Traders Market Weekly: The Fed, Weed and Guns

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    Farnborough Air Show:

    The global aviation industry will be watching for headlines out of the Farnborough International Airshow.

    Boeing will demonstrate the 737 MAX 10 in a flying display and the newest 777X widebody. The company will also highlight developments with sustainable, autonomous flight, and the eVTOL Wisk Aero joint venture.

    Airbus will present the A350-900 widebody capabilities in a daily flying display and could also announce a deal with Delta Air Lines (DAL) for more A220 narrowbody planes.

    Other companies due to make appearance at the air show include NI (NATI), Ansys (NSS), Lockheed Martin (LMT), Rolls-Royce (OTCPK:RYCEY), and BAE Systems (OTCPK:BAESF). Also watch for Boom Supersonic, which recently won commitments from United Airlines (UAL) for its Overture passenger supersonic jet last year that has a proposed Mach 1.7 speed and 4,250 nautical miles of range,


    Nikola (NKLA) shareholders are scheduled to vote on July 18 on Proposal 2 to increase the number of outstanding shares to 800M from 600M.

    Microsoft (MSFT) holds its two-day Inspire event on July 19-20 to focus on the opportunities in the cloud for partners.

    The Bloomberg Crypto Summit will take place in New York on July 19 Speakers include representatives from FTX, Tezos (XTZ-USD), Ripple (XRP-USD), Binance, and Coinbase Global (COIN). One of the more intriguing sessions will cover Web 3.0, the Metaverse and Blockchain Gaming potential. Amid growing questions about consumer spending and a potential trade-down effect, the National Retail Federation will hold a webinar on July 19 to discuss consumer spending expectations for the 2022 back-to-school and college shopping season. The event will highlight NRF’s latest consumer data. and could be noteworthy for major retail chains like Walmart (WMT), Target (TGT), Costco (COST), Dollar General (DG), and Dollar Tree (DLTR).

    Capri Holdings Limited (NYSE:CPRI) will host an Investor Day event on July 20 with presentations and a question and answer session with the management team. Execs from the Versace, Jimmy Choo and Michael Kors businesses will give talks. Eliem Therapeutics (NASDAQ:ELYM) and Creatd Inc. (NASDAQ:CRTD) have investor events scheduled for July 21.


    Stock splits: GameStop (GME) will begin trading on a split-adjusted basis on July 22.


    Box office preview :

    Disney’s (DIS) Thor: Love and Thunder is expected to top the weekend box office for a second time in a row with a haul of around $50M. Paramount’s (NASDAQ:PARA) Paws of Fury: The Legend of Hank and Sony Picture’s (SONY) Where the Crawdads Sing hope to shake up what has been a tentpole heavy summer. Netflix (NFLX) is running out spy film The Gray Man in 450 theaters in U.S. and Canada.


    Barron’s mentions:

    The publication sees an opportunity in apartment REIT stocks with home prices and mortgage rates on the rise. Apartment REITs are noted to be trading at a 21% discount to the value of their underlying assets, compared to 3% a year ago. The recommendation is to look at large-cap REITs with strong balance sheets, good management teams, and safe dividends with a focus in geographic areas of the country seeing strong apartment occupancy rates.

    AvalonBay Communities (NYSE:AVB), Equity Residential (NYSE:EQR), Camden Property Trust (NYSE:CPT), Mid-America Apartment Communities (MAA), Apartment Income REIT (NYSE:AIRC), and UDR (UDR) all make the list.


    The futures for the major indices have pulled back some from their highs.

    The S&P 500 futures are up 27 points and are trading 0.7% above fair value.
    The Nasdaq 100 futures are up 114 points and are trading 0.9% above fair value.
    The Dow Jones Industrial Average futures are up 274 points and are trading 0.9% above fair value.

    WTI crude oil futures rose above $100.00/bbl, up 3.8% to $101.35/bbl. Natural gas futures are up 4.1% to $7.21/mmbtu. Unleaded gasoline futures 2.4% $3.28/gal.

    Treasury yields are also on the rise ahead of the open. The 2-yr note yield is up four basis points to 3.17% while the 10-yr note yield is up six basis points to 2.99%.


    Equity indices in the Asia-Pacific region began the week on a higher note while Japan’s Nikkei was closed for Marine Day.

    China extended lockdown measures in some areas.
    New Zealand’s Q2 CPI increased at its fastest yr/yr pace in more than 30 years.
    The Reserve Bank of New Zealand announced a new standing repurchase facility after short-term rates slipped below the official cash rate.
    South Korea’s President Yoon will meet with U.S. Treasury Secretary Yellen tomorrow.

    —Equity Markets—

    Japan’s Nikkei: CLOSED
    Hong Kong’s Hang Seng: +2.7%
    China’s Shanghai Composite: +1.6%
    India’s Sensex: +1.4%
    South Korea’s Kospi: +1.9%
    Australia’s ASX All Ordinaries: +1.3%


    New Zealand’s Q2 CPI 1.7% qtr/qtr (expected 1.5%; last 1.8%); 7.3% yr/yr (expected 7.1%; last 6.9%)
    Singapore’s June trade surplus SGD4.494 bln (last surplus of SGD3.013 bln). June non-oil exports 3.7% m/m (expected 2.3%; last 2.8%); 9.0% yr/yr (expected 6.7%; last 12.0%)


    Major European indices trade mostly in the green.

    The U.K.’s conservative party leadership contest will continue today.
    Italy’s Prime Minister Draghi is reportedly still intent on resigning in the coming days.
    Moody’s affirmed Spain’s Baa1 rating with a Stable outlook.
    Bank of England policymaker Saunders said that more monetary tightening is likely to take place in the U.K.

    —Equity Markets—

    STOXX Europe 600: +1.0%
    Germany’s DAX: +0.7%
    U.K.’s FTSE 100: +1.0%
    France’s CAC 40: +0.9%
    Italy’s FTSE MIB: +1.2%
    Spain’s IBEX 35: -0.2%


    Italy’s May trade deficit EUR12 mln (last deficit of EUR3.639 bln)
    Spain’s May trade deficit EUR4.76 bln (last deficit of EUR6.40 bln)


    Bank of America (BAC 32.12, -0.13, -0.4%): Bank of America misses by $0.02, reports revs in-line
    Synchrony Financial (SYF 32.66, +1.16, +3.7%): Synchrony Financial beats by $0.22
    Boeing (BA 153.85, +6.11, +4.1%): Delta Air Lines to modernize single-aisle fleet with up to 130 Boeing 737 MAX jets; and the company is very close to resuming 787 deliveries, according to The Wall Street Journal.
    Goldman Sachs (GS 303.50, +9.63, +3.3%): Goldman Sachs beats by $1.12, beats on revs; approves 25% increase in quarterly dividend to $2.50/share


    U.S. Treasuries are on track for a modestly lower start with longer tenors expected to show relative weakness in the early going.

    The greenback is seeing broad-based weakness after the U.S. Dollar Index gained 1.1% last week. The Index is down 0.7% at 107.33 today, slipping into the lower half of its range from last Monday.

    Yield Check:
    2-yr: +2 bps to 3.15%
    3-yr: +1 bp to 3.15%
    5-yr: +1 bp to 3.06%
    10-yr: +2 bps to 2.95%
    30-yr: +2 bps to 3.11%


    Dow 31,072.61 -215.65 -0.69%
    S&P 500 3,830.85 -32.31 -0.84%
    Nasdaq 11,360.05 -92.37 -0.81%
    GlobalDow 3,459.32 20.65 0.60%
    Gold 1,705.20 1.60 0.09%
    Oil 102.17 4.58 4.69%


    The first court hearing between Twitter and Elon Musk is set for July 19 at 11AM ET in Delaware Court of Chancery chancellor Kathaleen McCormick
    The 90-minute session will have the judge hear arguments relating to Twitter’s request for a September trial.


    Equity indices in the Asia-Pacific region ended Tuesday on a mixed note.

    Japan’s Nikkei: +0.7%,
    Hong Kong’s Hang Seng: -0.9%,
    China’s Shanghai Composite: UNCH,
    India’s Sensex: +0.5%,
    South Korea’s Kospi: -0.2%,
    Australia’s ASX All Ordinaries: -0.5%.
    Economic data was limited:

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