The AP on the Street 29th week of 2023
The AP on the Street 29th week of 2023
Last week we saw a quite neutral, with some indexes & commodities green and some not.
This week we have the FOMC Interest Rate decision, Q2 GDP, Services PMI, and the PCE and Core PCE prices. So, let’s take a look at what happened last week:
- • Treasury Secretary Janet Yellen has eaten psychedelic mushrooms in China at a dinner.
- China’s economic growth was much less than expected, and youth unemployment rose to a new high.
- Russia refused to extend the Ukraine Grain Deal.
- JPM, Citi, MS, and Barclays cut the China GDP growth estimates.
- US dollar dropped to a 15-month low as investors expect the end of the tightening cycle.
- Bank of America beat the Q2 earnings and revenue expectations.
- Morgan Stanley beat the Q2 earnings and revenue expectations
- Lockheed Martin beat the Q2 earnings and revenue expectations
- DOW Jones rose to a new 52-week high.
- Microsoft stock jumps to a new all-time high.
- Goldman Sachs did not beat the Q2 earnings but beat the revenue expectations
- Apple stock rose to a new all-time high.
- Netflix beat the Q2 earnings but did not beat revenue expectations
- Tesla beat the Q2 earnings and revenue expectations
- IBM beat the Q2 earnings but did not beat revenue expectations
- United Airlines beat the Q2 earnings and revenue expectations
- Tesla shares sunk after the earnings call indicating that the profit margins are shrinking.
- J&J beat the Q2 earnings and revenue expectations
- Netflix shares plunged after a confusing revenue miss.
- American Express beat the Q2 earnings but did not beat revenue expectations.
- Goldman Sachs analysts say that the expected rate hike this week is probably the last chain of the tightening cycle.
- AMC stocks jumped 100%.
- NY Empire State Manufacturing Index came out as 1.1 points —5.4 points higher than expected.
- Philadelphia FED Manufacturing Index came out as -13.5 points —3.5 points lower than expected.
Overall Market Indexes & Commodities Moves (Weekly) (By taking the opening price on Monday and closing price on Friday, using MSN Money)
DOW = 2.0%
S&P 500 = 0.5%
NASDAQ = -0.5%
RUSSELL 2000 = 0.9%
Gold = 0.4%
Silver = -0.9%
Oil = 2.6%
The weekly performance of S&P 500 Stocks
Earnings Section:
Next week and this week, from our long top 20 stocks, we will have earnings for the following tickers:
1. GE (July 25th)
2. DOW (July 25th)
3. DHR (July 25th)
4. MMM (July 25th)
5. BA (July 26th)
6. BMY (July 27th)
7. MCD (July 27th)
8. INTC (July 27th)
9. CVX (July 28th)
10. XOM (July 28th)
11. PFE (August 1st)
12. SBUX (August 1st)
13. DD (August 2nd)
14. CVS (August 2nd)
15. QCOM (August 2nd)
16. BKNG (August 2nd)
17. DUK (August 3rd)
18. DIS (August 8th)
DOW: Dow Inc. is a materials science company that provides solutions for packaging, infrastructure, mobility, and consumer applications. It operates through three segments: Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings.
It currently stands at 14th place in our top 20 long stocks due to its good amount of points from the CCI indicator. CCI (Commodity Channel Index) compares the present and historical price data to determine whether an asset is overbought or oversold.
Last quarter it beat its EPS estimates of 0.36 estimated and 0.58 actual. This quarter analysts increased the estimation for the EPS by evaluating a 0.71 EPS (a 20% hike compared to the last actual figure).
We will see how it will affect our decomposed score after the earnings announcement.
GE: General Electric (GE) is a multinational conglomerate that operates in various industries, including aviation, healthcare, power, renewable energy, and finance. The company was originally incorporated in 1892 and is headquartered in Boston, Massachusetts.
It currently stands in 3rd place in our top 20 long stocks due to its good amount of points from the Momentum indicator. The momentum indicator measures the speed at which a stock price changes to determine whether its price will continue to rise or fall. Momentum measures the speed at which a stock’s price changes. High positive momentum indicates a great chance that a stock’s price will continue upward.
Last quarter it beat its EPS estimates of 0.14 estimated and 0.27 actual. This quarter analysts increased the estimation for the EPS by assessing a 0.46 EPS (a 53% hike compared to the last actual figure).
We will see how it will affect our decomposed score after the earnings announcement.
Important data/ decisions that will be published next week:
The FOMC Interest Rate decision, Q2 GDP, Services PMI, and the PCE and Core PCE prices
Let’s look at the most undervalued stocks listed on our website:
Our Top Two Performing Stocks:
Our Two Least Performing Stocks:
The main reason(s) for the decline in BKNG:
The reason for BKNG to decline was that last week’s enormous gain just corrected itself.
The main reason(s) for the decline in NFLX:
As explained above, despite NFLX beating the expectations for EPS, it provided an unexpectedly low number for revenues. Investors were concerned and dumped the stock
TIL: What is Revenue?
Revenue is the money generated from normal business operations, calculated as the average sales price times the number of units sold. It is the top-line figure from which costs are subtracted to determine net income. Revenue is also known as sales on the income statement. It is the income earned by an individual or a business from the sale of any products or services offered. Revenue is a critical metric that demonstrates business growth and performance.
We will see how the investors will behave after all of the data and decisions. Stay tuned.
DISCLAIMER: THIS TEXT CONTAINS NO INVESTMENT ADVICE.