"Who Likes to Party?"

Hi There! I am thrilled to celebrate another milestone with you all—my 90th issue of the weekly Rhoda Report! I am now just 10 issues away from hitting the big 100, and I couldn't have done it without your incredible support and engagement.

You all rock! Your continued readership, feedback, and enthusiasm have made this journey so rewarding. Thank you for sticking with me, for trusting me with your market analysis, and for being such an amazing community. Here's to many more insightful and empowering issues ahead!

Alright, let’s dig in!

Last Week Recap

Last week, the S&P 500 experienced its worst week since April as Big Tech stocks faced significant pullback, particularly CrowdStrike, following a global IT outage. Major U.S. indexes saw turbulence, pressing pause on the recent rally, while international markets also ended lower. Despite increased rate cut expectations, Treasury yields remained largely unchanged, and the greenback rebounded following cooling signals in the U.S. labour market.

U.S. Markets:

• Indexes: U.S. stocks saw volatility, with all three major indexes logging record highs midweek. The Dow added 0.65% for the week, while the S&P 500 and Nasdaq ended lower by 1.8% and 3.7%, respectively. Small-cap stocks and value indexes outperformed growth indexes.

• Catalysts: Market activity was influenced by political events, including an assassination attempt on former President Donald Trump and COVID-19 isolation for President Biden. A rotation away from Big Tech into small caps, value, and cyclicals, fueled by heightened rate-cut hopes, also played a significant role. Trade tensions between the U.S. and China and earnings season further impacted market sentiment.

• Volatility: The VIX index surged to its highest levels since May, reflecting increased market volatility.

Fixed Income:

• Yields: The Bloomberg U.S. Aggregate Index ended slightly lower as Treasury yields remained relatively stable. The 10-year yield was virtually unchanged, while the 2-year yield increased slightly. Rate-cut hopes and dovish comments from Federal Reserve Chair Jerome Powell influenced midweek yield declines, although weekly gains were erased by stronger jobless claims data.

Commodities:

• Crude Oil: WTI crude saw significant swings, ending the week down by nearly 2.4% due to Chinese demand concerns and a strengthening dollar.

• Gold and Silver: Gold futures declined by 0.9% despite touching record highs midweek, while silver futures slipped following disappointing stimulus measures from the CCP's Third Plenum meeting.

• Other Commodities: The Bloomberg Grains Index and soft commodity index both saw declines, with grains down 2.1% and soft commodities down 3.2%.

Currencies:

• U.S. Dollar: The dollar index rebounded by 0.3%, snapping a two-week losing streak.

• Japanese Yen: The yen experienced elevated volatility, with speculation around potential government intervention midweek.

U.S. Economic Recap:

• Retail Sales: Retail sales remained unchanged in June, with significant declines in gas and auto sales, offset by gains in warehouse clubs and superstores.

• Unemployment Claims: Claims increased to 243,000, indicating a softening job market. This is within the reference period for the upcoming nonfarm payroll report, suggesting a cautious outlook from Fed policymakers.

Global Markets:

• Europe: The STOXX 600 index closed 2.7% lower, affected by CrowdStrike's global outages and hotter-than-expected CPI and PPI data.

• Asia: Asian markets followed Wall Street's lead, with tech losses dragging Japan, Taiwan, and South Korea into negative territory. China's markets ended higher despite disappointing Q2 GDP data.

Crypto Recap:

• Bitcoin: Endorsements from BlackRock's Larry Fink boosted Bitcoin prices above $60,000, while U.S. spot Bitcoin ETFs attracted over $1 billion in net inflows despite bearish sentiment.

• Polygon Labs: Announced a collaboration with Google Cloud and Accenture to revamp loyalty programs using Web3 technologies.

• Polymarket: Saw record trade volumes fueled by U.S. presidential election bets, with $116.4 million in volume in the first half of July.

Here are other key highlights from last week:

• TSMC became the first Asian company to reach $1T as AI demand surges

• Coinbase announced Perpetual Futures for TON, TAO, and TRB on July 25

• Pixelverse to put Pudgy Penguin character on Telegram mini game

• Polygon will migrate MATIC tokens to POL during September upgrade

This is a key week in the markets!

So Far:

Tuesday, July 23:

• Existing Home Sales: Fell for the fourth consecutive month, hitting the lowest level since December 2023. Median sale prices reached a new high of $426,900, up 4.1% year-over-year.

Wednesday, July 24:

• Services PMI: Up to 56 vs. 54.9 est. & 55.3 prior

• Manufacturing PMI: Manufacturing down to 49.5 vs. 51.6 est. & 51.6 prior

• New Home Sales: Unexpectedly tumbled 0.6% (well below the expected 3.4%) in June as homebuyer confidence crashed to a record low. This confirms a broader market slowdown.

What to Watch for the Rest of the Week:

Thursday, July 25:

• Q2 GDP

• Jobless Claims

Friday, July 26:

• Core PCE Inflation

• Consumer Sentiment

Fed Speakers:

• FOMC Member Bowman (pre-recorded remarks at a community event)

• FOMC Member Logan (opening remarks at a community event)

Earnings Releases:

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

Key Global Economic Events this week:

Wednesday, July 24:

• Euro Area Manufacturing and Services PMI

• UK Manufacturing and Services PMI

• Bank of Canada (BoC) Interest Rate Decision

Thursday, July 25:

• Germany Ifo Business Climate

• ECB President Lagarde (speech at International Summit on Sport and Sustainable Development)

• Day 1 G20 Meetings (economic issues, climate change, international taxation, financial system reforms)

Friday, July 26:

• Day 2 G20 Meetings (continuation of discussions from Day 1)

• Japan CPI

Trading Tip: The week after July expiration is prone to wild swings!

Week 7/14/24 - 7/20/24 Recap

Special Tools and Strategies

Yahoo Finance is the world’s leading financial information platform, trusted by over 150 million users globally. It provides essential news, data, and tools to help investors make informed decisions. It can be used to get quotes for companies, funds, ETFs, indices, commodities, mutual funds, and cryptocurrencies.

Getting Started with Yahoo Finance

1. Research and Analyze Investments:

• Search: Find ticker symbols, company names, and market info.

• Interactive Charts: Graph performance and compare symbols.

• Screeners: Discover investment opportunities using filters.

• Markets and Industries: Explore various sectors.

2. Stay Updated:

• News: Access breaking news and expert commentary.

• Market Events Calendar: Track earnings announcements, IPOs, and more.

• Video: Watch market analysis shows.

3. Manage Your Portfolio:

• My Portfolio: Create watchlists and multiple portfolios. Link brokerage accounts to view holdings.

• Watchlists: Follow curated lists of companies and sectors.

• Link Accounts: Sync your broker accounts to see all investments in one place.

4. Go Mobile:

• App: Download the Yahoo Finance app to stay updated on the go.

Tracking Your Portfolio on Yahoo Finance

Tracking your portfolio is important for all investors. Whether you’re a long-term investor or an active trader, staying updated on news and trends is essential.

Benefits of Yahoo Finance for Portfolio Tracking:

• Sync Brokerage Accounts: Merge all your investment accounts into one for easy tracking.

• Customized Portfolio Metrics: Create personalized metrics to monitor performance.

• Comprehensive View: Understand your investment risks and overall portfolio health.

Set Up and Track Your Portfolio:

1. Click on the My Portfolio link on Yahoo Finance.

2. Select "create new" to set up a new portfolio.

3. Add your investment accounts for a complete view of your investments.

   

   Track your portfolio all in one place (Yahoo Finance Website)

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.