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Market Moves Yesterday
S&P 500 @ 5,633.91 ( ⬆️ 1.02%)
Nasdaq Composite @ 18,647.45 ( ⬆️ 1.18%)
Bitcoin @ $57,827.16 ( ⬇️ 0.35%)
Hey Scoopers,
Fasten your seatbelts. Here’s Thursday’s breakdown:
👉 Samsung launches a smart ring
👉 Costco hikes membership fee
👉 TSMC delivers yet again
So, let’s go 🚀
Market Wrap 📉
The S&P 500 climbed to a fresh record yesterday, primarily due to chip stocks, as the index breached the 5,500 threshold for the first time ever.
Meanwhile, investors await fresh inflation figures with the release of the June CPI (Consumer Price Index) report. The data follows comments from Fed Chair Jerome Powell that have fueled hopes of interest rate cuts.
Economists expect CPI to rise by 3.1% year over year and by 0.1% compared to May. Core CPI, which excludes volatile energy and food prices, is forecast to increase 3.4% compared to the year-ago period.
Tech giant Apple gained 1.9% yesterday, putting the iPhone maker on pace for its seventh consecutive record close. This is the company’s first streak of seven successive record closes since March 2012.
AAPL stock has risen 20% in the last month, allowing it to reclaim its position as the most valuable company by market cap.
Trending Stocks 🔥
WD-40 Company- Shares gained 12.5% in premarket after the maker of metal lubricants reported its fiscal Q3 results that beat estimates.
Price Smart - Shares of the membership warehouse club operator added 6% after posting a revenue and earnings beat in fiscal Q3.
HubSpot - The marketing software stock slumped 12% after a Bloomberg report claimed Alphabet is no longer interested in acquiring the company.
Samsung Unveils the Galaxy Ring
Yesterday, Samsung made a big splash as it launched the Galaxy Ring, marking its foray into the smart rings segment. The Korean tech heavyweight aims to integrate its products, such as smartphones and wearables, by offering health-tracking features to rival Apple’s push in this vertical.
Source: CNBC
The Galaxy Ring is equipped with sensors designed to monitor health 24 hours a day. Its entry into a new category comes at a time when smartphone sales are making a slight recovery amid longer replacement cycles.
The Galaxy Ring adds a new device to Samsung’s portfolio and should gain traction given the rising popularity of digital health devices.
Samsung positions the ring as a device that can be worn alongside its smartwatches. It will be powered by AI software and offer a comprehensive analysis of the individual’s health.
The Galaxy Ring monitors a user's sleep, heart rate, menstrual cycle, and exercise. It could, therefore, drive smartphone sales and migrate users to the Samsung ecosystem.
The Galaxy Ring's battery life can last up to seven days. It is priced starting at $399.99.
TSMC Surpasses Q2 Revenue Estimates
Taiwan Semiconductor is the world’s largest contract chipmaker, valued at a market cap of $990 billion. It recently reported Q2 revenue figures that beat estimates on the back of booming demand for AI applications.
Some of the company’s largest customers, including Apple and Nvidia, have helped TSMC through the tapering off of pandemic-led demand, driving share prices to all-time highs.
TSMC’s Q2 sales are $20.67 billion, up 32% year over year and higher than estimates of $20.05 billion. It will report Q2 earnings next week, and analysts expect earnings to rise by 30% year over year.
With a net margin of over 40%, TSMC benefits from a competitive moat, allowing it to return over 1,000% to shareholders in the last decade.
Costco’s Membership Hike
You will have to pay more if you want to shop at Costco. The membership-based warehouse club disclosed plans to increase its membership fee by $5 in the U.S. and Canada, increasing the cost of annual memberships to $65.
Costco’s Annual Membership Fee Revenue Growth
Source: Statista
The fee hikes could affect 52 million memberships, which includes a higher-tier executive membership plan that will now cost $130, up from $120.
It will be the first membership rate hike in seven years. On average, the big-box discount retailer has hiked membership fees every 5.5 years.
Costco heavily banks on its membership plan to drive profits, as it allows it to keep merchandise prices lower.
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Chart of The Day
In 1985, the Costco hotdog was priced at $1.50. Almost four decades later, the wholesale heavyweight still sells the combo product at the same price.
Costco’s hot dogs have become a fan favorite as the company sold 200 million hot dog and soda combos in 2023, up from 156 million combos sold in 2022.
Meme of the Day
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