🍨 Daily Scoop: Last week’s lightning-round
By Mon, Jul 22, 2019
What you need to know?
Are you up to speed on all your The Daily Scoops? Don’t you worry, we’ve got your back. Here is everything that happened last week:
- In a two-day Prime Day event, Amazon broke the sales record of Black Friday and Cyber Monday combined. Read more here.
- According to the report by the U.S. Department of Commerce, the U.S. economy is doing just fine. Read more here.
- Apple (Ticker: AAPL) is taking a page out of Spotify’s (Ticker: SPOT)playbook, again and has big plans for podcasting. Read more here.
- Good economic indicators may be bad news for investors, and all eyes are now on the Fed’s upcoming meeting at the end of July. Read more here.
- Lastly, President Trump was not happy to hear N.Y. Fed’s President’s speech and the following statement by N.Y. Fed. All such back and forth sent the market down the frenzy. Scroll to the Overall Market section to read more about what happened. Read more here.
MARKETS
- U.S. markets: In a reversed course of action compared to Thursday, all three major indices closed Friday lower than where they started.Scroll to the Overall Market section to read more about what happened.
- Cryptocurrency: Bitcoin price passed $10,000 per coin on Friday. The boost came from U.S. representative Patrick McHenry who said that he believes Bitcoin cannot be killed.
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OVERALL MARKET
I’m not happy with you guys.
We spent last week floating up and down into the green and back to the red zones. Most of the ups and downs were related to investors trying to predict whether the Fed will end up cutting the interest rate or not. The not-so-good news came on Thursday after N.Y. Fed released a statement to remind investors that the market should not interpret the speech N.Y. Fed’s President gave earlier in the day as an assurance the Fed will cut the interest rate at the end of July. Investors hated the statement on Friday, and the market dropped into the red zone. Also, President Trump wasn’t happy with the Feds again. He took his disappointment to Twitter and reprimanded the Feds for their inaction.
Now what?
You may know that it is customary among the editorial team to make a reckless prediction on Friday evenings. Are you ready? Wine glasses are full, and reckless prediction hats are on our heads, here we go! We don’t think the Feds will cut the interest rate at the end of July.
Based on the earnings reports so far and the positive economic indicators, the Feds have no reason to cut the interest rate. We will have to wait for another month and sit through the usual pull and push of the market.
By the way, not that we are tracking score, but last week, we predicted something will break down investors’ confidence. And, here we are, the Feds did just that. We will tell you about our predictions’ success or dismal failure in the next week’s lightning round update.
WHAT’S UP
It was all bad news, but the stock was up.
You can’t believe what happened on Friday! Shared of Boeing (Ticker: BA)were up by more than 4%. What?! The company announced that it would take close to $6 billion hit in revenues due to its grounded 737 Max product line. Investors were just happy that the impact is only around $6 billion. What a relief!
WHAT’S DOWN
We just need advisors. Nothing more.
Shares of JC Penney (Ticker: JCP) fell more than 15% on Friday. The company announced it has hired strategic advisors to extend its long-term debt maturity and allow for longer turnaround time. In a rather innocent-like statement, the company stated that it has no debt issue, and just needs advisors to make things go smoother. Yeah, right!
WATER cooler
Stop calling it the Netflix for Games. So, what happened?
Folks at Google (Ticker GOOGL/GOOG) are not happy with people calling their new shiny Stadia the Netflix of Games. These days, Netflix (Ticker: NFLX) doesn’t have many friends and people are all thinking the video streaming company will be crushed by competitors.
Looks like Stadia’s boss wanted to make sure people stop making that comparison. He took it to Reddit to clarify the comparison. It’s not Netflix, Okay? It streams games, and you must pay a subscription fee. But, it’s not like Netflix we are telling you.
Disclosure: Authors of this Scoop own shares of Apple Inc (Ticker: APPL), Google (Ticker GOOGL/GOOG), and Netflix (Ticker: NFLX).
About the Author
The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card
