📈 Smart money buys dip

Smart money buys the dip, don’t expect the Fed to panic, Sell-off in Japan's stocks is overdone, Airbnb shares drop 14% due to slowing demand, and sleepy utilities sector becomes haven from turbulence…

Author

Smart Owl
August 07, 2024

Good morning.

The Fast Five → Smart money buys the dip, don’t expect the Fed to panic, Sell-off in Japan's stocks is overdone, Airbnb drops 14% due to slowing demand, and sleepy utilities sector becomes haven from turbulence…

Calendar: (all times ET)

  • Today: Consumer credit, 3:00 PM

  • Tomorrow: Initial jobless claims, 8:30 AM

Your 5-minute briefing for Wednesday, August 7:

BEFORE THE OPEN

As of market close 8/6/2024.

PRE-MARKET

MARKETS

  • Major US indexes rebounded yesterday after a historic three-day decline

  • Markets see a 75% chance of a 50 bps Fed rate cut in September

  • Japan's Nikkei 225 bounced back 10% in its best day since 2008 (a day after its worst crash since 1987)

EARNINGS

  • Uber jumped 11% after beating Q2 rev & EPS estimates on soaring demand for its ride-sharing and food-delivery services (link)

  • Airbnb plunged 16% after missing Q2 EPS estimates and warning of slowing demand from US customers (link)

  • Reddit reported a smaller-than-expected loss and beat Q2 rev estimates thanks to a boost from data-licensing (link)

  • Amgen slightly missed Q2 EPS estimates, but beat on revenue and announced plans to increase capex on its obesity drug (link)

  • What we're watching this week:

    • Today: Walt Disney, Shopify, Robinhood, CVS

    • Thursday: Eli Lilly

  • Full calendar here

NEWS BRIEFING

Behind the scenes of Monday’s trillion-dollar meltdown, big-money investors were doing something usually reserved for the retail crowd: buying the dip.

A delay in cutting rates will spark more criticism from progressives, who say the Fed needs to ease borrowing costs soon if it wants to save the labor market.

  • Indexes end with strong gains, rebounding from global sell-off (link)

  • Solomon says Fed will forgo emergency cut despite weak jobs data (link)

  • Sell-off in Japan's stocks is overdone, Bridgewater says (link)

  • Sleepy utilities sector shines as haven from stock turbulence (link)

  • Airbnb shares drop 14% on earnings miss, slowing US demand (link)

  • Nvidia braces for antitrust probes (link)

  • Cyberattack knocks Mobile Guardian MDM offline and wipes thousands of student devices (link)

  • Sharpie-maker Newell moves more operations from China as tariffs loom (link)

  • Amazon’s India chief resigns amid intensifying competition (link)

  • Dell starts new round of layoffs while it looks to unlock modern AI (link)

  • Elon Musk’s X sues advertisers over alleged ‘massive advertiser boycott’ after Twitter takeover (link)

CRYPTO

  • US-listed spot ether ETFs recorded $49 million in net inflows despite Monday's 20% price drop (link)

  • Crypto market plunged $510 billion in three days, the largest sell-off in 12 months (link)

  • Ether crashed to its lowest point of 2024, dropping below $2,200 (link)

  • SEC pushed back against Coinbase's "breathtakingly broad" subpoena request for Chair Gary Gensler's communications (link)

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