📈 Fed prepares to cut

Fed prepares for September cut, Trump pledges to cut taxes, Nvidia rebounds, OpenAI debuts mini version of its most powerful model, and Bud Light slips to No. 3 after boycott reshaped industry…

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Smart Owl
July 19, 2024

Good morning.

The Fast Five → Fed prepares for September cut, Trump pledges to cut taxes, Nvidia rebounds, OpenAI debuts mini version of its most powerful model, and Bud Light slips to No. 3 after boycott reshapes industry…

Calendar: (all times ET)

No notable events today

Your 5-minute briefing for Friday, July 19:

BEFORE THE OPEN

As of market close 7/18/2024.

PRE-MARKET

MARKETS

  • US stocks slumped yesterday as the tech selloff extended to the broader market

  • Dow snapped a six-day win streak

  • Markets are pricing a 40% chance of a BoE rate cut in August and a 65% chance of an ECB rate cut in September

  • Dollar jumped 0.5% by the most since early June

  • China germanium hit an ATH, after jumping ~30% MoM

EARNINGS

  • Blackstone'sQ2 distributable earnings rose 3% YoY as a jump in PE and credit asset sales more than offset a slump in real estate (link)

  • TSMC issued a comfortable Q2 beat-and-raise on 40% YoY revenue growth driven by surging demand for AI chips (link)

  • Netflix reported better-than-expected Q2 earnings, revenue, and subscribers thanks to 34% YoY growth in ad-supported subscribers (link)

  • Domino's Pizza shares plunged 14% after missing on same-store sales estimates and reporting slower international growth (link)

  • What we're watching this week:

    • Today: American Express

  • Full calendar here

NEWS BRIEFING

Officials are increasingly confident that price stability is in sight. Fed chief Powell focused on sticking soft landing for economy.

Trump delivers first public address since surviving assassination attempt. Trump calls for unity, tax cuts, end to foreign wars in acceptance speech.

  • Fed appeals court blocks Biden’s new student loan relief plan (link)

  • Jobless claims hit highest level since August (link)

  • Key mortgage rate drops to lowest since March (link)

  • Dollar’s biggest jump this month sends global currencies sliding (link)

  • Nvidia rebounds after TSMC says AI chip demand remains strong (link)

  • Bud Light slips to No. 3 after boycott reshaped beer industry (link)

  • OpenAI debuts mini version of its most powerful model yet (link)

  • Stellantis recalls 24,000 Chrysler minivans for fire risks, urges outdoor parking (link)

  • Amazon Prime Day 2024 sales hit record $14.2 billion (link)

  • NASA cancels $450-million mission to drill for ice on the Moon (link)

  • Amdocs announced plans to cut 1,500-3,000 jobs, or 5-10% of its global workforce, in another round of layoffs (link)

CRYPTO

  • Grayscale launched a Decentralized AI Fund, investing in protocols like Filecoin and NEAR to tackle AI-related issues (link)

  • The Basel Committee released its final disclosure framework for banks' crypto exposures, tightening criteria for stablecoins (link)

  • Liquidium raised $2.75 million to bring an Aave-like experience to Bitcoin, aiming to be the DeFi lending hub (link)

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