What Moved The Markets This Week 📈
Rate Cut Expectations Surge After Soft CPI Data, Trump Shot At Rally, Tesla Delays Its Robotaxi Event, AT&T Data Stolen Off Snowflake's Cloud In Major Hack, and Earnings from JPM + C + DAL
Sunday Morning Markets
Trading Week 28, covering Monday, Jul 8 through Friday, Jul 12. Your weekly financial markets update, in less than 5 minutes.
The Week In Review ⏪
US Markets 🇺🇸
Trump gets shot at a rally in Pennsylvania
Rate cut expectations surge after soft inflation data
Money market fund balances hit all-time high
Earnings from Delta, JPMorgan, Citi
Global Markets 🌏
Apple to allow rivals to use tap-to-pay tech
Saudi Arabia threatens the G7 over frozen assets
Tech ⚡
Tesla delays its robotaxi event
AT&T hacked with all user calls & text data stolen
Microsoft gives up its OpenAI board seat
US Markets 🇺🇸
Rate cut expectations jump after softer-than-expected inflation data. The market now anticipates 2-3 rate cuts by the end of 2024, compared to 1-2 cuts expected just a month ago, according to CME’s FedWatch tool.
Trump rally erupts in gunfire with one bullet appearing to clip former President Trump’s ear. Secret Service agents swarmed around him and live video showed blood on the right side of Trump's face and ear.
Inflation unexpectedly declined 0.1% in June, bringing the annual inflation rate down to 3%, the lowest level in over three years. Excluding volatile food and energy costs, core CPI slowed to 3.3% from a year ago.
Consumer credit increased $11 billion in May, ahead of the $10.7B estimate. Revolving credit, which includes credit card debt, advanced to $1.35 trillion, up 6.3% year-over-year.
Money market funds hit a new record of $6.15 trillion on expectations that short-term rates will remain elevated as Fed policymakers continued to signal they are in no rush to ease monetary policy.
Medicare Advantage fraud costs taxpayers billions as insurers like UnitedHealth added fake and dubious diagnoses, triggering $50B in extra payments. Patients often were never treated for these conditions.
Costco hikes its membership fee for the first time since 2017. Its standard membership annual fee will increase from $60 to $65, while its ‘Executive Membership’ will jump from $120 to $130.
Pfizer moves forward with once-daily weight loss pill, danuglipron, after it saw “encouraging” data in an early-stage trial. Analysts expect the GLP-1 industry to be worth roughly $100 billion by the end of the decade.
Global Markets 🌏
The UK economy grew by 0.4% in May as it continues its rebound from the minor recession seen in Q1. The British pound surged to a four-month high against the U.S. dollar following the announcement.
Apple to let rivals use tap-and-go payments in Europe, avoiding a potential €36 billion fine. The decision will enable competition in the mobile wallet market by allowing other payment services on the iPhone.
Tesla hikes Model 3 prices in Europe due to tariffs on EVs imported from China. The Model 3 price in Germany, Netherlands, and Spain will increase by €1,500, or roughly $1,622.
China’s inflation numbers miss expectations after rising just 0.2% from a year ago, while producer prices fell by 0.8%. “The risk of deflation has not faded in China. Domestic demand remains weak.”
Saudi Arabia threatens G7 over Russian assets, hinting that it may sell its European debt holdings if the countries decide to use almost $300 billion of frozen Russian assets to fund Ukraine's reconstruction.
France’s new leadership plans to introduce 90% tax on any income over €400,000. The leftist ‘New Popular Front’ party secured the most seats in the recent elections but fell short of the 289 needed for a majority.
Dyson to cut around 1,000 jobs in the UK where it currently employs 3,500 people. The company said the review of its business came as it faced “increasingly fierce and competitive global markets.”
SoftBank buys British AI chip company Graphcore in its latest step towards building a broad portfolio in the artificial intelligence space. SoftBank also recently led a $1.1 billion funding for self-driving car startup Wayve.
Tech ⚡
Tesla delays its robotaxi event until October as the company reportedly needs more time to build the prototypes and ensure the vehicle meets all regulatory standards. Tesla shares fell more than 6% following the report.
Hackers stole call and text records of all AT&T customers from May to October 2022. AT&T is the latest company to confirm it had data stolen from Snowflake ($SNOW), following Ticketmaster and QuoteWizard.
Microsoft gives up observer seat on OpenAI board amid antitrust scrutiny. The FTC is leading the investigation into Microsoft and OpenAI, focusing on potential anti-competitive practices in the AI sector.
Alphabet shelves interest in acquiring Hubspot, causing shares of HUBS 0.00%↑ to plunge 19% this week. The M&A landscape has become murky in the past few years due to the DOJ’s resistance to deals.
Samsung launches new “Galaxy Ring” as the South Korean tech giant aims to expand its wearables line. The new device will start at $399 and can track various health metrics such as heart rate, menstrual cycles, and sleep.
The European-built Ariane 6 rocket successfully launches as Europe rejoins a launch market that has been dominated by SpaceX. The rocket was built by ArianeGroup, a joint venture of Airbus and Safran.
Lucid Motors reports new record for EV deliveries as it seeks ‘escape velocity’. Lucid delivered 2,394 EVs in the second quarter of 2024, easily clearing its previous record of 1,967 deliveries set last quarter.
UiPath to lay off 10% of its workforce, or about 420 jobs, as part of a broader company restructuring. UiPath shares fell 7% on Tuesday and have plunged almost 50% year-to-date.
Earnings Reports 💰
See other breakdowns on our Twitter page.
Weekly Poll 🗳️
Week Ahead 📅
Monday
US - Powell Speech 🇺🇸
US - Empire State Manf. Index 🇺🇸
Earnings: Goldman Sachs, Blackrock💰
Tuesday
US - Retail Sales 🇺🇸
CA - Inflation 🇨🇦
DE - ZEW Economic Sentiment 🇩🇪
Earnings: Bank of America, UnitedHealth, Morgan Stanley, Charles Schwab💰
Wednesday
US - Building Permits 🇺🇸
US - Housing Starts 🇺🇸
UK - Inflation 🇬🇧
Earnings: ASML, United Airlines, Discover, Ally💰
Thursday
US - Jobless Claims 🇺🇸
UK - Unemployment Rate 🇬🇧
EU - ECB Interest Rate 🇪🇺
JP - Inflation 🇯🇵
Earnings: Netflix, TSMC, Abbott, Intuitive Surgical, Dominoe, Nokia💰
Friday
UK - Retail Sales 🇬🇧
Earnings: American Express💰
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