HaiKhuu Weekly Recap
July 31 - August 4, 2023
MAJOR EVENTS OF LAST WEEK
Major Indices’ Weekly Movement:
S&P 500 -2.32%
Nasdaq -3.08%
Dow Jones -1.11%
Highlights:
United States’ long-term foreign currency debt rating was downgraded by Fitch to AA+ from AAA
Apple Earnings:
EPS of $1.26, beating expectations of $1.19
Revenue of $81.8B, in line with expectations
Amazon Earnings:
EPS $0.65 v $0.34 exp
Revenue: $134.4B v $131.5B exp
Yellow Corp ($YELL) has filed for bankruptcy after operating for 99 years
DAILY EVENT BREAKDOWN
Monday, July 31
US Chicago PMI Actual 42.8 (Forecast 43.4, Previous 41.5)
OpenAI filed a new trademark application for "GPT-5"
Fidelity Investments increased the carrying value of its X shares (Formerly Twitter) by nearly 11% during the month of June
Fidelity now values X at ~$27 Billion
Ford is expected to lose $4.5 Billion on EVs this year, $1.5 billion more than expected
Yellow Corp ($YELL) has filed for bankruptcy after operating for 99 years
Apple and ESPN are potentially partnering up for sports content
Major Indices:
S&P 500 +0.19%
Nasdaq +0.05%
Dow Jones +0.31%
Tuesday, August 1
Amazon is expanding its virtual clinic service nationwide
US S&P Manufacturing PMI Final Actual 49, as forecasted and previous
US JOLTS Job Openings Actual 9.582M (Forecast 9.6M, Previous 9.824M)
ISM Manufacturing Data:
PMI Actual 46.4 (Forecast 46.9, Previous 46.0)
New Orders Index Actual 47.3 (Forecast -, Previous 45.6)
Employment Index Actual 44.4 (Forecast -, Previous 48.1)
Construction Spending MoM Actual 0.5% (Forecast 0.6%, Previous 0.9%)
Birkenstock owner eyes $8bn valuation in September IPO
U.S. auto safety regulators said Tuesday they have opened an investigation into 280,000 new Tesla Model 3 and Model Y vehicles over reports of loss of steering control and power steering
Fed's Bostic:
I expect unemployment to rise as inflation falls, but perhaps only to the upper threes or 4%
I don't expect a rate hike will be necessary in September
AMD Earnings:
EPS of $0.58, beating expectations of $0.57
Revenue of $5.4B beating expectations of $5.32B
FTX says they are looking to restart the exchange for international customers
United States’ long-term foreign currency debt rating was downgraded by Fitch to AA+ from AAA
Major Indices:
S&P 500 -0.29%
Nasdaq -0.23%
Dow Jones +0.18%
Wednesday, August 2
Fitch Director on the Downgrade:
Fitch held meetings with the US Treasury ahead of the downgrade decision
The final decision about the US downgrade was taken on Monday
US Department of Justice officials are considering fraud charges against crypto exchange Binance
Treasury Secretary Yellen on the Fitch Downgrade:
I strongly disagree with the 'entirely unwarranted' Fitch downgrade
The flawed Fitch assessment, based on outdated data, fails to reflect improvements in governance indicators during the Biden administration
The US will remain the world's largest, most dynamic, and innovative economy in the long term with the world's strongest financial system
JPM CEO Jamie Dimon on the Economy:
The economy is pretty good, but the storm cloud part is still there
US credit is sound and should be the highest-rated in the world
Meta released a new open-source AI model called AudioCraft, which lets users create music and sounds entirely through generative AI
Major Indices:
S&P 500 -1.39%
Nasdaq -2.19%
Dow Jones -0.97%
Thursday, August 3
Jobless Claims:
Initial Claims 227k (Forecast 225k, Previous 221k)
Continued Claims 1.700M (Forecast 1.7075M, Previous 1.690M)
Productivity Prelim Actual 3.7% (Forecast 2.3%, Previous -2.1%)
Unit Labor Costs Prelim Actual 1.6% (Forecast 2.5%, Previous 4.2%)
Factory Orders MoM Actual 2.3% (Forecast 2.3%, Previous 0.3%)
Durable Goods Revised Actual 4.6% (Forecast 4.7%, Previous 4.7%)
Core Durable Goods Revised Actual 0.5% (Forecast 0.6%, Previous 0.6%)
S&P PMI:
Services 52.3 (Forecast 52.4, Previous 52.4)
Composite 52.0 (Forecast -, Previous 52.0)
ISM Services:
PMI Actual 52.7, prev 53.9
Employment Actual 50.7, prev 53.1
Prices Paid Actual 56.8, prev 54.1
New Orders Actual 55, prev 55.5
The London Stock Exchange Group is working with Microsoft and several banks to create bespoke generative artificial intelligence models
Apple Earnings:
EPS of $1.26, beating expectations of $1.19
Revenue of $81.8B, in line with expectations
Amazon Earnings:
EPS $0.65 v $0.34 exp
Revenue: $134.4B v $131.5B exp
Major Indices:
S&P 500 -0.29%
Nasdaq -0.16%
Dow Jones -0.21%
Friday, August 4
Unemployment Rate 3.5% (Forecast 3.6%, Previous 3.6%)
The lowest unemployment rate in 50 years
Average Earnings YoY 4.4% (Forecast 4.2%, Previous 4.4%)
Labor Force Participation 62.6% (Forecast 62.6%, Previous 62.6%)
Nonfarm Payrolls 187k (Forecast 200k, Previous 209k)
Manufacturing Payrolls -2K, prev 7K
Google parent Alphabet said it had slashed its stake in Robinhood Markets by nearly 90%
Google now has 612,214 shares left of the original 4.9 million
Major Indices:
S&P 500 -0.53%
Nasdaq -0.54%
Dow Jones -0.47%
