The AP on the Street 37th week of 2023

Stay informed with our latest financial market updates! Explore insights on indexes, commodities, stock performances, and economic events.
Last week, we had more of a continuation of the one before, yet again, with all the indexes and commodities we cover in red/neutral except Oil due to the recent Saudi decisions on oil production cuts. 

This week, we have the Philadelphia FED Manufacturing Index, Services PMI, and, most importantly, the interest rate decision. So, let’s take a look at what market updates from the last week:

• JP10YR yield rose to 0.7% for the first time since 2014.
• TSLA shares soar after analyst revisions for price.
• JP Morgan CEO Jamie Dimon said that it is a huge mistake to think the US economy will boom with so many existing risks.
• The iPhone 15 was announced, and Apple shares fell afterward.
• Speaker of the House Kevin McCarthy (R) filed for an official impeachment inquiry for the POTUS.
• ORCL stock sunk after terrible earnings.
• US CPI rose 0.6% month-on-month, as expected.
• US CPI rose 3.7% year-on-year —10 basis points more than expected.
• US Core CPI rose 4.3% year-on-year, as expected.
• US Core CPI rose 0.3% month-on-month —10 basis points more than expected.
• JP Morgan expects no further rate hike in the upcoming meeting.
• SoftBank’s chip company, ARM, was publically offered on Thursday.
• The European Central Bank raised the interest rates by 25 basis points, making it 4.5% and shocking the markets —25 basis points more than expected. The highest level since 2001, but interestingly, the Euro sunk after the decision.
• US PPI rose 1.6% year-on-year —40 basis points more than expected.
• US Core PPI rose 2.2% year-on-year, as expected.
• US Auto Workers go on an unexpected and unprecedented strike at Ford, Stellantis, and GM factories after the UAW (United Auto Workers) contract talks.
• NVIDIA CEO sold even more shares.
• ARM stock jumped in the biggest IPO since 2021.
• Citibank is expecting FED to hike rates in November.
• JP Morgan says the stock valuations are not rational and disconnected from reality, also stating that the SP500 is overvalued.

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

DOW = -0.1% 

S&P 500 = -0.5% 

NASDAQ = –0.8%

RUSSELL 2000 = -0.5%

Gold = -0.04%

Silver = 0.04%

Oil = 4.6%   

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 NVDA:

NVDA shares fell after the CEO’s recently disclosed share sell-off.

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

Shares of Netflix lost more than 10% this week after CFO Spencer Newmann warned of softer margins as the business adjusts to new initiatives.

Important data/ decisions that will be published next week:
Philadelphia FED Manufacturing Index, Services PMI, and, most importantly, the interest rate decision

TIL: What is Mortgage-backed securities?

Mortgage-backed securities (MBS) are investment products backed by mortgages, which are bundled together and sold to investors. They provide a way for banks to free up capital and generate liquidity, while offering investors a steady income stream.

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We will see how the investors will behave after all of the data and decisions. Stay tuned for new market updates.