All three major indexes managed weekly wins despite Monday’s massive drawdown
Monday’s massive global selloff made a lasting impression on Wall Street all week. While stocks frantically fought back off those lows, all three major indexes were unable to string together consecutive wins during the next four days. Despite encouraging jobs data, a host of upbeat earnings reports, and a stabilizing “fear gauge,” all three major indexes still finished the week in the red.
Notes on a Selloff
Warren Buffett dumping Apple (AAPL) played a role in the Monday move, as did Japan’s Nikkei meltdown. Not even large cap giant Nvidia (NVDA) was spared, while crypto stocks were hit especially hard. The silver lining is the drawdown has tech stocks like Broadcom (AVGO), Intel (INTC), and the sector heavyweights at intriguing entry points.
Earnings Try to Take the Sting Out of Monday
Once the dust settled on Monday, there was still a slew of post-earnings reactions to unpack throughout the week. Electric vehicle (EV) laggard Lucid Motors (LCID) and alternative energy underperformer finally found their sparks. Airbnb (ABNB) and Under Armour (UAA) moved in different directions, while health-focused restaurant stock Sweetgreen (SG) is giving off Chipotle-in 2018 vibes.
There was also some movement amongst beverage stocks, while sports betting has enjoyed an Olympics-level boost during a typically slow sports season.
New Month, New Stocks to Target
Looking ahead, Senior Quantitative Analyst Rocky White provided some much-needed context to this disastrous start to August. And in the wake of Monday’s carnage, Senior V.P. of Research Todd Salamone’s comments about range-based trading proved prophetic. As far as the next market-moving event, keep an eye on July’s consumer price index (CPI) reading due out next week.