against the SEC, General Counsel Stu Alderoty told CNBC.
A judge ruled that XRP, a cryptocurrency Ripple is closely associated with, was not in itself necessarily a security, in a development with major implications for the digital asset industry.
It wasn’t a total victory for Ripple, however – the judge also ruled that sales of XRP by Ripple to institutional buyers do count as unregistered sales of securities.
Chart of the Week 📈
Provided by Chart of the Day
Inflation slowed sharply in June to its slowest pace in more than two years, translating to less of a pinch on the average consumer’s wallet thanks to price relief across categories like energy, groceries and housing.
The consumer price index increased 3% in June relative to a year earlier — a slowdown from 4% in May, according to the U.S. Bureau of Labor Statistics.
The report “makes a strong case that inflation is headed back into the bottle,” said Mark Zandi, chief economist at Moody’s Analytics.
Investor’s Toolkit ⚒️
Unusual Whales- Options Flow and Analysis 🛠
5% off with code OAK2022
SimplyWallSt- Stock Analysis 🛠
5% Discount with code OAK
Want to Work with Me? 📈
If you’d like to take your investing to the next level, there are 3 ways I can help:
Pick up a copy of The Investor’s Blueprint, and learn at your own pace 📚
Book a free discovery call with me, and discuss how you can take a step closer to financial freedom 🏆
Follow me on social media, for daily financial education and market insights. 👏
Follow for More 🎉
Quiz Question of the Week- Answer ❓
Answer- B $3.65 trillion
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.