Searing Semis

Semiconductors push the S&P and NASDAQ to new ATHs, Boeing has more bad news

NEWS
Searing Semis

The S&P 500 and the NASDAQ hit new all-time highs again. Traders and investors are getting ready for a whirlwind week: Fed Chair Powell speaks Tuesday and Wednesday, PPI and Michigan Consumer Sentiment on Friday, but Thursday is the day everyone’s watching. Why? Inflation data.

Also, your regular Daily Rip writer Mr. Tom Bruni is out this week. So you’re stuck with me (Jon Morgan), the author of our crypto newsletter The Litepaper. Let’s see what you missed. 👀

Today's issue covers semiconductors spiking and Boeings latest blunder. 📰

Here's today's heat map:

5 of 11 sectors closed green. Technology (+0.72%) led, & communications services (-1.01%) lagged. 💚

AMC’s CEO took to X and posted data about the record holiday weekend. Sentiment on the Stocktwits app flipped to extremely bulllish and AMC is up +8.32%. 🎞️ 

Inflation expectations are a mixed bag. One-year inflation expectations dropped to 3.0% from 3.2%, but three-year inflation ticked up to 2.9% from 2.8%. Meanwhile, expectations for home price increases and other essentials like rent and food also fell. 🏠

Consumer credit is on the rise again, with total borrowing jumping $11.3 billion in May, the biggest gain in three months. Credit card debt surged by a 6.3% annual rate, while auto and student loans saw a more modest increase. 🛒

Container prices aren’t going the direction bulls wanted. ZIM is down -15.15% today and getting closer to its June lows. Shippers in general might be wading water for a while. Ouch. 🤕 

The Employment Trends Index dipped to 110.27 from 111.44. The index suggests employment might cool in the second half of 2024, though it remains above pre-pandemic levels. Expect a modest slowdown rather than a crash. 📉

Gold's shine is fading as China skips gold purchases for the second month in a row. This news wiped out potential gains, signaling a rough patch for gold despite global economic uncertainties. 💰

In the crypto space, Ethereum's price steadies as all eyes are on the SEC's potential approval of spot ether ETFs. A decision could come as early as this week or next, possibly shaking up the market. 🚀

Other active symbols: $ZAPP (+18.61%), $INTC (+0.27%), $NKE (-3.15%), $CMG (-5.16%), $SBUX (-1.95%), $BEEM (-18.00%), and $PEP ($-1.38%) 🔥

Here are the closing prices: 

S&P 500

5,572

+0.10%

Nasdaq

18,403

+0.28%

Russell 2000

2,038

+0.59%

Dow Jones

39,344

-0.08%

NEWS
Semis Surge ⚡️ 

Cooling inflation, insane demand for chips to power AI, a dwindling supply, take your pick for a reason(s) why semiconductors are heating up today. 🌶️ 

Today's market action saw some semiconductor giants making significant gains:

  • Advanced Micro Devices ($AMD): +3.95%

  • Taiwan Semiconductor Manufacturing Company ($TSM): +1.43%, new all-time highs

  • NVIDIA Corporation ($NVDA): +1.88%

  • Broadcom Inc. ($AVGO): +2.50%

  • iShares Semiconductor ETF ($SOXX): +1.90%, hitting the highest close in its history 🏆

Solid Growth Across the Board

The Semiconductor Industry Association (SIA) reported that global semiconductor sales hit $49.1 billion in May, marking a 19.3% increase from the same month last year. 😱 

This is the largest year-to-year growth since April 2022. On a monthly basis, sales jumped 4.1% from April’s $47.2 billion. John Neuffer, SIA president and CEO, highlighted that the global semiconductor market has consistently grown year-to-year, with the Americas leading the charge with a whopping 43.6% year-to-year sales increase. 

Revenue Expectations Soar

Click to enlarge.

The resurgence in demand is also reflected in the revenue projections for major players in the semiconductor industry. NVIDIA, for example, is expected to see its revenues spike, driven by the increasing demand for GPUs in AI applications.

Analysts project robust growth for companies like AMD and Broadcom as well, as they continue to innovate and capture market share in the expanding AI market. 🔋 

STOCKTWITS & 11thESTATE PARTNERSHIP
Submit Your Alphabet Claim By July 25th!

$GOOG has agreed to a $350 million settlement with shareholders to resolve claims related to the security issues of Google+.  

Back in 2018, Alphabet was accused of hiding a major security flaw in its Google+ social network. This exposed users' private data to third parties between 2015 and March 2018. Following this news, $GOOG fell significantly, and Alphabet faced a lawsuit from shareholders.

Now, Alphabet has decided to pay the affected shareholders to avoid further litigation. 

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