Monday, July 24th 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 was a story of two halves, as markets continued their rally until earnings from Tesla and Netflix disappointed, leading to a slight decline towards the end of the week.
The S&P 500 gained 0.61%, NASDAQ dropped 0.42%, and the Dow Jones Industrial Average climbed 2%.
The Volatility Index crept up as investors were disappointed by Elon Musk’s hinting at further price cuts, and Netflix earnings guidance. The VIX remains under 20, indicating that volatility is still fairly low, so now may be a decent time to take advantage of any disappointments in earnings reports coming this week!
The Fear and Greed index remained in the Extreme Greed category at 82/100.
This Week in History 📰
Provided by The History Place
July 25, 1909 - The world's first international overseas airplane flight was achieved by Louis Bleriot in a small monoplane.
July 26, 1953 - The beginning of Fidel Castro's revolutionary "26th of July Movement."
July 27, 1953 - The Korean War ended with the signing of an armistice by U.S. and North Korean delegates at Panmunjom, Korea.
Major Events This Week 🔬
Economic Events (EST)
Provided by Unusual Whales
Monday
9:45 am S&P "flash" U.S. manufacturing PMI
9:45 am S&P "flash" U.S. services PMI
Tuesday
9:00 am S&P Case-Shiller home price index (20 cities)
10:00 am Consumer confidence
Wednesday
10:00 am New home sales
2:00 pm FOMC decision on interest-rate policy
2:30 pm Fed Chairman Powell press conference
Thursday
8:30 am Initial jobless claims
8:30 am Durable-goods orders
8:30 am Durable-goods minus transportation
8:30 am GDP (advanced report)
8:30 am Advanced U.S. trade balance in goods
8:30 am Advanced retail inventories
8:30 am Advanced wholesale inventories
10:00 am Pending home sales
Friday
8:30 am Personal income (nominal)
8:30 am Personal spending (nominal)
8:30 am PCE index
8:30 am Core PCE index
8:30 am PCE (year-over-year)
8:30 am Core PCE (year-over-year)
8:30 am Employment cost index
10:00 am Consumer sentiment (final)
Incoming Earnings Reports
Provided by Earnings Whispers
Notable Upcoming Earnings
Provided by Unusual Whales
Monday
DPZ (premarket) Implied move: +/- 4.91% Sector: Consumer Cyclical
CLF (afterhours) Implied move: +/- 6.23% Sector: Basic Materials
LOGI (afterhours) Implied move: +/- 6.54% Sector: Technology
Tuesday
GM (premarket) Implied move: +/- 4.38% Sector: Consumer Cyclical
VZ (premarket) Implied move: +/- 3.69% Sector: Communication Services
GE (premarket) Implied move: +/- 3.97% Sector: Industrials
MMM (premarket) Implied move: +/- 3.81% Sector: Industrials
SPOT (premarket) Implied move: +/- 9.00% Sector: Communication Services
GOOGL (afterhours) Implied move: +/- 5.15% Sector: Communication Services
MSFT (afterhours) Implied move: +/- 4.98% Sector: Technology
SNAP (afterhours) Implied move: +/- 18.84% Sector: Communication Services
V (afterhours) Implied move: +/- 2.86% Sector: Financial Services
TXN (afterhours) Implied move: +/- 3.85% Sector: Technology
TDOC (afterhours) Implied move: +/- 11.40% Sector: Healthcare
Wednesday
T (premarket) Implied move: +/- 4.83% Sector: Communication Services
KO (premarket) Implied move: +/- 1.74% Sector: Consumer Defensive
BA (premarket) Implied move: +/- 4.09% Sector: Industrials
TLRY (premarket) Implied move: +/- 12.12% Sector: Healthcare
META (afterhours) Implied move: +/- 8.49% Sector: Communication Services
EBAY (afterhours) Implied move: +/- 4.68% Sector: Consumer Cyclical
NOW (afterhours) Implied move: +/- 5.66% Sector: Technology
CMG (afterhours) Implied move: +/- 5.70% Sector: Consumer Cyclical
Thursday
ABBV (premarket) Implied move: +/- 3.36% Sector: Healthcare
MA (premarket) Implied move: +/- 2.90% Sector: Financial Services
MCD (premarket) Implied move: +/- 2.42% Sector: Consumer Cyclical
F (afterhours) Implied move: +/- 4.82% Sector: Consumer Cyclical
INTC (afterhours) Implied move: +/- 6.16% Sector: Technology
X (afterhours) Implied move: +/- 5.69% Sector: Basic Materials
ROKU (afterhours) Implied move: +/- 10.90% Sector: Communication Services
Friday
XOM (premarket) Implied move: +/- 2.56% Sector: Energy
CVX (premarket) Implied move: +/- 2.49% Sector: Energy
AZN (premarket) Implied move: +/- 2.64% Sector: Healthcare
PG (premarket) Implied move: +/- 2.57% Sector: Consumer Defensive
Friday
AXP (premarket) Implied move: +/- 3.1% Sector: Financial Services
Post of the Week 💌
✅ With today’s release of Barbie and Oppenheimer, the craze of combining the two is going to be the debate of the week. But if the two were investors, which companies would they be interested in? 🤔
✅ I asked Chat-GPT which companies Barbie and JR Oppenheimer would likely invest in today. What do you think of ‘their’ picks? 💰
What’s Moving Markets? 🏃♂️
Three stories I’m watching carefully this week. Provided by CNBC
A ‘momentous week’ ahead as the Fed, ECB and Bank of Japan near pivot point
The market is pricing 25 basis point hikes for the Federal Reserve and the European Central Bank, but economists will be closely scrutinizing communications on their future rate paths.
The Bank of Japan faces a different challenge, and is expected to keep its -0.1% short-term interest rate target despite inflation consistently exceeding target and signs of the economy heating up.
China has announced a slew of measures to bolster its economy. Here’s what we know so far
A key Politburo meeting later this week will review China’s economic performance in the first half of the year.
Ahead of that meeting, China has pledged to optimize the business environment for private enterprises.
Beijing announced measures to bolster consumption, particularly for household products and electric vehicles.
A 10-year rally in U.S. home prices could be coming to an end, says Yale’s Robert Shiller
A decade-long rally in U.S. home prices could finally come to an end once the Federal Reserve stops its rate-hiking cycle, said Robert Shiller, professor of economics at Yale University.
Home prices have made steady gains since 2012, according to the S&P Case-Shiller U.S. National Home Price Index.
“The fear of interest rate increases has influenced people’s thinking — it’s not just the homeowners, it’s new buyers who wanted to get in before the interest rates went up even more,” Shiller said.
Chart of the Week 📈
Provided by Chart of the Day
Rising interest rates, losses on commercial real estate and heightened regulatory scrutiny will pressure regional and midsized banks, leading to a wave of mergers, sources told CNBC.
Some of those pressures will be visible as regional banks disclose second-quarter results this month. Firms already have warned of sinking revenues.
And according to one analyst, half the country’s banks will likely be swallowed by competitors in the next decade.
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? 📈
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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.