Weekly Buzz: Shakeups and Market Pull Backs, Earnings Bite
Happy Friday, mooers! Welcome back to Weekly Buzz, where we review the news, performance, and community sentiment of the top ten buzzing stocks on moomoo based on search and message volumes! Comment below to answer the Weekly Topic question for a chance to win an award!
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Weekly Buzz
The week started with a bombshell: President Biden announced he would not seek reelection, and VP Kamala Harris would take his place as the presumptive Democratic nominee.
Every sector on the market was climbing Friday, and industries of Semiconductors, Software, and Credit companies climbed. For the rest of the week, the market fell, hitting a low point Wednesday after earnings from two giant tech firms were not perfect enough.
Friday afternoon, equities rebounded across the market following an index pullback earlier this week. After the close the $S&P 500 Index (.SPX.US)$ fell 83 bps for the week, having pulled back from a 5% drop on the week Wednesday. The $Dow Jones Industrial Average (.DJI.US)$ climbed 75 bps for the week and was nearly on track for a 1,000-point jump in one day, and the $Nasdaq Composite Index (.IXIC.US)$ fell 2% for the week.
In macroeconomic news the market was green not just for the sake of regaining ground; the much-awaited PCE numbers for June showed core prices grew at the same rate as last month, at 2.6%, while overall prices fell from 2.6% to 2.5%. Moderate inflation and resilient economic growth indicate the U.S. economy isn't landing at all, Global X's Scott Helfstein told Wall Street Journal in a note.
"Growth is well above pre-COVID trends, and prices are stable," Helfstein said. "Forget soft landing; this is the no landing economy."
Consumer sentiment numbers also came in from the University of Michigan, showing that consumer confidence fell to an eight-month low of 66.4 this month from 68.2 in June. Consumers expect prices to climb at an annual rate of 2.9% over the next year.
Thursday, GDP numbers for the second quarter came out higher than expected and doubled last quarter at 2.8%. Gross Domestic Product numbers collected by the Bureau of Economic Analysis come out once a month, as the BEA records data on consumer prices and services from the previous quarter. The number becomes more accurate as the quarter progresses until economists agree on the final number.
PMI numbers came out Wednesday morning, about 20 bps higher than estimated at 55.3 vs 55.1. Last month, the index was at 54.8, so prices producers paid climbed in July.
Tuesday, existing home sales for June came in at 3.8M, about .1M lower than estimated. In the absence of any new economic data released Monday, the market stuck to trades that price in a 25 basis point cut in the September meeting by the Federal Reserve. Traders are pricing in an almost 92% chance that the key interest rate will be at a range of 5% to 5.25% in the September meeting, up from 59.5% a month ago, according to the CME FedWatch tool.
Next week, investors are watching for all of the seven remaining magnificent companies to report and save for Nvidia.
$Microsoft (MSFT.US)$ will arrive on Tuesday, $Meta Platforms (META.US)$ on Wednesday, and $Apple (AAPL.US)$ and $Amazon (AMZN.US)$ on Thursday, alongside a host of other $100B+ market cap giants.
Anyway, let's dive into the buzzing stocks this week:
Nvidia spent the last week mostly in decline after comments on semiconductor companies checked the entire AI industry on July 11th. Since that point, the stock has fallen 16%. Nvidia is the last of the mag seven to report earnings on August 28th, a far way away from the rest of the top-valued stocks. After Google and Tesla earnings disappointed investors this week and in part, caused a whole market pullback and 2% index correction, that distance may help Nvidia stand on its own away from its peers at the top.
@Zack McDonald: can this shiiiii just soar
Tesla did not make expectations for earnings this week, leading the Nasdaq lower after the electric vehicle maker reported that its second-quarter earnings shrank 43% to 55 cents a share in the second quarter from a year earlier, missing the 62-cent average of analysts' estimates compiled by Capital IQ.
@Pawtastic: The Tesla call is painful! Hope it can climb in this last 1.5hours.
$Serve Robotic continued climbing like a freight train up a mountain this week after Nvidia disclosed a 10% stake in the company last week. Serve shares soared 187% on Friday, and nearly 500% since.
Serve Robotics went public via a reverse merger with Patricia Acquisition Corp. According to TechCrunch, Serve Robotics was initially started as the robotics division of Postmates. The autonomous sidewalk robots started delivering to Postmates customers in 2018, but when Uber acquired Postmates in 2020, the robotics division was spun out as Serve Robotics. The firm has never reported a profit, and its loss each quarter has increased since Q3 2023, according to moomoo data.
@night ranger: it needs to break 14 to reach even higher i guess
one week after a global 'blue screen' crash caused by a CrowdStrik update, the stock is finally on the rise. The firm said Thursday that 97% of the damage had been patched, and the CEO, Goerge Kurtz will testify before congress on the catastrophe.
@Preet Shah: Solid sell-off right now and then it will peal again in 2 weeks
The most major news to affect Gamestop this week came out Friday, when Federal prosecutors charged famed GME short seller Andrew Left with fraud, accusing him of routinely making exaggerated or misleading statements about stocks to quickly profit on price moves caused by his reports. Left would make recommendation posts on social media that he had heavy stakes in stocks like Roku and Meta but allegedly closed those positions for profit after the stocks jumped in value, the charges said. The charges alleged Left lied and misrepresented his connection to the hedge fund that performed these trades.
@Warren Buffetless: The Worst Bet ever
Investors are still awaiting to see the long-term results of the Deadpool Wolverine movie after the first-day box office reportedly on track for an R-rated one-day record of $38M Friday.
@ur wifes boyfriend: Deadpool movie record 38 million!!
Super Micro fell for a second week following other semi-conductor companies, and after comments from former President Trump that he would make Taiwan pay more for U.S. defense. Tesla and Google earnings did not help on Tuesday.
@Master Corgi : Buy the dip before earnings. Probably gonna fly after that!
DJT fell this week after President Biden stepped down from re-election and instead endorsed Vice President Kamala Harris. As Harris gathered nearly 100% of the support she needed to take the nomination and a record level of campaign donations in just a couple of days, Trump's campaign looked like it had a fresh challenger. Investors treat DJT like an election stock.
@Timtan85: trump wins this thing be 60bucks
Despite the long-awaited approval of Ethereum ETFs by the SEC this week, crypto prices fell. After Wednesday s market selloff, bitcoin rose alongside the rest of the market to its long-held $67k level. Bitcoin magazine held a massive conference that started Thursday, set to feature speakers like Cathie Wood and President Donald Trump over the weekend. Moomoo will try to livestream any news events; we got a press pass!
@EZ_money : see you at the conference
Thanks for reading!
* All comments, links, and content posted or shared by users of the community are the opinion of the respective authors only and do not reflect the opinions, views, or positions of Moomoo Financial Inc., Moomoo Technologies, any affiliates, or any employees of MFI, MTI or its affiliates. Please consult a qualified financial professional for your financial planning and tax situations.
Awards
Congrats to the following mooers whose comments were selected as the top comments last week!
Weekly Topic
Ok, well last week's topic of Trump v Biden aged like milk. With a new presumptive nominee in the running, what do you expect form a possible Harris presidency?
Comment below and share your ideas! We will select up to 15 TOP COMMENTS for a reward next week. Winners will get 200 points by next week, with which you can exchange gifts at Reward Club.
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EZ_money :
Mr Trecherous :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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EZ_money Mr Trecherous :
ZnWC : Thanks for the reward points![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Here's a list on how Harris presidency will impact the stock market:
1) Good for Big Tech
Harris has significant ties to major tech firms dating back to her time as a California prosecutor, the home of Silicon Valley, and experts say she largely played nice with leading firms like Google during her time in California politics.
2) ESG & Infrastructure
Harris has a strong stance on climate change and environmental policies which should support ESG (Environmental Social Governance) investors and the transformation of the broader oil and gas industry to include more renewable energy.
3) Healthcare companies that focus on the well-being of women
One of the most popular but confrontational topics of the upcoming election will be on the broader legalization of abortion or the pro-choice narrative. Harris stands pro-choice while Trump and his running mate JD Vance have stood with the opposing pro-life initiative. The higher standards for women’s health will be of significant interest under a Harris presidency and healthcare companies that focus on the well-being of women will benefit.
4) Continuation of Biden admin and Trump Trade to fade
Harris presidency would be, for all intents and purposes, a continuation of the Biden administration. Her take on foreign tariff policies may affect Chinese equities. EV industry, clean energy and businesses that help to reduce impact on air pollution will continue to enjoy the tax credit and rebates brought by the Inflation Reduction Act (IRA). Trump trade will begin to fade.
Bottom line
The cycle, which is the recent stock market rotation toward ‘red’ sectors and away from ‘blue’ ones, may play a larger role in how stocks trade broadly than who is in the White House. Personally I am more concerned about the longer term outlook such as the impact brought by the possible Fed rate cut in September, US economy slipping into recession and geopolitical tension between China and US.
HuatLady : With a new likely nominee running for office, people would likely focus on what policies Harris may prioritize as president. These could include healthcare changes, actions on climate changes, immigration policies, and her plans for economic initiatives.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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Regardless of who will emerge as the final winner in this forthcoming presidential election,Trump or Harris, my sincere wish is for the newly elected president's solution to end this nightmarish war and that will be his or her greatest gift worldwide.
102362254 : Political discussions swiftly evolve with new issues, moving beyond recent focuses like Trump vs Biden. If Harris were to become president, there would be anticipation regarding her policies, leadership approach, and management of domestic and international issues. I am particularly interested in how her background and previous roles would influence her strategies in addressing current challenges and advancing her agenda.
HuatEver : Thank you for the rewards![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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Given my commitment to long-term investments in strong stocks, I don’t plan to change my strategy based on presumptive nominaré, whether it’s Harris or anyone else. I prefer to remain dedicated to my current approach despite of political developments. I will continue to invest systematically in good dividend stocks and avoid closely monitoring the market, as life encompasses more than just financial markets.
Crypto Angel EZ_money : feeling savage I see
Shootingstar 102362254 : Why wait to become a president to make changes and prove herself? She is already the vp and did nothing at all to help the ailing president Biden.
Moo mom Shootingstar : Not a Kamala fan in the slightest but it’s pretty obvious Kamala and Bidens board have been leading things, the man isn’t there anymore he hasn’t been in a long time
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