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Market Moves Yesterday
S&P 500 @ 5,522.30 ( ⬆️ 1.58%)
Nasdaq Composite @ 17,599.40 ( ⬆️ 2.64%)
Bitcoin @ $64,375.55 ( ⬇️ 0.87%)
Hey Scoopers,
Welcome to Thursday! Here’s what we’re covering today:
👉 Meta’s stellar Q2 results
👉 Boeing bets on a turnaround
👉 Gold prices move higher
So, let’s go 🚀
Market Wrap 📉
Stocks rallied on Wednesday after the Federal Reserve kept interest rates unchanged and highlighted inroads against inflation.
Equity indices such as the S&P 500 and Nasdaq Composite posted their best day since February, led by mega-cap tech stocks.
In a press conference, Fed Chair Jerome Powell claimed that the central bank could lower interest rates next month if macro data suggests that inflation is cooling down.
Jobs data released yesterday hinted at a slowing economy, supporting efforts to reduce inflation. Further, private job growth slowed in July as the pace of wage gains dropped to a three-year low.
Market bellwether Nvidia soared 12.8%, posting its best day in over five months and clawing back some of the month’s losses. The chipmaker soared after AMD reported better-than-expected results in Q2.
Trending Stocks 🔥
Arm Holdings - The UK-based semiconductor stock is down 11% in pre-market after it forecast fiscal Q2 earnings to range between $0.23 and $0.27 per share, compared to estimates of $0.27 per share.
Teladoc - The healthcare stock slid over 13% after missing revenue estimates in the June quarter.
Match Group - Shares of the dating app surged 13% after it posted Q2 revenue of $864 million, above estimates of $856.5 million.
Meta Surpasses Q2 Estimates
Meta shares spiked 7% in pre-market as it beat consensus revenue and earnings estimates in Q2 while issuing a better-than-expected forecast for the current quarter. Meta reported:
👉 Revenue of $39.07 billion vs. estimates of $38.31 billion
👉 Earnings per share of $5.16 vs. estimates of $4.73
Facebook's parent company increased sales by 22% year over year, marking the fourth consecutive quarter in which top-line growth exceeded 20%. Its ad sales grew 22% in Q2, much higher than Google’s ad revenue, which rose by 11%.
Comparatively, capital expenditures totaled $8.47 billion, below analyst estimates of $9.51 billion. Meta’s expense outlook for 2024 remains unchanged at between $96 billion and $99 billion, while CapEx spending is forecast between $37 billion and $40 billion.
Meta’s focus on cost-cutting allowed it to increase operating income by 58% to $14.9 billion as its margin expanded from 29% to 38% in the last 12 months.
Meta is now banking on AI to drive growth and gain traction in its core business, the digital ad market. For instance, Meta is leveraging AI to improve recommendations, help people find better content, and optimize ad experiences.
Boeing Misses Q2 Estimates
Boeing missed consensus estimates in Q2 and warned investors it would continue to burn cash this quarter as its commercial airplane and defense programs remain under pressure.
In Q2 of 2024, Boeing reported:
👉 Revenue of $16.87 billion vs. estimates of $17.23 billion
👉 Loss per share of $2.90 vs. estimates of $1.97
Boeing also hired Robert Ortberg as its next CEO, an aerospace industry veteran with more than three decades of experience.
Source: Boeing
The airplane maker burned $4.3 billion in cash in Q2 due to near-term working capital pressures. Boeing now aims to stabilize operations after a door plug blowout from a new 737 Max plane in early 2024 reignited regulators' scrutiny.
Alternatively, Boeing emphasized its plans to increase the output of its Max planes to 38 a month after the commercial airplanes business reported a 32% drop in sales to $6 billion in Q2.
The company’s low deliveries and production delays have pushed back its financial targets, driving the stock lower by 24% in 2024.
The Rising Demand for Whiskey: A Smart Investor’s Choice
Why are 250,000 Vinovest customers investing in whiskey?
In a word - consumption.
Global alcohol consumption is on the rise, with projections hitting new peaks by 2028. Whiskey, in particular, is experiencing significant growth, with the number of US craft distilleries quadrupling in the past decade. Younger generations are moving from beer to cocktails, boosting whiskey's popularity.
That’s not all.
Whiskey's tangible nature, market resilience, and Vinovest’s strategic approach make whiskey a smart addition to any diversified portfolio.
Gold Futures Climb Higher
Gold futures added almost 1%, closing at a new record of $2,473 an ounce, after Fed Chair Jerome Powell said the central bank may begin lowering interest rates next month if inflation data cools off.
Historically, interest rates and gold prices have showcased an inverse relationship. So, when interest rates rise, prices of the precious metal move lower and vice versa.
Gold prices gained 5.7% in July, marking their fourth advance in five months and extending the year’s advance to 19.4%.
Gold is a store of value and a hedge against inflation, making it a good investment choice for those looking at portfolio diversification.
Headlines You Can't Miss!
Oil giant Shell beats Q2 estimates
First major AI law comes into force
Microsoft lists OpenAI as a competitor in AI and search
Carvana blows past consensus estimates in Q2
Tether reports $5.2 billion in net income in the first half of 2024
Chart of The Day
Tech giant Microsoft is investing heavily to meet the growing demand for its AI and cloud products.
Microsoft’s capital expenditures rose 78% year over year to $19 billion in fiscal Q4 of 2024 (ended in June).
The company will continue to scale infrastructure investments in fiscal 2025, which should help it maintain a leadership position in the AI segment.
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.