🦢 Black Swan Street Weekly Stock Market Summary (July 10th - July 14 2023)

Happy Friday!

Inflation hits its lowest level in two-years, Biden cancels student debt, Goldman Sachs acquires Kahoot, Google’s Bard expands internationally, Burger King 20-slice cheese-only burger.

Let’s gooo ↓

Here’s what we got for you this week:

• Stock Market Summary 🦢

• Inflation Hits Lowest Level Since March 2021 📉

• Other News In The Stock Market 🌎

• Next Week In The Stock Market 🔮

Read time: 5 minutes

Stock Market Summary 🦢

Market Performance This Week:

Earnings From This Past Week:

Inflation Hits Lowest Level Since March 2021 📉

Imagine you buy a gift basket for one of your friends. You buy the essentials- eggs, milk, toothpaste, etc. Let’s say you give the gifts in the basket different weightings based on their importance. After assigning weightings, you then find the average cost of the goods in your basket respective to the weightings. In this case, the average price for your basket was $1.00.

Well, one year later, you return to buy the same basket for your friend. Expect this time; it costs you $1.03 per gift in the basket.

This is the CPI. This would represent a 3% increase in the CPI YoY.

The Consumer Price Index (CPI) measures the change in consumer prices of goods and services on a representative basket of goods and services. It’s the most widely used measure of inflation.

This week, on Wednesday, July 12th, we got the June CPI data:

June CPI Inflation Data

• CPI Inflation rose just 3.0% YoY, below expectations of 3.1%, and down from the previous 4.0%

Btw: The 4.8% number is the Core CPI. It’s essentially the CPI minus energy and food prices (as they can be extremely volatile).

This is strong news. It signifies the Fed’s strategies have been working. This also represents the lowest the CPI has been since March 2021.

This gives investors hope that the Federal Reserve is nearing the end of its rate-hiking cycle.

Something to note: More rate hikes are expected in the future. Right now, the street is predicting a 96.1% chance of a 25 bps hike in the next FOMC meeting (on July 26th).

Other News In The Stock Market 🌎

Monday

• Nano Dimension increases offer price for Stratasys to $24.00 per share in cash - YF

• Banks with at least $100B in assets potentially face new increased reserve requirements - CNN

• Surf Air Mobility expects to go public on the NYSE on July 24, with a potential valuation of more than $1 billion - MW

• Fisker announces $340 million convertible debt plan - YF

• Novavax stock spikes 30% after company snags $350M from Canada for unused Covid shots - CNBC

• Icahn Enterprises bounces back after one leg of short attack removed: Carl Icahn untied his personal loans from the stock price, in response to an attack by a short seller that alleged “inflated” valuations

Tuesday

• Shutterstock shares rise as company announces six-year partnership with OpenAI - CNBC

• Salesforce announces its raising prices for the first time in 7 years - BRS

• Iovance Biotherapeutics announces 20M share offering of common stock at $7.50 per share, proceeds expected ~$150M - BSPCE

• Microsoft announces more job cuts - FB

• FTC loses case to block Microsoft & Activision $69B merger - FB

• Bank of America to pay $250M in fines - USATD

• U.S. EV market struggles with price cuts and rising inventories - RT

Wednesday

• Pakistan won final approval to borrow $3 billion bailout from the IMF - BBG

• EV-maker Lucid stock misses Q2 deliveries - YF

• Domino’s Pizza finally available for orders through Uber - YF

• Cirrus Logic to cut 5% of global workforce - MW

• Beyond Meat’s ‘steak’ product will be sold in 14,000 stores nationwide - BM

• Nadaq 100 Index to rebalance after ‘Magnificent Seven’ grow to disproportionate share - AXS

Thursday

• Google rolls out new features for its generative AI-powered chatbot ‘Bard’ and also expands internationally to Europe and Brazil - YF

• Disney extends CEO Bob Iger’s contract through 2026, two years longer than planned - CNBC

• NextDecade shares plummet after finalizing $18B investment to construct largest U.S. LNG export facility - GCPT

• Exxon to buy Denbury for $4.9B in carbon storage bet - APN

• U.S. home prices rise for first time in nearly 5 months - FB

Friday

• Kahoot gets acquired in a $1.72 billion cash offer from Goldman Sachs, and a group of other investors - RT

• Biden cancels $39B in student loans debts for people who have been repaying loans after 20 or 25 years, despite supreme court decision - TDB

• Eli Lilly to acquire Versanis for up to $1.93B - RT

• JetBlue and American Airlines no longer sell each others tickets after court ruling in May that ends the two-year partnership - CNBC

• Binance lays off over 1,000 employees - WSJ

Next Week In The Stock Market 🔮

Earnings Calendar Next Week:

What the Swan is watching:

Tuesday: Bank of America, Bank of New York Mellon, Charles Schwab, Morgan Stanley, Novartis, Lockheed Martin, PNC Financial Services, J.B. Hunt Transport Services, Interactive Brokers Group

Wednesday: Tesla, Goldman Sachs, U.S. Bancorp, United Airlines, Netflix, Elevance Health, Discover Financial Services, IBM, Halliburton, Baker Hughes, ASML Holdings, Ally Financial, Equifax, Alcoa

Thursday: American Airlines, Capital One, Abbott, Blackstone, W.R. Berkley, Johnson & Johnson, CSX, Taiwan Semiconductor, Philip Morris, PPG Industries

Friday: American Express, AutoNation, Autoliv, Huntington Bancshares, SLB, Comerica

Tons of important companies reporting earnings next week. One thing is for certain, next week’s going to be crazy…

Economic Calendar Next Week:

The Swan’s Picks 🦢

• 🍔 Burger King just did the most evil, malicious, immoral act i’ve ever witnessed: Burger King unveiled a 20-slice cheese-only burger. No, I’m not lying, 20 slices. Disgusting.

• 🍺 America’s oldest craft brewery shuts down: Sad day for all beer drinkers out there. After 127 years, Anchor Brewing Company said it would cease operations and liquidate the business.

• 💰 Amazon touts ‘biggest ever’ Prime Day: U.S. online sales rose to $12.7 billion during Amazon’s prime day promotion.

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The Wrap-Up 🔄

You made it to the end! Congrats!

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

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