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Apple makes an AI splash, big tech earnings begin!

Market Headlines 👀 

• US housing starts came in at 1.43m for the month of June; est: 1.48m.

• Apple (AAPL) is ramping up efforts to challenge competitors with its own AI Software - Apple GPT.

• Facebook (META) teams up with Microsoft to distribute its AI software via MSFT Azure for developers.

• UK CPI comes in at 7.9%; est: 8.2%.

• Netflix (NFLX) will no longer offer its ad-free plan in the US and UK.

• Morgan Stanley (MS) will move 200 technical roles away from its China office.

• Carvana (CVNA) company restructures its debt and raises more money, stock soars today.

• Nissan will adapt Tesla’s EV battery technolgy standards NACS starting from 2025.

Earnings 💸

• Goldman Sachs (GS)

  • EPS: $3.08 misses (exp. $3.18)

  • Revenue: $10.9b beats (exp. $10.84b)

• Netflix (NFLX)

  • EPS: $3.29 beats (exp. $2.85)

  • Revenue: $8.19b misses (exp. $8.3b)

• Tesla (TSLA)

  • EPS: $0.91 beats (exp. $0.81)

  • Revenue: $24.9b beats (exp. $24.51b)

• ASML (ASML)

  • EPS: €4.93 beats (exp. €4.72)

  • Revenue: €6.90b beats (exp. €6.68b)

• United Airlines (UAL)

  • EPS: $5.03 beats (exp. $4.03)

  • Revenue: $14.18b beats (exp. $13.91b)

• International Business Machines (IBM)

  • EPS: $2.18 beats (exp. $2.02)

  • Revenue: $15.5b misses (exp. $15.58b)

  S&P 500 Heat Map

Recap Around the Street 🧠

Long big tech is not surprising given this year’s surge and leadership. Long Japan is somewhat surprising given yen weakness (although it’s well off the lows vs USD). Short China and short banks are slowly unwinding suggesting the worst may be behind us concerning those two market segments.(Contributed by Benjamin Lavine, CIO at 3D/L Capital).

What a year its been so far…

Market Preview 🎞️

• Thursday, July 20th: Weekly jobless claims; Philadelphia Fed business outlook; existing home sales

• Thursday earnings: American Airlines (AAL), Johnson & Johnson (JNJ), The Blackstone Group (BX), and Intuitive Surgical (ISRG)

• Friday, July 21st: Monthly OPEX options expiration

• Friday earnings: American Express (AXP)

•  Fed in blackout period ahead of FOMC meeting next week

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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