Welcome Back,

A lot of earnings today!

Market Headlines 👀 

• US non-farm productivity came in at +3.7% YoY; est: 2.2%. Biggest rise since 2020.

• US weekly jobless claims come in at 227k; est: 225k.

• Hedge Fund manager Bill Ackman says he is short 30y US treasury as supply goes up.

• Bank of England (BOE) raises its benchmark rate .25bps and it is now 5.25%.

• Fitch Ratings a day after downgrading US credit, now has downgraded Fannie Mae and Freddie Mac to a AA+ from AAA.

• Alphabet (GOOGL) Waymo, Google’s self driving unit is launching in Austin, the fourth city it will expand to after Phoneix, Los Angeles and San Francisco.

• Tesla (TSLA) has inked an 5 year office space deal in Pune, India for its EV plant.

• Robinhood (HOOD) to start charging customers regulatory fees on options trading starting in September.

Earnings 💸

• Apple (AAPL)

  • EPS: $1.26 beats (exp. $1.19)

  • Revenue: $81.8b beats (exp. $81.6b)

• Amazon (AMZN)

  • EPS: $0.65 beats (exp. $0.34)

  • Revenue: $134.38b beats (exp. $131.63b)

• Bookings.com (BKNG)

  • EPS: $37.62 beats (exp. $19.08)

  • Revenue: $5.46b beats (exp. $5.17b)

• Coinbase (COIN)

  • EPS: $-0.42 beats (exp. $-0.62)

  • Revenue: $708m beats (exp. $638m)

• Airbnb (ABNB)

  • EPS: $0.98 beats (exp. $0.77)

  • Revenue: $2.48b beats (exp. $2.42b)

• Block (SQ)

  • EPS: $0.39 beats (exp. $0.34)

  • Revenue: $5.53b beats (exp. $5.12b)

• Digital Ocean (DOCN)

  • Revenue: $680m misses (exp. $710m)

• Cloudfare (NET)

  • EPS: $0.10 beats (exp. $0.07)

  • Revenue: $308.5m beats (exp. $305.6m)

• Draftkings (DKNG)

  • EPS: $0.14 beats (exp. $-0.24)

  • Revenue: $874.9m beats (exp. $750.16m)

• Atlassian (TEAM)

  • EPS: $0.57 beats (exp. $0.36)

  • Revenue: $939m beats (exp. $920.4m)

• Hubspot (HUBS)

  • EPS: $1.41 beats (exp. $0.99)

  • Revenue: $529.1m beats (exp. $505.36m)

  S&P 500 Heat Map

Recap Around the Street 🧠

We may have enjoyed the bulk of multiple expansion this cycle with short term yields approaching 5%, barring a repeat of the 1999 dotcom period when earnings yields (inverted P/E) dropped well below short term Treasury yields. It’s now put-up-or-shut-up on the earnings growth front.(Contributed by Benjamin Lavine, CIO at 3D/L Capital).

More expensive but not necessarily constraining. Inflation and scarcity of resources the ultimate constraints on government borrowing capacity. (Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Market Preview 🎞️

• Friday, August 4th: US employment report

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

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