To The Moon

Earnings season is a period when a substantial percentage of publicly traded companies release their quarterly results. It typically begins two weeks after the end of the quarter (in the middle of January, April, July, and October). Without doubt, consistent earnings are arguably the most important driver of individual stock performance and by extension, the performance of the overall stock market over the long run. Banks - Goldman Sachs, Bank of America, Morgan Stanley The US biggest banks, including JPMorgan Chase, began reporting quarterly earnings last Friday. All the banks share price retraced after their earnings release, and I believe it will be the similar case for the rest of the banks this week. The fight to rein in inflation continues to weigh on some of the nation's largest ba

Early results weren't encouraging. Earnings season began last week with a few big banks and a report from $Pepsi(PEP)$ . We will learn more this week, but some comments were telling about the state of the economy and consumers.Pepsi Reaches a Tipping PointIf you like salty snacks like I do, you’ve noticed an insane price jump over the past few years. A back of chips that once cost $4 at regular price and $3 on sale was suddenly $8.Those high prices are unwinding and Pepsi is feeling the brunt of the impact as owner of Frito Lay. They’ve been losing sales, so they’re lowering prices to gain back market share.I always chuckle at how management spins this. They aren’t backtracking on previous price increases. They are working on “different tactics to

$Taiwan Semiconductor Manufacturing(TSM)$ is scheduled to report its second-quarter results on 18 July (Thursday). Market is expecting TSM to earn $1.41 per U.S. share on sales of $20.14 billion in the June quarter. In the three months ended June 30, TSMC generated the equivalent of $20.83 billion in sales. TSMC's monthly sales rose 32.9% in local currency from June 2023. Production of chips for artificial intelligence applications boosted TSMC's sales in the period. Positive Gains And TSM Has Beaten EPS Estimates For Last 3 Quarters If we were to look at TSM past performance, it has beaten the EPS forecast for the last 3 quarters on the back of the AI demand, and the AI demand for chips remain to continue for another few quarters. Now that t

Last week, on Friday (12 July), the stock market ended on a positive note, with the S&P 500,DJIA, and NASDAQ each rising by 0.6%, and the Russell 2000 gaining 1.1%. Despite pulling back from session highs, all indices has produced solid gains. The strength in the semiconductor sector has help the market to gain upward momentum. The PHLX Semiconductor Index (SOX) posted a 1.3% gain. Bank Stocks Performance Lagged After Results From Major Banks After their quarterly results, JPMorgan Chase (JPM) lost -1.2%, Citigroup (C) lost-1.8%, and Wells Fargo (WFC) also lost -6.0%. Despite their earnings beat estimates, the market responses is negative and hence, the bank stocks performance lagged. The S&P 500 Consumer Discretionary Sector rose by 0.96% leading the pack, with information technol