To The Moon

Last Week's Recap

The US Market - All the three major indexes fell more than 2%

• The market fell into a correction as Treasury yields surged to a 15-year high. The major indexes fell below their 50-day lines with more and more leading stocks breaking down.

• The S&P 500 and the Nasdaq fell 2.1% and 2.6%, respectively, last week. Both of them registered a third straight week of losses. Meanwhile, the Dow ended the week lower by 2.2%, its worst since March.

• The Russell 2000 dropped below its 200-day moving average, a potential warning signal about where the small cap benchmark is heading next.

• The upward movement of the 10-year U.S. Treasury yield came a day following the release of the Federal Reserve’s July meeting minutes, which suggested further interest rate hikes could be ahead as inflation concerns remain.

• Fitch Ratings cautioned there's additional pain ahead for the U.S. banking industry on Tuesday and warned it may downgrade dozens of banks, including JPMorgan Chase (JPM).

The US Sectors & Stocks - TSLA registered a 11.2% weekly decline

• All the S&P 500 sectors are down for the week. The consumer cyclical sector has tumbled 4.6%. Tesla (TSLA) shares led losses with a 11.2% decline. The global EV giant just released a spate of new price cuts and discounts.

• The technology sector fared relatively well, as Nvidia (NVDA) rose 6% for the week. Morgan Stanley’s “Top Pick” comments on Nvidia’s stocks.

• Warren Buffett's Berkshire Hathaway (BRK.B) opened positions in homebuilders D.R. Horton (DHI), Lennar (LEN) and NVR (NVR) in the second quarter. New-home sales are a pocket of strength in the housing market amid steep mortgage rates. The conglomerate also further grew a stake in Occidental Petroleum (OXY) and further cut its holding in Chevron (CVX).

• Big-box discount giants Walmart (WMT) and Target (TGT) released varying results. Walmart reported a surprise earnings gain early Thursday and it raised full-year forecasts. Walmart stock fell after results from near record highs. But Target slashed its full-year outlook noting additional pressure on consumers. Shares, which hit a three-year low ahead of earnings, popped on results but were little changed for the week.

• Vietnamese electric vehicle maker VinFast Auto’s (VFS) shares rose more than 250% Tuesday after VinFast merged with a special purpose acquisition company. However, shares have retreated more than 47% starting Wednesday.

• U.S. Steel (X) jumped after the company said it's mulling strategic options, including selling key assets or the entire company, after receiving multiple unsolicited bids.

Hong Kong Market - HSI slid 5.89% to log the biggest weekly loss in five months

• Hong Kong stocks logged the biggest weekly loss in five months amid concerns about widening debt defaults in China’s property industry and shadow banking fallout. Investors also slashed their bets after the Chinese currency hit the weakest level since October.

• The Hang Seng Index slid 5.89% to 17,950.85 at the close of the week trading, hitting the lowest level since November 28. The Tech Index slumped 6.22%.

• Foreign investors have sold 51.6 billion yuan (US$7.1 billion) of yuan-denominated stocks so far in August, according to Bloomberg data, approaching the 57 billion yuan net-selling seen in October last year.

• Several China internet stocks declined after their earnings. Tencent reported a 24% EPS gain with revenue up 3%, with both showing accelerating growth but coming in below estimates. E-commerce giant JD.com reported a 23% EPS gain while revenue fell 1% in dollar terms, though they rose 7.6% in local currency. Xpeng reported a larger-than-expected loss in the second quarter. All three stocks fell amid broader Chinese economic concerns and market woes.

Singapore Market - STI ended the week in the deepred

• Singapore stocks ended the week in the deep red, booking declines for the sixth straight session. The benchmark Straits Times Index (STI) retreated 3.65% to 3,173.93.

• The Singapore Exchange (SGX) Group has reported earnings of $570.9 million for the FY2023 ended June 30, 26.5% higher than FY2022’s earnings of $451.4 million.

The Week Ahead

Macro Factors - Powell speech at Jackson Hole

• The week ahead will revolve around three things, including Nvidia’s earnings, and Jackson Hole.

• The Federal Reserve Chairman Jerome Powell, who makes his annual address at the central bank symposium at Jackson Hole, Wyoming on Friday. Investors will parse through his comments for insight into the Fed’s view of its inflation fight and future monetary policy.

• Economic data out this week will include Markit's manufacturing and services purchasing managers' indexes for August on Wednesday. Both are expected to tick down from their July levels.

Earnings -NVDA take center stage

• The majority of second-quarter earnings season is over, with a handful of major technology and retail names left to report this week. The market rally this year, powered by enthusiasm over artificial intelligence’s application to business and the economy, could get a boost in the week ahead if Nvidia’s quarterly results suggest the future remains bright for tech stocks geared to AI.

• Investors expect Nvidia will beat expectations for the second quarter when it reports results on Wednesday. In May, Nvidia forecast revenue of about $11 billion, plus or minus 2%, in the second quarter or more than than 50% above analysts’ expectations of $7.15 billion. Nvidia shares are already higher this year by roughly 200%. More important for investors will be Nvidia’s guidance for third quarter numbers.

• Meanwhile, retails results still on the way, Lowe's (LOW) and Macy's (M) will report on Tuesday, followed by Dollar Tree(DLTR).

• On the other hand, more Chinese Internet companies will release reports ahead the week, including Baidu (BIDU)、NetEase(NTES) and Meituan (03690.HK)