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- The Investing Week Ahead: 8/8/22
The Investing Week Ahead: 8/8/22
Pickleball is legit, BlackRock CEO sells, Warren Buffett's -$53 billion loss, Celsius Energy Drinks made it big, Ethereum's upgrade, Consumer sentiment updates, and Core Inflation's importance.
Happy National Pickleball Day.
Sometimes these intros are more focused on the macro market environment, such as yesterday’s Week in Review excerpt on the inverted yield curve. Today… we need to call out the hottest sport in the country.
We also didn’t realize that Major League Pickleball (MLP) took over the New York Stock Exchange (NYSE) in May — ringing the opening bell!
Naturally, we thought about how this space could be investable. We’re not necessarily sprinting to the ‘buy’ button on pickleball plays during a recession, but below are some cool callouts:
Danger Close?
One other quick callout is that BlackRock CEO Larry Fink recently sold ~8% of his own stock. This is the largest stock sale he’s made since before the Covid crash. As many have said before, “BlackRock knows all and sees all…”
The Investing Week Ahead — Too Long, Didn’t Read:
⚡ Coinbase, Disney, Dutch Bros, Palantir, Roblox, & more report as we crawl toward the end of this earnings season.
⚡ Ethereum is in focus for the entire crypto space.
⚡ Prices for consumers, prices for producers, and overall sentiment will be updated.
Key Earnings Announcements:
Buffett encourages investors to overlook short-term investment losses, Celsius Energy Drinks reached the mountaintop, and Coinbase will dive deeper into its BlackRock relationship.
Monday (8/8): Barrick, Berkshire Hathaway, BioNTech, Blink, Digital Ocean, Dominion Energy, Lemonade, Luminar, Monday.com, Novavax, Palantir, Tyson, Upstart
Tuesday (8/9): Celsius Holdings, Coinbase, Hilton, Norwegian Cruise Line, Planet Fitness, Ralph Lauren, Roblox, Spirit Airlines, Sysco, The Trade Desk, Unity, Wish, Workhorse, Wynn Resorts
Wednesday (8/10): Bumble, Coupang, Disney, Dutch Bros, Fox, Jack in the Box, Marqeta, Paysafe, Sonos, Wendy’s, Wix
Thursday (8/11): Canada Goose, Illumina, Rivian, Six Flags, Vermillion Energy, Veru
Friday (8/12): ProPhase Labs, Spectrum Brands
What We’re Watching:
Investor Events:
Crypto folks hope ETH doesn’t disappoint, Coke vs. Pepsi, and conferences featuring dozens of S&P 500 companies.
Ethereum’s Transition to Proof-of-Work: On the same vein as the Coinbase notes above, crypto bulls are watching closely to see how Ethereum’s final merge test this week performs before transitioning to a proof-of-stake protocol. Digital asset providers of all kinds are hoping that the final “dress rehearsal” — called “Goerli” — goes smoothly for the Ethereum network.
Nielsen Retail Data: We’ll be eyeing how packaged goods such as generic beverages, beer, and spirits have performed over the last month. There’s currently uncertainty surrounding who has been gaining or losing market share among Coca-Cola (), Constellation Brands (), Keurig Dr. Pepper () , and PepsiCo ().
Conferences: BofA Securities 2022 SMID Cap Ideas Conference, Jefferies 2022 Industrials Conference JP Morgan Auto Conference, Oppenheimer 25th Annual Technology Internet & Communications Conference, UBS Financial Services Conference
Major Economic Updates:
That beautiful time of the month again — inflation for consumers, inflation for producers, University of Michigan’s sentiment reading, and more.
Monday (8/8): NY Fed 3-Year Inflation Expectations
Tuesday (8/9): NFIB Small Business Index
Wednesday (8/10): Consumer Price Index (Inflation), Federal Budget
Thursday (8/11): Producer Price Index
Friday (8/12): Import Price Index, House of Representatives Vote on “Inflation Reduction Act”, UMich Consumer Sentiment Index
Understanding Headline Inflation vs Core Inflation: The difference between the inflation numbers we see in the news and ‘core’ inflation is that food & energy are included in the headlines. These are more volatile to price changes than pretty much any other good or service, so the core inflation is often considered a better gauge for the true direction of inflation as a whole — not just a month-to-month stance. Regardless of if headline inflation appears to be slowing (given recent gas price decreases), we’d still expect significant Fed rate hikes if the core inflation comes in with the increase expected.
“Core inflation is something we think about because it is a better predictor of future inflation, but headline inflation is what people experience. They don’t know what core is. Why would they?” — Chair Fed Jerome Powell
Events Driven Winners:
What specific events are moving stocks the most?
Our friends at LevelFields scrub through thousands of data points each week to determine how events impact stock prices.
What an insane week of events-driven moves:
If you’re starting your investing journey or want to change to a cleaner, social-focused investing platform, consider visiting Public.com.
Disclaimer: This is not financial advice or recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
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