August 3, 2023
Good morning,
Stocks fell and longer-term bond yields rose yesterday following a hot jobs data report (ADP) and the Treasury announcing it will ramp up its debt issuance – both before the market open. Another factor in yesterday’s selloff came from Fitch, the ratings agency. As they hinted at earlier this year, Fitch downgraded their rating on US debt from AAA to AA+ on Tuesday evening. This may be the biggest news story this week but there are still big earnings coming out today. Apple and Amazon will announce their earnings reports after the market close this afternoon. Big tech earnings have received mixed receptions from investors. Netflix and Tesla took a beating after their earnings announcements while other names in the space had more positive reactions. Apple’s importance cannot be understated since it is the largest stock in the world. That’s not to undersell Amazon either, it is a top five market cap name as well. Outside of Nvidia which reports on August 23rd, this week will wrap up earnings for most of the mega cap names.
Be well,
Mike