The AP on the Street 34th week of 2023

rket updatesmaStay informed with our latest financial market updates! Explore insights on indexes, commodities, stock performances, and economic events. Last week was quite interesting; we saw the indexes and commodities move quite independently, and despite a hawkish FED speech (which usually makes commodities go down while boosting the USD), Silver jumped with a whopping 6% increase.

This week, we have PCE inflation, ISM Manufacturing PMI, and most notably,  the unemployment rate. So, let’s take a look at what happened last week:

• Chinese Central Bank cut interest rates on one-year loans. 
• S&P downgrades various US banks by mentioning harsh conditions.
• JP10YR’s yield increased to 0.65%, the highest level since 2014.
• US10YR’s yield increased to 4.36%, the highest level since 2007.
• US 30-year mortgage rates skyrocketed to their highest level since 2000, being 7.23%.
• US Manufacturing PMI came out as 47.0 —2.3 points lower than expected.
• US Services PMI came out as 51.0 —1.3 points lower than expected.
• Wagner leader Prigozhin, who attempted a coup recently, died in a plane crash.
• Nvidia beat its earnings and revenue expectations. Nvidia shares jumped.
• Nvidia announced a $25 billion share buyback.
• BRICS invited six more countries to join.
• Turkish Central Bank increased the interest rates by 750 basis points —500 basis points higher than expected. Shifting towards a more rational monetary policy.
• Former President Donald Trump was arrested and released after 20 minutes due to Trump paying the bail.
• At Jackson Hole, Chairman Powell said that the FED is prepared to raise rates further if deemed appropriate.
• Chairman Powell said that restrictive policy will be sustained until inflation slows down.
• Chairman Powell said that the FED is careful to the signs that the economy is not cooling as expected.
• Chairman Powell said that they will keep the rates until the job is done.
• Chairman Powell said that the rates are not yet high enough to control inflation.
• US5YR’s yield increased above 4.45% to the highest level since 2008.
• US2YR’s yield increased above 4.45% to the highest level since 2007.
• Lowe’s beat its earnings and revenue expectations.

Overall Market Indexes & Commodities Moves (Weekly) (By taking the opening price on Monday and closing price on Friday, using MSN Money) market updates

DOW = -0.5% 

S&P 500 = 0.2% 

NASDAQ = 1.1%

RUSSELL 2000 = -0.3%

Gold = 1.1%

Silver = 6.1%

Oil = -1.3%    

The weekly performance of S&P 500 Stocks

Let’s look at the most undervalued stocks listed on our website: 

Our Two Most Performing Stock:

Our Two Least Performing Stocks:

The main reason(s) for the decline in DIS:

The most possible reason seems like that most of the investors did not like or believe in the idea of price hikes that CEO Bob Iger proposed.

The main reason(s) for the decline in SBUX:

We could not find a particular reason for SBUX stock to decline. It is possible that it caught the wrong wind this week. market updates

Important data/ decisions that will be published next week:
PCE inflation, ISM Manufacturing PMI, and, most notably,  the Unemployment rate

TIL: What is ISM Manufacturing PMI?

In the ISM Manufacturing PMI context, ISM stands for the Institute for Supply Management. The ISM manufacturing index, also known as the purchasing managers’ index (PMI), is a monthly indicator of US economic activity based on a survey of purchasing managers at more than 300 manufacturing firms.