Stock futures climbed on Wednesday as investors analyzed the latest earnings reports and prepared for the FOMC’s monetary policy decision. Microsoft shares fell by over 2% due to the disappointing performance in its cloud business. Boeing is scheduled to report its earnings before the market opens, while Carvana and Qualcomm are set to release their reports after the market closes. The central bank is anticipated to maintain steady interest rates, with attention focused on Chair Jerome Powell for any indications of potential rate cuts in the near future.
European markets continued their positive momentum on Wednesday, trading higher following an unexpected rise in euro zone inflation. According to the European Union’s statistics agency, headline price increases in the 20-nation euro zone climbed to 2.6% in July, up from 2.5% in June. This rise surprised economists, who had anticipated the rate to remain steady, as per a Reuters poll.
Japan’s Nikkei 225 index experienced an uptick as the country’s central bank raised benchmark interest rates to approximately 0.25%, marking the first time since December 2008 that the rate has exceeded 0.1%. Meanwhile, China’s factory activity saw a slight acceleration in its contraction during July, with the official manufacturing purchasing managers’ index (PMI) registering at 49.4. In Australia, inflation for the second quarter increased by 1% compared to the previous quarter, resulting in a year-on-year inflation rate of 3.8%.
Iranian officials are condemning what they claim was an Israeli strike on Tehran that resulted in the death of Hamas leader Ismail Haniyeh. In a statement, Iranian Supreme Leader Ayatollah Khamenei declared that “the criminal and terrorist Zionist regime has prepared the ground for severe punishment with this action.” As of now, Israel has not commented on Haniyeh’s death.
The Biden administration is once again preparing to forgive the student debt of tens of millions of Americans, following the Supreme Court’s rejection of its initial attempt last year. President Biden has now instructed the U.S. Department of Education to proceed with the regulatory process. In the coming days, the Education Department will start emailing borrowers who may qualify for the widespread loan cancellation, as announced on Wednesday.
Headline inflation in the euro zone unexpectedly increased to 2.6% in July, according to the European Union’s statistics agency. Core inflation, which excludes the more volatile prices of energy, food, alcohol, and tobacco, rose to 2.9% in July, surpassing expectations. The closely monitored services inflation rate was 4% for July, showing a slight decrease from the 4.1% recorded in June.
Japan’s central bank has recently increased its benchmark interest rate to approximately 0.25%, up from the previous range of 0% to 0.1%. This adjustment marks the highest interest rate since October 2008, when it was set at 0.3%. Additionally, the bank announced plans to reduce its monthly outright purchases of Japanese government bonds to about 3 trillion yen ($19.64 billion) per month during the January to March 2026 quarter. These measures reflect a significant shift in monetary policy aimed at addressing economic conditions and stabilizing the financial market.
Hope, hype and uncertainty are likely to wild price volatility today as we wait for the FOMC’s monetary policy decision in between huge numbers of earnings report both before and after the bell today. Futures are pumping the up the premarket strongly so continue to watch for the possibility of whipsaw as the market continues to struggle with breadth.
Tuesday brought a Bull trap at the open. SPY gapped up 0.27%, DIA opened 0.07% higher, and QQQ gapped up 0.44%. However, as mentioned, this was a Bull Trap as all three major index ETFs sold off. QQQ sold off most sharply, recrossing its opening gap by 10 a.m. and trading sharply lower until 1 p.m. Meanwhile, DIA diverged by following through until 10 a.m. and then sold off the slowest of the three, not really going negative, but reaching the lows at 1 p.m. At the same time, SPY was somewhere between QQQ and DIA, recrossing its opening gap by 10:30 a.m. and reaching the lows by 1 p.m. From there, all three major index ETFs put in a modest rally in waves. This action gave us a black-bodied candle with modest upper wick and large lower wick in the SPY. (SPY also retested and failed its T-line (8ema) during the day. In the DIA, we saw a white-bodied Spinning Top type candle with the larger part of the wick at the top. Finally, QQQ gave us a large black-bodied candle with a larger lower wick. This happened on a bit below-average volume in the SPY, DIA, and QQQ.
On the day, the 10 sectors were evenly split with Financial Services (+0.86%) and Energy (+0.84%) leading the gainers. Meanwhile, Technology (-1.43%) was the biggest mover and way out in front leading the losing sectors lower. At the same time, SPY fell 0.51%, DIA gained 0.48%, and QQQ dropped 1.37%. VXX jumped 3.18% to close at 47.37. Meanwhile, T2122 climbed into the very bottom of the overbought area at 80.39. On the bond front, 10-year bond yields dropped to close at 4.14% and Oil (WTI) dropped another 0.71% to close at $75.28 per barrel. So, we now find ourselves with SPY trying to hold on to the support of the June lows (and its 50sma) while QQQ being brutalized (both now in Dreaded h patterns). However, DIA didn’t seem to get the message and remains in a short-term uptrend. (QQQ is down more than 9% from its all-time, and recent, high while SPY is down just under 4% from its all-time high, and DIA is 1.5% from its own.) Despite these divergences, the intraday volatility (whipsaw) remains rough in all three.
The major economic news scheduled Tuesday included July Conf. Board Consumer Confidence, which came in up and a touch stronger than expected at 100.3 (versus a forecast of 99.7 and the June reading or 97.8). At the same time, the June JOLTs Job Openings were down, but still higher than predicted at 8.184 million (compared to a forecast of 8.020 million and the May value of 8.230 million). Then, after the close, the API Weekly Crude Oil Stocks report showed a larger drawdown at 4.495 million barrels (versus the prior week’s -3.900-million-barrel drawdown).
After the close, AMD, ACGL, ANET, EQH, AXS, AX, BXP, CP, EA, EXR, FSLR, HLI, LFUS, MTCH, MSFT, MOD, NOG, PINS, QRVO, SWKS, SYK, UMBF, UNM, and WU all reported beats on both the revenue and earnings lines. Meanwhile, FE, LSTR, LYV, MCY, MDLZ, MEOH, NGD, OI, OVV, PSA, QUAD, SBUX, and TEX missed on revenue while beating on earnings. However, CZR, HA, SW, TX, and WERN missed on both the top and bottom lines. (After-hours trading was disappointed in MSFT cloud services despite beats on both lines. However, traders liked AMD after-hours and their raise of guidance on AI and otherwise strong chip demand.)
In stock news, on Tuesday, the Wall Steet Journal reported on the results of its own investigation of TSLA’s “Autopilot” system. The article highlighted longstanding “issues” after analyzing 200 TSLA Autopilot crashes. Later, Reuters reported the BRKB has sold more than $3 billion worth of BAC shares this month. (This report came after the latest tranche of 18.4 million shares between July 25 and July 29.) At the same time, SAVE (a no-frills, low-cost airline) announced plans to move into the higher-margin business class market in Europe. Later, SLTA announced it is offering a new round of voluntary buyouts to US salaried workers. (The company made the same offer twice in 2023.)
Elsewhere, CNP (which has been in the crosshairs due to slow recovery of electric services in Houston after Hurricane Beryl) said that it now expects up to $1.3 billion in “restoration costs” from the storm. Later, Reuters reported exclusively that BLK is in talks to acquire ROIC. At the same time, Bloomberg reported INTC is now planning to cut thousands of jobs as part of a cost-cutting program. (The report said the cuts could be announced this week.) After the close, MSFT said it now expects an outage in its Azure cloud service and Office365 to be resolved by the end of the night. MSFT said the outage, which began early Tuesday, was caused by a surge in usage.
In stock legal and governmental news, on Tuesday, META agreed to pay $1.4 billion to the state of TX to settle the state’s lawsuit accusing the company of illegally using its facial-recognition technology to collect user biometric data. Separately, META agreed to pay $650 million to settle a class-action biometric data privacy lawsuit in IL. Later, the NHTSA announced TSLA will recall 1.85 million 2021 to 2024 vehicles related to a software failure to detect an unlatched hood. At the same time, the Consumer Product Safety Administration issued a directive stating that AMZN is responsible for the sale of any hazardous products by third-parties through their platform. (AMZN said it would appeal the ruling. Meanwhile, the FDA issued a similar directive to both AMZN and WMT related to products like chemical peels and other dangerous chemicals sold by third-parties through the company website.
Elsewhere, AMP filed suit against LPLA alleging the latter systematically harvested and misused confidential client information in violation of multiple securities laws. Later, the US Dept. of Justice filed a civil suit against NSC alleging the company is delaying passenger trains on the NYC to New Orleans route in violation of federal law. At the same time, a VA Appeals Court overturned a $2 billion jury verdict against PEGA (payable to APPN) for trade secret theft. The judge said the original court have committed a series of errors. (APPN said it would appeal the loss.) Later, a lawsuit was filed against WFC, alleging the company mismanaged the health insurance plan of tens of thousands of employees, causing them to overpay for prescription drugs. (The suit claims examples where the plan caused 400% overcharges to employees on some drugs.) After the close, Reuters reported that EADSY (Airbus) faces a criminal probe in the UK over potential violations of export control laws.
Overnight, Asian markets were nearly green across the board. Only Taiwan (-0.11%) was in the red while Shenzhen (+3.37%), Shanghai (+2.06%), and Hong Kong (+2.01%) led the region higher. (This came as the Bank of Japan raised interest rates a quarter percent and there was a Reuters report that the US will exempt its allies from restrictions against selling chipmaking equipment to China…which is why China stocks soared.) Meanwhile, in Europe, we see green across the board at midday. The CAC (+1.27%), DAX (+0.44%, lagging behind due to Tuesday’s report of contracting German GDP), and FTSE (+1.30%) lead the region higher in early afternoon trade. In the US, as of 7:30 a.m., Futures are pointing toward a divergent green start to the day. The DIA implies a flat +0.09% open, the SPY is implying a +0.94% gap higher, and the QQQ implies a 1.56% gap higher to open trading. At the same time, 10-Year bond yields are down to 4.133% and Oil (WTI) is spiking, up 3.31% to $77.19 per barrel in early trading.
The major economic news scheduled for Wednesday includes July ADP Nonfarm Employment Change (8:15 a.m.), Q2 Employment Cost Index (8:30 a.m.), July Chicago PMI (9:45 a.m.), June Pending Home Sales (10 a.m.), Weekly EIA Crude Oil Inventories (10:30 a.m.), Fed Interest Rate decision and the FOMC Statement (both at 2 p.m.), and Fed Chair Press Conference (2:30 p.m.). The major earnings reports before the open include MO, ADP, AN, BBVA, BLCO, BA, BWA, BG, CDW, COR, GIB, CHEF, CLH, CNH, DAN, XRAY, DD, ENTG, FTS, GRMN, GTES, GEHC, GNRC, GGB, GSK, HES, HUM, HCM, JCI, KKR, KHC, LECO, MAR, MA, EDU, NCLH, OMF, OPCH, OSK, PSN, PAG, PNM, RITM, SMG, SLGN, SITE, SCL, SHOO, TMUS, TEF, TEVA, TKR, TT, TTMI, ULS, UMC, UTHR, VRSK, WAT, and WEC. Then, after the close, ACHC, AFL, AEM, AGI, ALB, ALGT, ALL, AIG, AWK, ANSS, AR, APA, ARM, AVB, BALY, BBSI, BV, CHRW, CWH, CVNA, CAKE, CMPR, CTSH, CODI, COMP, CRBG, CTVA, DLX, EBAY, ETSY, EG, ES, EXAS, EXPI, FMC, GLF, GT, THG, HLF, HST, IEX, IR, JAZZ, KGC, KD, LRCX, MKL, VAC, META, MET, MGM, MAA, MUSA, MYRG, NFG, NE, PTVE, PGRE, PK, CNXN, PTC, QGEN, QCOM, QDEL, RRX, RUSHA, RHP, SCI, SON, SSRM, SUI, TDOC, TS, TTEK, TWI, RIG, VICI, and WDC report.
In economic news later this week, on Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Preliminary Q2 Nonfarm Productivity, Preliminary Q2 Unit Labor Costs, July S&P Global Mfg. PMI, June Construction Spending, July ISM Mfg. Employment, July ISM Mfg. PMI, and July ISM Mfg. Prices. Finally, on Friday, July Avg. Hourly Earnings, July Nonfarm Payrolls, July Private Nonfarm Payrolls, July Participation Rate, July Unemployment Rate, and Jun Factory Orders are reported.
So far this morning, ADP, BLCO, COR, CHEF, CNH, DAN, DD, ENTG, GRMN, GSK, HSBC, HUM, KKR, OMF, OPCH, OSK, PSN, RITM, SMG, SITE, SHOO, TMUS, TEF, TKR, TT, ULS, UMC, and WAT all reported beats on both the revenue and earnings lines. Meanwhile, BBVA, BWA, GIB, FTS, GEHC, GNRC, JCI, MAR, PAG, PNM, SLGN, VRSK, and WEC reported missed on revenue while beating on earnings. On the other side, MO, CCJ, and UTHR beat on revenue while missing on earnings. However, AN, BG, CDW, XRAY, EDU, and SCL missed on both the top and bottom lines.
In miscellaneous news, on Tuesday evening Republican members of the Judiciary Committee demanded that more than 130 investors explain how they justify their environmental, social, and governance guidelines used to guide their investments. The GOP said those investing guidelines may be found to violate antitrust laws, but in reality, Republicans are looking to stoke the issue in support of the fossil fuel industries (coal, oil, and gas). Meanwhile, the US Trade Representative said Tuesday that new tariffs on an array of Chinese imports will be delayed for at least two weeks. This comes as the USTR reviews 1,100 comments (appeals) related to specific products. (The tariffs were scheduled to take effect on August 1.) Elsewhere, Eurozone GDP rose 0.3% in Q2, sustain the same pace as it had in Q1. France and Spain had better than expected results while Germany showed a 0.1% contraction in the quarter.
In geopolitical news, Israel escalated its conflict with Hezbollah (not Gaza) by striking Beirut, Lebanon with a missile in what it said was aimed at killing a senior leader of the group. Israel said the strike was in response to the recent rocket attack that hit the occupied Golan Heights, killing 12 children. The Israeli IDF said the strike had killed a senior Hezbollah military commander, but some news outlets disputed that claim. Regardless, five stories of the building struck were collapsed. Casualties are not yet known. (Fears are that Israeli PM Netanyahu is attempting to escalate their conflicts in an effort to retain his position as head of a War Cabinet. Obviously, every escalation has an impact on global oil markets and shipping via the Suez Canal and Red Sea.) Elsewhere, Venezuela’s election commission announced vote totals from Sunday’s Presidential election that showed 109% of citizens had voted. This came as protests have escalated across that country where strongman Maduro clearly stole the election. So far, some 750 arrests, (including leading opposition figures) and several deaths have been reported. However, in other places, police fled rather than attack protesters and crowds have even taken some military outposts.
With that background, it looks as if the Bulls are in control in the premarket. All three major index ETFs gapped higher to start the early session. However, DIA has sold back down toward Tuesday’s close. Meanwhile, SPY is following through with a large white-bodied candle while QQQ is printing an indecisive Doji after the gap to start the premarket. DIA remains above its T-line (8ema) while SPY is crossing above in the early session. QQQ remains below its T-line but is getting closer to a retest from below. The very short-term trend is now Bullish. Meanwhile, in the mid-term and longer-term, there is no way to look at markets except to say they remain bullish and still not all that far from their all-time highs. In terms of extension, none of the major index ETFs are too stretched from their T-line. At the same time, the T2122 indicator is right at the edge of its overbought area this morning. So, there is still room to run either direction, but it would seem like again the Bears have a little more slack with which to work. With regard to those 10 big dog tickers, eight of the 10 are in the green so far in the premarket as AMD (+8.39%) is the leader on its strong report and guidance while MSFT (-3.36%) is by far the laggard as it is punished for a strong report but weaker than expected cloud sales. As usual, NVDA (+6.79%) is well out in front of the others in terms of dollar volume traded and is spiking in sympathy with direct competitor AMD’s good report.
As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!
See you in the trading room.
Ed
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
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U.S. stock futures saw a slight increase on Tuesday as investors anticipated market-moving earnings and the start of the Federal Reserve’s policy meeting. The market’s direction during the session could be influenced by the quarterly results from major companies such as Merck, Pfizer, PayPal, Procter & Gamble, and JetBlue, which are expected before the opening bell. Additionally, investors are keenly awaiting the earnings reports from Microsoft, Advanced Micro Devices, and Starbucks, set to be released after the market closes.
European markets experienced a slight uptick as earnings reports continued to influence stock movements and investors prepared for the European Central Bank’s upcoming decision. The euro zone’s second-quarter gross domestic product (GDP) showed a modest growth of 0.3%, according to a preliminary reading. The Stoxx 600 index was up by 0.2%, with most sectors trading in positive territory.
The Bank of Japan’s two-day monetary policy meeting begins on Tuesday, drawing traders’ attention for insights on benchmark interest rates and the bond-buying program. Additionally, Japan released its unemployment rate for July, which came in slightly lower than anticipated at 2.5%, compared to the forecasted 2.6%. This unexpected dip in unemployment could influence the central bank’s policy decisions, as it reflects a marginally stronger labor market than expected.
Delta has enlisted the services of renowned attorney David Boies to seek potential damages from CrowdStrike and Microsoft following a significant outage earlier this month, as reported by CNBC’s Phil Lebeau on Monday. The outage, which has been estimated to cost Delta between $350 million and $500 million, has had a notable impact on the airline. In response to the news, CrowdStrike shares were trading lower in extended trading. This legal move underscores the substantial financial repercussions of the outage and Delta’s determination to address the issue.
Shares of spirits giant Diageo fell sharply on Tuesday morning after the company reported its first sales decline since the onset of the pandemic. Despite this setback, Guinness, the popular Irish stout, drove an impressive 18% growth in overall net beer sales, thanks in part to its rising popularity among younger consumers and celebrity endorsements. Diageo, which also owns well-known brands such as Baileys, Smirnoff, Captain Morgan, Don Julio, and Tanqueray, is navigating this challenging period with a focus on its diverse portfolio.
British oil giant BP reported an underlying replacement cost profit of $2.8 billion for the second quarter, surpassing analyst expectations of $2.6 billion, according to an LSEG-compiled consensus. In response to this strong performance, BP announced a 10% increase in its dividend and an extension of its share repurchasing program. These moves reflect the company’s confidence in its financial health and commitment to returning value to shareholders.
Merck reported second-quarter revenue and adjusted earnings that exceeded estimates, driven by robust sales of its blockbuster cancer drug Keytruda, along with other treatments in its oncology and vaccines portfolios, and a new cardiovascular drug. The pharmaceutical giant also raised its full-year sales forecast to a range of $63.4 billion to $64.4 billion. However, it lowered its adjusted profit guidance to between $7.94 and $8.04 per share. These results come as Merck strategizes to mitigate the impact of Keytruda’s patent expiration in 2028, leveraging a series of new deals and key drug launches to sustain growth.
Anticipation of market-moving earnings and uncertainty with central bank decision on the horizon set the stage for challenging price volatility. Big point morning gaps are possible as the market reacts to after the bell big tech reports. Plan your trading carefully avoiding the knee jerk reaction trading that commonly accompanies the fear of missing out as markets react to the data.
Markets gapped higher on Monday, following the rest of the globe higher early. SPY gapped up 0.30%, DIA opened 0.23% higher, and QQQ gapped up 0.62%. From there all three major index ETFs rode a roller-coaster all day, recrossing the morning gap to reach the lows at 11:30 a.m., climbing back to the early highs about 12:30 p.m., and then selling off again, only to begin rebounding at about 2:30 p.m. This action gave us indecisive candles in all three. The SPY gave us a black-bodied Spinning Top type candle that did not quite retest its T-line (8ema) from below. At the same time, DIA printed a black-bodied Hanging Man type candle that did not quite retest its T-line from above and QQQ printed a black-bodied Spinning Top candle. This happened on well below-average volume in the SPY, DIA, and QQQ.
On the day, six of the 10 sectors were in the red with Energy (-0.87%) out front leading the market lower. On the other side, Consumer Cyclical (+0.65%) held up significantly better than the other sector. At the same time, SPY gained 0.06%, DIA fell 0.13%, and QQQ gained 0.20%. VXX fell 1.47% to close at 46.09. Meanwhile, T2122 dropped out of its overbought territory to close at the top of its mid-range at 78.40. On the bond front, 10-year bond yields dropped to close at 416.8% and Oil (WTI) dropped another 1.74% to close at $75.83 per barrel. So, we saw a gap higher in all three major index ETFs, followed by a volatile day. The whipsaw was worse in the QQQ and of a lower magnitude in the DIA with SPY in between the other two.
There was no major economic news scheduled for Monday and, obviously, FOMC members could not speak with their July meeting starting Tuesday.
After the close, AMKR, CNO, CR, CVI, ESI, EQR, FFIV, FLS, HOLX, NEU, SFM, and VIV all reported beats on both the revenue and earnings lines. Meanwhile, CWK, ST, SBAC, WELL, and WWD missed on revenue while beating on earnings. On the other side, SYM beat on revenue while missing on earnings. However, CHK and SANM missed on both the top and bottom lines.
In stock news, on Monday, the CEO of L (James Tisch) announced he will step down on December 31, with his son Benjamin slated to take over as his successor. At the same time, the Financial Times reported that Swiss pharma company Roche is now accelerating its development of a weight-loss drug after promising data from its early-stage trials. Roche is reportedly now hoping to be available by 2028, two years earlier than previously planned. (This would be a direct competitor to NVO’s Wegovy and LLY’s Zepbound weight-loss drugs.) Later, OXY announced it will sell its Delaware Basis assets (located in TX and NM) to PR for about $818 million. At the same time, AAPL reached its first labor agreement, striking a tentative deal with retail workers at its Towson, MD store. (The union members still need to ratify the contract.)
Elsewhere, Reuters reported that EADSY (Airbus) is restructuring its Space Systems unit without waiting on the outcome of consolidation talks with Italy-based DRS and French THLLY (Thales). At the same time, ESGR announced it had agreed to a $5.1 billion buyout (taking it private) which amounts to $338 per share. Later, MCD reported its first decline in sales in 13 quarters. At the same time, Reuters reported that SJM is now exploring the sale of its Voortman Bakery brand for more than $350 million. After the close, RSNT announced it agreed to buy rival FBMS in an all-stock deal worth $1.2 billion. (FBMS owners will receive 1 share of RNST for each share of FBMS held.)
In stock legal and governmental news, on Monday, Reuters reported that HPE will get unconditional EU antitrust approval for its $14 billion acquisition of JNPR. (The deal was originally announced in January.) The decision is scheduled to be announced on August 1. Later, a US District Judge ruled that WFC must face a lawsuit alleging the company defrauded shareholders by proclaiming their commitment to hiring diversity at the same time it was conducting “sham job interviews” of women and non-white applicants (with no intention of hiring them). Later, the FCC announced that CHTR will a pay a $15 million civil penalty to resolve an investigation into the company’s non-compliance with network and 911 outage rules. After the close, DAL announced it had hired a law firm and will seek compensations from MSFT and CRWD related to the recent global outage. (No details were provided, but DAL canceled many thousands of flights due to its inability to recover from the IT outage.)
Overnight, Asian markets were mixed but leaned toward the red side. Hong Kong (-1.37%) paced the losses while New Zealand (+0.63%) led the gainers. In Europe, we see the opposite picture taking shape with four red bourses and 11 in the green at midday. The CAC (+0.45%), DAX (+0.45%), and FTSE (-0.20%) lead the region higher in early afternoon trade. In the US, as of 7:15 a.m., Futures are pointing toward a modestly green start to the morning. The DIA implies a flat +0.02% open, the SPY is implying a +0.17% open, and the QQQ implies a +0.20% open at this hour. At the same time, 10-Year bond yields are at 4.168% and Oil (WTI) is off slightly to $75.73 per barrel in early trading.
The major economic news scheduled for Tuesday includes the July Conf. Board Consumer Confidence and June JOLTs Job Openings (both at 10 a.m.) as well as API Weekly Crude Oil Stocks report (4:30 p.m.). The major earnings reports before the open include AGCO, AEP, AMT, ADM, ARCC, BGC, BP, CNP, GLW, EXP, ECL, EPD, IT, GPK, HWM, HUBB, ITW, INCY, IGT, JBLU, LDOS, DRS, LGIH, MHO, MRK, ONEW, PYPL, PFE, PSX, PHIN, PG, PEG, SPGI, SOFI, SWK, SYY, UFPI, WSO, XYL, and ZBRA. Then, after the close, AMD, ACGL, ANET, EQH, AXS, BXP, CZR, CP, EA, EXR, FSLR, FE, HA, HLI, LSTR, LFUS, LYV, MTCH, MCY, MEOH, MSFT, MOD, MDLZ, NGD, NOG, OI, OVV, PINS, PSA, QRVO, QUAD, SWKS, SBUX, SYK, TEX, TX, UNM, WERN, and WU report.
In economic news later this week, on Wednesday, July ADP Nonfarm Employment Change, Q2 Employment Cost Index, July Chicago PMI, June Pending Home Sales, Weekly EIA Crude Oil Inventories, Fed Interest Rate decision, the FOMC Statement, and Fed Chair Press Conference are reported. On Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Preliminary Q2 Nonfarm Productivity, Preliminary Q2 Unit Labor Costs, July S&P Global Mfg. PMI, June Construction Spending, July ISM Mfg. Employment, July ISM Mfg. PMI, and July ISM Mfg. Prices. Finally, on Friday, July Avg. Hourly Earnings, July Nonfarm Payrolls, July Private Nonfarm Payrolls, July Participation Rate, July Unemployment Rate, and Jun Factory Orders are reported.
So far this morning, AEP, AMT, ARCC, CNP, IT, HWM, JBLU, LDOS, LGIH, MRK, NMR, PYPL, PFE, PSX, SOFI, SWK, XYL, and ZBRA all reported beats on both the revenue and earnings lines. Meanwhile, BP, EXP, GPK, IGT, and PG missed on the revenue line while beating on earnings. However, ADM and EDP missed on both the top and bottom lines.
In miscellaneous news, in Congress, Democratic Senator Warner (VA) introduced a bill to reform the Fed Discount Window, requiring all but the smallest banks to be prepared (pre-qualified and registered) to borrow from the Fed in the event of a liquidity problem. This is contrary to the current situation where banks have soften felt is was a stigma and comes as the FOMC has been working hard (top-down) to get banks set up to be able to access those emergency funds. Meanwhile, in Britian, new Labor Finance Minister announced an immediate cut of more than $7.072 billion in 2024 spending. She told Parliament that the previous Conservative administration had left spending on track to go $28 billion over budget this year. In addition, she announced tentative plans for another $10.4 billion in cuts for 2025. (The interesting thing about this is that it is a complete 180-degree from public stereotypes that liberals spend and conservatives are fiscally sound, which is often not true.) The point is that cuts may slow a UK economic rebound as Labor tries to get the budget in order. Elsewhere, China took another step toward hiding its market situation. Beijing announced that beginning August 18th, it will stop publishing daily inflow/outflow data for overseas funds.
In miscellaneous geopolitical news, it appears Russians continue their attacks on France during the Olympic games. In addition, to coordinated arson attacks that shut down the rail system the day of the opening ceremonies, on Monday many of the country’s fiber optic broadband services were cut. However, broadband service in Paris were not sabotaged, perhaps due to heightened security in that area. Elsewhere, Bloomberg reported Monday that South Korea has identified who North Korean leader Kim Jong Un has chosen as his eventual successor. Kim Jun-ae, Un’s preteen daughter (South Korea believes the daughter is 11 years old and his second of three children with his wife) has been tapped as the eventual heir apparent. Meanwhile, in Venezuela, the Maduro regime appears to have stolen yet another election. Exit polls had the opposition leader (third in line and the two leading opposition figures were barred from running) had captured more that 65% of votes. However, Maduro’s hand-picked election commission declared that he had won by 51% to 44%. At least hundreds of protesters took to the streets of Caracas to protest the “certified election” of Maduro.
With that background, it looks as if traders are waking up both modestly bullish and undecided this morning. All three major index ETFs gapped just a bit higher to start the premarket, but have traded indecisively since then. SPY and QQQ are printing white-bodied candles with wicks while DIA is printing a black-bodied candle (all three of which are small) in the early session. DIA remains above its T-line (8ema) while SPY and QQQ remain below their own T-lines. The very short-term trend is now Bullish. Meanwhile, in the mid-term and longer-term, there is no way to look at markets except to say they remain bullish and still not all that far from their all-time highs. In terms of extension, none of the major index ETFs are too stretched from their T-line. At the same time, the T2122 indicator has dropped to just outside overbought territory at the top-end of its mid-range. So, there is still room to run either direction, but it would seem the Bears have a little more slack with which to work. With regard to those 10 big dog tickers, eight of the 10 are in the green so far in the premarket as NFLX (+0.80%) is the leader (it is unusual that is the case) NVDA (-0.17%) is the laggard. TSLA (+0.41%) is well out in front of the others in terms of dollar volume traded followed by NVDA with a big drop off to the rest.
As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!
See you in the trading room.
Ed
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Hit and Run Candlesticks / Road To Wealth Youtube videos
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
Friday saw the Bulls take back some ground after a bearish week. The SPY gapped up 0.75%, DIA gapped up 0.59%, and QQQ gapped up 0.97%. All three of the major index ETFs then followed through to the highs of the day at 1:30 p.m. From there, all three sold off more modestly until 3 p.m. At that point, all three chopped sideways for the rest of the day. This action gave us a gap-up, large white-bodied candle with an upper wick in the DIA. In the SPY, we got a gap-up, white-bodied, Inside Day, Inverted Hammer type of candle. Meanwhile, QQQ printed a gap-up, white-bodied, Doji Harami. This happened on average volume in SPY and DIA as well as above-average volume in the QQQ.
On the day, all 10 sectors were in the green with Communications Services (+1.85%) out front leading the market higher. On the other side, Energy (+0.57%) was the worst-performing sector. At the same time, SPY gained 1.12%, DIA gained 1.62%, and QQQ gained 1.03%. VXX plummeted 5.67% to close at 46.78. Meanwhile, T2122 spiked up into the overbought territory at 90.27. On the bond front, 10-year bond yields dropped to close at 4193% and Oil (WTI) dropped 2.32% to close at $76.46 per barrel. So, we saw a gap higher and some follow-through on the PCE news. However, there was still indecision, especially in the QQQ while DIA was stronger than its two peer index ETFs. This was the second straight down week in SPY (-0.83%). At the same time, QQQ (-2.58%) had its third down week in a row. Finally, DIA (+0.75%) had its fourth straight up week.
The major economic news scheduled for Friday included the June Core PCE Price Index, which came in flat (Year-on-Year) at +2.6% (which was a tick higher than the +2.5% forecast but in line with May’s +2.6%). On the Month-on-Month basis, the June Core PCE Price Index was up a tick at +0.2% (in line with the +0.2% forecast and up a tick from May’s +0.1%). On the headline number, the June PCE Price Index (Year-on-Year) was down a touch to +2.5% (versus the +2.5% forecast and down a tick from May’s +2.6% reading). For the Month-on-Month basis, the June PCE Price Index was up a tick to +0.1%, which was in line with the forecast but a tick higher than May’s 0.0% value. At the same time, June Personal Spending was down a tick to +0.3% (versus a +0.3% forecast but a tick lower than May’s +0.4% reading). Later, Michigan Consumer Sentiment fell but not as much as expected at 66.4 (compared to a 66.0 forecast but down from June’s 68.2 number). In terms of outlook, Michigan Consumer Expectations were better than anticipated at 68.8 (versus a 67.2 forecast but down from June’s 69.6 reading). The Michigan Consumer 1-Year Inflation Expectations were down to 2.9% (in line with a 2.9% forecast and down a tick from June’s 3.0% value). Finally, the Michigan Consumer 5-Year Inflation Expectations were flat at 3.0% (compared to the 2.9% forecast but flat versus June’s 3.0%).
In stock news, on Friday, Bloomberg reported that HON is considering a $10 billion IPO of its Quantinuum unit. Later, MMM skyrocketed closing up 22.36% on the session. That was the stock’s biggest one-day gain in more than 40 years as the new CEO used his first earnings call to lay out his plan for the future. After the close, TM announced it has decided to put new engines into nearly 100k previously-recalled 2022-2023 Tundra pickup trucks and 3,500 previously-recalled Lexus SUVs. (The June recall was for engines losing power while driving.)
Meanwhile, INTC has serious problems. A design flaw in the last two generations of INTC desktop CPUs (13th and 14th generation) is causing a massive number of them to die (something between 50% and 100% after a couple of years of use). This time to death can (and is) greatly accelerated when systems take advantage of configurations intended to improve the processor speed by increasing voltages. (As a side note, INTC has advertised they can be and worked with partners, i.e. motherboard manufacturers, to make it easier for users to accomplish.) For example, many users are reporting CPU failures after just a few months of use. Then, over the weekend, it was reported that INTC’s next generation of CPU (still at least months, if not a year, from release) will have the same problem. It is uncertain exactly how big a financial hit the company will take, but it will be significant. In addition, INTC has been taking non-stop PR hits in the tech industry for three weeks now (when the nearly year-old story gained traction due to industry expert studies of the problem). There is likely to be a revenue hit when next generation designs (and the ones that follow) must be reworked.
In stock legal and governmental news, on Friday, India’s central bank fined V (just $288,000) for using an unauthorized payment transfer method after it had ordered V to stop. At the same time, the SEC filed charges against short seller Left from Citron Capital for running a $20 million “fraud scheme” (reverse pump and dump). Later, the FDA warned patients using NVO’s wildly popular weight-loss drug about over-dosing risks. At the same time, INDV reached a $86 million opioid settlement with 16 states. Later, Reuters reported that Italian sources confirmed that AMZN is now under a second investigation for tax evasion.
Elsewhere, a US federal judge blocked a Dept. of Labor rule from taking effect. The rule would have expanded the types of retirement advisors who must act with fiduciary responsibility (in the client’s interest). Later, MSFT agreed to pay $6.625 million to settle a proposed class action lawsuit that alleged the company has overcharged its advertisers on its LinkedIn service. At the same time, the Federal Railroad Administration told the Senate Commerce Committee that UNP interfered with a federal safety audit by coaching employees how to respond to questions. This caused the agency to end the audit. Meanwhile, Europe’s drug regulator rejected BIIB’s Alzheimer’s treatment Leqembi (which had already received approval in the US from the FDA).
Overnight, Asian markets were mostly green with only two of the twelve exchanges in the red. Japan (+2.13%), Hong Kong (+1.28%), South Korea (+1.23%), and Thailand (1.21%) led the region higher. In Europe, we see a similar picture taking shape with 13 of the 15 bourses in the green at midday. The CAC (-0.32%), DAX (+0.31%), and FTSE (+0.75%) lead the region higher in early afternoon trade. In the US, as of 7:30 a.m., Futures are pointing toward a gap higher to start the day. The DIA implies a +0.42% open, the SPY is implying a +0.45% open, and the QQQ implies a +0.71% open at this hour. At the same time, 10-Year bond yields are down briskly to 4.158% and Oil (WTI) is off 0.61% to $76.65 per barrel in early trading.
There are no major economic news scheduled for Monday. The major earnings reports before the open include AMG, ARLP, CTRI, CAN, MCD, ON, RVTY, and PHG. Then, after the close, AMKR, CHK, CNO, CR, CWK, CVI, ESI, EQR, FFIV, FLS, HOLX, SANM, SBAC, ST, SFM, VIV, WELL, and WWD report.
In economic news later this week, on Tuesday we get July Conf. Board Consumer Confidence and the API Weekly Crude Oil Stocks report. Then Wednesday, July ADP Nonfarm Employment Change, Q2 Employment Cost Index, July Chicago PMI, June Pending Home Sales, Weekly EIA Crude Oil Inventories, Fed Interest Rate decision, the FOMC Statement, and Fed Chair Press Conference are reported. On Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Preliminary Q2 Nonfarm Productivity, Preliminary Q2 Unit Labor Costs, July S&P Global Mfg. PMI, June Construction Spending, July ISM Mfg. Employment, July ISM Mfg. PMI, and July ISM Mfg. Prices. Finally, on Friday, July Avg. Hourly Earnings, July Nonfarm Payrolls, July Private Nonfarm Payrolls, July Participation Rate, July Unemployment Rate, and Jun Factory Orders are reported.
With that background, it looks as if the Bulls are in control in the premarket. All three major index ETFs gapped higher to start the early session and have put in white-bodied candles (very little wick) since that point. SPY looks as if it will try to retest it T-line (8ema) from below today and DIA is already challenging Friday’s high. The very short-term trend is now Bullish. However, QQQ and SPY remain below their T-line. Meanwhile, in the mid-term and longer-term, there is no way to look at markets except to say they remain very bullish and still not all that far from all-time highs. In terms of extension, none of the major index ETFs are too stretched from their T-line. At the same time, the T2122 indicator is now in its over-bought range, but not pegged to the top end. So, this means the market still has room to run in either direction if the market can find momentum. With regard to those 10 big dog tickers, all 10 are in the green in the early session with TSLA (+1.77%) well out in front of the others while AAPL (+0.01%) is the laggard and just barely green.
As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!
See you in the trading room.
Ed
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Hit and Run Candlesticks / Road To Wealth Youtube videos
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
Stock futures climbed on Monday as Wall Street prepared for a bustling week of tech giant earnings and economic data releases. The recent slowdown in the tech sector has weighed on broader market indexes, but the resurgence in small-cap stocks has provided a positive counterbalance. This week’s earnings reports, particularly from tech giants like Microsoft, Meta Platforms, Apple, and Amazon, will be crucial in determining if tech stocks can rebound. Investors are keenly watching these developments to gauge the market’s direction and overall economic health.
European markets started the week on a positive note, buoyed by investor reactions to recent U.S. inflation data. As market participants digest these figures, they are also gearing up for a busy week filled with earnings reports and crucial central bank meetings. The upcoming policy meetings of the Federal Reserve and the Bank of England are particularly in focus, as investors seek clues on the future direction of interest rates.
The upcoming week is set to be pivotal for major Asian economies, with a series of significant economic data releases on the horizon. Japan, China, and South Korea will be in the spotlight, starting with the Bank of Japan’s anticipated rate hike at its July 30 meeting, as forecasted by a Reuters poll of economists. Additionally, China’s July Purchasing Managers’ Index (PMI) will provide insights into the country’s manufacturing and service sectors. Meanwhile, Australia is poised to release its latest inflation figures, which will be closely scrutinized ahead of the Reserve Bank of Australia’s monetary policy meeting on August 6.
Economic Calendar
Earnings Calendar
Notable reports for Monday before the bell include, AMG, CTRI, CAN, HOPE, IART, MCD, OIS, ON, & RVTY. After the bell include, AMKR, BYON, CHK, CNO, CDP, CORT, CR, CWK, CVI, PLOW, ESI, EQR, FFIV, FLS, HLIT, HOLX, KFRC, LSCC, LTC, NEO, PCH, SAFE, SANM, SBAC, ST, SFM, TLRY, TRNS, VRNS, WELL, & WWD.
News & Technicals’
President Biden has introduced a series of reform proposals aimed at overhauling the Supreme Court, which include implementing term limits for justices and establishing a more stringent ethics code. In response to the Supreme Court’s recent ruling that granted Donald Trump immunity for “official acts” committed during his presidency, Biden is also advocating for a constitutional amendment to ensure that presidents are not immune from criminal prosecution for any crimes committed while in office. With less than six months remaining in his presidency, Biden emphasized that overhauling the Supreme Court will be a key priority.
Shares of Philips surged in early trading on Monday following the company’s announcement of better-than-expected second-quarter earnings. The Dutch device maker reported a 2% increase in comparable group sales, reaching 4.5 billion euros ($4.88 billion), driven by robust demand in North America. However, sales in China declined, which the company attributed to Beijing’s push for self-sufficiency in critical technologies, including healthcare. Despite the dip in China, the strong performance in other regions helped boost investor confidence.
During his keynote speech at the 2024 Bitcoin Conference, Donald Trump refrained from committing to the establishment of an official U.S. bitcoin strategic reserve currency. Instead, he pledged to maintain the current level of bitcoin holdings that the U.S. has accumulated through the seizure of assets from financial criminals. Trump’s stance was notably more conservative compared to RFK Jr.’s proposal, which advocates creating a 4 million bitcoin strategic reserve to parallel the government’s existing gold reserves.
A range of fast-food chains, including McDonald’s and Taco Bell, have introduced $5 meal deals to lure back customers who have been deterred by rising menu prices. These discounts are aimed at attracting low-income consumers who have been particularly affected by the price hikes. However, investors remain cautious, questioning whether these value meals can significantly boost sales without negatively impacting profit margins. The success of this strategy will depend on balancing customer appeal with financial sustainability.
Traders should plan for a wild week of price action with tech giant earnings reports, central bank decisions around the world including an FOMC decision Wednesday as well as several jobs reports that will culminate with Friday employment situation report. Emotional price gaps are likely and traders should watch for whipsaws as these highly anticipated report results are revealed.
Markets were volatile Thursday, giving us great whiplash moves. SPY opened flat at +0.02%, DIA opened down 0.03%, and QQQ opened 0.05% higher. At that point, SPY and QQQ sold off sharply until 10:15 a.m. when they hit the lows of the day. Then they both reversed and rallied hard back across the open to the highs of the day at 1:15 p.m. However, then they both reversed again selling off hard again trying to reach the lows again, but coming up just a little short. Meanwhile, DIA just rallied after its open, also reaching the highs of the day at 1:15 p.m. Then it too sold off, but not quite as strongly as the other two major index ETFs. This action gave us a black-bodied, large-bodied Spinning Top candle in QQQ, a black-bodied, large Inverted Hammer in the SPY, and a white-bodied Inverted Hammer in the DIA.
On the day, six of the 10 sectors were in the green with Industrials (+1.09%) out front leading the gaining sectors higher. On the other side, Technology (-0.76%) was again the worst-performing sector. At the same time, SPY fell 0.52%, DIA gained 0.21%, and QQQ fell 1.10%. VXX climber just a bit to 49.59. Meanwhile, T2122 spiked back up into the upper half of its mid-range at 59.11. On the bond front, 10-year bond yields fell to close at 4.246% and Oil (WTI) gained 0.68% to close at $78.12 per barrel. This happened on above-average volume in the QQQ and average volume in the SPY and DIA. So, Thursday saw a continuation of the sharp selloff in SPY and QQQ. However, DIA held its ground after the rough week or so. If there was any upside for Bulls, it would be that the QQQ closed on its long-term uptrend line dating back to October.
The major economic news scheduled for Thursday included Weekly Initial Jobless Claims, which came in just below predictions at 235k (compared to a forecast of 237k and the prior week’s 245k). For the ongoing side, Weekly Continuing Jobless Claims were also better than expected at 1,851k (versus a forecast of 1,860k, which was also the prior week’s value). At the same time, June Core Durable Goods Orders showed a jump of +0.5% (compared to a forecasted +0.2% and the far better than May’s -0.1%). On the headline number, June Durable Goods Orders showed a large and unexpected decline of -6.6% (versus a forecast calling for +0.3% and May’s +0.1% reading). I’ve got no idea how the core and headline numbers on that work together. In terms of Preliminary Q2 PCE Prices, they were up 2.90% (compared to a +2.70% forecast but down from June version’s +3.70%). At the same time, Preliminary Q2 GDP was much stronger than anticipated at +2.80% (versus a +2.0% forecast and a June value of +1.4%). In terms of prices, the Preliminary Q2 GDP Price Index was not as high as was expected at +2.3% (compared to the +2.6% forecast and well down from the June +3.1% reading). Finally, after the close, the Fed Balance Sheet showed a modest decline of $3 billion for the week, down to $7.205 trillion from the prior week’s $7.208 trillion value.
After the close, ALSN, AJG, ASB, BKR, BYD, CINF, COLB, FIX, DECK, EIX, ENIC, ENSG, ERIE, FIBK, HIG, LHX, LPLA, DOC, SKYW, SSNC, TXRH, UCTT, and VLTO all reported beats on both the revenue and earnings lines. Meanwhile, ATR, COLM, DXCM, DLR, EMN, EGO, FBIN, MTX, MHK, NSC, and TFII missed on revenue while beating on earnings. On the other side, TBBK, SAM, and PFG beat on revenue while missing on earnings. However, BTE, JNPR, OLN, SKX, WY, and WKC missed on both the top and bottom lines.
In stock news, on Thursday, WBD stock fell 5.67% after it failed to renew its NBA broadcast rights contract (on its TNT channel). (WBD indicated it intended to sue after the league rejected its offer to match the bid from AMZN.) At the same time, Reuters reported that iPhone sales in China during Q2 fell 6.7% while Chinese rival Huawei saw its China phone sale surge by 10%. Later, AAL lowered its annual revenue forecast, citing a poor sales strategy. At the same time, INST announced it had agreed to be acquired by KKR for $23.60 per share or $4.8 billion. Later, VLO announced it plans to run its refineries at 92% of capacity in Q3. This is down from the 94% VLO operated at during Q2 and well below its previously-announced plan to operate at more than 95% of capacity.
Meanwhile, Reuters reported that TSLA CEO Musk intends to ask the board of TSLA to make a $5 billion investment into his xAI startup company. Later, BAC announced its payments app had handled a record $500 billion in payments by mid-year. At the same time, in Canada, WMT announced it will invest $53 million to increase the wages of 40,000 Canadian workers. Later, Bloomberg reported that GM intends to begin charging for Cruise robotaxi rides in early 2025. At the same time, LUV announced it will end its long-standing “open seating” policy as the airline seeks to improve earnings by instituting seating price tiers. Later, OpenAI announced it is now testing a direct competitor to GOOGL and to a much lesser extent MSFT (which is a also ran in the market in question) search engines called SearchGPT.
In stock legal and governmental news, on Thursday, Reuters reported multiple sources tell it META will be hit with its first EU antitrust fines within a few weeks. The fines are for META tying classified advertisements service Marketplace with its Facebook social network. (The fine could be as much as $13.4 billion, which is 10% of its 2023 global revenue.) At the same time, in the UK, COIN was fined $4.5 million for breaching the British financial crimes requirements. Later, the US Dept. of justice announced that it and BA had finalized the company’s guilty plea. BA will pay at least $243.6 million in fines for breaching its 2021 agreement that allowed it to avoid charges then. At the same time, Russia reduced the speed of GOOGL’s YouTube service by 40% in order (with a threat to reduce it further to down 70%) next week) to pressure the company to reinstate blocked Russian YouTube channels.
Elsewhere, the KR $25 billion acquisition of ACI has been halted until after a trial in CO that is scheduled to start in September. At the same time, the CA Supreme Court rejected a union lawsuit, upholding the recent ballot measure that called for treating UBER and LYFT drivers as independent contractors instead of employees. Later, BAYRY (Bayer) announced a settlement where it will pay $160 million to resolve Seattle’s PCB contamination lawsuit against the company’s Monsanto unit. At the same time, a shareholder has filed suit to block the long and troubled merger (acquisition) of PARA by Skydance Media. The suit alleges the deal would cost non-voting shareholders $1.65 billion.
Overnight, Asian markets were mixed but leaned toward the green. India (+1.76%), Shenzhen (+1.45%), and Thailand (+1.10%) led the seven gainers. Meanwhile, Taiwan (-3.29%) was an outlier as it resumed trading after being closed due to typhoon for two days. That outlier was nearly 3% worse than any of the other four red exchanges. In Europe, markets lean heavily toward the green at midday with only two of the 15 bourses in the red. The CAC (+0.90%), DAX (+0.31%), and FTSE (+0.68%) lead the region higher in early afternoon trade. In the US, as of 7:00 a.m., Futures are pointing toward a strongly green open early (before PCE data). The DIA implies a +0.60% open, the SPY is implying a +0.75% open, and the QQQ implies a +0.99% open at this hour. At the same time, 10-Year bond yields are down to 4.244% and Oil (WTI) is off 0.42% to $77.95 per barrel in early trading.
The major economic news scheduled for Friday, June Core PCE Price Index, June PCE Price Index, and June Personal Spending (all at 8:30 a.m.), Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan Consumer 1-Year Inflation Expectations, and Michigan Consumer 5-Year Inflation Expectations (all at 10 a.m.) are reported. The major earnings reports before the open include MMM, AB, AON, AVTR, BAH, BMY, CNC, CHTR, CL, BEN, GNTX, NWL, POR, SAIA, and TROW. There are no major earnings reports scheduled for after the close.
In miscellaneous news, on Thursday, the Pentagon announced it had found another $2 billion accounting error that had caused the value of munitions sent to Ukraine to be overvalued. (They had used replacement cost rather than depreciated value to place a price on the goods.) This effectively increases the amount the US can send Ukraine by another $2 billion. Elsewhere, attacks on French railways are causing travel chaos in Paris as the city preps for today’s opening ceremony of the Olympics. About 250k passengers will be disrupted today and more than 800k disrupted over the weekend. At the same time, a French-Swiss airport (Basel-Mulhouse) was evacuated and closed for safety reasons. Finally, in overnight news, Reuters reported that HMC plans to close a factory in China as well as temporarily halting production at another plant. The halt is part of a retooling to start producing more electric vehicles amidst heavy competition from Chinese EV rivals.
So far this morning, MMM, AFLYY, AB, BASFY, BMY, CHTR, CL, POR, TROW, and VLOWY all reported beats on both the revenue and earnings lines. Meanwhile, AVTR and CRI missed on revenue while beating on earnings. On the other side, AON, BAH, and CNC beat on revenue while missing on earnings.
With that background, it looks as if the Bulls are looking to start Friday with a significant gap higher. All three major index ETFs began the premarket with a gap up and have followed through with white-bodied candles. Only QQQ has wicks on its early session candle, indicating less indecision among the DIA and SPY early. DIS is even retesting its T-line (8ema) from below having crossed above in the premarket. However, with all that said, we are still an hour away from the PCE Inflation data that could rock the boat (which just don’t know in what direction). So, after a rough four days in the market, it appears the Bulls have some momentum very early on a Friday. The short-term trend remains Bearish. Meanwhile, in the mid-term and longer-term, there is no way to look at markets except to say they remain very bullish and still not all that far from all-time highs. In terms of extension, even considering the premarket move higher, QQQ is stretched below its T-line. At the same time, the T2122 indicator is now in its mid-range. Therefore, overall, this means the market still has room to run in either direction if the market can find momentum. With regard to those 10 big dog tickers, all 10 are solidly or strongly in the green in the early session with AMD (+2.39%) and NVDA (+2.31%) leading the group higher on strong moves and good volume. Meanwhile, GOOGL (+0.41%) is the laggard, having moved less than half as much as the next lowest performer MSFT (+0.87%).
As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!
See you in the trading room.
Ed
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Hit and Run Candlesticks / Road To Wealth Youtube videos
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
U.S. will release key data on gross domestic product and initial jobless claims, which are highly anticipated by market watchers. Economic concerns intensified on Wednesday when former New York Fed President William Dudley advocated for lower borrowing costs, ideally at the upcoming meeting. Analysts have expressed worry that such a move might signal a sense of urgency among officials to stave off a potential recession.
European markets experienced a downturn amid a wave of corporate earnings reports. Notably, results from Nestle SA and Gucci owner Kering SA indicated a reduction in consumer spending across various sectors, from essential food items to luxury handbags. This trend reflects growing economic caution among consumers. Additionally, upcoming data releases on German consumer confidence and business activity in the euro zone and the U.K. are anticipated.
China’s central bank recently reduced the medium-term facility lending rate from 2.5% to 2.3%, following a prior cut in loan prime rates earlier in the week. This move aims to stimulate economic activity amid ongoing challenges. Meanwhile, South Korea’s GDP grew by 2.3% year-on-year, falling short of the 2.5% growth anticipated by economists polled by Reuters. On a quarterly basis, South Korea’s economy contracted by 0.2%, contrary to the expected 0.1% increase.
Unilever shares surged on Thursday morning following the company’s announcement of an increased full-year margin guidance. Additionally, Unilever confirmed that the spinoff of its ice cream business remains on schedule for completion by the end of 2025. The company reported underlying price growth of 1% in the second quarter of this year, a significant decrease from the 8.2% growth recorded in the same period of 2023. This update reflects Unilever’s strategic adjustments and market performance amid evolving economic conditions.
Ford Motor fell short of Wall Street’s second-quarter earnings expectations, despite surpassing revenue forecasts. The shortfall was primarily due to persistent warranty costs that have troubled the automaker for several years. In response, Ford raised its target for free cash flow but chose to maintain its 2024 earnings guidance. This decision left some investors disappointed, as they had anticipated an upward revision in earnings projections.
Auto giant Stellantis reported a first-half net profit of 5.6 billion euros ($6.07 billion), marking a significant 48% decline compared to the same period in 2023. Stellantis CEO Carlos Tavares attributed the disappointing performance to a challenging industry environment and internal operational issues. He acknowledged that the company’s results for the first half of 2024 fell short of expectations, underscoring the difficulties faced by the automotive sector in navigating current economic conditions.
Chipotle Mexican Grill reaffirmed its full-year outlook for same-store sales growth, signaling confidence in its ongoing performance. The restaurant chain exceeded Wall Street’s expectations for both quarterly earnings and revenue, showcasing its robust financial health. Additionally, Chipotle reported an impressive 8.7% increase in restaurant traffic during the second quarter, highlighting the brand’s continued popularity and effective customer engagement strategies.
The release of key data such as Durable Goods, GDP, International Trade and Jobless Claims will likely set the tenor of the morning. With the data give the bulls what’s needed to inspire a relief rally, or will the bears gain energy to follow-through with yesterday’s attack? We will soon find out but traders should plan for whipsaws and possible big point moves so plan your risk accordingly.
Tuesday saw similar movement across all three major index ETFs, but with different magnitudes. SPY opened down 0.02%, DIA opened up 0.04%, and QQQ opened down 0.17%. From there, all three meandered back-and-forth around the “gaps” with SPY and DIA moving in a 0.50% range while QQQ moved in a 0.85% range. This was only interrupted by a selloff the last 10 minutes across all three major index ETFs. This action gave us black-bodied, inverted Hammer type candles in the SPY, DIA, and QQQ. SPY and QQQ both retested their T-line (8ema) from below and failed the test during the day. Meanwhile, DIA retested its own T-line from above and fell through by just four cents. (So, it’s still a test in progress.)
On the day, six of the 10 sectors were in the red with Energy (-1.26%) way out front leading the market lower. On the other side, Financial Services (+0.31%) held up better than the other sectors. At the same time, SPY fell 0.16%, DIA fell 0.16%, and QQQ fell 0.35%. VXX fell 0.82% to close at a very low at 10.83. T2122 fell a bit, climbed just a bit further into its overbought range at 85.97. On the bond front, 10-year bond yields closed at 4.253% and Oil (WTI) continued to fall, down another 1.19% to close at $77.47 per barrel. This all happened on far below-average volume in the SPY, DIA and QQQ. So, Tuesday saw a pause after Monday’s gains. continuation of the pullback from all-time highs with QQQ leading, SPY in the middle, and DIA following (just as it did on the way up).
The major economic news scheduled for Tuesday included June Existing Home Sales, which came in light at 3.89 million (compared to a forecast of 3.99 million and the May reading of 4.11 million). Then, after the close, API Weekly Crude Oil Stocks showed a much larger drawdown than expected at -3.900 million barrels (versus a forecasted build of 0.700 million barrels but less of a drawdown that the prior week’s -4.440 million barrels).
After the close, GOOGL, AGR, CALM, CB, EWBC, ENVA, GOOG, MTDR, PKG, RRR, STX, and TXN all reported beats on both the revenue and earnings lines. Meanwhile, CSGP, EQT, MAT, RRC, and V missed on the revenue line while beating on earnings. On the other side, NBR and TSLA beat on revenue while missing on earnings. However, CNI, COF, and WFRD missed on both the top and bottom lines.
In stock news, on Tuesday, KMB, KO, PM, SHW, HCA, GM, LMT, and even UPS (despite reporting its Q2 miss) raised their annual guidance. Later, tech industry magazine Information reported that AAPL is working on a foldable iPhone with a planned release date in 2026. At the same time, GM announced it has delayed plans for a self-driving version of the Chevrolet Bolt without a steering wheel. (In 2022, GM have petitioned the NHTSA to allow deployment of 2,500 self-driving vehicles without human controls.) Later, META released a new version of its Llama AI model, the biggest (largest training data set) model it has released to date. At the same time, IEX announced it will buy private firm Mott Corp for $1 billion in cash. (The move would improve IEX’s presence in the medical technologies industry.) Later, cybersecurity startup Wiz ended talks with GOOGL related to the tech giant’s $23 billion deal to acquire the Israeli firm. Meanwhile, German private firm Robert Bosch announced it had agreed to buy JCI’s residential ventilation business for $8 billion. After the close, BA announced it has resumed deliveries of 737 MAX jets to China.
In stock legal and governmental news, on Tuesday, AMZN unit Whole Foods reported it had reached a settlement in a lawsuit filed against it alleging the company fired an employee over refusing to remove a Black Lives Matter facemask. Terms of the deal were not disclosed. At the same time, the NHTSA announced that STLA has recalled 19,516 hybrid mini-vans in the US over fire potential from a battery pack, advising any customers to park the vehicles outside until they are repaired. Later, Italy seized $131 million from the Italian unit of AMZN over alleged tax fraud and illegal labor practices. At the same time, the US FTC has launched an investigation into individual pricing based on previous purchase history, consumer location data, and other personal data. The FTC has asked MA, JPM, and six other companies to provide information on their “targeted pricing” practices. The FTC is also seeking information from software providers and consultancies involved in implementing such systems.
Elsewhere, the FAA launched a safety review of LUV after a series of near-misses involving their planes. At the same time, the US Dept. of Transportation announced it has opened a probe into DAL related to the more than 5,000 flights the carrier has canceled due to the global cyber outage last Friday. (DAL had canceled 30% of its flights Friday through Monday and 13% of its flights Tuesday, while other airlines recovered much more quickly.) Among the complaints from stranded passengers was phone agent wait times of well over 12 hours for those trying to reroute. After the close, the state of CO announced it has ramped up its response to bird flu and now requires dairies to test their milk every week following outbreaks and many cases of bird to cow transmission in the state. (CO found 47 cattle herds that have been infected so far, with 60% of those coming in the last month. This comes after 3.1 million chickens were culled or died of the disease in that state.)
Overnight, Asian markets were mostly red. Only Taiwan (+2.76%), the region’s biggest mover and New Zealand (+0.85%) were in the green. Meanwhile, Shenzhen (-1.32%), Japan (-1.11%), and Hong Kong (-0.91%) led the rest of the region lower. In Europe, we see a similar picture taking shape with only three of the 15 bourses in the green at midday. The CAC (-1.00%), DAX (-0.71%), and FTSE (-0.19%) lead the region lower in early afternoon trade. In the US, as of 7:30 a.m., Futures are pointing toward a gap lower to start the day. The DIA implies a -0.45% open, the SPY is implying a -0.78% open, and the QQQ implies a -1.15% open after TSLA’s fourth consecutive quarterly miss. At the same time, 10-Year bond yields are just on the green side of flat at 4.24% and Oil (WTI) is up nearly one percent to $77.71 per barrel in early trading.
The major economic news scheduled for Wednesday includes, Building Permits, June Goods Trade Balance, and June Retail Inventories (all at 8:30 a.m.), S&P Global Mfg. PMI, S&P Global Services PMI, S&P Global Composite PMI, and June New Home Sales (all at 10 a.m.), and EIA Weekly Crude Inventories (10:30 a.m.). Fed Governor Bowman also speaks at 4:05 p.m. The major earnings reports before the open include Wednesday, we hear from, ALLE, APH, T, BSX, CHKP, CME, EQNR, EVR, FI, FLEX, FMX, FTV, GEV, GD, GPI, IP, IPG, KBR, LW, LII, NEE, ODFL, ORAN, OTIS, BPOP, PRG, RCI, ROP, TMHC, TEL, TECK, TDY, THC, TMO, TNL, VRT, and WAB. Then after the close, ALGN, AMP, ASGN, CSL, CLS, CCS, CHE, CMG, CHDN, CYH, EW, FAF, F, GL, GGG, ICLR, IBM, INVH, KALU, KLAC, KNX, LVS, MTH, MOH, NEM, ORLY, OII, PTEN, PLXS, RJF, RNR, RSG, ROL, NOW, TER, TYL, URI, UHS, VMI, WCN, WFG, WHR, WM, and WH report.
In economic news later this week, on Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, June Core Durable Goods Orders, June Durable Goods Orders, Preliminary Q2 PCE Prices, Preliminary Q2 GDP, Preliminary Q2 GDP Price Index, Preliminary Goods Trade Balance, Preliminary Retail Inventories, and the Fed Balance Sheet. Finally, on Friday, June Core PCE Price Index, June PCE Price Index, June Personal Spending, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan Consumer 1-Year Inflation Expectations, and Michigan Consumer 5-Year Inflation Expectations are reported.
So far this morning, ALLE, BXMT, BSX, CHKP, CME, EVR, FI, IPG, NAVI, BPOP. SF, TMHC, THC, TMO, TNL, VRT, WNC, and WAB all reported beats on both the revenue and earning lines. Meanwhile, EQNR, GEV, GPI, IP, KBR, LII, ODFL, OTIS, RCI, ROP, TEL, TECK, and TDY all missed on revenue while beating on earnings. On the other side, GD beat on revenue while missing on earnings. However, T missed on both the top and bottom lines.
In miscellaneous news, a US District Judge in Philadelphia rejected a lawsuit seeking to block the FTC rule which prohibits “non-compete agreements” as a condition of employment. Elsewhere, the Equip. Leasing and Finance Assn. (ELFA) said Tuesday that companies borrow 4% less to finance equipment in June. (This came after double-digit growth in the borrowing the two prior months.) Later, Bloomberg reported that an Pentagon technology services provider owned by LMT was recently hacked, resulting in internal documents being stolen. (In addition to the Dept. of Defense, the Dept. of Homeland Security, NASA and numerous other agencies and foreign entities were among the customers of that LMT unit.) Meanwhile, KHC suffered a little blow when its iconic “Wienermobile” hit another car and flipped on a Chicago highway Tuesday. (Fortunately for hot dog fans, KHC has several Wienermobiles it can roll out to fill the void.)
With that background, it looks as if the Bears are in control early in the premarket. All three major index ETFs gapped down significantly to start the early session. However, they have printed small, indecisive candles since that gap lower. So, there is no unanimity of feeling among traders. All three major index ETFs are below their T-line (8ema), meaning the DIA lost its test from above as of the Tuesday close. So, the premarket looks solidly Bearish and the short-term is likewise pointing down. Meanwhile, in the mid-term and longer-term, there is no way to look at markets except to say they remain very bullish and still not far from all-time highs. In terms of extension, QQQ is getting a little stretched below its T-line by the morning gap down. At the same time, the T2122 indicator remains in the overbought area. Therefore, those mixed signals mean the market has room to run in either direction if the market can find momentum. With regard to those 10 big dog tickers, all 10 are strongly red in the early session with TSLA (-8.37%) leading by a wide margin in terms of move and dollar-volume traded early. AAPL (-0.12%) and NFLX (-0.52%) are holding up better than the other big dogs.
As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!
See you in the trading room.
Ed
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Hit and Run Candlesticks / Road To Wealth Youtube videos
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
U.S. futures indicated a lower opening on Wednesday as investors reacted to disappointing reports from major tech companies Alphabet and Tesla. Shares of Alphabet, Google’s parent company, dropped by 3.4%, while Tesla’s stock saw a more significant decline of over 7% due to results that fell short of expectations. This underperformance from two of the market’s leading tech giants contributed to the overall negative sentiment among investors.
European markets experienced a downturn as the earnings season intensified. Major indexes across the region, along with nearly all sectors, saw declines. Household goods stocks were particularly affected, dropping by 1.55%. In contrast, the travel and leisure sector was the only one to buck the trend, posting a modest gain of 0.62%. Additionally, flash purchasing managers’ index (PMI) data revealed that business activity in the euro zone had stalled in July.
Asia-Pacific markets experienced a downturn as traders evaluated the latest business activity data from Japan and Australia. The technology and electric vehicle (EV) sectors were notably impacted, with stocks in these areas seeing significant declines. In Australia, the private sector’s growth decelerated in July, as indicated by the composite purchasing managers index (PMI) which fell to 50.2 from 50.7 in June, according to Juno Bank.
Shares in LVMH declined on Wednesday following the release of the luxury group’s earnings for the first half of 2024. The company reported quarterly sales of 20.98 billion euros ($22.7 billion) for the second quarter, which fell short of analysts’ expectations as surveyed by LSEG. Additionally, LVMH disclosed that sales in Asia, excluding Japan, dropped by 14% in the second quarter compared to the same period last year. This underperformance in a key market contributed to the overall negative reaction from investors.
Tesla CEO Elon Musk recently posted an informal poll on social network X, inquiring whether his publicly traded automaker should invest $5 billion into his latest startup, xAI. Established in March 2023 and first publicly discussed in July 2023, xAI focuses on developing large language models and AI products designed to compete with offerings from Google, Microsoft, and OpenAI. Musk’s companies have a history of collaboration and financial interactions, making this potential investment a continuation of his integrated business strategy.
In a Tuesday interview with CNBC’s Jim Cramer, Mattel CEO Ynon Kreiz expressed optimism about the Barbie maker’s success as an independent company. Meanwhile, a Reuters report revealed that private equity firm L Catterton, backed by luxury goods giant LVMH, has approached Mattel with a potential deal. This development highlights the ongoing interest in Mattel’s business and confidence in its prospects.
The ride-hailing company announced that Sverchek’s departure is not due to any disagreements within the company, its board of directors, or management, nor is it related to Lyft’s operations or policies. Despite the exit, Sverchek will receive severance benefits, including a cash payment of $650,000. This clarification aims to reassure stakeholders that the departure is amicable and unrelated to any internal conflicts or operational issues.
Anticipation may have become a little concern after disappointing reports from GOOG and TSLA roused the bears this morning. With a huge number of earnings reports today and tomorrow expect volatility to remain high. Add in the heavy hitting economic reports on the horizon and the stage it set for very challenging market conditions.
