Tiger Market Highlights – Energy ETF XLE, Snowflake, Meta

The Fed will be meeting for the Jackson Hole Economic Symposium this week and the market will be looking closely at the potential interest rate trajectory ahead.

The market is split on a 50bps to 75bps hike in the upcoming September FOMC meeting, this is amid inflation still stickily high. $S&P 500(.SPX)$rose by 1.4% while $NASDAQ(.IXIC)$  surged 1.7%.

China market saw some signs revival after the government after unveiling a RMB1 trillion economic stimulus package to stem growth risks because of the “zero-covid” policy and the ongoing woes in the property market.

Energy sector saw renewed investor interests as supplies in the energy market is still tight with a dip in inventories, OPEC+ potential production cut and amid continued disruptions out of Russia. Brent rebounded above $100/barrel or roughly around 10% from the trough, despite a potential Iran nuclear deal that could add supplies of 1 million bpd. $Energy Select Sector SPDR Fund(XLE)$ have seen a sharp reversal since July, following investor’s pricing in that an economic growth or a technical recession could result in demand destruction. Warren Buffet also continues to up the ante in the energy sector with its continued interest to accumulate up to 50% of Occidental Petroleum.

$Snowflake(SNOW)$, a software company in the cloud-based data warehousing segment, saw revenue rising 83% to $497m, sharply above estimates. The company attributed their success to a consumption-based model, rather than on a subscription service of its data storage and analytics product. This contrasts with another cloud base customer relationship software giant, $Salesforce.com(CRM)$ which saw revenue guidance for 3Q23 is expected to grow only 14% due to slower bookings and currency risks. This comes at a time where most companies have slowed software investments amid uncertain outlook.

$Meta Platforms, Inc.(META)$ to launch new virtual reality headset in October. The new VR headset will be significantly higher in price than the previous Quest 2 headset, with more sophisticated virtual reality features. Meta have been committed in investing into the metaverse space and evolving and enhance the way users interact online. However, Meta’s reality labs recorded an operating loss in excess of $10b last financial year.