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Market Moves Yesterday
S&P 500 @ 5,631.22 ( ⬆️ 0.28%)
Nasdaq Composite @ 18,472.57 ( ⬆️ 0.40%)
Bitcoin @ $62,939.80 ( ⬆️ 0.08%)
Hey Scoopers,
Happy Tuesday! Here’s what we’re covering today:
👉 Apple eyes expansion in India
👉 Goldman Sachs posts stellar Q2 results
👉 Macy’s buyout bid stalls
So, let’s go 🚀
Market Wrap 📉
Equity markets touched fresh record highs yesterday as investors expect the unsuccessful assassination attempt on former U.S. President Donald Trump to act as a tailwind for the Republican presidential candidate in the upcoming election.
A Trump victory could pave the way for favorable tax and fiscal policies for investors.
Moreover, the market continued its rotation into small-cap stocks, with the Russell 2000 rising 1.8% yesterday after a 6% climb last week. According to Tom Lee, the research head at Fundstrat Global, the small-cap index is just at the beginning of a longer rotation.
Equity markets will remain volatile in the near term, given the earnings season has just begun. Companies such as Bank of America, Morgan Stanley, United Health, and Charles Schwab are set to report Q2 earnings today.
Finally, traders will watch the latest economic data this week, which includes June’s retail sales and May’s business inventories.
Trending Stocks 🔥
Trump Media and Technology- Shares of the social media platform are up 11% in pre-market after soaring over 30% on Monday following the recent assassination attempt on Donald Trump.
FB Financial - Shares added nearly 3% after the regional bank reported adjusted earnings of $0.84 per share, above estimates of $0.76. It also beat estimates of net interest income and net interest margin.
Super Micro Computer - Shares of the server maker jumped over 3% as it is all set to replace Walgreens Boots Alliance in the Nasdaq 100 index.
Apple’s India Sales Rise 33%
According to Bloomberg, Apple’s annual sales in India reached a record $8 billion, an increase of 33% year over year.
Apple’s iPhone accounted for almost 50% of sales as the smartphone maker aims to win users in the world’s most populous country.
India is poised to be a major market for Apple due to steady economic expansion and growth in purchasing power. Apple is banking on India as it looks to diversify manufacturing and revenue sources away from China.
Apple’s India-based assembly partners doubled iPhone production to $14 billion in fiscal 2023. It means Apple makes 14% of its total devices in India.
Despite this impressive growth, India accounts for just 2% of Apple sales and should be a key revenue driver in the future.
While sales in China sank in fiscal 2023, they stood at $72.6 billion. In recent months, iPhone sales in China have rebounded strongly due to heavy discounting by retailers.
Goldman Sachs Surpasses Q2 Estimates
Yesterday, Goldman Sachs announced its Q2 results and reported:
👉 Revenue of $12.73 billion vs. estimates of $12.46 billion
👉 Earnings per share of $8.62 vs. estimates of $8.34
Goldman more than doubled its earnings from $3.04 per share, while revenue growth was more modest at 17%. Last year, Goldman’s results were hampered by commercial real estate write-downs and the sale of its consumer business.
Here are some of the highlights from Goldman’s Q2 results:
Fixed income sales rose 17% to $3.18 billion, $220 million above estimates
Provision for credit losses fell 54% to $282 million, below estimates of $435.4 million
Sales from its asset and wealth management business rose 27% to $3.88 billion
Equity trading sales were up 7% at $3.17 billion
Investment banking fees grew 21% to $1.73 billion
The company’s investment banking sales growth was lower than the 50% gains reported by JPMorgan and Citi in Q2.
An improving macro environment has allowed Goldman Sachs stock to surge by 27% year-to-date.
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Macy’s Ends Buyout Talks
Yesterday, department store Macy’s confirmed it is ending negotiations with Arkhouse and Brigade to take the company private for $6.9 billion. Soon after the announcement, Macy’s stock price declined by 11.7%.
Source: Forbes
Arkhouse and Brigade have been trying to take Macy’s private for almost a year and increased their buyout offer to $24.80 per share this month, higher than its current trading price of $19.86.
Macy’s is in the midst of a turnaround effort led by its newly appointed CEO. The company disclosed plans to close 150 namesake stores and open new Bloomingdale and Bluemercury outlets.
In the current fiscal year, Macy’s forecast sales to range between $22.3 billion and $22.9 billion, below the $23.09 billion sales in 2023.
Macy’s stock is down over 15% in 2024 and has a market cap of less than $5 billion. Comparatively, the S&P 500 index has returned close to 20% year-to-date.
Headlines You Can't Miss!
Fed won’t wait for 2% inflation to lower interest rates
Starboard acquires 6.5% stake in Match Group
Hugo Boss stock slumps due to sluggish sales in China
BlackRock’s ETF business continues to grow
Money launderers are turning to crypto
Chart of The Day
Fast-food outlets were once the go-to option for pocket-friendly meals, but they are starting to pinch household budgets.
In the last decade, several restaurant chains have raised menu prices by more than 50% due to inflation.
The above Visual Capitalist chart shows price hikes for ten core menu items from fast-food chains. McDonald’s leads the pack, with food items doubling in price since 2014.
Meme of the Day
DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.