Weekly Equity Market Outlook - July 30 - August 6 TBC Capital Brokerage
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Weekly Equity Market
Outlook
July 30 - August 6
TBC Capital Brokerage
/Executive Summary
Chart of the Week Commodities Investment Themes
Housing Prices Increase Along With Ultra Low 30 Year FED Rate300%
250%
92.80 ▲ 0.17% · Emerging Market Equities vs S&P 500 are trading around 20 year
20M USD Index Weekly change
lows indicating/forecasting major market catalyst movements
200%
· Disadvantage of unemployment benefits - US workers do not
15M
150% 68.28 ▼ -5.43%
Crude Oil Weekly change necessarily want to work anymore
Something's wrong with one or more fields. See details
100%
10M
Fix this
· US senate introduced new infrastructure investment bill - Biden's
50% 42.67K ▲ 23.51% bill adding 550 Billion USD to US economy.
5M Bitcoin Weekly change
0% · Earnings Season update: despite monstrous Q2 results majority of
▼ -2.16% stocks slipped due to weak guidance
0M
2012 2014 2016 2018 2020
-50% 1.76K
Gold Weekly change
US Total Assets (LHS) Bank of Japan Total Assets (LHS) ECB Total Assets (LHS) Nikkei 225 (RHS) S&P 500 (RHS) FTSE 100 (RHS)
Mixed US Labor Sector S&P 500 Performance YTD Weekly Sector Performance
70 20%
18.52%
19.98% Sector ◯ Change
65
60 Financials ▲ 3.67%
15.31%
55 15% Utilities ▲ 2.24%
15.23%
50 13.14% Information Technology ▲ 0.95%
45 12.51% Real Estate ▲ 0.75%
40
Jan 2019 Jul 2019 Jan 2020 Jul 2020 Jan 2021 Jul 2021 10% Health Care ▲ 0.60%
ISM Manufacturing PMI ISM Non-Manufacturing PMI 7.72% Consumer Discretionary ▲ 0.32%
· Payroll increased to 943 000 and unemployment fell to 5.4%.
6.47%
Energy ▲ 0.24%
These reports are crucial for Fed’s decision about tapering as it has 5%
5.08%
Industrials ▲ 0.17%
been waiting for stronger economic conditions. Materials ▲ 0.14%
· The ISM Non-Manufacturing PMI is 64.1 beating estimates; the 0.35%
2.14% Communication Services ▼ -0.20%
ISM Manufacturing PMI is 59.5 - falling short of forecasts. 0% 0.00%
Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Consumer Staples ▼ -0.80%
/Macro Insights
Mixed US Labor Sector
70
· The ISM Non-Manufacturing PMI, considered as a good indicator for the overall economic condition of the sector, saw a
65 growth for the 14th month in a row and posted data that came above estimates: 64.1% versus 60.1%.
60 · In contrast, the ISM Manufacturing PMI, which had started its decline prior to the pandemic, increased but fell short of the
forecasts: 59.5% versus 60.9%. Such reports show discrepancies between recoveries in the two industries.
55
· The main cause for underwhelming performance is the slow supplier deliveries that cause decline of inventories (weight of
50
10% in the index). The short supply of manufacturing materials pushes inventories down to sub-optimal levels and increases
45 prices.
40 · Payroll increased to 943 000 and unemployment fell to 5.4%. The stronger-than-expected reports are crucial for Fed’s
Jan 2019 Jul 2019 Jan 2020 Jul 2020 Jan 2021 Jul 2021
decision about tapering as it has been waiting for stronger economic conditions
ISM Manufacturing PMI ISM Non-Manufacturing PMI
Flattened Phillips Curve, Real-life Phillips Curve US Philips Curve 1960-1970 US Philips Curve 2011-2021
Quarterly Unemployment Rate (Vertical Axis), Consumption Expenditures Y-o-Y (Horizontal Axis) Quarterly Unemployment Rate (Vertical Axis), Consumption Expenditures Y-o-Y (Horizontal Axis)
· According to the Philips curve which was developed in the late
14%
1950s, the inflation and unemployment should have an inverse 7%
relation: economic growth leads to inflation, creates more jobs, less
unemployment, and vice-versa.
12%
· However, especially in the last decade, this relationship shifted: both
6%
unemployment and inflation were at record lows in the US in 2019.
10%
· The opposite, but equally puzzling relationship, is observed now
when both are simultaneously at high levels.
5%
8%
· The graphs demonstrate how the Philips curve used to hold up in
1960s but last decade’s data shows a more randomized relation
between the two variables. 6%
4%
· It will be riveting to see how the events will unfold as Phillips curve is
one of the most renowned theories in macroeconomics, and Fed
4%
continues to incorporate it (at a lesser extent) in its models.
3%
1% 2% 3% 4% 5% 0% 1% 2% 3% 4%
/Commodities and FX
USD Index Bitcoin (BTC)
· After hitting a low of 91.86, US Dollar · Bitcoin experienced a relative price drop
▲ 0.17% 92.80 Index gained a bit of momentum due to ▲ 23.51% 42.67K this week as the news was released about
USD Index Weekly change Last Price Bitcoing Weekly change
Fed’s hawkish sentiments and a better Last Price
infrastructure bill potentially imposing
93.0
weekly jobless data. tougher tax enforcement rules on
92.8
· USD was left unaffected despite an cryptocurrency transactions.
increase in 10-year treasury notes to 40K · The provision, by potentially requiring
92.6 1.2152% on Thursday. brokers to report cryptocurrency gains to
· However, on Friday the USD Index IRS, can amplify scrutiny that might
92.4
increased significantly to almost 93 as a 35K
encompass bitcoin miners and discourage
consequence of a decreased innovation
92.2
unemployment rate and potential for ·However, by Thursday Bitcoin
92.0 faster economic recovery. approached its 200-day moving average
30K
of $44 000 and might even extend further
91.8
Jul 11 Jul 18 Jul 25 Aug 01 Jul 11 Jul 18 Jul 25 Aug 01
if it breaches this key level.
Crude Oil WTI Gold
· After closing around $74 per barrel last · By the end of Thursday, Gold declined
▼ -5.43% 68.28 week, Crude Oil WTI fell to $68.15 by ▼ -2.16% 1.76K from $1822 to just above the $1800
Crude Oil Weekly change Last Price Gold Weekly change Last Price
Wednesday due to a soaring number of support level due to US jobless claims
76 1,840
delta cases. report that coincided with estimates and
· Oil was able to merely recuperate on induced a stronger USD.
74
Thursday as the tensions rose in Middle 1,820 · Fed’s Vice Chair Richard Clarida’s
East and threatened supply. hawkish announcement on beginning
72
· Delta variant is causing a surge in tapering by the end of the year and
1,800
China – which is the second largest oil interest rate hikes in late 2022 or early
70
producer in the world. This has led 2023 – prompted a dip in gold prices.
Chinese officials to impose travel 1,780 · Such a drop was followed by a further
68
restrictions, threaten fuel demand, drastic decrease after Friday’s
and negatively affect oil prices. unemployment rate report which proved
66 1,760
Jul 11 Jul 18 Jul 25 Aug 01 Jul 11 Jul 18 Jul 25 Aug 01 to be lower than expected
/Chart of The Week
Quantitative Easing Effect on Central Banks Balance Sheets and Stock Market
300% This chart represents relationship
between central banks balance sheets
250% and equity market prices from United
20M
kingdom, Japan and United States of
America. As size of the central banks
200%
balance sheet increase in respective
15M countries fueled by open market
150%
operations, providing excess liquidity
to the market price of the respective
10M 100% equity indices increase. All of above
mentioned indicates possible
50%
correlation between central banks
providing liquidity and stock market
5M
growth highlighting the importance of
0%
possible tapering by central banks on
equity prices
0M -50%
2012 2014 2016 2018 2020
US Total Assets (LHS) Bank of Japan Total Assets (LHS) ECB Total Assets (LHS) Nikkei 225 (RHS) S&P 500 (RHS) FTSE 100 (RHS)
Quantitative easing was a key factor for the economic recovery during the 2008 Great Recession and has been used even more abundantly since the start of the pandemic. The main goal of the
bond-buying program is to increase money supply, generate liquidity in the markets, and expedite economic recovery. Consequently, the graph shows stark, steep increases in the assets of each of
the three banks in March 2020 as they were striving to promptly battle lockdown’s adverse effects. Though quantitative easing is usually thought of as a bond-buying program, during the last
decade Bank of Japan has additionally, incessantly been purchasing stocks, particularly ETFs (up to 80% total ownership), and has become the largest, and fastest-growing buyer in the country. By
the end of 2020, Bank of Japan was already buying half of government bonds and the companies where it had the largest positions significantly outperformed the markets. Such an interest from
the BoJ has created distortions in the market and hiked up security prices. Though the BOJ is planning to cut back on such purchases, it also ought to tread carefully not to dissipate negative
signals in the market. The BoJ is hoping to stimulate stock buying so that they increase spending and help companies raise capital. Though the ECB and Fed have not yet started buying equity
market securities, both have significant positions in bonds: Fed is conducting its fourth quantitative easing operation since 2008 and buys $120 trillion worth of bonds monthly; ECB purchases 40
trillion EUR monthly. Such a QE position decreases interest rates and makes safest investment options such as treasuries less appealing to investors. Therefore a larger portion is shifted to buying
stocks and such an increased concentration positively affects stock prices. Though an increase in economic activity and liquidity is often seen as a positive, the main question is what will happen
once the central banks terminate the massive purchases.
/Investment Themes
Emerging Market Equities vs S&P 500 are trading around 20 year lows Earnings Season Update
MSCI EM/S&P 500 · Even though S&P 500 (ETF: SPY) hit all time high last week, GM Earnings
Plunge After
Call Earnings
Effect Call · Despite production capacity problems due to supply chain,
supported by the monstrous corporate earnings, Emerging 60
GM Closing Price Earnings Call Effect
earnings season continued beating Wall Street estimates. General
60
120% Markets equities are trading far off their highs as MSCI Motors posted a profit compared to a loss in the same period last
Emerging Markets Index (ETF: EEM) being far off its all-time high year, however, comments on the recall of Chevy Bolt resulted in
100%
· According to Bank of America, Emerging markets equities 58 GM 7.7% slide.
compared to S&P 500 are trading around their 20 year lows, 58 · Kraft Heinz also exceeded projections. The company expect it
indicating that traders prefer to invest in US will deliver EBITDA ahead of its strategic plan for this year.
80% · Historically, low trading levels of EM equities are triggered by Organic sales fell 2.1% YoY vs -1.35% consensus. Share dropped
56
catalyst events, such as default of LTCM hedge fund in 1997, 56 by 2$.
60% 9/11 crisis in 2001 and default of Lehman bank in 2007, caused · CVS Health is trading lower despite announcing better than
by the global financial crisis expected Q2 2021 financials and a guidance raise that topped
· Low levels of EM equities, can be partially explained by the 54 analyst estimates for 2021. The weakness is attributed to the
40% 54
Chinese government crackdown of Chinese securities which comments made by the company CFO about the effect of the
comprise large part of EM equities. Nevertheless, Bank of iminished outlook for vaccines. CVS trades 3% lower than pre
20% America excepts that there could be major catalyst event in fall 52 earnings level.
1995 2000 2005 2010 2015 2020 Jul 04 Jul 11 Jul 18 Jul 25 Aug 01
2021, when FED has to make a decision about the future of 52
Jul 04 Earnings
Close Jul 11Call Effect
Jul 18 Jul 25 Aug 01
MSCI EM/S&P 500 .net RTCM Global Financial… Global Pand…
tapering and Interest Rate hike
Disadvantage of Unemployment Benefits Renewal of Biden infrastructure bill: Additional 550 billion for US
Monthly Government Social Benefits and ·Unemployment benefits have played a crucial role in sustaining Infrastructure Plan Distribution by Industry · On 1st of August, US Senate finalized and issued text for Biden's
Unemployment Rate a significant percentage of the global population through the Infrastructure Bill, adding up to 550 billion in new spending for
1,400 16%
pandemic. roads, bridges public transportation, cyber security, EV charging
EV Infrastru… 3.27% Roads and Bridges
· In the United States, unemployment benefits started rolling out 20% stations and other infrastructure projects
1,200 14% Public transport
in April 2020 and reached a peak that summer. However, due to 7.09% · Roughly 110 billion will be dedicated for construction of roads
1,000 12%
the emergence of new COVID-19 variants which is an underlying and bridges
Apirport…
reason of a struggling road to recovery, U.S. has not yet ceased 7.64%
· 66 Billion out of new plan will be consumed to renew and
800 10% its benefits program. rebuild railroad infrastructure across the USA
· The Figure shows how monthly unemployment rate and · 73 billion will be spent for power infrastructure projects and 21
600 8% government unemployment insurance fluctuated for the last 2 billion for environmental clean-up projects
years. The fact that benefits persist can be an explanation as to Water I… Power … · 65 billion will be used to rebuild the telecommunication lines
13.27%
400 6% why unemployment rate is not decreasing. 9.09% and revitalize broadband in the USA resulting in high speed
· Many economists believe that a prolonged unemployment Clean Water
internet access to everyone
200 4%
insurance program can delay economic recovery as the citizens 10% Railroad 12% · 39 Billion will be used to modernize public transport, whereas 18
are more inclined to stay at home and receive the benefits rather High Speed Interent billion will be used to improve electric vehicle charging
0 2% 11.82%
Jul 2019 Jan 2020 Jul 2020 Jan 2021 than seek work. infrastructure
Government Social Benefits, in Billions of USD Unemployment Rate, % · Bill is supposed to create additional 2 million jobs in USA
/Sector Snapshot
Information Technology 13.34
Market Cap (Trillions)
0.95%
Weekly Change
35.80
P/E
27.20
EV/EBITDA
STOCKS TO WATCH TICKER MARKET CAP CLOSE
CHANGE P/E EV/EBITDA
Apple Inc AAPL 2,416bn 146.14 0.19% 26.12 19.77
Sector Comparison to S&P 500 Performance Microsoft Corp MSFT 2,175bn 289.46 1.60% 28.85 19.73
· U.K.’s antitrust authority is evaluating blocking an Arm acquisition from Nvidia. Taiwan Semiconductor-Sp Adr TSM 613bn 118.21 1.35% 29.16 12.79
20% QUALCOMM submitted an offer to buy Veoneer for $37/share in cash, an 18% Nvidia Corp NVDA 508bn 203.66 4.45% 46.88 39.99
premium to Veoneer’s current offer from Magna to acquire it for $31.25/share. Due Adobe Inc ADBE 301bn 631.38 1.57% 45.18 33.07
to technical buying momentum AMD had reached all time high in the middle of the Oracle Corp ORCL 250bn 89.52 2.73% 17.57 13.20
15% Cisco Systems Inc CSCO 234bn 55.59 0.40% 16.28 11.60
week.
Salesforce.Com Inc CRM 232bn 250.59 3.58% 58.14 24.61
·ROKU shares dropped Due to reported Q2 revenue beat but addition of active
Intel Corp INTC 219bn 53.92 0.37% 12.15 6.46
accounts halved in Q2, compared with the same quarter last year and said
10% Applied Materials Inc AMAT 130bn 142.65 1.94% 19.18 15.71
streaming hours also stood at 17.4 bln hours, a decrease of 1 bln hours from Q1
Intl Business Machines Corp IBM 129bn 144.09 2.22% 12.04 9.69
·Workday and Anaplan both upgraded to Overweight at Barclay’s saying as
Twilio TWLO 66bn 371.90 -0.45% 5,312.86 211.43
investors look for opportunities in the 2H of the year, they believe that they stand
5%
out as companies with low valuations and those that will benefit from enterprise ETFs TO WATCH TICKER TOTAL ASSETS CLOSE
CHANGE YTD Expense
heavy 2H spending trends; Activision Blizzard released better Q2 results and Fidelity IT FTEC 6bn 122.95 0.99% 19.55% 0.08%
0%
guidance than expected. Mimecast reported a strong quarter with upside to Invesco QQQ Trust QQQ 184bn 368.05 0.95% 18.99% 0.20%
revenue/profitability and took FY/22 guidance up, slightly higher than the beat. Vanguard IT ETF VGT 50bn 416.48 1.04% 19.71% 0.10%
Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Technology Select SPDR XLK 45bn 154.86 0.95% 21.08% 0.12%
Information Technology S&P 500 SPDR Semiconductor XSD 1bn 198.35 3.86% 16.83% 0.35%
6.46 0.60% 25.40 20.10
Health Care
STOCKS TO WATCH TICKER MARKET CAP CLOSE CHANGE P/E EV/EBITDA
Market Cap (Trillions) Weekly Change P/E EV/EBITDA
Pfizer Inc PFE 252bn 45.07 5.28% 12.63 11.32
Sector Comparison to S&P 500 Performance Abbott Laboratories ABT 217bn 122.17 0.98% 26.30 19.75
20%
· Shares of Vaxart inc (VXRT) increased by 21.7% after receiving FDA's approval on Moderna Inc MRNA 167bn 413.72 17.00% 16.99 11.66
investigation of COVID-19 vaccine tablet Amgen Inc AMGN 131bn 230.15 -4.72% 12.74 9.99
· Moderna, Inc. (MRNA) received exclusive license from Autolus Therapeutics Sanofi-Adr SNY 128bn 50.85 -1.38% 12.20 9.36
15% Cvs Health Corp CVS 107bn 81.25 -1.35% 9.91 9.15
(AUTL) to develop mRNA therapeutics which incorporates AUTL's proprietary
Biontech Se-Adr BNTX 94bn 389.01 18.47% 10.66 8.56
technology
Zimmer Biomet Holdings Inc ZBH 31bn 149.00 -8.82% 17.04 13.08
· Share price of Eli Lilly and Company (LLY) raised by 7% after posting better than
10% Vaxart Inc VXRT 1bn 8.75 21.70%
expected revenue, upgrading FY revenue and EPS forecasts and affirming the
Autolus Therapeutics Plc AUTL 0bn 6.07 14.10%
submission of Deonanmab for Alzhemier's by end of 2021
Exicure Inc XCUR 0bn 1.31 -2.96%
· Abbot Laboratories (ABT) received FDA approval for its artificial intelligence
5% ETFs TO WATCH TICKER TOTAL ASSETS CLOSE CHANGE YTD Expense
powered imaging software which can visualize coronary blood flow and blockages
· Despite beating the EPS and Revenue estimates, shares of Amgen INC (AMGN) Health Care Select SPDR XLV 33bn 132.94 0.60% 17.70% 0.12%
fell by 6% after lowering its FY guidance and outlook Vanguard Healthcare VHT 16bn 257.94 0.59% 15.89% 0.10%
0%
· Moderna Inc (MRNA) reported Q2 revenue of 4.4 billion USD, out of which 4.2 iShares Biotechnology IBB 11bn 172.12 3.82% 14.37% 0.47%
Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 billion was from vaccine sales. Biotech company increased its guidance for FY ARK Genomic Revolution ARKG 9bn 86.99 3.13% -6.60% 0.75%
Health Care S&P 500 revenue up to 20 billion USD. SPDR S&P Biotech XBI 7bn 127.29 3.14% -9.69% 0.35%
/Sector Snapshot
Consumer Discretionary 6.34
Market Cap (Trillions)
0.32%
Weekly Change
42.00
P/E
24.60
EV/EBITDA
STOCKS TO WATCH TICKER MARKET CAP CLOSE
CHANGE P/E EV/EBITDA
Amazon.Com Inc AMZN 1,694bn 3,344.94 0.52% 40.16 19.05
Sector Comparison to S&P 500 Performance Alibaba Group Holding-Sp Adr BABA 534bn 196.39 0.61% 17.69 12.26
20%
· General Motors (GM) announced its earnings on august 4, even though EPS was
General Motors Co GM 80bn 55.05 -3.15% 7.97 4.47
beaten by 8.30% and totaled $1.97 stock price plunged by 8.91% on the earnings
Ebay Inc EBAY 45bn 65.49 -3.99% 13.95 11.04
day. since then GM is on the recovery track.
Etsy Inc ETSY 23bn 178.36 -2.81% 44.57 28.85
10%
· Alibaba Group Holdings (BABA) released earnings on august 3, actual EPS was
higher than estimate by 0.35 cents, beat was 15.88%, at the same time revenue was ETFs TO WATCH TICKER TOTAL ASSETS CLOSE
CHANGE YTD Expense
missed by 600 million USD. while chinese regulator said that they will consider the Consumer Disc. Select SPDR XLY 20bn 181.01 0.32% 13.54% 0.12%
0% impact on market when they introduce new policies. Vanguard Consumer Disc. VCR 7bn 316.65 0.50% 16.56% 0.10%
· After Amazon (AMZN) and ebay (EBAY) Etsy, Inc. (ETSY) falls in this week due to First Trust Consumer Disc. FXD 2bn 61.59 0.42% 23.28% 0.63%
Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 poor earnings call, weak guidance and concerns of reopening and future outlook of Fidelity Consumer Disc. FDIS 2bn 81.81 0.45% 15.80% 0.08%
Consumer Discretionary S&P 500 online stores SDPR S&P Retail XRT 1bn 94.99 -0.29% 49.50% 0.35%
Communication Services 5.71
Market Cap (Trillions)
-0.20%
Weekly Change
27.80
P/E
20.40
EV/EBITDA
STOCKS TO WATCH TICKER MARKET CAP CLOSE
CHANGE P/E EV/EBITDA
Alphabet Inc-Cl C GOOG 1,819bn 2,740.72 1.34% 23.69 15.20
Sector Comparison to S&P 500 Performance
·Discovery beat on top and bottom line as earnings more than doubled in the Facebook Inc-Class A FB 1,025bn 363.51 2.02% 19.61 12.67
Netflix Inc NFLX 230bn 520.55 0.58% 40.31 28.96
second quarter from a year earlier, noted costs and expenses increased 25% to
20% At&T Inc T 200bn 27.96 -0.32% 8.75 7.87
$2.28 billion. CenturyLink confirms it’s selling its U.S. telecom assets to Apollo
Zoom Video ZM 114bn 383.47 1.42% 81.04 61.96
Funds in a $7.5B deal in a deal that includes debt assumption of $1.4B.
ETFs TO WATCH TICKER TOTAL ASSETS CLOSE CHANGE YTD Expense
· VIAC reported better-than-expected quarterly revenue, boosted by higher paying
10%
subscriber additions and strong advertising sales on its networks as live sporting Com.Services Select SPDR XLC 15bn 82.82 0.51% 24.58% 0.12%
events resumed; revenue rose 8% to $6.56 billion, Vanguard Com.Services VOX 5bn 144.97 0.20% 22.48% 0.10%
· Fox Corp was upgraded to buy at Guggenheim as revenue of $2.89bn was ahead First Trust Indxx ETF NXTG 1bn 77.85 1.75% 12.45% 0.70%
0% Fidelity Com.Services FCOM 1bn 55.06 0.31% 22.76% 0.08%
Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 of consensus while adjusted EBITDA of $717mm beat forecasts with
Ishares Global Com.Services IXP 0bn 86.59 -0.02% 17.62% 0.46%
Communication Services S&P 500 outperformance at both Cable Networks and Television.
Financials 5.73 3.67% 17.10 6.20 STOCKS TO WATCH TICKER MARKET CAP CLOSE CHANGE P/E EV/EBITDA
Market Cap (Trillions) Weekly Change P/E EV/EBITDA Bank Of America Corp BAC 338bn 40.15 4.67% 13.08
Sector Comparison to S&P 500 Performance Paypal Holdings Inc PYPL 328bn 279.54 1.46% 47.53 34.77
40% · Square (SQ) agrees to acquire Australian Afterpay for 29$ billion in stock with fixed
Goldman Sachs Group Inc GS 140bn 397.89 6.14% 10.70 13.08
exchange ratio of 0.375 shares of Squares common stock. Square will use Afterpay's
Square Inc - A SQ 126bn 275.10 11.26% 122.43 91.73
infrastructure for its Cash App business units. Deal will be closed in Q1 of 2022 Robinhood Markets Inc - A HOOD 46bn 55.01 56.50% 220.04
20% · Robinhood Markets (HOOD) fluctuates rapidly post IPO, on august 4 it went up by ETFs TO WATCH TICKER TOTAL ASSETS CLOSE CHANGE YTD Expense
approximately 50% and on the next day plunged by 27.59%. Some say it is the end
Financial Select SPDR XLF 41bn 37.86 3.67% 30.19% 0.12%
of the meme stock era and some say it whole new level of it.
0% Vanguard Financials VFH 11bn 93.36 3.51% 30.01% 0.10%
·Two Ex-Bank of America Traders Accused of Spoofing Found Guilty Edward Bases
SPDR S&P Bank KBE 3bn 51.83 4.79% 25.16% 0.35%
Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 and John Pacilio were convicted of rigging precious-metals prices after a criminal
iShares Global Financials IXG 3bn 79.19 3.06% 22.76% 0.46%
Financials S&P 500 trial in Chicago SPDR S&P Insurance KIE 0bn 38.93 2.21% 19.05% 0.35%
/Sector Snapshot
Industrials 7.56
Market Cap (Trillions)
0.17%
Weekly Change
26.10
P/E
15.80
EV/EBITDA
STOCKS TO WATCH TICKER MARKET CAP CLOSE
CHANGE P/E EV/EBITDA
Lockheed Martin Corp LMT 100bn 362.05 -2.59% 12.87 9.92
Sector Comparison to S&P 500 Performance Uber Technologies Inc UBER 83bn 44.28 1.89% 61.92
· Lockhead Martin (LMT) cuts its FY earnings forecast due to increased defined Generac Holdings Inc GNRC 26bn 415.04 -1.03% 34.88 23.99
20% benefit obligations and retired plan assets. Share price decreased by 2.5% after the Virgin Galactic Holdings Inc SPCE 9bn 33.37 11.27%
announcement Spirit Aerosystems Hold SPR 4bn 42.33 -2.04% 267.91 13.34
· Despite of posting wider losses that expected EPS (-0.36$ vs -0.33$) Shares of
10% ETFs TO WATCH TICKER TOTAL ASSETS CLOSE CHANGE YTD Expense
Virgin Galactic (SPCE) increased by 6% on revenue beat and news about reopening
the sales to space with selling price beginning at $450,000 The Industrial Select SPDR XLI 19bn 103.54 0.17% 19.82% 0.12%
· Spirit Aerosystems Holdings (SPR) posted better than expected earnings and Vanguard Industrials VIS 5bn 197.59 0.13% 18.93% 0.10%
0%
U.S. Global Jets JETS 3bn 23.12 1.00% 7.09% 0.60%
revenue for second quarter. Deliveries of ship sets increased by by 52%, resulting in
Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 ishares Transportation IYT 2bn 252.35 0.70% 16.81% 0.42%
55% beat in EPS estimates. Share price increased by 4.5%
Idustrials S&P 500 Fidelity Industrials FIDU 1bn 54.64 0.13% 19.12% 0.08%
Consumer Staples 2.86
Market Cap (Trillions)
-0.80%
Weekly Change
23.70
P/E
16.50
EV/EBITDA
STOCKS TO WATCH TICKER MARKET CAP CLOSE
CHANGE P/E EV/EBITDA
Procter & Gamble PG 343bn 141.41 -0.58% 22.34 16.07
Sector Comparison to S&P 500 Performance
· Philip Morris international (PM) buying Altria Group (MO) remains as a possibility Coca-Cola KO 244bn 56.64 -0.68% 23.31 20.16
20%
Philip Morris PM 155bn 99.21 -0.88% 14.86 11.58
again according to Morgan Stanley (MS), even though in recent year strategy of PM
Altria Group MO 87bn 47.35 -1.44% 9.80 9.14
is to acquire healthcare companies possibility of buying MO persists as an option.
10% Mondelez International MDLZ 86bn 61.77 -2.36% 19.67 16.44
· Wells Fargo (WFC) and Morgan Stanley (MS) rise price targets for Procter &
ETFs TO WATCH TICKER TOTAL ASSETS CLOSE CHANGE YTD Expense
Gamble (PG) after surprising earnings call previous week. WFC and MS give 12%
0% and 9% upside to PG respectively. Consumer Staples SPDR XLP 13bn 70.94 -0.80% 6.32% 0.12%
· Wells Fargo (WFC) upgrades retail giant Walmart's (WMT) target price after good Vanguard Consumer Stap. VDC 6bn 184.17 -0.72% 6.96% 0.10%
performance in Q2. WFC moves its target price for WMT to $165 which is estimated Fidelity Consumer Stap. FSTA 1bn 43.02 -0.65% 6.91% 0.08%
-10%
Ishares Consumer Stap. KXI 1bn 61.48 -0.46% 5.87% 0.46%
Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021
to be approximately 14% upside.
Consumer Staples S&P 500 First Trust Consumer Stap. FXG 0bn 55.61 -1.03% 8.10% 0.63%
1.66 0.75% 10.90 24.20
Real Estate
STOCKS TO WATCH TICKER MARKET CAP CLOSE CHANGE P/E EV/EBITDA
Market Cap (Trillions) Weekly Change P/E EV/EBITDA
American Tower Corp AMT 128bn 282.12 -0.24% 51.54 27.48
Sector Comparison to S&P 500 Performance Prologis Inc PLD 96bn 129.71 1.30% 46.08 31.67
40%
· Real estate investment trust Vici Properties is acquiring MGM Growth Properties
Crown Castle Intl Corp CCI 84bn 194.80 0.89% 51.38 27.45
in a $17.2 billion deal that will likely make the casino owner the largest landowner
Digital Realty Trust Inc DLR 45bn 157.08 1.89% 94.63 24.25
on the Las Vegas Strip. Vici will gain 15 entertainment properties in the deal. MGM
Simon Property Group Inc SPG 44bn 135.20 6.86% 20.66 17.11
20% Growth Properties, will receive about $4.4 billion in cash in the deal. The transaction
ETFs TO WATCH TICKER TOTAL ASSETS CLOSE CHANGE YTD Expense
includes $5.7 billion in debt.
· Mall owner Simon Property Chief Executive David Simon told analysts Monday Vanguard Real Estate VNQ 44bn 106.91 0.58% 30.11% 0.12%
0%
that retail sales at its properties in June were comparable to June 2019 levels, and Schwab US REIT SCHH 6bn 47.98 0.46% 30.70% 0.07%
up 80% from a year earlier. Parts of the United States saw sales higher than 2019 iShares U.S. Real Estate IYR 6bn 107.08 0.34% 29.42% 0.42%
Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021
Real Estate Select SPDR XLRE 4bn 46.73 0.75% 32.08% 0.12%
levels, he added.
Real Estate S&P 500 iShares REIT ETF REZ 1bn 89.23 -0.90% 36.56% 0.48%
/Sector Snapshot
Energy 1.43
Market Cap (Trillions)
0.24%
Weekly Change
14.70
P/E
7.60
EV/EBITDA
STOCKS TO WATCH TICKER MARKET CAP CLOSE
CHANGE P/E EV/EBITDA
Chevron Corp CVX 197bn 101.95 0.14% 13.43 5.87
Sector Comparison to S&P 500 Performance
British Petroleum BP 86bn 25.56 5.71% 7.59 4.20
· Oil price had worst week of the year, declined by -7.7% compared to last week,
Conocophillips COP 76bn 56.50 0.78% 11.43 4.65
40% because of concerns on fuel demand from renewed travel restrictions related to Eog Resources EOG 41bn 70.93 -2.65% 8.97 4.21
COVID-19 Delta Variant outbreak all over the world. Occidental Petroleum OXY 25bn 26.39 1.11% 48.96 5.57
· Profits of ConcoPhilips (COP) increased by almost 100% compared to previous
ETFs TO WATCH TICKER TOTAL ASSETS CLOSE CHANGE YTD Expense
20% quarter, because of raising oil and gas prices. COP raised its share buyback plan by
1 Billion. After topping the analyst’s estimates, share price increased by 2.8% Energy Select SPDR XLE 23bn 49.51 0.24% 30.43% 0.12%
· After announcing Q2, 2021 results, reporting 3.12 Billion in profit, BQ announced Vanguard Energy VDE 5bn 69.27 -0.03% 32.88% 0.10%
start of 1.4 Billion share buyback program and increased dividend for second SPDR Oil & Gas Exploration XOP 4bn 82.13 -0.81% 39.13% 0.35%
0%
Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021
iShares U.S. Energy IYE 2bn 26.83 0.45% 32.23% 0.42%
quarter by 0.012 USD per share. Share price increased by 6.1%
Energy S&P 500 iShares Global Energy IXC 1bn 25.05 0.89% 22.85% 0.46%
Materials 1.14
Market Cap (Trillions)
0.14%
Weekly Change
19.70
P/E
12.20
EV/EBITDA
STOCKS TO WATCH TICKER MARKET CAP CLOSE
CHANGE P/E EV/EBITDA
Ecolab Inc ECL 63bn 219.65 -0.53% 35.61 21.08
Sector Comparison to S&P 500 Performance Dow Inc DOW 46bn 62.00 -0.26% 10.20 6.31
· Share price of Dupont de Nemours (DD) increased by 2% after beating the
Dupont De Nemours Inc DD 40bn 76.07 1.36% 15.74 10.47
20%
earnings estimates and rassing full year outlook. DD topped EPS estimate by 12%
Mosaic Co/The MOS 12bn 31.49 0.83% 8.61 5.00
($1.06 vs $0.95) and revenue estimate by 3% ($4.14 Billion vs $4 Billion
Mp Materials Corp MP 6bn 37.14 -1.28% 49.79 28.73
· MP Materials Corporation (MP) finished off Q2 with $27.2 Million Net income,
10% compared to 62.5 Million Net loss last year. Revenue and earnings topped ETFs TO WATCH TICKER TOTAL ASSETS
CLOSE CHANGE YTD Expense
estimated due to increased prices of rear earth oxides. After the announcement, VanEck Vectors Gold Miners GDX 14bn 33.24 -4.81% -13.68% 0.52%
0%
Share price increased by 3% Materials Select Sector XLB 8bn 84.14 0.14% 17.35% 0.12%
· Mosaic Company (MOS) improved its margins across all revenue segments due to Vanguard Materials VAW 4bn 183.35 -0.13% 17.69% 0.10%
Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 strong pricies topping the earning estimations by 18% ( $1.17 vs $0.99). Share price SPDR S&P Metals & Mining XME 2bn 43.53 -3.22% 29.36% 0.35%
Materials S&P 500 of MOS increased by 5% after the earnings announcement. Global X Silver Miners SIL 1bn 40.53 -3.91% -17.62% 0.65%
6.34 2.24% 9.09% 0.32% 13.10
Utilities 1.13 20.70 STOCKS TO WATCH TICKER MARKET CAP CLOSE CHANGE P/E EV/EBITDA
MarketCap
Market Capitalization Market Weight P/E
(Trillions) Weekly Change Last Change
EV/EBITDA
Nextera Energy Inc NEE 158bn 80.61 3.48% 29.57 17.47
Sector Comparison to S&P 500 Performance · Share price of Plug Power (PLUG) opened up by 9.2% on 6th of August after Duke Energy Corp DUK 82bn 106.96 1.76% 19.59 12.54
20%
posting 72% increase in revenue compared to last year. Nonetheless, Plug missed Plug Power Inc PLUG 15bn 25.90 -5.06% 205.43
the EPS estimate by 0.11 USD (-0.18 vs -0.07), finishing off the week being 5% Sunrun Inc RUN 10bn 48.37 -8.68% 414.74
10% down First Solar Inc FSLR 10bn 93.15 8.26% 31.67 12.77
· Duke Energy Corporation (DUK) reaffirmed full year EPS outlook to be in range ETFs TO WATCH TICKER TOTAL ASSETS CLOSE CHANGE YTD Expense
of 5-5.30 USD, after beating second quarter's EPS estimate by 5% ($1.15 vs $1.09) Utilities Select Sector XLU 13bn 67.45 2.24% 10.36% 0.12%
0% and topping revenue estimate by 1% Vanguard Utilities VPU 5bn 147.37 2.20% 10.02% 0.10%
· Target price of First Solar Inc (FSLR) increased on average up to $113 by several Global X US Infrastructure Dev PAVE 4bn 26.53 0.19% 26.88% 0.47%
Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021
analysts following management comments about positive demand trends and iShares Global Infrastructure IGF 3bn 46.22 0.74% 6.52% 0.46%
S&P 500 Utilities
raising prices
/Week Ahead
Monday Tuesday Wednesday Thursday Friday
Today August 2021 Month Week Day List Today August 2021 Month Week Day List Economic
Today August 2021
Calendar
Month Week Day List Today August 2021 Month Week Day List Today August 2021 Month Week Day List
August 9, 2021 Monday August 10, 2021 Tuesday August 11, 2021 Wednesday August 12, 2021 Thursday August 13, 2021 Friday
9:45am - 10:45am CH:Unemployment Rate 5:30am - 6:30am CN:CPI 10:00am - 11:00am DE:CPI 10:00am - 11:00am UK:GDP 12:30am - 1:30am US:Fed Balance Sheet
10:00am - 11:00am DE:Merchandise Trade 5:30am - 6:30am CN:PPI 12:00pm - 1:00pm IT:CPI 1:00pm - 2:00pm EZ:Industrial Production 9:30am - 10:30am FR:ILO Unemployment Rate
6:00pm - 7:00pm US:JOLTS 1:00pm - 2:00pm DE:ZEW Survey 3:00pm - 4:00pm US:MBA Mortgage Applications 4:00pm - 5:00pm IN:CPI 10:45am - 11:45am FR:CPI
7:30pm - 8:30pm US:3-Month Bill Auction 2:00pm - 3:00pm US:NFIB Small Business Optimism Index 4:30pm - 5:30pm US:CPI 4:30pm - 5:30pm US:Jobless Claims 12:30pm - 1:30pm HK:GDP
7:30pm - 8:30pm US:6-Month Bill Auction 4:30pm - 5:30pm US:Productivity and Costs 6:00pm - 7:00pm US:Atlanta Fed Business Inflation 4:30pm - 5:30pm US:PPI-Final Demand 1:00pm - 2:00pm EZ:Merchandise Trade
Expectations
8:30pm - 9:30pm US:Investor Movement Index 4:55pm - 5:55pm US:Redbook 6:30pm - 7:30pm US:EIA Natural Gas Report 4:30pm - 5:30pm US:Import and Export Prices
6:30pm - 7:30pm US:EIA Petroleum Status Report
7:00pm - 8:00pm US:4-Week Bill Announcement 7:00pm - 8:00pm US:20-Yr Bond Announcement 6:00pm - 7:00pm US:Consumer Sentiment
9:00pm - 10:00pm US:10-Yr Note Auction
7:00pm - 8:00pm US:8-Week Bill Announcement 7:00pm - 8:00pm US:3-Month Bill Announcement 9:00pm US:Baker Hughes Rig Count
10:00pm - 11:00pm US:Treasury Statement
7:30pm - 8:30pm US:52-Week Bill Auction 7:00pm - 8:00pm US:30-Yr TIPS Announcement 9:00pm - 10:00pm US:Baker Hughes Rig Count
9:00pm - 10:00pm US:3-Yr Note Auction 7:00pm - 8:00pm US:6-Month Bill Announcement 9:00pm US:Consumer Sentiment
7:30pm - 8:30pm US:4-Week Bill Auction 9:00pm US:Wholesale Inventories (Advance)
7:30pm - 8:30pm US:8-Week Bill Auction
9:00pm - 10:00pm US:30-Yr Bond Auction
Corporate Actions Calendar
Ticker Type Time Maket Cap Ticker Type Time Maket Cap Ticker Type Time Maket Cap Ticker Type Time Maket Cap Ticker Type Time Maket Cap
BNTX Earnings Release Pre-Market 100bn COIN Earnings Release After-Hours 51bn IS Earnings Release Pre-Market 9bn DIS Earnings Release After-Hours 314bn BRK.A Earnings Release Not-Supplied 639bn
APD Earnings Release Pre-Market 64bn SYY Earnings Release Pre-Market 37bn AZPN Earnings Release After-Hours 10bn AMAT Earnings Release Not-Supplied 130bn NTCO Earnings Release Not-Supplied 15bn
TTD Earnings Release Pre-Market 39bn TDG Earnings Release Pre-Market 34bn EBR Earnings Release Not-Supplied 12bn BAM Earnings Release Pre-Market 90bn SRCL Earnings Release Pre-Market 6bn
GOLD Earnings Release Pre-Market 39bn U Earnings Release After-Hours 30bn EBR.B Earnings Release Not-Supplied 13bn ABNB Earnings Release After-Hours 88bn DSEY Earnings Release Pre-Market 5bn
NTR Earnings Release After-Hours 33bn STNE Earnings Release Not-Supplied 18bn MQ Earnings Release After-Hours 15bn NTES Earnings Release Not-Supplied 62bn BRFS Earnings Release Not-Supplied 4bn
TSN Earnings Release Pre-Market 26bn BSY Earnings Release Pre-Market 17bn WIX Earnings Release Pre-Market 17bn DASH Earnings Release After-Hours 58bn CIG Earnings Release Not-Supplied 4bn
TLK Earnings Release Not-Supplied 23bn YMM Earnings Release Pre-Market 14bn RPRX Earnings Release Pre-Market 22bn BIDU Earnings Release Pre-Market 57bn MSGS Earnings Release Not-Supplied 4bn
DISH Earnings Release Pre-Market 22bn MRVI Earnings Release After-Hours 13bn APP Earnings Release After-Hours 23bn PLTR Earnings Release Pre-Market 42bn ME Earnings Release Pre-Market 4bn
STE Earnings Release After-Hours 22bn MCFE Earnings Release After-Hours 12bn BEKE Earnings Release After-Hours 25bn PAGS Earnings Release After-Hours 18bn MARA Earnings Release Not-Supplied 3bn
LU Earnings Release Not-Supplied 17bn DAR Earnings Release After-Hours 11bn GMAB Earnings Release Not-Supplied 30bn FUTU Earnings Release Not-Supplied 15bn LEV Earnings Release Pre-Market 3bn
VTRS Earnings Release Pre-Market 17bn DOCS Earnings Release After-Hours 10bn FNV Earnings Release After-Hours 31bn SOFI Earnings Release After-Hours 13bn MSGE Earnings Release Not-Supplied 2bn
AMC Earnings Release After-Hours 15bn UPST Earnings Release After-Hours 10bn EBAY Earnings Release After-Hours 46bn LZ Earnings Release After-Hours 8bn PMVP Earnings Release Not-Supplied 2bn
CHGG Earnings Release After-Hours 13bn ARMK Earnings Release Pre-Market 9bn CPNG Earnings Release After-Hours 68bn OGN Earnings Release Pre-Market 7bn LAC Earnings Release Not-Supplied 2bn
COMP Earnings Release After-Hours 5bn BBIO Earnings Release Not-Supplied 8bn NIO Earnings Release After-Hours 74bn LAZR Earnings Release After-Hours 6bn CGEM Earnings Release Not-Supplied 1bn
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/Brokerage Team
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