Oof. Red across the board. Only one sector closed in the green today and all the indices are in the red. Earnings continue to tell investors a common theme: the consumer is pulling back. Let’s see what you missed. 👀

Today's issue covers Netflix’s earnings, ECB rate cuts incoming (maybe), and Domino’s earnings. 📰

Here's today's heat map:

1 of 11 sectors closed green. Energy (+0.33%) led, & health (-2.29%) lagged. 🟥

Tech stocks remained in a slump. Nvidia, TSMC, and ASML took significant hits amid broader market rotation, extending losses from the prior session. TSMC's strong quarterly earnings and raised 2024 sales outlook briefly lifted the mood but couldn't prevent further declines. Overall, tech and chip stocks struggled. ⚡

The Conference Board's leading indicators for June came in at -0.2%, slightly better than the expected -0.3% but still showing no signs of setting the markets on fire. This composite index of already-released data is the equivalent of checking yesterday's weather forecast – interesting but hardly a game changer. It's a handy reminder that the recent trend in economic data remains lukewarm at best. 🌡️

The IMF, never short on unsolicited advice, thinks the Fed should hold off on cutting rates until at least late 2024, waiting for clearer signs of inflation returning to 2%. They also suggest scaling back tax exemptions and deductions, like those for employer-paid health care and mortgage interest. And don’t forget their favorite: progressively raising income tax rates, even for those earning under $400,000. Naturally, these recommendations will be lovingly filed under "Thanks, but no thanks." 🗑️

Rumors are swirling faster than a political spin cycle: Joe Biden might be nearing the end of his presidential run. "We’re close to the end," someone close to Biden told NBC News, adding that top Democrats have finally hammered it into his head that his campaign is on life support. Meanwhile, the Atlantic notes that Senator Peter Welch is the lone voice in the Senate calling for Biden to step aside, pushing for an open nomination instead of crowning Kamala Harris. 👀

Boston Fed President Logan is on a mission to get banks cozy with the discount window, not that it matters for the markets or monetary policy. Apparently, the Fed's emergency lending programs are doing their job, and now Logan wants all eligible banks prepped for the next financial apocalypse, whenever that might be. She insists this isn’t a market mover, but it’s crucial for the Fed to get its act together before the next crisis. 🧟‍♂️

Other active symbols: $PFE (-1.08%), $AVGO (+2.91%), $U (-9.51%), $CLSK (-10.54%), $AGEN (-58.88%), $QQQ (-0.45%), and $BTC (-1.65%). 🔥

Here are the closing prices: 

Netflix has delivered a solid Q2, flaunting a 17% revenue growth and an operating margin of 27%, up from last year's 22%. Full-year revenue growth is now expected to hit between 14% to 15%, with an operating margin forecasted at 26%. 🤑

In other words, Netflix ($NFLX) is kicking ass.

Netflix’s ads business is growing like a weed, with ad-tier memberships up 34% quarter over quarter. The company is building an in-house ad tech platform, set for testing in Canada in 2024, with a broader launch in 2025. Translation: expect more targeted ads while binge-watching your favorite shows. 📺

In the US and Canada, Netflix generated $4.30 billion in revenue with 84.11 million paid memberships. Meanwhile, Europe, the Middle East, and Africa saw revenues of $3.01 billion, with 93.96 million memberships. Latin America and Asia-Pacific also showed impressive numbers, contributing $1.20 billion and $1.05 billion in revenue, respectively. 🌎

Netflix isn't just about movies and TV shows. Its games initiative is three years old and growing, with new titles based on hit series like Virgin River and Perfect Match. Plus, they’re expanding partnerships with device makers and operators to keep Netflix easy to find and use. 🎮

For Q3, Netflix expects revenue growth of 14% year over year, translating to 19% on a foreign exchange neutral basis. They also predict lower paid net additions compared to Q3 2023 but anticipate maintaining a healthy operating margin. 💹

Netflix generated $1.3 billion in net cash from operating activities in Q2, with a free cash flow of $1.2 billion. The company repurchased 2.6 million shares for $1.6 billion and plans to refinance $1.8 billion in debt maturities within the next 12 months. 💵

In a nutshell: Netflix continues to dominate the streaming wars.

Stocktwits co-founder Howard Lindzon chops it up with pals JC Parets and Phil Pearlman every Thursday on "Trends With Friends."

This week, technology expert and investor Michael Parekh is back to discuss Robinhood and Goldman Sachs’ comeback, the growing influence of AI content generation, OpenAI’s five stages of AI development, and advice on how to keep your head during major bull runs.

Watch it on YouTube, Spotify, or Apple, and subscribe to catch each episode when it goes live!

The economic scene in Europe is like a slow-motion car crash. Inflation is taking its sweet time coming down, and the economy is crawling at a pace that would make a snail look like Usain Bolt. 🏃

The ECB, always a bastion of decisive action (note the sarcasm), is now whispering about a potential rate cut in September. Of course, this all hinges on whether the upcoming data shows that inflation is, in fact, cooling off.

ECB President Christine Lagarde, always the voice of reason (or confusion, depending on your perspective), emphasized that the decision for September is wide open and heavily data-dependent. 📊

Meanwhile, across the pond, the U.S. labor market is showing signs of getting uglier and uglier.

The latest jump in initial jobless claims to 243K, the highest since August last year, is a clear indicator. The continuing claims aren't painting a pretty picture either, with the numbers climbing for the sixth consecutive week, reaching levels not seen since November 2021. 🖼

The market has taken all this as a cue to fully price in a rate cut by the Fed in September. Former Fed Vice Chairman Roger Ferguson, once a stalwart hawk, has now switched sides and is expecting a cut. With inflation seemingly under control, the focus has shifted to the employment situation, which, as the data suggests, isn't exactly rosy.

The ECB's potential rate cut in September is a classic case of "we'll see." They're playing the waiting game, relying on the upcoming data to make a move. On the other hand, the Fed seems more inclined to act, given the weakening labor market.

Anyone want to place bets on which central banks cuts rates first? 🎰

Domino's Pizza ($DPZ) just served up its Q2 earnings, and while the numbers look good on the surface, the deep dish reveals a mix of inflation biting consumers, a shift towards home dining, and a few missteps in their international strategy. 😱

First, the numbers. Domino's reported earnings of $4.03 per share, comfortably beating estimates of $3.70. That’s a nearly +9% surprise. Revenue came in a hair short of the $1.1 billion estimate, but still a 7.1% increase from last year. 🎉

But let's not get too excited. Inflation has consumers tightening their belts, opting for home-cooked meals over delivery or dine-in options. Despite Domino's attempt to stay competitive, including a 1.5% price hike in Q2 linked to higher wages in California, the restaurant industry overall is feeling the pinch.

McDonald's ($MCD) and other fast-food giants are rolling out $5 meal deals to lure back budget-conscious customers, adding pressure on margins. 📉

Domino's international strategy? Let's just say it's not exactly cooking. The company planned to open over 925 net international stores. They’re short by 175 to 275 locations. This hiccup has spooked investors, with DPZ shares tumbling -14%, hitting their lowest point since January. Ouch. 😬

Yet, Stocktwits sentiment remains bullish. Despite the lackluster performance from DPZ and peers like MCD, the community sees value in Domino's resilience and strategic adjustments, like listing on Uber Eats ($UBER) and revamping their loyalty program. 🚗

The company's future hinges on navigating inflationary pressures and reinvigorating its international growth plans. Investors will be keenly watching the next earnings call for any signs of a turnaround or further slippage. 🍕

🚛 Ford Ditches EV Dreams, Doubles Down On Gas Guzzlers In Canada

Ford's ($F) latest pivot involves swapping their electric vehicle ambitions for more gasoline-powered F-Series Super Duty trucks at their Canadian plant. Originally, Oakville Assembly was slated for electric SUVs by 2025, now delayed to 2027. Instead, it's getting a $3 billion upgrade to churn out 100,000 more of their beloved gas guzzlers. Ford CEO Jim Farley says the demand for these trucks is off the charts, even as the company struggles with massive EV losses. So, while the electric revolution waits, Ford’s cranking out more gas-powered beasts to keep their cash flow alive and well. More from Yahoo!Finance.

📉 Key U.S. Mortgage Rate Dips To March Lows, But Buyers Aren’t Biting

Freddie Mac reports the 30-year fixed-rate mortgage has dropped to its lowest since mid-March, now averaging 6.77%. While this should be great news for a struggling housing market, buyers are playing hard to get. Purchase application demand is still 5% below spring levels, as potential homeowners wait for rates to fall further. With existing-home sales at a near three-decade low, everyone’s hoping the Fed’s anticipated rate cuts will finally breathe some life back into the market. Reuters has more.

🤦‍♂️ Tariffs Could Thwart Fed’s Rate Cut Plans

If Trump’s proposed tariffs come into play, the Fed might have to rethink its aggressive rate cut strategy. Wells Fargo ($WFC) warns that new tariffs could trigger a modest stagflationary shock, raising both inflation and unemployment. Their models suggest that retaliatory tariffs from trading partners could shrink the GDP and push the Fed to be more cautious. So, while everyone’s banking on rate cuts to save the day, tariffs might throw a wrench into the whole plan. From MarketWatch.

🕵️ Effortlessly find & claim shareholder settlements with 11thEstate

🧑‍⚖️Ozy Media founder Carlos Watson convicted in New York fraud trial

🦺Amazon's Prime Day a 'major' cause of worker injuries, Senate probe finds

🚫This grocery store item is beloved in the US. But it’s banned in South Korea

😠Microsoft DEI lead blasts company in internal email after team is reportedly laid off

🕵️ Trends With No Friends: $NIC Nicks An All-Time Highs

Follow our social channels for great, real-time content on Stocktwits and Twitter. And check out our YouTube channel for in-depth video content! 📲

Help us deliver the best content possible by completing this brief survey.📝

Email me (Tom Bruni) your feedback; I’d love to hear from you. 📧

Want to sponsor this newsletter and reach hundreds of thousands of passionate investors and traders? Reach us here. 👍

Disclaimer: Stocktwits, Inc. (“Stocktwits”) operates the stocktwits.com website and Stocktwits mobile device applications (the “Apps”). Stocktwits is not a securities broker-dealer, investment adviser, or any other type of financial professional. No content on the Stocktwits platform should be considered an offer, solicitation of an offer, or advice to buy or sell securities or any other type of investment or financial product. Read the full terms & conditions here. 🔍