China/U.S. Tensions Top Of Mind

Good Morning Everyone!

Remember, generational wealth is built during bear markets.

Prices as of 4 pm EST, 8/1/22; % YTD

MARKET UPDATE

Heightened political tensions

• Nancy Pelosi visiting Taiwan tonight

• Makes her the highest ranking American to visit Taiwan in 25 years

• Her visit is in defiance of Chinese threats

• President Xi wants to appear strong as he seeks a 3rd term amidst China’s current economic weakness

• Despite geopolitical uncertainty, Q2 heavy earnings calendar continues (we are half way through Q2 earnings).

10yr    2.5%    move down in yields continue

3.5% to 2.5% since June 14, 2022

Crude   94      flat

• OPEC+ meeting tomorrow

TD Bank TD

• TD sells 28.4 million shares of Schwab common stock (1.5% of Schwab’s outstanding stock)

• Reduces TD’s ownership interest in Schwab from 13.4% to 12%

• TD buying Cowen investment bank ($900 million market cap)

Earnings

• ATVI Activision Blizzard

• PINS PINS

• WMB Williams

• DVN Devon

• AFL Aflac

• SPG Simon Property

• SPGI S&P Global

• CAT Caterpillar             miss on margins

• BP BP

• ITW Illinois Tool Works

• MAR Marriott

• UBERUber                    Q2 revenue and EBITDA beat, Q3 guide up

• MOS Mosiac

• CF CF Industries

• TAP Molson Coors            Q2 miss

CRYPTO UPDATE

Tiffany’s (the jeweler)

• Tiffany’s is launching first series of NFTs

• 250 NFTs @ 30 ETH each (~$51k)

• Related: CryptoPunk NFT sales jumped 248% after Tiffany’s launch

Blockchain gaming dominating crypto venture investments

• 258 of 694 blockchain-related deals were related to NFTs & Gaming

• Represent combined value of $2.6B

• Blockchain gaming accounts for 52% of all Unique Active Wallets

MEME OF THE DAY