Welcome Back,

More rating downgrades, draw the market down today.

Market Headlines 👀 

• US Home prices hit record highs in 60% of major markets.

• US Atlanta Fed is now forecasting 4.1% GDP growth, prev: 3.8%.

• US consumer credit card balances rose to over $1t for the first time ever.

• Moodys (MCO) downgraded 10 small to mid-sized lenders; and placed BNY Mellon, US Bancorp, State Street and others under review.

• Novo Nordisk & Eli Lilly (NVO, LLY) reveal promising results from its trial weight loss drug to help reduce probability of cardiovascular diseases and also help with obesity.

• Wells Fargo (WAC) and other major Wall St firms have to pay over $2.5b in fines to the SEC over unofficial communications taking place by employees over Whatsapp and messaging services.

• Alphabet (GOOGL) is working on a deal with Universal Music group over licensing on music created using AI.

• Nvidia (NVDA) announces a groundbreaking superchip GH200 in an era of generative AI.

• Apple (AAPL) is testing a new M3 chip and could possibly be ready to release the most powerful Mackbook pro yet.

• Coinbase (COIN) is looking to refinance and buy back some of its junk bonds.

• China exports fell at the fastest pace since February 2020.

• Taiwan Semiconductors (TSM) is set to build its first European factory ever in Germany.

Earnings 💸

• Datadog (DDOG)

  • EPS: $0.36 beats (exp. $0.28)

  • Revenue: $509m beats (exp. $501m)

• United Postal Service (UPS)

  • EPS: $2.54 beats (exp. $2.50)

  • Revenue: $22.1b misses (exp. $23.1b)

• AMC Entertainment (AMC)

  • EPS: $0 beats (exp. $-0.04)

  • Revenue: $1.35b beats (exp. $1.29b)

• Twilio (TWLO)

  • EPS: $0.54 beats (exp. $0.30)

  • Revenue: $1.04b beats (exp. $987.07m)

• Rivian (RIVN)

  • EPS: $-1.08 beats (exp. $-1.41)

  • Revenue: $1.12b beats (exp. $979m)

• Coupang (CPNG)

  • EPS: $0.08 beats (exp. $0.05)

  • Revenue: $5.8b beats (exp. $5.7b)

• Lyft (LYFT)

  • EPS: $0.16 beats (exp. $-0.01)

  • Revenue: $1.02b meets (exp. $1.02b)

• Eli Lilly (LLY)

  • EPS: $2.11 beats (exp. $1.99)

  • Revenue: $8.31b beats (exp. $7.58b)

• Super Micro Computer (SMCI)

  • EPS: $3.51 beats (exp. $2.76)

  • Revenue: $2.18b beats (exp. $1.9b)

  S&P 500 Heat Map

Recap Around the Street 🧠

Credit card debt is surging…

30y mortgage rates nearing highs but demand for homes and home prices remain hot.

Market Preview 🎞️

• Wednesday, August 8th: MBA mortgage applications

• Wednesday earnings: Walt Disney (DIS), Roblox (RBLX), The Trade Desk (TTD), and Gingko Bioworks (DNA)

• Thursday, August 9th: Weekly jobless claims; Consumer price index; federal budget statement

• Thursday earnings: Alibaba (BABA), and Ionq (IONQ)

• Friday, August 10th: Producer price index; University of Michigan sentiment

That’s all for today, folks! We’ll be back around the same time tomorrow with a curated list of important news, economic data and market highlights. 

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