*This is sponsored advertising content.
Good Morning Everyone!
Remember, the stock market has doubled your money every ten years for the last 100 years (on average). It has done this with:
Recessions.
Depressions.
World Wars.
Crashes.
It’s a long-term game. Stay the course.
MARKET UPDATE
Yesterday’s rally (1.9%) being reversed on SNAP’s admission that Q2 estimates too high
Investors will now sharpen their pencils and focus on second-half estimates
Yesterday was a good day for the banks
S&P 500 +1.9%
Nasdaq +1.6%
JPM +6%
BAC +6%
Visa +4%
Apple +4%
MS +4%
Microsoft +3%
Why were financials so strong yesterday?
Jamie Dimon’s comments from JPM investor day:
Global economy looking like storm clouds not a Tsunami
JPM guided up Net Interest Income
Credit normalization will go past 2022 due to a strong consumer
Q2 2022 quarter-to-date trading looking up 15-20% vs. street estimates of down 2%
10yr 2.8%
Bond market is buying into peak inflation
Rates have dropped from 3% to 2.8%
12:20 p.m. Jay Powell at an economic summit
May Purchasing Power Index (PPI) data
Japan slight improvement
Australia PPI for May dropped
Europe PPI above low-expectations
UK dropped
U.S. 9:45 a.m. PPI data
China
Rolled out $21 billion of tax rebates to stimulate demand
(Not enough!)
Crude 110 flat
U.S. preparing to renew Chevron’s license to operate in Venezuela but without an expansion in production
SNAP -30% pre-market
Cut earnings forecasts below bottom end of previous guide
One-by-One, Social Media stocks (which rely on digital advertising, eCommerce) wiping out Pandemic gains
Google, Meta, Amazon, Twitter, Pinterest all effected by the drop in digital advertising from Lockdown highs
SNAP back to pre-pandemic levels
In hindsight:
The material surge in eCommerce and consequently in Digital Advertising that we got during the lockdown was unsustainable
Advertising is cyclical
Longer term, secular growth story in eCommerce and Digital Advertising is intact
Pre-market
SNAP -30%
Pinterest -13%
FB -7%
Google -4%
Twitter -4%
Earnings
Zoom already at pre-pandemic levels, +7% in pre-market
Heico
Auto Zone
Best Buy
Ralph Lauren
Petco
CRYPTO
At their peak, DeFi protocols represented over $200B in assets, or ~3% of the total market
Over the last year, however, that market share has been declining:
Bitcoin’s put/call ratio looks like it has peaked:
And short-term realized volatility has declined sharply over the last week:
Bitcoin is outperforming top DeFi tokens indicating a risk-off environment:
Remember China’s ban on Bitcoin mining? Many miners have come back online anyway:
This effect of more miners combined with increased network difficulty and a lower price has Bitcoin’s hashprice declining:
MEME OF THE DAY
Snap Inc ($SNAP) tumbled after the CEO announced the company would miss earnings and revenue targets. Here’s the flow before the news came out:
Disclaimer: The publisher does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author or paid advertiser.
Grit Capital Corporation is a publisher of financial information, not an investment advisor. We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient.
THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN.
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.
Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and the publisher undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.
The publisher, its affiliates, and clients of the a publisher or its affiliates may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Neither the publisher nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.
By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.