Tonight we bounce back! 📈
Crypto & Growth gains full steam ahead 💨💨💨
Hey There 👋
I’m back everyone!!! The market outlook has changed considerably in the last few months while we were away, let’s get right to it.
Calm day in the markets today with major indexes holding the line just a few % points in the red and still sitting comfortably at all time highs (SP500, Nasdaq, Dow). We had updates on the job front with the JOLTS Job Opening Report coming in hotter than expected, reflecting that businesses are rushing to meet the excess demand caused by the reopening. Rates marched higher on the report retaking the 1.3% level. Inflation sentiment still continues to be in question as the new variants of the virus pose a possible delay to business as usual. Nonetheless, FED Bostic mentioned today that he supports September as the possible date to start gradually reducing its $120B bond purchase program (taper) also as a reaction to the strong jobs report. Cryptomarkets have been on a role since late last week as Ethereum’s upgrade served as a catalyst to ignite what’s been a 50% run for Bitcoin/Ethereum (and the cryptomarket as a whole) in just the last few weeks.
Headlines
🚧 Infrastructure Bill Coming Soon.. + Progress Bill? U.S Senators passed a major hurdle Monday morning with strong bipartisan support that will send the $1 Trillion infrastructure bill to be approved as soon as tomorrow. The bill will target roads, bridges, schools to ensure renewed infrastructure for the future. Alongside Democrats, President Joe Biden pledged his efforts to bring forth a 2nd bill for $3.5 Trillion aiming at tax incentives for "clean" manufacturing, community college free for two years and a pathway to citizenship for millions of immigrant workers. Republicans for now are skeptical about the amount (I would be too! JEEZ) but Democrats reaffirmed their priority towards this bill and will surely fight to pass it. Bring out another money printer I guess. Read all the details from (Reuters).
💉 Mandatory Vaccines for all troops The Pentagon announced on Monday that all U.S troops will be required to be vaccinated as early as next month, citing that vaccines will ensure military readiness across the nation. Is this the start of a new trend? Details (Here).
Without further delay, the tale of the tape:
Tale of the Tape
As of 08/09/21 close.
U.S Markets
📈 Markets, Rates and Volatility (VIX) All major indexes were flat today with the energy sector causing downward pressure. A slight tilt in growth sectors, particularly clean energy, sports betting an The 3 major indexes continue to be near all time high as the market rotates from sector to another without really giving up any gains. Rates went up to 1.3% as a hot Job print continues to show a recovering market. Volatility (VIX) retook the 17 level but gave up gains throughout the day as investors/traders repositioned their cash in the market. Many growth stocks are reporting this week and given 3Q earnings have outperformed on average, it makes sense that the trend will continue so we might see even further positions into these sectors/themes.
Here’s a look on every sector in the S&P500 from SPDR.
⚠️ The Wall of Worry In this fast paced market, it is key to note the themes that seem to be impacting stock market performance so that we keep track of its progress and can inform ourselves to tactically adjust. In my opinion, these are the most important issues that are keeping volatility and market rotations in place.
Updates as of 08/09/21:
Inflation Sentiment: Inflation still continues to be on target for 2% on the long run so for now all the readings are being treated as temporary. We will see in the next coming months how the elevated economic activity will affect prices and the consumer.
Delta Variant Strain: Fed Rosenberg said today that the Delta Variant doesn’t seem to be stopping economic activity at any level as of now.
Job Market Recovery: Jobs numbers came better then expected, continuing a steadfast job growth. If this continues its path, we might have a fed acting sooner than expected but still too early to tell.
Fed Tapering: Fed advised they are considering winding down their 120B bond purchase program as soon as 4Q 2021.
Peak Growth & Asset Prices: The consumer doesn’t seem to stop thus prices continue to skyrocket. further economic readings will confirm the trend that the consumer is taking.
Check the Full U.S Economic Calendar (Here).
Earnings Today
🍿 AMC Meme stonk AMC Q3 earnings came mostly in line with expectations but the quarter was not average by any means. CEO Adam Aaron reiterated that AMC’s cash position increased a whooping $2 Billion in just one quarter, marking the biggest liquidity boost in its 101 year of history. Detailed report (Here).
📙 Chegg reported great numbers after the bell with YoY growth expanding to a high of 38%. CEO Dan Rosensweig reiterated that the value of chegg both inside the classroom and in online classes is unreplaceable and foresees growth to continue as the pandemic ceases. Detailed report (Here).
📢 Trade Desk Streaming Ad company TTD reported big numbers both on top and bottom lines, surpassing expectations. Most importantly, Revenue grew at 108% YoY which represents more than double. The company is seeing incredible corporate adoption as more companies join its ecosystem as one of the leading providers in ads for online tv/streaming. Detailed report (Here).
🧬 BioNTech Q3 earnings were way above expectations as the Covid Vaccine maker secured over 2 billion vaccine orders in 2021 alongside its partner, Pfizer. Revenues for the 2 billion vaccines will surpass a total of $20 Billion. The company expressed that for 2022 they expect to produce and sell over 4 billion Covid vaccines around the globe! Detailed report (Here).
Check the Full U.S Earnings Calendar (Here).
Corporate News
🎰 DraftKings and Penn take a gamble Following the acquisition of TheScore by Penn/Barstool, Draftkings has reached an agreement to also acquire a gaming operator, Golden Nugget Online. Both deals send a clear message that the prospects for iGaming and sports betting are more optimistic than ever. More details (Here).
⚡️🔌 U.S House Democrats urge $85 Billion EV/Charging infrastructure 28 house democrats sent a letter to congress urging additional spending in its infrastructure to be able to not only accommodate the future of EV in the U.S but also tackle climate change faster and more effectively. More details (Here).
🔋💰 Saudi Aramco Hydrogen Buying Spree CEO Amin Nasser reiterated on Monday that they are looking for agreements in the hydrogen space as they explore a more deep dive into a market which they already have a very large presence. Saudi Aramco expects to be the biggest hydrogen supplier in the next few years. Detailed report (Here).
Meme Headlines
Disclaimer: I am not a financial advisor. This is not a recommendation to buy or sell any security. When investing, always do your own research and asses your own risk.