The Acorn #39- Billionaire Midlife Crises, Inflation Climbs, and China Disappoints🌳
All you need to understand the market this week
Monday, August 14th 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 had another rollercoaster week as CPI showed inflation slightly climbing, as Chinese growth data disappointed, and as some of the biggest companies in the market disappointed in their earnings reports.
The S&P 500 fell 0.8%, NASDAQ fell 2.5%, and the Dow Jones Industrial Average dropped 0.2%.
The Volatility Index fell overall, but with a few notable spikes as various data and earnings reports rolled in. Markets feel a lot more edgy this week, with investors aware that the rally we’ve seen lately won’t last forever, clearly keen to protect their cash if a decline begins!
The Fear and Greed index remained in the Greed category at 66/100. I like the idea of having some cash free to put to work, with the understanding that there may be some more near term bumps in the road.
As always, 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 14, 1945 - V-J Day, commemorating President Truman's announcement that Japan had surrendered to the Allies.
August 15, 1969 - Woodstock began in a field near Yasgur's Farm at Bethel, New York.
August 18, 1920 - The 19th Amendment to the U.S. Constitution was ratified, granting women the right to vote.
Major Events This Week 🔬
Economic Events (EST)
Provided by Unusual Whales
Tuesday
8:30 am U.S. retail sales
8:30 am Retail sales minus autos
8:30 am Import price index
8:30 am Import price index minus fuel
8:30 am Empire State manufacturing survey
10:00 am Business inventories
11:00 am Minneapolis Fed President Kashkari speaks
Wednesday
8:30 am Housing starts
8:30 am Building permits
9:15 am Industrial production
9:15 am Capacity utilization
2:00 pm FOMC minutes of July meeting
Thursday
8:30 am Initial jobless claims
8:30 am Philadelphia Fed manufacturing survey
10:00 am U.S. leading economic indicators
Incoming Earnings Reports
Provided by Earnings Whispers
Notable Upcoming Earnings
Provided by Unusual Whales
Notable Upcoming Earnings
Monday
HUT (premarket) Implied move: +/- 9.56% Sector: Financial Services
MNDY (premarket) Implied move: +/- 11.08% Sector: Technology
GOEV (afterhours) Implied move: +/- 21.47% Sector: Consumer Cyclical
SU (afterhours) Implied move: +/- 3.75% Sector: Energy
Tuesday
HD (premarket) Implied move: +/-3.39% Sector: Consumer Cyclical
ONON (premarket) Implied move: +/- 11.06% Sector: Consumer Cyclical
SE (premarket) Implied move: +/- 13.14% Sector: Communication Services
TME (premarket) Implied move: +/- 7.33% Sector: Communication Services
NU (afterhours) Implied move: +/- 8.16% Sector: Financial Services
A (afterhours) Implied move: +/- 4.14% Sector: Healthcare
Wednesday
JD (premarket) Implied move: +/- 6.49% Sector: Consumer Cyclical
TGT (premarket) Implied move: +/- 6.63% Sector: Consumer Defensive
ZIM (premarket) Implied move: +/- 9.77% Sector: Industrials
CSCO (afterhours) Implied move: +/- 4.18% Sector: Technology
STNE (afterhours) Implied move: +/- 10.00% Sector: Technology
WOLF (afterhours) Implied move: +/- 11.56% Sector: Technology
Thursday
WMT (premarket) Implied move: +/- 3.18% Sector: Consumer Defensive
BILI (premarket) Implied move: +/- 8.88% Sector: Communication Services
NNOX (premarket) Implied move: +/- 11.23% Sector: Healthcare
AMAT (afterhours) Implied move: +/- 5.16% Sector: Technology
ROST (afterhours) Implied move: +/- 5.34% Sector: Consumer Cyclical
Friday
XPEV (premarket) Implied move: +/- 10.09% Sector: Consumer Cyclical
DE (premarket) Implied move: +/- 3.92% Sector: Industrials
EL (premarket) Implied move: +/- 6.06% Sector: Consumer Defensive
PANW (afterhours) Implied move: +/- 8.42% Sector: Technology
Post of the Week 💌
✅ Most investors want to minimise risk, and don’t have the time or expertise to go through companies one by one to figure out what would be a smart investment. ⏰
✅ This is where ETFs and index funds are essential. You can much more easily own a blend of companies in a market or sector of your choosing, and generally see some success over the long term, especially with market tracking ETFs such as the S&P500. 🧺
✅ This ETF tracks the top 500 companies in the USA, meaning that they can drop in or out depending on performance. The market returns about 11% per year on average, and would be one of the most obvious picks for a new investor in my opinion. 🥳
✅ A variety of others exist, tracking the energy sector, the financial sector, or in specific emerging or developing countries. 🌍
Does a tasty blend of ETFs feature in your portfolio? Let us know 🤔🥤
What’s Moving Markets? 🏃♂️
Three stories I’m watching carefully this week. Provided by CNBC
China’s economic challenges gather steam as new loans plunge, property fears loom
Credit data for July released Friday showed a slump in demand from businesses and households to borrow money for the future.
On Tuesday, China is set to release July economic data that’s expected to show no change from June in the pace of growth for industrial production and fixed asset investment, according to a Reuters poll.
Developer Country Garden announced over the weekend it was suspending trading in at least 10 of its mainland-China traded yuan bonds.
India is a rising force in Southeast Asia as region seeks to counter China’s dominance
India is taking major strides to expand its influence in Southeast Asia, a move that will allow countries to counter China’s dominance in the region.
“India certainly is becoming more ambitious in Southeast Asia. There is no doubt about it,” said Harsh V. Pant, vice president for studies and foreign policy at Observer Research Foundation, a New Delhi-based think tank.
“India’s ‘Look East’ policy began in 1991, well before China’s growing assertiveness was a real problem in Southeast Asia,” said Derek Grossman, a senior defense analyst at the Rand Corporation.
Zuckerberg dismisses Musk for avoiding cage fight: ‘It’s time to move on’
The long-hyped possibility of a cage match between tech titans Mark Zuckerberg and Elon Musk appears to be no more, after Zuckerberg dismissed Musk for allegedly delaying their anticipated showdown in the ring.
Chart of the Week 📈
Provided by Chart of the Day
Annual inflation rose slower than expected in July, a welcome sign for consumers who have been grappling with high costs. But many Americans are still feeling the sting of essential expenses such as shelter and energy.
The consumer price index rose 0.2% for the month and 3.2% from one year ago, according to the U.S. Bureau of Labor Statistics. While the annual rate for inflation was below expectations, it marked an increase from 3% in June.
July’s CPI report was “better than we were expecting,” said Eugenio Aleman, chief economist at Raymond James. But the biggest issue is “shelter costs continue to remain strong.”
Investor’s Toolkit ⚒️
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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.
Great summary on what’s to come this week Gordon. Thanks