Latest / The SPY Trader / Trading Tidbits: Earnings, Inflation, and Small Cap Shifts

Transcript

Trading Tidbits: Earnings, Inflation, and Small Cap Shifts · The SPY Trader

• 0:00
  Intro Music
• 0:02
  Spy Traders!
• 0:03
  It’s 6:00 AM on July 12,
• 0:05
  2024,
• 0:06
  and you’re tuned into Spy Trader,
• 0:08
  where we dissect market moves and offer the latest trading insights,
• 0:13
  I’m your host,
• 0:14
  Barry Bullion,
• 0:15
  Let's dive into today’s news,
• 0:17
  Speaking of which,
• 0:18
  why did the banker date a spreadsheet?
• 0:21
  He heard it was a great "cell" mate!
• 0:24
  Secondquarter earnings season began with Wells Fargo,
• 0:27
  JPMorgan Chase,
• 0:28
  and Citigroup reporting results,
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  JPMorgan exceeded expectations,
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  but Wells Fargo showed a dip in net interest income,
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  June’s Consumer Price Index came in at 3%,
• 0:38
  hinting at moderate inflation,
• 0:40
  Futures for the Dow Jones edged up a bit,
• 0:44
  the S&P 500 futures rose slightly,
• 0:46
  while Nasdaq futures dipped,
• 0:48
  Key point: Investors are focusing on feegenerating avenues like investment banking due to slipping net interest income for lenders,
• 0:55
  Citigroup was fined $136 million by US regulators over data quality management and risk controls,
• 1:02
  Other key players: Bank of America is set to report Q2 results,
• 1:07
  with analysts predicting a slight EPS decline,
• 1:09
  Tesla is facing delays in its robotaxi technology,
• 1:13
  affecting its stock,
• 1:14
  Novo Nordisk is up,
• 1:16
  thanks to a study showing its diabetes drug could lower dementia rates,
• 1:21
  Apple dropped due to investor shift to smallcap stocks,
• 1:24
  For the S&P 500,
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  banks reporting mixed results indicate cautious sentiment,
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  Wells Fargo’s lower net interest income might signal challenges,
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  but feebased activities are sustaining them,
• 1:35
  JPMorgan's CEO mentioned persistent inflation,
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  so keep an eye on the financial sector,
• 1:40
  The Federal Reserve’s potential rate cuts in September could soften mortgage rates,
• 1:45
  benefiting housing marketrelated stocks,
• 1:47
  If you hold stocks in real estate or related sectors,
• 1:51
  this could be beneficial,
• 1:53
  Tech stocks are seeing a shift towards smallcap companies,
• 1:56
  Apple’s drop signifies this move,
• 1:58
  Consider not overloading your portfolio with big tech and explore smallcap opportunities,
• 2:03
  such as the Russell 2000 index,
• 2:06
  Trading recommendations:
• 2:07
  Watch the Banks: Stay cautious with mixed earning results but look for opportunities in feebased revenue streams,
• 2:14
  Keep tabs on Bank of America’s Q2 results on July 16th,
• 2:19
  2,
• 2:19
  Eye on Tech: With the shift to small caps,
• 2:23
  don’t overload on big tech,
• 2:25
  Consider Russell 2000 index for potential gains,
• 2:28
  3,
• 2:28
  Real Estate and Construction: Potential rate cuts could boost housing and construction stocks like Home Depot or Lennar Corporation,
• 2:36
  4,
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  Biotech Bets: Following Novo Nordisk's promising drug developments,
• 2:40
  consider expanding exposure to pharmaceutical and biotech firms,
• 2:43
  The market’s mixed signals require nimbleness,
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  Stay informed,
• 2:46
  watch the banks,
• 2:47
  bet smartly on small caps,
• 2:49
  and anticipate potential rate cuts,
• 2:52
  Keep your trades savvy and your portfolio diverse,
• 2:55
  That’s all for this episode of Spy Trader,
• 2:58
  I’m Barry Bullion,
• 2:59
  urging you to trade wisely and laugh often,
• 3:03
  Until next time,
• 3:04
  happy trading!