Market Update Newsletter 7/24/23

Last week Dow and S&P 500 ended higher while Nasdaq ended down alongside Bitcoin, which is below $30k. Futures are slightly higher ahead of big earnings this week.

Shopify (SHOP) supposedly close to a pivotal business movement. As the consumer "recovers" Shopify will be amongst the winners because small business will rise as a result of a turning tide.

Investors expect the Fed to pivot to a more dovish (less interventionist) stance, with lower or unchanged interest rates. The economy is giving mixed signals and that means the Fed has to remain consistent. I still expect two more hikes this year.

Stocks to Watch

Apple (AAPL) raised to Buy and overweight with high end range of $210-$225. Buy.

AirBnB (ABNB) remains profitable and can only benefit from a "recovering" consumer. Buy.

Oil stocks receiving some shade from analysts. Oil simply cannot keep up with the likes of Tech, which is why analysts are distancing themselves. I will lower my oil exposure but will not abandon the sector. Reduce position and/or Hold.

American Express (AXP)receives downgrade from Piper Sandler to underweight. Is that due to struggling consumers? Mastercard (MC) and Visa (V) both received raises. Feels company specific. Hold.

Microsoft (MSFT) is proving it is a premier Tech company. Buy on pullback.

Happy Investing!

The Punkrock Capitalist