Fitch Could Slap Jamie Dimon Next

Major bank downgrades | Retail Sales | New Tesla models

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The One Read
August 15, 2023

Welcome Back,

Major bank credit rating downgrades next?

Market Headlines 👀 

  • US July retail sales MoM come in at +0.7%; est: +0.4%.

  • Fitch Ratings warns US major banks downgrades could come next, such as JP Morgan Chase.

  • Tesla (TSLA) announces cheaper and lower range model X and S.

  • TPG Capital major PE firm approaches Ernst & Young to take a stake in its consulting arm.

  • VinFast (VFS) Vietnamese EV maker makes its debut on Nasdaq today, company made first US EV deliveries in March.

  • Fisker (FSR) signs deal with Tesla for its supercharger network and will adapt to the NACS charging standards.

  • Hidenburg Research announces its next short report, now on Freedom Holding corp.

Earnings 💸

  • Home Depot (HD)

    • EPS: $4.65 beats (exp. $4.46)

    • Revenue: $42.9b beats (exp. $42.1b)

  • Sea Limited (SE)

    • EPS: $0.54 misses (exp. $0.69)

    • Revenue: $3.1b misses (exp. $3.4b)

  • Cava (Cava)

    • EPS: $0.21 beats (exp. $-0.02)

    • Revenue: $172.9m beats (exp. $163.19m)

    S&P 500 Heat Map

Recap Around the Street 🧠

Consumer spending remains resilient as evidenced by July retail sales report. How much more spending power remains to be seen. (Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Source: BoFa

U.S. stock valuations at elevated levels consistent with perception of growth scarcity in the face of higher interest rates. Stocks can still do well if forward earnings growth meets expectations.(Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Source: Wall St Journal

Market Preview 🎞️

  • Wednesday, August 16th: MBA mortgage applications; Building permits; Housing starts; FOMC meeting minutes from July meeting

  • Wednesday earnings: Target (TGT), Jd.com (JD), Cisco (CSCO), and Tencent (TCHNY)

  • Thursday, August 17th: Weekly jobless claims; Philadelphia Fed business outlook

  • Thursday earnings: Walmart (WMT), Applied Materials (AMAT), and Nanox Technologies (NNOX)

  • Friday, August 18th: Monthly options expiration OPEX

  • Friday earnings: John Deere (DE), and Estee Lauder (EL)

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