Welcome Back,

First time since 2011, US credit rating has been downgraded by Fitch Ratings.

Market Headlines 👀 

• US credit rating downgraded by Fitch Ratings from an AAA to AA+.

• US Treasury boosts quarterly bond sales for the first time in 2.5 years in order to help finance budget deficits.

• US ADP nonfarm payrolls for July come in at 324k; est: 190k.

• Softbank (SFTBY) chip maker ARM is targeting a $60b IPO in September.

• Facebook (META) is looking to release various AI chatbot personas to intrigue users in its suite of apps.

• Apple (AAPL) Foxconn IPhone maker will invest $600m in India in a manufacturing and semiconductor facility.

• Apple (AAPL) savings account by Goldman Sachs is now over $10b in deposits.

• Walt Disney (DIS) is trying to figure out what to do with ESPN going forward, a spin-off is possible.

• BlackRock and MSCI (BLK) firms may face probes from the US House over China investments they facilitated via US funds.

Earnings 💸

• Shopify (SHOP)

  • EPS: $0.14 beats (exp. $0.05)

  • Revenue: $1.69b beats (exp. $1.62b)

• Mercado Libre (MELI)

  • EPS: $5.16 beats (exp. $4.36)

  • Revenue: $3.42b beats (exp. $3.27b)

• Qualcomm (QCOM)

  • EPS: $1.87 beats (exp. $1.81)

  • Revenue: $8.44b misses (exp. $8.51b)

• Paypal (PYPL)

  • EPS: $1.16 meets (exp. $1.16)

  • Revenue: $7.29b beats (exp. $7.27b)

• Robinhood (HOOD)

  • EPS: $0.03

  • Revenue: $486m beats (exp. $472m)

• CVS Pharmacy (CVS)

  • EPS: $2.21 beats (exp. $2.10)

  • Revenue: $88.92b beats (exp. $86.49b)

• Unity Technologies (U)

  • Revenue: $533.5m beats (exp. $517.78m)

  S&P 500 Heat Map

Recap Around the Street 🧠

Non-farm payrolls report breakdown. Even with the annual increase slowing down, wage growth is still running hot. Combined with the surge in commodity prices this past month, the Fed may be staring at 2nd wave inflation risk.(Contributed by Benjamin Lavine, CIO at 3D/L Capital).

August seasonality historically…

Market Preview 🎞️

• Thursday, August 3rd: Weekly jobless claims; Challenger job cuts; Nonfarm productivity; durable goods; ISM services index

• Thursday earnings: Apple (AAPL), Amazon (AMZN), Square (SQ), Airbnb (ABNB), Draftkings (DKNG), Coinbase (COIN, Cloudfare (NET), Digital Ocean (DCON), Atlassian (TEAM), Expedia (EXPE), Fiverr International (FVRR) and Moderna (MRNA)

• Friday, August 4th: US employment report

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. 

🔔 Be the first to know. Ensure you never do more than one read if you:

• Move our emails (especially your subscriber introduction) to your primary inbox (Quick instructions).

• 👋 Say hi. Responding to our emails (if any) lets your email provider know to not block us from your main inbox.