Research Summary
The report covers a market recap, macro charts, earnings recap, and a look at the week ahead. The market saw a positive week with all major indices closing higher. Inflation data was better than expected with CPI and PPI coming in softer. The Nasdaq 100 will have a special rebalancing on July 24 to address the overconcentration of the Magnificent Seven. Earnings season kicked off with mostly positive surprises across the board. JP Morgan, United Health, Delta Airlines, and PepsiCo all delivered strong earnings. The report also discusses the potential for a soft landing for the economy.
Actionable Insights
- Market Recap: The market is focused on the Fed’s hiking cycle being done with one more possible hike this month. The view is that a soft landing may be achievable.
- Nasdaq 100 Rebalancing: The Nasdaq 100 will have a special rebalancing on July 24 to address the overconcentration of the Magnificent Seven, which currently make up almost half of the Index.
- Earnings Season: Earnings season kicked off with mostly positive surprises across the board. JP Morgan, United Health, Delta Airlines, and PepsiCo all delivered strong earnings.
- Looking Ahead: Next week will see more companies reporting that may be influenced by macro numbers – lower new orders, manufacturing declines, and rising delinquencies in consumer finance.
