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[192.64.238.26]) by mx.google.com with ESMTPS id d190-20020a25e6c7000000b0067c2107c3f8si4206431ybh.529.2022.08.20.04.51.15 for (version=TLS1_3 cipher=TLS_AES_256_GCM_SHA384 bits=256/256); Sat, 20 Aug 2022 04:51:16 -0700 (PDT) Received-SPF: pass (google.com: domain of delivery_20220820075112.28793197.782674@bouncest.seekingalpha.com designates 192.64.238.26 as permitted sender) client-ip=192.64.238.26; Authentication-Results: mx.google.com; dkim=pass header.i=@seekingalpha.com header.s=sailthru header.b=r4NlDyCE; spf=pass (google.com: domain of delivery_20220820075112.28793197.782674@bouncest.seekingalpha.com designates 192.64.238.26 as permitted sender) smtp.mailfrom=delivery_20220820075112.28793197.782674@bouncest.seekingalpha.com; dmarc=pass (p=QUARANTINE sp=QUARANTINE dis=NONE) header.from=seekingalpha.com DKIM-Signature: v=1; a=rsa-sha256; c=relaxed; s=sailthru; d=seekingalpha.com; h=Date:From:Reply-To:To:Message-ID:Subject:MIME-Version:Content-Type: List-Unsubscribe; i=account@seekingalpha.com; bh=M1v2R/O/t4Q3SJUCXJz/C2gC/foBo+xpSlZk/fPVjA8=; b=r4NlDyCEtFG5JgCNlPuXN0f+SaE6C7mI5jlTmAMrm5b1dm65Sb1odWIiRywM8dvxigF7npqwKArI FhpDsn7aZOk3eeT6Jl2Vf9myD6yDcFGcohHHEeWMzOCFWAa/AZn12Pd4egbJupAagOkG6ZlOth6w xm3zVXHtNNyN1YyiXjs= Received: from nj2mta-15.sailthru.com (204.153.121.15) by pmta236-241.sailthru.com id h035b630o1ss for ; Sat, 20 Aug 2022 07:51:12 -0400 (envelope-from ) Date: Sat, 20 Aug 2022 07:51:12 -0400 (EDT) From: Seeking Alpha Reply-To: wsbfeedback@seekingalpha.com To: sterlingwhg@gmail.com Message-ID: <20220820075112.28793197.782674@sailthru.com> Subject: Wall Street Breakfast: What Moved Markets MIME-Version: 1.0 Content-Type: multipart/alternative; boundary="----=_Part_36593892_735846871.1660996272495" Precedence: bulk X-Feedback-ID: 9033:28793197:campaign:sailthru X-TM-ID: 20220820075112.28793197.782674 X-Info: Message sent by sailthru.com customer Seeking Alpha X-Info: We do not permit unsolicited commercial email X-Info: Please report abuse by forwarding complete headers to X-Info: abuse@sailthru.com X-Mailer: sailthru.com X-JMailer: nj1-badmanatee.flt X-Unsubscribe-Web: https://email-st.seekingalpha.com/oc/60c1e5c4dba83e59149ff347h54z1.grwy/1a09e2a1 List-Unsubscribe: , X-rpcampaign: stnjl28793197 X-Spam-Status: No, score=4.0 X-Spam-Score: 40 X-Spam-Bar: ++++ X-Spam-Flag: NO ------=_Part_36593892_735846871.1660996272495 Content-Type: text/html; charset=utf-8 Content-Transfer-Encoding: quoted-printable
The stock market's four-week winning streak came to an end, in reaction to = an overbought market that was due for a pullback. After Wall Street's impre= ssive recent rally and with central bank tightening in the pipeline, trader= s saw an opportunity to trim back positions. Friday=E2=80=99s drop followed= earlier minutes from the Federal Reserve=E2=80=99s July meeting and commen= ts from St. Louis Federal Reserve President James Bullard that indicated th= e Fed likely would continue hiking rates in the near term, dampening invest= or hopes for a less aggressive stance. Germany's hotter than expected readi= ng on producer prices renewed inflation concerns and helped lift the U.S. T= reasury market, including the 10-year yield, which jumped 11 basis points F= riday and 14 basis points for the week to 2.99%. For the week, the S&P = 500 fell 1.2% and the Dow Jones average ticked 0.2% lower while the Nasdaq = Composite slid 2.6%.
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The stock market's four-week winning streak came to an = end, in reaction to an overbought market that was due for a pullback. After= Wall Street's impressive recent rally and with central bank tightening in = the pipeline, traders saw an opportunity to trim back positions. Friday=E2= =80=99s drop followed earlier minutes from the Federal Reserve=E2=80=99s Ju= ly meeting and comments from St. Louis Federal Reserve President James Bull= ard that indicated the Fed likely would continue hiking rates in the near t= erm, dampening investor hopes for a less aggressive stance. Germany's hotte= r than expected reading on producer prices renewed inflation concerns and h= elped lift the U.S. Treasury market, including the 10-year yield, which jum= ped 11 basis points Friday and 14 basis points for the week to 2.99%. For t= he week, the S&P 500 fell 1.2% and the Dow Jones average ticked 0.2% lo= wer while the Nasdaq Composite slid 2.6%.
Trending
Wha= le Watch
Growth stocks were among the favorites for hedge fund w= hales in the second quarter. Monday was the deadline for hedge funds with m= ore than $100M in assets under management, as well as other institutional i= nvestors and endowments, to report certain stock holdings through 13F filin= gs. The 13F season gives investors a glimpse into where the big players are= betting, albeit with dated information.

A number of hedge funds and= money managers looked to pick up beaten-down growth stocks, such as tech, = in Q2. From April to June, the Nasdaq 100 (NDX) (QQQ) fell mo= re than 22%, while the S&P 500 (SP= 500) (SPY) was d= own about 16.5%.

Who's buying what?: Among the big-name dis= closures, Warren Buffett's Berkshire-Hathaway (BRK.A) (BRK.B) boosted its stake in Activision (ATVI) to ~68.4M shares from 64.3M. It also exited its stake in Veri= zon (VZ).

Soro= s Fund Management made a new investment in Tesla (TSLA) (~29.9K shares)= and disposed of its stakes in MGM Resorts (MGM) and Solid Power (SLDP).

David Tepper's Appaloosa took new positions in Salesf= orce (CRM), buying 200K shares= , Alibaba (BABA)= , acquiring 100K shares, and Netflix (sta= rted a stake in Pinterest (PIN= S) and shed Twitter (TWTR), = Ray Dalio's Bridgewater started positions in Rivian (RIVN) and Amazon (AMZN), the Gates Foundation turned to= autos with Vroom (VRM) and Car= vana (CVNA), and Carl Icahn eyed Bausch + Lomb (BLCO).

Dan Loeb ta= kes aim at Disney: It wouldn't be 13F season without some hedge fu= nd saber rattling. Dan Loeb's Third Point Capital revealed a new stake of 1M shares in Disney (<= a href=3D"https://email-st.seekingalpha.com/click/28793197.782674/aHR0cHM6L= y9zZWVraW5nYWxwaGEuY29tL3N5bWJvbC9ESVM_bWFpbGluZ2lkPTI4NzkzMTk3JnNlcmlhbD0y= ODc5MzE5Ny43ODI2NzQmdXNlcmlkPTM1Mzg0NTE1JnNvdXJjZT1lbWFpbF93c2ImbWVzc2FnZWl= kPXdhbGxfc3RyZWV0X2JyZWFrZmFzdCZ1dG1fc291cmNlPXNlZWtpbmdfYWxwaGEmdXRtX21lZG= l1bT1lbWFpbCZsY3RnPTYwYzFlNWM0ZGJhODNlNTkxNDlmZjM0Nw/60c1e5c4dba83e59149ff3= 47B05b52699" title=3D"The Walt Disney Company">DIS) in its filing, but = added in a letter directly to the company that in recent weeks it had = =E2=80=9Crepurchased a significant stake.=E2=80=9D

Third Point lobbi= ed for a refresh of the Disney board, made its case for an ESPN spinoff and= also asked the FTC for permission to engage directly with the company.

Disney defended= the composition of its board and noted that members have an average tenure= of just four years.
     
Economy
Housing Crunch
This week's housing data did much to confirm a slowdown= sought by the Federal Reserve. Along with what may have been peak inflatio= n last week, cooler housing data is another piece in the puzzle as the FOMC= tightens conditions. The outlier remains the labor market, where jobless c= laims dropped this week and payroll growth remains strong.

By th= e numbers: the August NAHB measure of homebuilder confidence fell belo= w 50 for the first time since May 2020. Housing starts for July drop= ped 9.6%, more than expected, (although permits dropped less than forecast)= . And most recently the NAR reported that July existing home sales fell 5.9= %, more than anticipated.

"Existing home sales have now fallen for s= ix months in a row, and are 26% lower than the January peak," Pantheon Macr= o Economist Ian Shepherdson said. "But the bottom is still some way off, gi= ven the degree to which demand has been crushed by rising rates; the requir= ed monthly mortgage payment for a new purchaser of an existing single-famil= y home is no longer rising, but it was still up by 51% year-over-year in Ju= ly."

"To make matters worse, the market is now grappling with rapidl= y rising supply as well as crumbling demand," he added. "Our measure of sea= sonally adjusted existing single-family homes for sale rose 6% in July, but= it has a long way to go before it reaches pre-Covid levels."

"Home = sales likely have further to fall," Odeta Kushi, deputy chief economist at = First American Financial, tweeted. "Mortgage applications so far in August = point to another decline in existing-home sales. This month's number of 4.8= 1 million puts us at about 2014 sales level." (See chart at bottom.)
Fed reaction: The market predictions for the Fed's move next mont= h have been volatile through the week and there is still Jackson Hole comin= g next week. But while chatter from members remains hawkish, after all the = housing figures expectations are back to a 65% chance of 50-basis-point hik= e over 75.

"Fed officials pay particularly close attention to the ho= using market and are monitoring how higher mortgage rates are impacting hom= e sales and housing prices in order to gauge how tighter monetary policy is= affecting the broader economy," Wells Fargo economists wrote.

In th= e July FOMC minutes just released, members said housing ac= tivity =E2=80=9Chad slowed notably."

"We agree with the Fed's assess= ment that home sales likely have further to fall," Wells Fargo said. "As of= August 12, mortgage applications for purchase have declined on a week-to-w= eek basis in seven of the previous eight weeks."

Retail resi= lience? While housing is struggling there were also signs for some= optimism. Results from Home Depot (HD) and Lowe's (LOW<= /a>) showed that the home improvement consumer is "holding up quite well," = according to Oppenheimer analyst Brian Nagel.

"The single most start= ling number in the July retail sales report was the 1.5% jump in the buildi= ng materials component, the best performance in the sector since January," = Pantheon's Shepherdson said. "But don=E2=80=99t be fooled; this is noise, n= ot signal. The monthly data are erratic, but the trend is clear."

"I= n short, the worst is yet to come for housing-sensitive retailers," he said= . "Their sales will fall even as other retailers and providers of domestic = services benefit from the rebound in discretionary incomes now underway as = gas prices drop and payrolls continue to rise rapidly." <= !--EndFragment-->
     
On The Move
Man Un= ited M&A
Elon Musk stirred up soccer fans and investors when he tweeted that he was = buying Manchester United (MA= NU). Four-and-a-half hours later he said that he was joking.

"Al= so, I=E2=80=99m buying Manchester United ur welcome," Musk replied in a thr= ead. "No, this is a long-running joke on Twitter. I=E2=80=99m not buying an= y sports teams," he replied later. "Although, if it were any team, it would= be Man U. They were my fav team as a kid."

But Musk's tweet kicked = off a sudden flurry of activity in shares of the famed but beleagured socce= r team as the unpopular (with fans)=C2=A0Glazer family indicated for the fi= rst time they would be open to selling a minor= ity stake.

The Glazers have faced resistance from fans since the= late Malcolm Glazer bought the team in a 2005 leveraged buyout, pressure t= hat intensified after coach Sir Alex Ferguson's retirement in 2013, leading= to a lull in the team's success - and growing protests against ownership.<= br>
Shares rallied further amid reports that one of Britain's richest me= n is interested in a piece of the club action. Billionaire Sir Jim Ratcliff= e, founder of Ineos Group, is "definitely a potential buyer," a spokesman s= ays according to The Times.=C2=A0=C2=A0Ratcliffe usually = looks for full control of businesses he buys into, but would consider the m= inority investment that the Glazers are seeking. =E2=80=9CIf something like= this was possible, we would be interested in talking with a view to long-t= erm ownership," Ratcliffe's spokesman said, adding that fresh investment in= to Man United could help upgrade infrastructure where it's badly needed, su= ch as the team's Old Trafford stadium.

Later reports said that MANU = had entered=C2=A0discussions with Apollo Global= Management=C2=A0(AP= O) over the investment.=C2=A0Any such deal wouldn't be wrapped up until= next month at the earliest.
     
Global
China Rate Cut
China lowered two key lending rates and injected more c= ash into its economy Monday as it looks to keep stimulating the economy. Th= e country remains the global monetary policy outlier, with the rest of the = major economies tightening in an effort to tame inflation.

The Peopl= e's Bank of China cut its one-year lending facility rate by 10 basis points= to 2.75% and cut the seven-day lending rate the same amount to 2%. The PBO= C added 2 billion yuan through seven-day reverse repos.

Economists h= ad expected the seven-year rate to stay steady. But policymakers are still = clearly worried that risks are to the downside with strict COVID policies a= nd weakness in housing, even though plenty of liquidity is stoking inflatio= n pressures.

Later in the day, the government reported a batch of mo= stly disappointing economic data.

China July Industrial Production r= ose 3.8% y/y (vs. 4.6% expected) and slightly lower than the 3.9% figure re= ported in June. Retail sales increased 2.7% in July compared with the same = period in 2021, below the 5% forecast. In addition, China's jobless rate fo= r 16-to-24-year-olds hit 19.9%, the highest ever recorded. And new house pr= ices were down 0.9% y/y (vs. down 0.5% prior).

Rebound still see= n: Still, the "question is no longer whether we get a rebound (in the = Chinese economy), but how much of one," Morgan Stanley Economist Seth Carpe= nter wrote in a note. "Covid-zero policies are slowly easing and we think m= ore relaxation will follow the Party Congress in October," Carpenter said. = "But will freedom of mobility be enough to reverse the challenges of the ho= using market? Recent policy action to address the housing crisis will help,= but I fully expect that a much larger package will be needed. Ultimately c= onsumer and property confidence will need to make a rapid recovery if the r= ebound can take shape," he added.
     
Tech
iPhone 14 Releas= e
Apple (AAPL) is= reportedly looking at holding its annual fall product event, including the= announcement of its iPhone 14 product line, on Sept. 7.

The iPhone = 14 lineup may include four models, including a Pro and Pro Max, which some = analysts expect will both receive a $100 price increase over last year's iP= hone 13 Pro and Pro Max models. The event is likely to see the unveiling of= three Apple Watch models and perhaps new Macs and iPads as well. Bloomberg= also reported that the new Apple products could reach stores on Sept. 16.<= br>
Supply chain optimism: Separately on Wednesday, investment = firm Wedbush Securities said Apple was seeing a "further slight improvement= " in its supply chain.

Analyst Dan Ives, who has an Outperform ratin= g on Apple, boosted his price target on the company's stock to $220 a share= from $200. Ives noted that the initial order of 90M iPhone 14 units has "s= tayed firm", and despite the weakening economic conditions, strong demand i= s still there for Apple products. Credit Suisse upgraded Apple to Outperfor= m on Tuesday, citing the company's massive user base of almost 2B installed= devices.
     

U.S. Indices
Dow -0.2% to 33,707. S&P 500 -1.2% to 4,228. Nasdaq -2.6% to 12,705. Russell= 2000 -2.9% to 1,957. = CBOE Volatility Index +5.5%= to 20.6.

S&P 500 Sectors
Consumer S= taples +2.5%. Utilit= ies +2.2%. Financial= s -0.1%. Telecom -1.3%. Healthcare +0.7%. Industrials +0.1%. Information Technology = +0.3%. Materials -0.9%. Energy +1.8%. Consumer Discretionary <= span class=3D"red" style=3D"color: #ff0000;">-0.1%.

= World Indices
London +0.7% to 7,550. France -0.9% to 6,496. Germany -1.8% to 13,545. Japan +1.3% to 28,930. China -0.6% to 3,258. Hong Kong -2.% to 19,773. India +0.3% to 59,646.

Commodities an= d Bonds
Crude Oil WTI -2.3% to $89.97/bbl. Gold -3.% to $1,760.3/oz. Natural Gas +5.8% to 9.28. Ten-Year Bond Yield -0.2 bps to= 2.976.

Forex and Cryptos
EUR/USD -2.15%. USD/JPY +2.58%. GBP/USD -2.46%. Bitcoin -13.7%. Litecoin -14.4%. Ethereum -18.%. XRP = -10.3%.

Top S&P 500 Gainers
Occident= al Petroleum Corporation (OXY) +8%= . Coterra Energy Inc. (CTRA) +6%. The Kroger C= o. (KR) +5%. Eli Lilly and Company (LLY) +5%. The Progressive Corporation (PGR) +5%.

Top S&P 500 Losers
Mo= derna, Inc. (MRNA) -15%. Etsy, Inc. (ETSY) SEDG) -9%. Caesars Entertainment, Inc. (CZR) -9%. Match Group, Inc. (-9%.
<= br>Where will the markets be headed next week? Current trends and ideas?= Add your thoughts to the comments section.
Seeking Alpha=E2=80=99s Wall Street Breakfast Podcast
Seeking Alpha's Wall Street Breakfast podcast brings you all the news you n= eed to know for your market day. Released by 8:00 AM ET each morning, it is= a quick listen that you can put on as you get ready to start your working = day.
 
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