The AP on the Street 32nd week of 2023
The AP on the Street 32nd week of 2023
Last week was mostly in red, only Oil and DOW managed to stay sideways, but other commodities also followed the stock market.
This week, we have a dull week, with only New York FED PMI and Philadelphia FED PMI. So, let’s take a look at what happened last week:
- Saudi Aramco saw a drop in profits after the energy prices cooled down.
- US Credit Card debt passed $1 trillion dollars.
- UPS beat its earnings estimates and did not beat its revenue estimates.
- China’s CPI declined 0.3% year-on-year, stroking the fear of a Chinese recession.
- China’s PPI declined -4.4% year-on-year, again stroking the fear of a Chinese recession.
- Palantir announced a $1 billion share buyback.
- Berkshire Hathaway’s earnings rose, and the company now has a cash pile almost as big as $150 billion.
- Apple continued its loss streak.
- Crude Oil prices reached the highest level since November 2022.
- Saudi Arabia and Israel begin to normalize relations.
- Bitcoin went back above the $30,000 mark.
- Duke Energy did not beat its earnings estimates but beat its revenue estimates.
- Disney beat its earnings estimates but did not beat its revenue estimates.
- US CPI rose 3.2% year-on-year, the first increase since July 2022 —10 basis points lower than expected, 20 basis points higher than the previous value.
- US Core CPI rose 4.7% year-on-year —10 basis points lower than expected.
- POTUS Biden asks Congress for $24 billion for Ukraine.
- US PPI rose 0.8% year-on-year —10 basis points higher than expected.
- US Core PPI rose 2.4% year-on-year —10 basis points higher than expected.
- US stocks declined after higher-than-expected PPI data.
- US yields jumped after the inflation readings.
- US10YR passed the 4.1% mark, the highest level in years.
- NVIDIA sunk amid the tech sell-off.
- Sam Bankman-Fried’s bail was revoked by a US judge, and he was sent to jail.
- Some San Francisco employees asked to work from home due to the tremendous amount of crime.
- Tesla cut car prices in China.
- The Ruble passed the 100 mark against the USD, for the first time since the invasion.
- Japanese Yen passed the 145 mark against the USD.
- Goldman Sachs assumes that the first-rate cute will come in June 2024.
Overall Market Indexes & Commodities Moves (Weekly) (By taking the opening price on Monday and closing price on Friday, using MSN Money)
DOW = -0.09%
S&P 500 = -0.7%
NASDAQ = -1.8%
RUSSELL 2000 = -1.1%
Gold = -1.1%
Silver = -2.1%
Oil = 0.7%
The weekly performance of S&P 500 Stocks
Earnings Section:
Next week and this week, from our long top 20 stocks, we will have earnings for the following tickers:
1. LOW (August 22nd)
2. NVDA (August 23rd)
LOW: Lowe’s Companies, Inc. (LOW) is an American home improvement retailer that operates over thousands of retail stores in all 50 states and Canada. It offers a line of products for construction, maintenance, repair, remodeling, and decorating, as well as home improvement products such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, décor, and electrical materials.
It currently stands at 11th place in our top 20 long stocks due to its good amount of points from the PTBV indicator. It compares the company’s market capitalization to all of its tangible assets.
Last quarter it managed to beat its EPS estimates of 3.44, with an actual 3.67. This quarter analysts increased the estimation for the EPS by estimating a 4.49 EPS (a 22% increase compared to the last actual figure).
We will see how it will affect our decomposed score after the earnings announcement.
NVDA: NVIDIA Corporation (NVDA) is an American technology company that designs and manufactures graphic processors and related software. It operates through two segments: Graphics and Compute & Networking, offering GPUs for gaming, enterprise workstation graphics, and automotive platforms, as well as Data Center platforms and systems for AI, HPC, and accelerated computing.
It currently stands in 20th place in our top 20 long stocks due to its good amount of points from the momentum indicator. It measures the speed at which a stock price changes to determine whether its price will continue to rise or fall. High positive momentum indicates a great chance that a stock’s price will continue in its upward trend.
Last quarter it beat managed to its EPS estimates of 0.83, with an actual 0.98. This quarter analysts increased the estimation for the EPS by estimating a 4.49 EPS (a 110% increase compared to the last actual figure).
We will see how it will affect our decomposed score after the earnings announcement.
Let’s look at the most undervalued stocks listed on our website:
Our Two Most Performing Stock:
Our Two Least Performing Stocks:
The main reason(s) for the decline in NVDA:
NVDA suffered from the tech sell-off.
The main reason(s) for the decline in BMY:
As Bloomberg wrote “(Bloomberg) — The specter of crippling labor strikes and rising costs slammed stocks of the two major US automakers, with General Motors Co. notching its worst weekly run in nearly five months and Ford Motor Co. closing at its lowest since early June.”
Important data/ decisions that will be published next week:
New York FED PMI and Philadelphia FED PMI
TIL: What is Free Cash Flow?
Free cash flow (FCF) is the cash that a company generates after accounting for cash outflows to support operations and maintain its capital assets. It is a measure of profitability that excludes non-cash expenses and includes spending on equipment and assets and is used by management and investors as a measure of a company’s financial health.
We will see how the investors will behave after all of the data and decisions. Stay tuned. DISCLAIMER: THIS TEXT CONTAINS NO INVESTMENT ADVICE.