Oh, snap

Historic 13-day rally snapped as Dow loses more than 200 points Thursday, sweeping changes coming to capital rules for banks with $100B in assets, Euro Central Bank hikes interest rates opening door for more, Sony PlayStation 5 sales top 40 million, and McDonald’s unveils plans for “CosMc” spinoff restaurant…

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Market Briefing
July 28, 2023

☕️ Good Morning. TGIF! But first — historic 13-day rally snapped as Dow loses more than 200 points Thursday, sweeping changes coming to capital rules for banks with $100B in assets, Euro Central Bank hikes interest rates opening door for more, Sony PlayStation 5 sales top 40 million, and McDonald’s unveils plans for “CosMc” spinoff restaurant…

Here’s your market briefing for Friday:

BEFORE THE OPEN

As of market close 7/27/2023.

Markets:

  • Stock futures flat as Wall Street awaits inflation data, mixed earnings reports drive after-hours moves

  • Intel soars 6% on strong earnings, while Roku climbs nearly 9% beating expectations

  • T-Mobile slides 2% as revenue disappoints

  • Investors closely watch June data for personal consumer expenditures price index

  • Recent Fed rate hike raises questions about future monetary policy

  • Wall Street's 13-day win streak ends with Dow's 0.7% decline

  • Data on employment costs, personal income, consumer spending, and consumer sentiment also in focus

  • Procter & Gamble earnings report expected before the bell

EARNINGS

What we’re watching:

  • Today: ExxonMobile (XOM), Chevron (CVX), P&G (PG)

  • Full earnings calendar here

NEWS BRIEFING

Why it matters: The data points to a resilient economy that continues to surprise to the upside, despite aggressive attempts by the Fed to cool off activity.

1980s McDonald’s Commercial screenshot featuring CosMc — an alien from outer space who craves McDonald’s food and appeared in its advertisements decades ago. The company will test CosMc’s in a handful of sites in “a limited geography” in early 2024.

  • Dow loses more than 200 points Thursday to snap historic 13-day rally (more)

  • Hawkish hint in Japan is just enough to send US markets spinning (more)

  • US 10-year yield hits 4% as BOJ worry lifts yen (more)

  • European Central Bank hikes interest rates to combat inflation and leaves door open to more (more)

  • US hedge funds unload $700M of China ADRs (more)

  • Investors yank $800M from I bonds as inflation slows down (more)

  • Regulators unveil sweeping changes to capital rules for banks with $100 billion or more in assets (more)

  • Senators Warren, Graham kick off bipartisan anti-Big Tech push (more)

  • US senators seek to reverse 'Buy America' waiver for EV charging stations (more)

  • Gasoline Prices in US Hit Eight-Month High in Challenge to Biden (more)

  • Airlines say domestic fares are sliding and threatening to chill record revenue growth (more)

  • American Airlines pilots union says it has agreement on contract deal improvements (more)

  • Office space in US on track to shrink for the first time on record (more)

  • Sony PlayStation 5 console sales pass 40 million (more)

  • DoorDash working on AI chatbot to speed up food ordering (more)

  • Tesla created secret team to suppress thousands of driving range complaints (more)

  • Volkswagen buys stake in Xpeng, will develop two EVs with the Chinese automaker (more)

  • Toyota bringing back land cruiser to US in August (more)

  • AI in Hollywood has gone from contract sticking point to existential crisis (more)

DEALFLOW

  • Kering takes 30% stake in Italian luxury brand Valentino (more)

  • Altair acquires digital engineering software OmniV (more)

  • Accenture acquires Strongbow Consulting (more)

  • GlossGenius raises $28M in Series C funding (more)

  • First Solar to Invest $1.1B in fifth US Panel Factory (more)

  • AutogenAI raises $22.3M in funding (more)

  • Breakout Capital secures $45M credit facility (more)

  • MSPbots raises $5M in Seed funding (more)

  • GlossGenius raises $28M in Series C funding (more)

  • Switchboard raises $7M in Series A funding (more)

  • Croissant raises $24M in initial funding (more)

  • Finicast raises $12.8M in Seed funding (more)

  • Blue Laser Fusion raises $25M in initial Seed funding (more)

  • Fitted raises $8.5M in Series A funding round (more)

  • ev.energy raises $33M in Series B funding (more)

  • MAC Hospitals receives up to $160M growth investment from General Atlantic (more)

  • Craftable receives investment from Gauge Capital (more)

  • MediaMint receives growth investment (more)

  • Nexo Therapeutics raises $60M in Series A financing (more)

CRYPTO

  • The Human Rights Foundation announces 20 BTC bounty challenge for Bitcoin development (more)

  • Crypto-friendly BlackRock starts ‘digital-first’ investment offering in India (more)

BULLISH BITES

🛟 A Beach Club Dinner and Jamie Dimon’s Touch: How PacWest Was Rescued… PacWest Bancorp had borrowed its way into a corner. A smaller rival smelled an opportunity. And there was private equity money eager to swoop in. Add a touch of Jamie Dimon and there was enough for a struggling bank to pull off a deal without the government needing to step in… (continue reading)

💰 Ron Baron Has a Rare Long-Term Record of Beating the Market...
"Investing for the long term in competitively advantaged growth businesses managed by exceptional executives. That's our strategy," Baron said… (here’s how he did it)

DAILY SHARES

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