🦢 Black Swan Street Weekly Stock Market Summary (July 3rd - July 7th 2023)

Happy Friday!

The automotive industry is bouncing back hard, labor market reports great data, important upcoming earnings, oil rallies after Biden purchases 6M barrels, and Threads hit 30M downloads in its first 16 hours.

Let’s get into it.

Here’s what we got for you this week:

• Stock Market Summary 🦢

• U.S. Automakers Bounce Back Strong 🚗

• Other News In The Stock Market 🌎

• Next Week In The Stock Market 🔮

Read time: 4 minutes

Stock Market Summary 🦢

This Week:

Earnings From This Past Week:

This week was rather boring in terms of companies reporting earnings. The only company that reported that’s worth covering was: Levi Strauss

Levi Strauss Earnings Coverage:

• Adj. EPS of $0.04 beats $0.03 estimate

• Revenue of $1.337B misses $1.34B estimate

• Now sees FY23 EPS of $1.10-$1.20 vs prior guidance of $1.30-$1.40 estimate

• Net revenue for the fiscal year is now projected to grow 1.5%-2.5%, compared with a range of 1.5%-3% previously

Levi Strauss finished the following trading session down -7.79%

U.S. Automakers Bounce Back Strong 🚗

Results from Q2 U.S. new-vehicles sales when compared to the same time period from a year ago:

• Stellantis saw a 6% gain in sales for the quarter

• Nissan sales jumped 33% for the quarter

• Toyota reported a 7.13% rise in sales

• Honda’s sales jumped 45% from poor numbers reported a year ago

• General Motors reported a 19% rise in sales for the quarter

• Ford’s U.S. new-vehicle sales rose 10%

• Hyundai and Kia sales each rose 15%

The main reason for this sales spike is the global chip shortage easing and the constraints on the supply of other key parts easing up as well.

The Dow Jones U.S. Automobiles Index finished the week gaining +4.76%

The automotive industry is definitely worth keeping an eye on throughout the rest of the year.

Other News In The Stock Market 🌎

• U.S. manufacturing activity shrinks by most in three years - YF

• Wolfspeed signs 10-year supply deal with Renesas Electronics to provide carbide bare and epitaxial wafers for $2 billion - BW

• U.S. new-vehicle sales rise an estimated 13% in first half of the year - WSJ

• Bank of America increases dividend by 9% - RT

• Applied Digital shares fall after Wolfpack Research takes short position - RT

• FIS to sell majority stake in Worldpay for $11.7 billion - WSJ 

• Mortgage rates hit highest level this year, 30-year fixed rose to 6.81% - FB

• Illumina faces record $453 million fine over purchase of Grail without EU approval - FT

• UPS, Teamsters accuse each other of walking away from contract talks - RT

• Beacon Roofing Supply to buyback about $805 million in stock from Clayton, Dubilier & Rice - MW

• U.S. economy adds 209,000 jobs in June, lighter than estimates - FB

• China fines Ant Group $985 million - NYT

• U.S. private sector added 497k jobs in June, smashing estimates - CNBC 

• U.S. layoffs fell to seven-month low in June - RT

• First Solar receives a five-year revolving line of credit, as well as a guarantee for a $1 billion facility - YF 

• Biden to purchase 6 million more barrels of oil for emergency reserve - BBG

Next Week In The Stock Market 🔮

Earnings Calendar Next Week:

What the Swan is watching:

Thursday: Delta Airlines, PepsiCo, Progressive, Conagra Brands, Fastenal, Cintas

Friday: JPMorgan Chase, Citigroup, UnitedHealth, Wells Fargo, State Street, Ericsson

Economic Calendar Next Week:

The Swan’s Picks 🦢

📱 Meta launches Twitter rival “Threads”: 16 hours after launch, Zuckerberg said 30 million users had signed up for Threads.

🥖 Subway copying Jersey Mikes: Subway has decided it will add deli slicers to roughly 20,000 restaurants across the U.S. Seems very similar to a certain competitor of theirs 🧐

🦢 Black Swan Events in the Stock Market: Being able to identify Black Swan Events in the stock market is a guarantee to riches. Just ask Michael Burry, Jeremy Grantham, or Bill Ackman. Read more here

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The Wrap-Up 🔄

Next week will be a crazy one: We have important economic data like the PPI and CPI, as well as tons of important upcoming earnings.

Thanks for tuning in, and we’ll see you next Friday!