Market Highlights π‘ - 19 July 2024
* U.S. stock market rotation pauses; Nikkei 225 retreats as chip stocks plunge
πΊπΈ S&P 500: -0.78% π
πΊπΈ Nasdaq: -0.70% π
πͺπΊ Stoxx 600 Index: -0.16% π
π―π΅ Nikkei 225 Index: -2.36% π
ππ° Hang Seng Index: 0.22% π
π¨π³ CSI 300 Index: 0.58% π
* U.S. stocks fell across the board, with the S&P 500 and Nasdaq Composite down -0.8% and -0.7%, respectively, as the current market rotation showed signs of pausing due to profit-taking activity after a rally.
* U.S. jobless claims rose to 243k, above market expectations of 229k, amid growing signs that the U.S. labor market continues to soften.
* The European Central Bank (ECB) kept interest rates steady in July, in line with market expectations, after cutting rates in June, and reiterated that it would keep interest rates restrictive enough for as long as necessary to bring inflation back to its 2% target.
* Stocks across the Asia-Pacific region fell broadly, with the Nikkei 225 plunging -2.4% to multi-week lows, with chip stocks leading losses on worries about export restrictions, while Hong Kong's Hang Seng barely rose 0.2% as investors awaited policy action from China's high-level meeting .
* Japan's imports rose 3.2% year-on-year in June, below market expectations of 9.3%, reflecting the impact of a weak yen, while Japan's exports rose 5.4% year-on-year, the seventh consecutive month of growth, although slightly below expectations of 6.4%
π‘ Future events: π‘
* At the end of the week, we will see the release of Japan's national core consumer price index (CPI) year-on-year data.
π‘ Things you need to know today: π‘
1. Taiwan Semiconductor Manufacturing Company (TSMC) $Taiwan Semiconductor Manufacturing(TSM)$
TSMC
2. According to data from Adobe Analytics, U.S. shoppers spent $14.2 billion online during Amazon's $Amazon.com(AMZN)$
Amazon Prime Day
3. Meta $Meta Platforms, Inc.(META)$
Meta Ray Ban
4. Netflix released its second-quarter 2024 financial report, showing that the company's profit and revenue exceeded analyst expectations while adding more than 8 million subscribers (forecast: 5 million) as the streaming service benefited from Password sharing crackdowns and hit pieces.
Netflix earnings
5. San Francisco Fed President Mary Daly: βWe are not yet at price stability. While we have some very good data, even the inflation numbers that came out earlier this year were positive and it's good that we haven't reached that goal yet.β
β KEY TAKEAWAYS:
The ongoing Q2 2024 earnings season in the U.S. will be a test of the sustainability of the current market rotation.
@Daily_Discussion @TigerStars @CaptainTiger @MillionaireTiger @Tiger_comments @TigerGPT
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
There is no limit to the price Amazon can achieve in the next 5 years. 200, 300, 500, 1000. Amazon rules the world and is only growing. I pick up a few share whenever I can.
They beat and raised on earnings. Analysts will have to raise their estimates, again. Raising estimates is becoming a common theme with Netflix these days. Momentum investors will be piling in.
Choppy day across markets! Looks like U.S. stocks took a breather while Japan's Nikkei got hit hard. TSMC's strong performance might be the bright spot amid all the volatility. Thoughts on where the market heads next?
$Taiwan Semiconductor Manufacturing(TSM)$ looks good but it can be against the whole market
Good entry point at this level, amzn can easily end 2024 around 220.
Based on the market highlights for July 19, 2024:
U.S. stock market rotation pauses: The S&P 500 and Nasdaq Composite both experienced declines of -0.8% and -0.7% respectively, as the current market rotation showed signs of pausing due to profit-taking activity after a rally.
U.S. jobless claims rise: Jobless claims in the U.S. rose to 243k, surpassing market expectations of 229k. This indicates that the U.S. labor market continues to soften.
European Central Bank (ECB) keeps interest rates steady: The ECB decided to keep interest rates unchanged in July, following a rate cut in June. The bank reiterated its commitment to maintaining restrictive interest rates until inflation reaches its 2% target.
Asia-Pacific stocks decline: Stocks across the Asia-Pacific region experienced broad declines, with the Nikkei 225 plunging -2.4% to multi-week lows. Chip stocks led the losses due to concerns about export restrictions. Hong Kong's Hang Seng Index only saw a slight increase of 0.2% as investors awaited policy action from China's high-level meeting.
Amazon Prime Day sales: U.S. shoppers spent $14.2 billion online during Amazon's 48-hour Prime Day sale, marking an 11% increase compared to the previous year. This was in line with market expectations.
Meta in talks to acquire stake in EssilorLuxottica: Meta Platforms, Inc. (formerly Facebook) is reportedly in discussions with EssilorLuxottica SA, the maker of Ray-Ban sunglasses, to acquire up to a 5% minority stake. This move aims to further expand Meta's smart glasses business.
Netflix exceeds expectations in Q2 2024: Netflix released its second-quarter 2024 financial report, surpassing analyst expectations in terms of profit and revenue. The company also added over 8 million subscribers, benefiting from crackdowns on password sharing and hit pieces.
San Francisco Fed President's comments on price stability: Mary Daly, the President of the San Francisco Federal Reserve, stated that price stability has not yet been achieved. Despite positive inflation numbers earlier in the year, the goal of price stability has not been reached.
Key Takeaways:
The ongoing Q2 2024 earnings season in the U.S. will be a test of the sustainability of the current market rotation.
Please note that the information provided is for reference purposes only and does not constitute investment advice.