Micro Today Ahead Of Macro Tomorrow

MARKET UPDATE

Incremental Chinese stimulus

• US $146 billion ($1 trillion yuan) focused on infrastructure spending

• Volumes remain near the lows for the year

10yr       3.1%  (Climbing)

More clarity today on how hawkish the Fed intends to be

• Kansas City Fed President Esther George at Jackson Hole

• “may have to take rates above 4%”

Balanced Portfolios are down in 2022

• Year to date

  • S&P 500    -13%

  • U.S. Gov’t and Corporate Bonds   -12%

The only years that have seen both stocks and bonds at a loss by end of August

• 1973

• 1974

• 1981

Crude    95           flat

Tesla TSLA

• 3-for-1 stock split today

• California set to vote on the ban of gasoline powered cars by 2035

• California is the largest auto market in the U.S.

Earnings

Nvidia NVDA -3%, guide lower for gaming

Salesforce CRM -5%, guide was light

Snowflake SNOW +16%, beat and raise, short squeeze

Autodesk ADSK +6%

Splunk SPLK  -1%

Williams-Sonoma WSM +3%, EPS beat

Dollar General DG -2%, EPS beat, not raising guide

Dollar Tree DLTR -8%, reported in-line but cutting guide

Peloton PTON -16%

Under the Radar

CRYPTO UPDATE

Depository Trust & Clearing Corp (DTCC): Project Ion

• Huge institutional adoption piece

• DTCC process virtually every trade in $40 trillion US stock market

• Joining crypto-revolution

• Testing private blockchain - Project Ion

• Processing +100,000 trades per day

• Big implications for settlement times

  • Potential to avoid meme-stock-fiascos

Global crypto traffic

• Traffic on exchanges dominated by US, 14.3%

• South Korea, 6.5%

• Russia, 4.9%

• Turkey, 3.5%

• Japan, 2.6%

These are the tickers dominating the news headlines:

data from Swaggy Stocks