Bulls, Bitcoin, & Beyond

Market Moves Yesterday

S&P 500 @ 5,471.05 ( ⬆️ 1.16%)

Nasdaq Composite @ 16,884.60 ( ⬆️ 1.16%)

Bitcoin @ $56,876.76 ( ⬆️ 1.77%)

Hey Scoopers,

Happy Tuesday! Are you ready for an exciting newsletter?

👉 Apple’s big event

👉 Dell and Palantir are on the move

👉 Oracle beats estimates

So, let’s go 🚀

Market Wrap

Equities jumped on Monday as investors bought the dip following Wall Street’s worst week of the year. Investors expect an interest rate cut later this month would bolster a slowing economy.

Tech stocks, which drove last week's sell-off, mounted a comeback. Companies outside of tech, such as JPMorgan, Costco, Amazon, and Boeing, led broader market gains.

Investors now await two key inflation reports that could further direct the Fed’s rate decision next Wednesday. While August's consumer price index report will be released tomorrow, the producer price index report will be published on Thursday.

Trending Stocks 🔥

Summit Therapeutics - The biotech stock surged 56% after it announced its lung cancer drug candidate outperformed Merck’s Keytruda in phase three clinical trials.

JetBlue Airways - The airline stock popped 7% after Bank of America upgraded it to “neutral” from “underperform.” The investment bank doubled its target price to $6, indicating an upside of over 5% from current levels.

MarineMax - The stock added 6% after Citi upgraded it to “buy” from “neutral,” citing the upside of a lower rate environment and limited downside risks.

Apple Launches a New iPhone

Apple just unveiled the iPhone 16 Pro and the iPhone 16 Pro Max, which will join the iPhone 16 line-up announced earlier. The two new phones are premium devices with better screens and cameras than regular models.

Armed with the thinnest borders on any Apple product, the iPhone 16 Pro Max also claims to have the best battery iPhone battery life ever. The iPhone 16 starts at $799, and the iPhone 16 Plus starts at $899.

Apple also stated that its AI capabilities will be available via a free software update on the iPhone 15 and 16 lineup next month.

Next, the hardware maker marketed the AirPods Pro 2 as a product with incredible health capabilities. For example, 80% of U.S. adults have not had their hearing checked in the past five years, and Apple just introduced a clinically validated hearing test with the AirPods Pro.

Moreover, the device will have a clinical-grade, over-the-counter hearing aid feature.

Finally, the new Apple Watch Series 10 will be able to alert users to sleep apnea, a condition that impacts over 1 billion people globally.

Apple claimed that the feature was built using an extensive dataset and should be cleared by regulators very soon. The Apple Watch 10 is priced at $399, while the AirPods Pro starts at $129. 

Oracle Hits It Out of the Park

Oracle shares are up close to 9% in pre-market after the database software vendor reported fiscal Q1 results that topped consensus estimates. In Q1, Oracle reported:

👉 Revenue of $13.31 billion vs. estimates of $13.23 billion

👉 Earnings per share of $1.39 vs. estimates of $1.32

Revenue rose by 8% from $12.45 billion a year ago, while GAAP net income rose from $2.42 billion to $2.93 billion. Prior to the report, ORCL stock had risen 34% in 2024, outpacing the S&P 500’s 15% gain.

In the current quarter, Oracle expects revenue growth between 8% and 10% and forecast adjusted earnings between $1.45 and $1.49 per share, compared to estimates of $1.47 per share.

Oracle’s cloud services and license support business rose by 10% to $10.52 billion, higher than estimates of $10.47 billion.

Sales from its cloud infrastructure business were up 45% to $2.2 billion, accelerating from the prior quarter when they grew by 42%.

The tech giant stated it aims to operate 2,000 data centers over time, up from 162 today. Further, it partnered with Amazon Web Services to enable its database services on dedicated hardware.

Palantir and Dell Gain Big

Shares of Palantir and Dell surged 14% and 4%, respectively, after it was announced that the two stocks would be added to the S&P 500 index. The tech stocks will replace laggards American Airlines and Etsy.

Shares of companies added to a popular benchmark often rally after the announcement as passive index funds tracking the index update their portfolios to mirror the additions.

To join the S&P 500, a company must have reported a profit in the latest quarter and have a cumulative profit in its four most recent quarters. Palantir turned profitable in Q4 of 2022 and has increased its net income from $27.9 million to $136 million in the last 12 months.

While the median market cap of S&P 500 companies is $33.5 billion, Palantir and Dell are valued at around $75 billion.

Headlines You Can't Miss!

Apple loses EU-related $14.4 billion tax case

Goldman Sachs to report $400 million hit in Q3

AstraZeneca shares fall 5% as lung cancer trial disappoints

China’s August exports soar by 8.7%

Bitcoin ETFs attract $28.6 million in inflows

Chart of The Day

Apple’s new iPhone just got launched. However, the Apple ecosystem is not buzzing with excitement.

As the above chart shows, Google's search volume for the new iPhone is at its lowest ever.

The iPhone is Apple’s largest business segment, accounting for over 50% of total sales.

Meme of the Day

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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.