Monday, July 31st 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 📝
Markets finished another week in the green as Google’s earnings boosted investor confidence, and the expected 25BPS hike from the Federal Reserve indicated the heavy lifting may be over to beat inflation. Strong data on jobs and the wider economy showed that these rate hikes have not yet had any worrying impacts, but this may still be in the pipeline…
The S&P 500 gained 0.86%, NASDAQ climbed 2%, and the Dow Jones Industrial Average climbed 0.7% as Meta, Coca Cola and a whole host of other companies reported earnings.
The Volatility Index slightly fell as wave after wave of good news came in, but all generally in line with expectations. The major catalyst to the downside on Thursday was the Japanese Central Bank’s surprise decision to change policy on yield curves to control the nation’s finances, but markets quickly brushed this off.
The Fear and Greed index remained in the Extreme Greed category at 78/100. This surprisingly fell from last week, but is still high. I see a market in rally mode, with investor enthusiasm and sentiment climbing, and that sends red flags for me.
By all means keep your money at work, but I want to have some cash on the side to take advantage of the inevitable downside when the music stops. Plenty of earnings reports next week have the potential to cause some disappointment, most notably Apple, as we get to within 5% of an all time high on the S&P500!
Keep to your strategy, don’t let the noise change your plan, and learn as much as you can!
This Week in History 📰
Provided by The History Place
August 3, 1492 - Christopher Columbus set sail from Palos, Spain.
August 4, 1962 - Apartheid opponent Nelson Mandela was arrested by security police in South Africa.
August 6, 1945 - The first Atomic Bomb was dropped over the centre of Hiroshima at 8:15 a.m., by the American B-29 bomber Enola Gay.
Major Events This Week 🔬
Economic Events (EST)
Provided by Unusual Whales
Monday
8:30 am Chicago Business Barometer
2:00 pm Fed senior loan survey
Tuesday
9:45 am S&P final U.S. manufacturing PMI
10:00 am Job openings
10:00 am ISM manufacturing
10:00 am Construction spending
Wednesday
8:15 am ADP employment
Thursday
8:30 am Initial jobless claims
8:30 am U.S. productivity (prelim)
9:45 am S&P final U.S. services PMI
10:00 am ISM services
10:00 am Factory orders
Friday
8:30 am U.S. nonfarm payrolls
8:30 am U.S. unemployment rate
8:30 am U.S. hourly wages
8:30 am Hourly wages year over year
Incoming Earnings Reports
Provided by Earnings Whispers
Notable Upcoming Earnings
Provided by Unusual Whales
Monday
SOFI (premarket) Implied Move: +/- 13.52% Sector: Financial Services
ON (premarket) Implied Move: +/- 6.14% Sector: Technology
CAR (afterhours) Implied Move: +/- 7.02% Sector: Industrials
Tuesday
UBER (premarket) Implied Move: +/- 7.12% Sector: Technology
PFE (premarket) Implied Move: +/- 3.14% Sector: Healthcare
SIRI (premarket) Implied Move: +/- 9.48% Sector: Communication Services
BP (premarket) Implied Move: +/- 3.20% Sector: Energy
MRK (premarket) Implied Move: +/- 2.71% Sector: Healthcare
CAT (premarket) Implied Move: +/- 3.79% Sector: Industrials
AMD (afterhours) Implied Move: +/- 6.65% Sector: Technology
PINS (afterhours) Implied Move: +/- 8.89% Sector: Communication Services
SBUX (afterhours) Implied Move: +/- 4.59% Sector: Consumer Cyclical
MSTR (afterhours) Implied Move: +/- 6.25% Sector: Technology
Wednesday
CVS (premarket) Implied Move: +/- 3.72% Sector: Healthcare
KHC (premarket) Implied Move: +/- 2.64% Sector: Consumer Defensive
PYPL (afterhours) Implied Move: +/- 6.95% Sector: Financial Services
ET (afterhours) Implied Move: +/- 2.32% Sector: Energy
OXY (afterhours) Implied Move: +/- 3.65% Sector: Energy
SHOP (afterhours) Implied Move: +/- 8.98% Sector: Technology
HOOD (afterhours) Implied Move: +/- 8.84% Sector: Technology
QCOM (afterhours) Implied Move: +/- 4.93% Sector: Technology
U (afterhours) Implied Move: +/- 9.96% Sector: Technology
DASH (afterhours) Implied Move: +/- 7.68% Sector: Communication Services
Z (afterhours) Implied Move: +/- 7.24% Sector: Communication Services
Thursday
WBD (premarket) Implied Move: +/- 8.88% Sector: Communication Services
W (premarket) Implied Move: +/- 12.20% Sector: Consumer Cyclical
MRNA (premarket) Implied Move: +/- 6.50% Sector: Healthcare
COP (premarket) Implied Move: +/- 2.91% Sector: Energy
AAPL (afterhours) Implied Move: +/- 3.02% Sector: Technology
AMZN (afterhours) Implied Move: +/- 5.53% Sector: Consumer Cyclical
COIN (afterhours) Implied Move: +/- 10.07% Sector: Technology
CVNA (afterhours) Implied Move: +/- 10.05% Sector: Consumer Cyclical
SQ (afterhours) Implied Move: +/- 7.19% Sector: Technology
DKNG (afterhours) Implied Move: +/- 9.27% Sector: Consumer Cyclical
ABNB (afterhours) Implied Move: +/- 6.69% Sector: Consumer Cyclical
Friday
FSR (premarket) Implied Move: +/- 13.21% Sector: Consumer Cyclical
D (premarket) Implied Move: +/- 4.05% Sector: Utilities
Post of the Week 💌
✅ The world of finance and investing can be intimidating and inaccessible if you are new to it, but plenty of this is driven by those who want to complicate! If you can do all the work yourself, then who needs weekly sessions with a financial advisor right? 🤯
✅ Personal finance can be as difficult as you want it to be. You can be doing something every day if you want to be investing, adjusting and profit taking, but that’s likely not sustainable. 🤯
✅ For most people, having an automatic deposit into an index fund, which tracks the best companies in the world, will be far more suitable over the long term. 📈
✅ By doing the right thing with minimal fuss, you can still do all of the little things that brighten your day. No need to cut out the infamous lattes, no need to take incessant risks, just sustainable steps to grow your finances over the long term. 📈
Let me know what you think 🤔
What’s Moving Markets? 🏃♂️
Three stories I’m watching carefully this week. Provided by CNBC
Euro zone economy shows resilience as second-quarter GDP beats expectation, inflation slips
Euro zone inflation fell in July, and new growth figures showed economic activity picking up in the second quarter of this year — but economists still fear a recession could be in the cards.
Headline inflation in the euro area was 5.3% in July, according to preliminary data released Monday, lower than the 5.5% registered in June. However, it remains well above the European Central Bank’s 2% target for the 20-member bloc.
GDP growth accelerated in the second quarter, expanding by 0.3% — higher than the 0.2% expected by analysts polled by Reuters.
Bank of Japan needs to move sooner to a new normal as current policy is ‘very harmful’, says strategist
Japan needs to transition sooner to a “new normal” as the country’s current ultra low interest rate policy regime has been “inappropriate” and “very harmful” for the economy, according to a strategist.
Central banks around the world have raised rates aggressively to rein in inflation, but Japan has kept its benchmark rate at -0.1% since 2016.
“The type of policy they’ve had in place for a while now, it made sense in the mid 90s, late 90s,” Kevin Hebner, global investment strategist at TD Epoch, told CNBC’s “Squwak Box Asia” on Monday.
Saudi Arabia’s economic growth slows as oil cuts, price drops bite into revenues
Saudi Arabia’s economy slowed in the second quarter, as crude output cuts and a drop in oil prices reined in one of the fastest growing nations of the G20.
Riyadh’s GDP expanded by an annual 1.1% in the second quarter, the Saudi General Authority for Statistics said Monday, down from 3.8% in the previous quarter and 11.2% in the same period of 2022.
The International Monetary Fund had dubbed Riyadh the fastest growing economy in the Group of 20 in 2022.
Chart of the Week 📈
Provided by Chart of the Day
The Federal Reserve on Wednesday approved a much-anticipated interest rate hike that takes benchmark borrowing costs to their highest level in more than 22 years.
The increase is the 11th time the FOMC has raised rates in a tightening process that began in March 2022. The committee decided to skip the June meeting as it assessed the impact that the hikes have had.
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 🎉
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.