The AP on the Street 33rd week of 2023

Last week was quite terrible for the markets, with all of them in deep red; in commodities, only Silver stayed afloat, and the rest also followed the stock market.

This week, we have Services PMI, Manufacturing PMI, and most notably, Chairman Powell speaking at the notorious “Jackson Hole.” So, let’s take a look at what happened last week:

• Argentina devalued the peso.
• Chinese Central Bank cut the interest rates again to support the deflating economy.
• China announced that they are going to stop publishing data for youth unemployment.
• Russian Central Bank hiked the rates by 350 basis points, making it 12.0% from the previous 8.50% number.
• US NY Empire State Manufacturing Index came out as -19.00 points —18 points lower than expected
• US10YR yields passed the 4.3% level, the highest since 2008.
• Fitch warned of a potential credit note downgrade for US banks, including the banking giant JP Morgan Chase. Major bank stocks sunk after that announcement.
• It is announced in the FED meeting minutes that the inflation risks could require even more tightening. The Minutes was quite hawkish, thus, triggering a sell-off.
• FED officials now see no recession in 2023.
• US Philadelphia FED Manufacturing Index came out as 12.00 points —22 points higher than expected.
• “Big Short” Legend Michael Burry made a massive $1.6 billion bet against the stock market.
• US30YR yields passed the 4.42% level, the highest since 2011.
• US 30-year fixed mortgage rate rose to 7.5%, the highest level since 2000. Whilst the median house price increased more than 150% from the year 2000. 
• Chinese Real Estate giant Evergrande filed for Chapter 15 bankruptcy.
• Bitcoin plunged after the report that SpaceX sold all of its Bitcoin. It also caused a sell-off for pretty much all major cryptos.
• ARKK is down 20% since the start of the month of August.
  

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DOW = -2.00% 

S&P 500 = -2.00% 

NASDAQ = -2.50%

RUSSELL 2000 = -2.30%

Gold = -1.20%

Silver = 1.60%

Oil = -1.30%

The weekly performance of S&P 500 Stocks

Earnings Section:

Again, 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 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. Momentum measures the speed at which a stock’s price changes. 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 NFLX:

We could not find a particular reason for NFLX stock to decline.

The main reason(s) for the decline in BKNG:

We could not find a particular reason for BKNG stock to decline.

Important data/ decisions that will be published next week:
Services PMI, Manufacturing PMI, and most notably, Chairman Powell speaking at the notorious “Jackson Hole.”

TIL: What is “Jackson Hole”?

Jackson Hole is a valley located in the US state of Wyoming, known for its ecological, geological, and historical importance, as well as for hosting an annual symposium organized by the Federal Reserve Bank of Kansas City that is keenly watched for the US Federal Reserve’s monetary policy guidance.

We will see how the investors will behave after all of the data and decisions. Stay tuned.

DISCLAIMER: THIS TEXT CONTAINS NO INVESTMENT ADVICE.