"Carry On Then!"

Hi There! The strength of the OECS countries at the Olympics in Paris this past weekend was truly a sight to behold. I beamed with pride as I watched our neighbouring islands of St. Lucia and Dominica (not to be confused with the Dominican Republic) secure their first Olympic Gold medals.

However, what made me the proudest was seeing my fellow Grenadian, Lindon Victor, who plowed through adversity and weeks of preparation to capture the Bronze medal for my island Grenada in the Decathlon.

In my mind (and the minds of all Grenadians), a Bronze is golden, and seeing our beautiful red, green, and yellow flag soar in Paris this past weekend filled my heart with joy. Kudos to you, Lindon!

Alright, let’s dig in!

Last Week Recap

Last week, stocks plunged faster than that trending French Olympic diver, as an unexpectedly bleak jobs report had investors second-guessing the Fed’s decision to wait until September to cut interest rates. Intel suffered its worst drop in 50 years, trading at its lowest price since 2013 after missing earnings, announcing layoffs, and suspending its dividend.

As we moved into August, second-quarter earnings and central bank decisions impacted stocks. U.S. equity indexes closed lower, reflecting stretched patience for AI investments and concerns over a lagging Federal Reserve. Overseas, Europe ended in the red despite a BoE rate cut, while Asian markets dipped on falling tech stocks and a BoJ rate hike.

U.S. Markets

• Equities: The S&P 500 and Dow Jones Industrial Average sealed monthly gains midweek, but the three major indexes declined sharply. The Nasdaq fell 3.6%, the S&P 500 dropped 2.6%, and the Dow decreased by 2.4%. Key drivers included earnings from the Magnificent Seven and the FOMC interest rate decision. Big tech dipped after disappointing earnings from Microsoft (MSFT), Amazon (AMZN), and Intel Corp. (INTC). The FOMC held rates unchanged, but more dovish remarks from Fed Chair Powell and weak job data raised concerns about the Fed's response.

• Fixed Income: The Bloomberg U.S. Aggregate Bond Index traded higher as yields declined. The 10-year Treasury yield closed almost 40 basis points lower, while the two-year yield fell nearly 50 basis points. Bond prices rallied following soft macro data, with markets pricing in more aggressive rate cuts. The Fed hinted at a possible rate cut in September, contributing to the steepening yield curve.

• Commodities: The Bloomberg Commodities Index closed 1.3% lower. Oil prices were volatile, with West Texas Intermediate (WTI) crude experiencing swings due to global events and weak U.S. economic data. Gold saw gains, supported by soft economic data and falling Treasury yields. Silver ended slightly higher, while copper remained flat due to demand concerns.

Currencies:

• The dollar index remained flat for most of the week but closed lower, reaching a four-month low on growth concerns.

• The Japanese yen strengthened against the dollar after the BoJ rate hike, supported by multiyear highs in Japanese bond yields.

U.S. Economic Recap

• Recession Jitters: Markets grew nervous about a recession due to weakening data. The ISM reported a decline in the manufacturing survey for July. Job gains in July were concentrated in healthcare, construction, and transportation, while the information sector lost jobs. The unemployment rate rose to 4.3%.

• Labour Costs Slowed Down in Q2: The Employment Cost Index (ECI) showed decelerating labour costs. Businesses added 122,000 private payroll jobs in July, with stronger wage gains for job switchers. Easing labour costs will dampen services inflation, giving the Fed room to cut rates.

• Fed’s Stance Switched in July Policy Statement: The Fed prepared markets for potential rate cuts, noting a labour market slowdown. Inflation is improving, allowing the Fed to cut rates while keeping the nominal funds rate above the inflation rate.

Global Markets Recap

• Europe: European markets ended the week 2.9% lower, impacted by BoE and Fed decisions, rising Eurozone CPI, and weak earnings from Volkswagen and BMW.

• Asia: Asian markets fell due to BoJ actions and tech stock declines. Japan's market dropped on yen volatility, while Greater China, Taiwan, South Korea, and India experienced varying performances.

Crypto Recap (Highlights)

• U.S. Senator Cynthia Lummis unveiled the BITCOIN Act to establish a strategic BTC reserve.

• The SEC plans to change its Binance complaint, removing tokens like Solana.

• Bitcoin dominance hit its highest level since April 2021, reaching 52.7%, supported by ETF inflows and the Bitcoin conference featuring former President Donald Trump.

Here are other key highlights from last week:

• AMD seen benefiting from Intel's woes.

• Ethereum supply turns inflationary as gas fees drop to record lows.

• Man U launched Premier League’s First Web3 Fantasy Football on Tezos.

• Avalanche anticipates 'most bullish unlock' amid broader market.

• Telegram Game Hamster Kombat Plans to Airdrop 60% of Tokens.

• Movement Labs joined Polygon's AggLayer, launch attracted $160M.

The market bloodbath continued this week!

Monday morning brought doom and gloom as global stocks took a nosedive. Japan's Nikkei 225 index plummeted 12.4%, marking its worst day since "Black Monday" in 1987.

Monday, August 5:

• ISM Services PMI: Higher than expected, easing recession fears slightly. The index rose to 51.4 from 48.8.

Tuesday, August 6:

• Trade Balance: The U.S. trade balance for June was a deficit of $-73.1 billion, slightly better than May's $-75.0 billion.

Other Key High-Medium Impact News to Watch:

Wednesday, August 7:

• 10-year Bond Auction

Thursday, August 8:

• Initial Jobless Claims

• 30-year Bond Auction

Fed Speakers This Week:

Monday, August 5

• FOMC Member Goolsbee: If the economy deteriorates, the Fed will address it. The jobs number was weaker than expected but not recessionary.

• FOMC Member Daly: Risks to Fed's mandates are balanced; open to rate cuts. Concern over temporary layoffs and hurricane effects on the July jobs report.

Thursday, August 8:

• FOMC Member Barkin: Scheduled to speak at a National Association for Business Economics webinar.

Earnings Releases:

Notable earnings releases this week are outlined in the chart below.

Key Global Economic Events this week:

Tuesday, August 6:

• RBA Interest Rate Decision

• UK Construction PMI

• New Zealand Unemployment Rate

Wednesday, August 7:

• Canada Ivey PMI

• RBA Gov Bullock Speaks

• New Zealand Inflation Expectations

Thursday, August 8:

• China CPI and PPI

Friday, August 9:

• Canada Unemployment Rate

Trading Tip: Historically, the first nine trading days in August are weak!

Week 7/28/24 - 8/02/24 Recap

Special Tools and Strategies - Google Finance

Here's a simple yet powerful tool to add to your investing toolkit. Google Finance is a fantastic resource for real-time updates on stocks, ETFs, cryptocurrencies, and more. It also provides access to the latest news, financial statements, and key metrics.

Google Finance Overview

Google Finance is an all-encompassing financial data platform that offers real-time quotes, news, charts, and analysis for a variety of financial instruments, including stocks, mutual funds, ETFs, and cryptocurrencies. Its user-friendly interface and comprehensive tools make it easy to stay updated on market trends and make informed investment choices.

Benefits of Using Google Finance

1. Real-Time Stock Tracking:

Monitor real-time stock prices for companies listed on major global exchanges. You can also create watchlists to keep an eye on multiple stocks at once.

2. Historical Data Analysis:

Access up to 10 years of historical stock prices, which is helpful for analyzing long-term trends and making informed investment decisions.

3. Financial News Updates:

Stay current with financial news aggregated from various sources, ensuring you're aware of the latest developments that could impact your investments.

4. Financial Statement Analysis:

Review detailed financial statements of publicly traded companies to assess their financial health and investment potential.

5. Custom Chart Creation:

Generate custom charts to track stock prices, compare different companies, and analyze market trends.

6. Alert Setup:

Set up alerts to receive notifications when a stock price reaches a specified level or when news about a particular company is published.

How to Use Google Finance

1. Access Google Finance:

Open your web browser and go to Google Finance: Google Finance.

2. Search for Financial Instruments:

Enter the ticker symbol, company name, or other identifier in the search bar at the top of the page to find the financial instrument you are interested in.

3. Real-Time Quotes and Charts:

View real-time quotes, historical charts, and news for the selected financial instrument. The quote section displays the current price, price changes, market cap, and other essential metrics. The chart section shows historical price movements to help you identify trends and patterns.

4. News and Analysis:

Check the News tab for the latest articles and analysis related to the financial instrument you're tracking. The Analysis tab provides in-depth reports, expert insights, and financial forecasts.

5. Compare Financial Instruments:

Use the "Compare" feature to evaluate up to three financial instruments side-by-side, allowing you to analyze their performance, valuation, and other key metrics.

6. Watchlists and Alerts:

Create watchlists to monitor the performance of multiple financial instruments over time. Set up price alerts to receive notifications when specific price targets are met.

7. Additional Features:

Explore the top menu options to find additional tools like portfolio trackers, economic calendars, and currency converters.

8. Advanced Tools:

For more detailed financial analysis, take advantage of Google Finance’s advanced charting tools, technical indicators, and downloadable financial data.

Disclaimer: This newsletter is strictly educational. The information this report provides does not constitute investment, financial, trading, or any other advice. You should not treat any of the report’s content as such. Please be careful and do your research.