Wall Street’s Favorite Trade Just Cracked — IBM’s Collapse Exposes Tech
Plus, Buffett's $140B giveaway, ARK moves, earnings, stock of the day, and more
Happy Wednesday! According to Goldman Sachs, Wall Street’s favorite trade just suffered one of its sharpest reversals in more than 50 years. Discover where momentum is shifting and which stocks could emerge as the next market leaders.
IBM not only suffered one of its biggest single-day drops in company history, but they dragged the entire software sector with them. See why IBM’s sudden collapse is raising concerns across tech, and which companies could be caught in the fallout.
Also, did yesterday’s cooler-than-expected CPI print slam the door on a July fed rate hike? Here’s everything you need to know.
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TOP STORY
Goldman Says Wall Street’s Momentum Trade Just Crashed. Here’s Where It’s Moving Next
Wall Street’s hottest trade may be running out of steam.
Goldman Sachs says the S&P 500 momentum factor has suffered one of its sharpest three-week reversals in more than 50 years, signaling that investors are rapidly rotating out of many of the market’s biggest winners. But momentum hasn’t disappeared, it has simply shifted to a new group of stocks.
See which sectors and stocks are emerging as Wall Street’s next momentum plays.
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Yesterday: U.S. indexes finished higher Tuesday, after a cooler-than-expected inflation report strengthened expectations that the Federal Reserve may take a less aggressive approach on interest rates. The consumer price index fell 0.4% in June — below forecasts — bringing annual inflation to 3.5% and prompting traders to sharply reduce the odds of a July rate hike while maintaining expectations for additional tightening later this year. Meanwhile, the Q2 earnings season got off to a strong start, with Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, and Wells Fargo all topping analyst estimates. The early results reinforce optimism heading into earnings season where S&P 500 companies are expected to deliver 21% earnings growth.
On Our Radar: Looking ahead, Wall Street will be paying attention to whether the producer price index reinforces Tuesday’s cooler inflation data, as well as the Empire State manufacturing survey and the Fed’s Beige Book. On the earnings front, all eyes will be on TSM (TSM), Netflix (NFLX), UnitedHealth (UNH), and GE Aerospace (GE) which all report Thursday.
MARKET HEATMAP
Top Gainers: CrowdStrike (CRWD), Goldman Sachs (GS), Carvana (CVNA), Dell (DELL), Palo Alto (PANW), Lumentum (LITE), Micron (MU), NetApp (NTAP)
Top Laggards: IBM (IBM), Biogen (BIIB), HCA (HCA), Intuitive Surgical (ISRG), Gartner (IT), ServiceNow (NOW), Citigroup (C), Nebius (NBIS), ARM (ARM)
But these weren’t the only companies making big moves. Here’s a look at some of the biggest winners and losers on Tuesday.
See how the market is moving with our interactive heatmap. Filter by market cap, or click on any box to explore specific sectors or assets in more detail.
FIVE ZINGERS
Ark Moves: Cathie Wood and Ark Invest made several notable trades. Read on to see what stocks she’s been buying and selling.
Crude Awakening: The market’s favorite inflation gauge may be missing the biggest warning sign. Find out why diesel is sending a signal that could have major implications for investors.
$140 Billion Giveaway: Warren Buffett is making a massive move with his fortune, and is accelerating plans in one of the biggest charitable transfers in history. Click here to uncover where the billions may be headed and how it could impact you.
‘Capitol’ Gains: A member of Congress just placed a major bet on a defense company while holding a key committee role. See why this trade is drawing attention and what it could signal for the sector.
Stock Of The Day: AppLovin just tested a key level after last month’s massive selloff. Click to see where shares are likely headed next.
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