Weekly Market Recap for August 19-23, 2024

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Good morning, Heroes!

Here’s your Morning Market Preview for September 17th, 2024
Read, or listen relaxingly for a few minutes – whichever you prefer!

Key Economic Reports

• US Retail Sales are reported today, giving insight into consumer behavior. Expect a slight uptick, reflecting consumer confidence despite inflation pressures.
  
  
• Industrial Production is also reported today. Anticipated to show minimal growth, signaling a steady but not robust manufacturing sector.

Key Events & Earnings Reports Today

• Another quiet day for earnings reports, with none to mention today.
  
  
• Boeing is in the middle of a strike, and the company has frozen hiring and is discussing furloughs as well. The strike is in its fifth day now.

The Fed

• The Fed’s 2 days of meetings begin today. They will be weighing economic factors such as inflation and unemployment, as the members decide on a rate cut – and what size of a rate cut. A lot of momentum has built for a 50 point cut, but 25 points still seems possible too.

Stocks

Year-to-Date Performance:

• Up Most: Tech leads the pack, up 26.21% this year. Utilities has had the second-best year, up 23.18%.
  
  
• Down Most: No sectors are negative on the year. The smallest gain has been in Energy, up 1.83% this year. Second-to-last is Materials, up 7.95% this year.

5 Day Moving Average: This is the percent of Large Cap stocks above their 5 day average

• Up Most: Utilities and Consumer Discretionary are now up a whopping to 97% and 96% of their Large Cap above their 5 day average, respectively. Tech and Materials are tied for second best over the last 5 days with 93% of their Large Caps above their 5 day averages.
  

• Down Most: Energy is down most with 59% of its Large Cap stocks above its 5 day average. And Consumer Staples was second to last, although it had 68% of its Large Cap stocks above their 5 day averages.
  
  
• Overall, it was a great week for these sectors, as we get a new week started.

Crypto

• Bitcoin: Down a bit over the last day, now about $58,298. Bitcoin is still up an enormous 40% this year though.
  
  
• Ethereum: Also down over the last day to about $2,298, making Ethereum about flat on the year so far.
  

Bonds

• 2-Year Treasury Yield:  At 3.557%, it has continued its yield decline this year.
  
  
• 10-Year Treasury Yield: At 3.618%, it also continues its yield decline this year.

Gold

• Price: Gold has had an amazing year, up more than 25%, now at about $2,584.

Real Estate

• 30-Year Fixed Mortgage Rate: Down just a bit, now to 6.12%. The mortgage rate has dropped about 8% this year.

Geopolitical Aspects

• Global Trade Tensions: Watchful eye on US-China relations which could impact global trade and thus, market stability.
  
  
• European Markets: Mixed sentiment due to varied economic recoveries across the continent.
  
  
• Asia: Strong performance in tech sectors, but concerns over real estate in China persist.‍

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P.S. 

Some Simple Explanations of Key Concepts to Level Up Your Financial Education

• Economic Reports: These are snapshots of the economy's health. For instance, Retail Sales show consumer spending, crucial for economic growth. Industrial Production indicates manufacturing strength.
• Federal Reserve (The Fed): This is like the economy's central bank in the U.S. They control interest rates, influencing borrowing costs, which can affect everything from your mortgage to stock prices. A rate cut typically means they want to stimulate economic activity.
• Stocks: Think of sectors as different industries within the stock market. Tech stocks might rise if there's innovation or demand for tech, while energy stocks could fall if oil prices drop.
• Bonds: These are like IOUs from governments or companies. The yield (interest rate) you get from bonds like the 2-year or 10-year Treasuries can predict economic expectations. Higher yields might mean more risk or inflation expected.
• Cryptocurrencies: Like Bitcoin (BTC) and Ethereum (ETH), these are digital currencies. Their prices can soar or plummet due to speculation, adoption rates, or regulatory news.
• Gold: Often seen as a safe investment. When economic stability is in doubt, gold's value tends to rise as investors seek safety.
• Real Estate: Mortgage rates affect housing affordability. Lower rates mean cheaper loans, often boosting home sales.
• Geopolitical Events: Events like trade wars or policy changes can disrupt global markets. Investors look for stability or opportunities in these shifts.

Each of these elements interacts, creating the dynamic we call 'the market'.

Understanding these aspects of the investing arena can help investors in making informed investment decisions.

You’re the Hero.
    We’re the Guide.

Good morning, Heroes!

Here’s your Morning Market Preview for September 11th, 2024
Read, or listen relaxingly for a few minutes – whichever you prefer!

Key Economic Reports

• Tomorrow’s market may react to new data regarding U.S. inflation, as investors await further insights into consumer price trends. The Consumer Price Index (CPI) and core CPI are set for release, key indicators used to measure inflation. These reports are critical as they will provide insight into how inflation is behaving and influence Fed decision-making.

Key Events & Earnings Reports Today

MIND Technology

• MIND Technology, Inc. specializes in providing advanced technology solutions primarily to the marine survey, defense, seismic, and security industries.
  
  

• Importance: The earnings report underscores MIND Technology's role not just as a company reporting financials but as a trendsetter in technology adoption, operational efficiency, and market expansion strategies. This makes their earnings not only a reflection of past performance but a predictor of future market trends and investor sentiment in the tech sector.
  
  
• Expectations: Investors and analysts are likely expecting MIND Technology to report on several key metrics including revenue, earnings per share (EPS), and possibly updates on gross margins, given the mention of 77% gross margins in recent discussions. There's an anticipation of continued or improved profitability, especially with hints of cost-cutting measures and operational efficiencies.

The Fed

• The Fed's next meeting is scheduled for the 17th and 18th. Expectations of whether they will continue or pause rate hikes will depend on tomorrow’s CPI report, which will provide clues on inflation’s trajectory.

Stocks

Year-to-Date Performance:

• Up Most: Utilities & Information Technology continue to lead the way at 20.32% and 19.27%, respectively.
  
  
• Down Most: Energy and Consumer Discretionary trail all other sectors still at 3.39% and 4.44%, respectively.

5 Day Moving Average: This is the percent of Large Cap stocks above their 5 day average

• Up Most: Real Estate is at 90% the last 5 days, and Utilities at 74%.
  
  

• Down Most: Energy is down to 14% the last 5 days and by far the biggest laggard.

Crypto

• Bitcoin: Up to about $57,101 at the open, and is up 36.93% this year.
  
  
• Ethereum: Also up, at about $2,351 at the open, and is up 3.62% this year.
  
  
• Top Gainers Recently: Luna and Zcash are both up a good bit recently at 4.18% and 3.7% respectively.

Bonds

• 2-Year Treasury Yield: Open at 3.59%, continuing its yield decline this year.
  
  
• 10-Year Treasury Yield: Open at 3.637%, also continuing its yield decline this year.

Gold

• Open Price: $2,504.85 per ounce, up again, now up 22.07% this year, driven by safe-haven buying amid economic uncertainties.

Real Estate

• 30-Year Fixed Mortgage Rate: Around 6.22%, down a bit more than 6% this year.
  
  
• Trends: A cooling market continues its shift towards more affordable housing options.

Geopolitical Aspects

• Global markets are being influenced by ongoing concerns surrounding U.S.-China relations, with trade and supply chain issues still in focus. Additionally, rising energy prices are a key global concern impacting market sentiment.

Worldwide Market News

• In global news, China’s economic slowdown continues to be a focal point for investors. Global supply chain disruptions and inflation concerns are still top of mind, influencing commodity prices and corporate earnings.

Built for The One in the Arena

Arena Investor is on a mission not only to help with financial planning, and investment management, but also with education. Keep reading, watching, following, and sharing great Arena Investor content. And as always if you want professional advice, we are glad to be your teammate – along a financial journey you can actually enjoy.

You’re the Hero.
    We’re the Guide.

P.S. Simple Explanations of Key Concepts to Level Up Your Financial Education

CPI: Measures inflation by tracking price changes in everyday goods. A higher CPI suggests rising inflation.

Earnings Reports: Companies release quarterly reports to show profits or losses. Investors look at these to predict future stock prices.

Treasury Yields: The interest rate the government pays to borrow money. Higher yields mean investors expect future inflation or higher interest rates.

Cryptocurrencies: Digital assets like Bitcoin are volatile but can provide high returns. Their value is influenced by market demand and adoption.

Real Estate: Higher mortgage rates make home buying more expensive, which can cool down the housing market.

Understanding these elements helps in navigating the financial markets, where each piece of information can be a puzzle piece in predicting market movements or making informed investment decisions.

You’re the Hero.
    We’re the Guide.

Good morning, Heroes!

Here’s your Morning Market Preview for September 5, 2024
Read, or listen relaxingly for a few minutes – whichever you prefer!

Key Economic Reports:

• ADP Employment Report at 8:15 AM ET will offer insights into private sector job growth, setting the stage for Friday's Non-Farm Payrolls.
• Initial Jobless Claims at 8:30 AM ET, alongside Productivity and Costs, will provide a snapshot of the labor market's health.
• S&P Global Services PMI at 9:45 AM ET and ISM Services PMI at 10:00 AM ET will gauge service sector activity, crucial for economic recovery insights.

5 Key Earnings Reports Today:

• Broadcom (AVGO):
  • Importance: Reflects semiconductor demand, particularly for AI and data centers.
  • Expectations: Analysts predict a 46% year-over-year revenue increase but a decline in net income.
• NIO (NIO):
  • Importance: Key for EV market trends, especially in China.
  • Expectations: Strong financial results with record deliveries expected.
• FuelCell Energy (FCEL):
  • Importance: Insights into clean energy tech, impacting future energy solutions.
  • Expectations: Focus on operational efficiency and new project announcements.
• Samsara (IOT):
  • Importance: Indicates IoT adoption across industries.
  • Expectations: Growth in subscription services and customer base expansion.
• Smartsheet (SMAR):
  • Importance: Reflects demand for collaborative work management software.
  • Expectations: Continued revenue growth, insights into AI tool adoption.

The Fed:

• No direct actions today, but market participants will dissect economic data for hints on future rate decisions. The next FOMC meeting is scheduled for September 17-18.

Stocks:

• Markets are cautiously optimistic after recent volatility, with tech stocks in focus due to earnings.

Bonds:

• 2-Year Treasury Yield Opened at: 3.75%
• 10-Year Treasury Yield Opened at: 3.755%
• Bond yields are closely watched as economic data could sway inflation expectations and Fed policy predictions.

Crypto:

• Bitcoin (BTC): in the $57,000 - $58,000 range, up 34.76% this year.
• Ethereum (ETH): in the $2,300 - $2,400 range, down from its 50 day moving average of $2972, up 4.46% this year.
• Top gainers last week included smaller cap altcoins like Solana and Cardano, showing a rotation towards high-risk, high-reward assets.

Gold:

• Opened at: $2,495 per ounce, up 22.08% this year.
• Gold prices rose, often seen as a safe-haven investment during times of economic uncertainty or when inflation fears rise.

Real Estate:

• The current 30-Year Fixed Mortgage Rate: 6.38%, down 4.35% this year.
• While not directly reported today, real estate markets are influenced by interest rates, which are closely tied to the Fed's actions and economic indicators like employment.

Geopolitical Aspects:

• No major geopolitical events directly affecting markets today, but ongoing global tensions could always influence investor sentiment.

Worldwide Market News:

• APAC markets showed mixed results, with a cautious approach ahead of U.S. economic data, indicating a globally interconnected market sentiment.

And that’s your Morning Market Preview for the day. As always, we wish you a happy, healthy, and fruitful day!

Built for The One in the Arena

Arena Investor is on a mission not only to help with financial planning, and investment management, but also with education. Keep reading, watching, following, and sharing great Arena Investor content. And as always if you want professional advice, we are glad to be your teammate – along a financial journey you can actually enjoy.

You’re the Hero.
    We’re the Guide.