July 17th Market Overview

In partnership with

Happy Wednesday, everyone.

We're seeing some pressure on tech names today, mainly in pre-market and at the open. It's not super concerning to me yet. I get full defensive when I see big volume unloading during the most liquid parts of the day. Most of this dip happened pre-market without significant volume, but I'm keeping a close eye out for any larger liquidity events. I’m on guard and trimming more risky positions. Its a time to pay close attention to your portfolio.

Lets dig in…

Executive Summary

• Notable market movements were observed yesterday across several sectors, with weakness in SPX and QQQ primarily driven by poor guidance from ASML, a bellwether for the semiconductor industry.

• ASML’s expected growth for FY2024 flatlines with no major change from FY2023, despite positive current numbers.

• Earnings performance varied across JBHT, JNJ, and ASML, reflecting sector-specific challenges and regulatory impacts on growth strategies.

Market Overview

Yesterday’s market showed an upward trend in IWM and rate-sensitive sectors, including homebuilders, biotech, and banks. Industrial and Dow Jones also performed strongly. However, a negative rotation out of the Magnificent 7 weighed on SPX and QQQ performances.

Key Market Drivers

Market sentiment is largely driven by earnings results, guidance, sector performance, regulatory developments, and geopolitical influences.

Stock Spotlight

• JBHT: EPS of 1.32 and revenue missed estimates, pressured by the cooling freight market.

• JNJ: Beat expectations with EPS of 2.82 and increased revenue.

• ASML: Beat earnings and revenue estimates but projected a 15% hit to Chinese sales due to export control rules.

• SG: Received a Buy rating from UBS, citing strong EBITDA inflection and in-store momentum.

Other Magnificent 7 Updates

• TSLA: Barclays raised price target, expecting Q2 miss on Auto GM.

• AMZN: Needham revised PT upwards, highlighting Twitch’s potential for expanding margins.

• GOOGL: BMO raised price target, emphasizing AI-induced growth in search and YouTube revenues.

Other Notable Company News

• GTLB exploring potential sale after receiving attractive acquisition interests.

• Trump administration’s stance on Taiwanese chip companies could negatively impact TSM.

• Boeing’s production lifted as Mitsubishi Heavy and Kawasaki Heavy increase 787 parts production.

Sector Watch

Semiconductor sector under pressure, largely due to ASML’s guidance. Retail sector watched closely as FIVE announces leadership changes and lowers Q2 guidance.

Bond Market

No real updates on the bond markets today.

Policy Watch

• Former President Trump proposes a 15% reduction in corporate tax rate if re-elected, promoting a conducive environment for businesses.

• Fed’s Williams suggests the Fed is approaching but not yet ready for a rate cut.

• UK plans for a progressive ban on cigarettes, which could spell a new challenge for tobacco companies.

I hope you have a wonderful rest of your week!

- JB

• Sponsor for today! Any clicks or subscribes to our sponsors help keep this newsletter free and coming everyday 🙂 …. so click up ;)

Tired of Unoriginal Investing News? Try The Daily Upside.

99% of news outlets serve algorithms, not readers, churning out uninspired content by "journalists" who barely understand the topics. In the financial and investing space, this is a complete waste of time.

But The Daily Upside is different. Created by Wall Street insiders and bankers, this fresh, insightful newsletter delivers valuable insights that go beyond the headlines.

And the best part? It’s completely free. Join 1M+ readers and subscribe today.

Note: This newsletter is intended for informational purposes only.