- Morning Briefing w/ KevinD
- Posts
- Tuesday July 23 @ 9:00am
Tuesday July 23 @ 9:00am
Market set to open slightly lower on soft semiconductor data
KevinD
July 23, 2024
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“Sometimes you win, sometimes you learn.”
📈 The Markets Overnight
🌏 Asia: Mostly down, China very weak
🌍 Europe: Mostly up
🌎 US Index Futures: Down slightly
🛢 Crude Oil: Down
🪙 Gold: Up
🧐 Yields: Down
💵 Dollar: Up a bit
🔮 Crypto: Mixed, BTC down, ETH up
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🌏 Major Global Catalysts
SEC approves Ethereum spot ETFs, will begin trading today. (link)
💵 Economic Reports and Events Today
10:00am Existing Home Sales: 3.99M expected, 4.11M previous. Annualized number of residential buildings that were sold during the previous month, excluding new construction. (link)
10:00am Richmond Manufacturing Index: -7 expected, -10 previous. Level of a composite index based on a survey of about 200 manufacturers in the Richmond Federal Reserve district which asks respondents to rate the relative level of general business conditions. (link)
📰 Selected Earnings Releases
Consensus Estimates shown
After Hours Today:
GOOGL Alphabet EPS: 1.85 Revenue: 84.20B (link)
TXN Texas Instruments EPS: 1.17 Revenue: 3.82B (link)
V Visa EPS: 2.42 Revenue: 8.92B (link)
TSLA Tesla EPS: 0.62 Revenue: 24.73B (link)
ENPH Enphase Energy EPS: 0.48 Revenue: 309.67M (link)
MAT Mattel EPS: 0.17 Revenue: 1.10B (link)
STX Seagate Tech Holdings EPS: 0.73 Revenue: 1.87B (link)
COF Capital One Financial EPS: 3.29 Revenue: 9.57B (link)
Pre-Market Tomorrow:
🔮 Selected Analyst Ratings Changes
JNJ Johnson & Johnson: Daiwa Capital Downgrades to Neutral Lowers Target to $150.00
COIN Coinbase Glb: Citigroup Upgrades to Buy Raises Target to $345.00
CRWD CrowdStrike Holdings: HSBC Downgrades to Hold Lowers Target to $302.00
DNUT Krispy Kreme: HSBC Upgrades to Buy Targets $14.00
DRI Darden Restaurants: TD Cowen Downgrades to Hold Lowers Target to $150.00
SKX Skechers USA: Morgan Stanley Upgrades to Overweight Raises Target to $80.00
SNAP Snap: Morgan Stanley Upgrades to Equal-Weight Raises Target to $16.00
UAA Under Armour: Morgan Stanley Downgrades to Underweight Lowers Target to $4.00
📉 Stocks In Play
NXPI NXP Semiconductors: Down 7% after mixed earnings results. Semiconductors down as a group on the report. See also SMH Down 1%. (link)
SOLV Solventum: Up 4% after activist hedge fund Trian Partners said it has become one of the largest shareholders. (link)
SNAP Snap: Up 3% on an analyst upgrade targeting $16. (link)
TUSK Mammoth Energy Services: Up 37% after the company announced its subsidiary, Cobra Acquisitions, entered into a release and settlement agreement with the Puerto Rico Electric Power Authority. (link)
SPOT Spotify Technology: Up 14% on their earnings beat and 14% growth in MAUs which they expect to continue. (link)
Other notable earnings movers: LOGI +1%, KMB -2%, GE +2%, LMT +2%, KO +1%, PM +3%, GM +3%, UPS -10%, CMCSA -4%, PHM +2%
💬 Commentary
Stocks moved solidly higher yesterday, with the Russell 2000 Index (IWM) outperforming, gaining 1.6% after a smooth, steady uptrend following a sharp morning pullback. This beat the Nasdaq-100 Index (QQQ), which rallied 1.5%, and the S&P 500 (SPY), which gained 1%.
Semiconductors were significant winners, with the VanEck Vectors Semiconductor ETF (SMH) posting nearly a 4% gain, boosted by NVIDIA (NVDA) rising 4.8% and Applied Materials (AMAT) surging 6.3%. The technology sector was the best performer among the major sectors, up 2.4%. Consumer discretionary, industrials, and REITs all saw gains of approximately 1%. The energy sector was the only one to close lower, down 0.6%.
The market seems ready to embrace risk again as breadth expanded, and some of the strongest buying occurred in stocks poised to report earnings, such as Tesla (TSLA) up 5% and Google (GOOGL) up 2.25%.
The indices are pulling back ahead of the open this morning, driven by weakness in semiconductors and reactions to a slew of earnings reports. Traders are eyeing the 10:00 AM data release, which could present a dip-buying opportunity if the data is favorable. However, the main focus today is on Tesla and Alphabet earnings reports, which will be released after the close.
⛵ When you’re ready…
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#1 charting software for serious traders: TradingView
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