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Hi All - Happy Tuesday,
We are going to continue offering polls this week to gather your thoughts on “The Midday Trade” and help us make a decision on how to move forward with it.
There are 4 Days left to give us your feedback,and any input is greatly appreciated!
What did you think of "The Midday Trade"? |
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With that out of the way, here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.
🟨 | US Stocks Were Mixed on Tuesday. The Dow rose half a percent, while the S&P 500 and Nasdaq dipped as the tech sector struggled.
📈 | One Notable Gainer: Sprouts Farmers Market’s stock surged 13% after the company reported Q2 earnings and EPS that outperformed Wall Street’s estimates. It also provided an optimistic full-year earnings forecast that “blew past” analysts’ expectations.
📉 | One Notable Decliner: Shares of Tesla tumbled 4% after the automaker recalled 1.8 million EVs over unlatched hood issues.
💰 | Tomorrow's Trade: Warren Buffett Is Selling This Stock. Scroll down for more.
Plus, today’s partner helps find your perfect fiduciary financial advisor. Take their matching quiz.
YESTERDAY’S POLL RESULTS
Are you bullish or bearish on CrowdStrike (CRWD) over the next 12 months?
🟩🟩🟩🟩🟩🟩 Bullish 🐂
🟨🟨🟨🟨🟨⬜️ Bearish 🐻
All Stock Heatmap. Credit: Finviz
Global ADR snapshot. Credit: Finviz
MARKET MOVERS
DG (+2%) Dollar General’s stock rose after Goldman Sachs reiterated its Buy rating due to spending trends of low-income consumers (CNBC)
VRNS (+15%) Shares of software company Varonis Systems shot higher after reporting a narrower-than-expected Q2 loss (MW)
FFIV (+13%) F5’s stock soared after the online fraud prevention firm reported earnings that showed robust growth in its software business (Barron’s)
SYM (-24%) Robotics specialist Symbotic hit a new 52-week low after issuing weak fiscal fourth quarter guidance and mixed results (Motley Fool)
AMKR (-19%) Semiconductor packager Amkor Technology beat Q2 earnings and revenue estimates but gave a disappointing third-quarter outlook (YF)
TOGETHER WITH ADVISOR.COM
Financial Wellness: Game On
Whether you're a beginner or a seasoned player in the game of finance, find your perfect fiduciary financial advisor who understands your goals and plays by your rules. We compare 2024's Top Financial Advisors & CFPs based on credentials, client reviews, and experience to ensure you get the best guidance. Don't let financial anxiety drain your battery. Start the quiz now and kick your investment jitters to the curb. There's no better time than the present.
OVERHEARD ON THE STREET
CNN: A US appeals court blocked the US Transportation Department's new rule requiring airlines to disclose all fees up front.
CNBC: Neuralink rival Synchron’s brain implant now lets people control Apple’s Vision Pro with their minds.
Reuters: The US consumer protection authority announced that Amazon is responsible for hazardous products sold by third-party sellers on its platform.
NYT: Meta reached a $1.4 billion settlement with Texas over privacy violations that included collecting the facial identification information of millions of users.
FT: Bill Ackman has slashed the fundraising target for Pershing Square’s IPO to $2 billion, a fraction of the initial $25 billion target.
TOMORROW’S TRADE IDEA, TODAY
A Significant Sell-Off
Bank of America (BAC) is one of Berkshire Hathaway’s (BRK) most substantial and longest-held investments. Now Warren Buffett is trimming its holdings.
The Oracle of Omaha recently disclosed his third disposal of BofA shares, unloading a total of $3 billion this month. Now, investors are speculating about what caused the famed investor to make this move.
Berkshire still owns around $41 billion worth of BofA shares.
Take the Money and Run
Buffett has gone on record in the past saying that he believed very strongly in the bank’s management, operations, and valuation. However, the stock is trading at 12 times forward earnings, up from its two-year average of 10 times.
The stock is up 21% YTD, so Buffett could just be selling high.
Tax Savings
Another factor could be tax savings. In May Buffett sold a portion of his Apple (AAPL) holding and indicated that a major motivation was avoiding an even bigger tax bill in the future. The BAC offload could fit this strategy if Buffett is expecting corporate taxes to increase.
Buffett paid more than $5 billion in corporate taxes last year. He has stated that he thinks taxes may increase as a means for the government to cut down on the deficit.
Whatever the reasons behind the move, Buffett is an icon in the investing world and investors like to closely monitor his choices.
Why do you think Buffett chose to sell Bank of America (BAC) shares? |
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TOGETHER WITH ADVISOR.COM
Financial Wellness: Game On
Whether you're a beginner or a seasoned player in the game of finance, find your perfect fiduciary financial advisor who understands your goals and plays by your rules. We compare 2024's Top Financial Advisors & CFPs based on credentials, client reviews, and experience to ensure you get the best guidance. Don't let financial anxiety drain your battery. Start the quiz now and kick your investment jitters to the curb. There's no better time than the present.
ON OUR RADAR
NPR: Inflation is pinching Americans — but they are still splurging on their pets despite prices for pet products and services surging 25.8% in the last five years.
BBC: Air New Zealand has abandoned a 2030 goal to cut its carbon emissions, blaming difficulties securing more efficient planes and sustainable jet fuel.
BI: Early-stage startup founders are putting their dreams on hold during the tech downturn, going to work as employees at other companies.
NYP: The University of Alabama is the latest public college system to do away with its Diversity, Equity, and Inclusion (DEI) programs.
YF: Investors holding a record $6 trillion into money market funds is a contrarian bullish signal, according to Bank of America.
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