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The Weekend Rip: June 26, 2022

We hope you’re enjoying your weekend! 😊

Let’s recap and look to the week ahead.

What Happened?

⚖️ The Supreme Court made several controversial moves this week, overturning Roe v. Wade and a N.Y. handgun law.

😩 Despite a good week for stocks, sentiment remains bearish, with Bridgewater doubling its short bets against European stocks to $10.5 billion. Also, Goldman Sachs has upped their recession forecast to a very precise 48%.

👍 The Federal Reserve gave thirty-three big banks passing grades in their annual stress test, opening the door for these companies to release their capital plans to shareholders this Monday (06/27/22).

🥵 The Senate Banking Committee grilled Fed Chairman Jerome Powell over record-high inflation and the overall state of the economy.

📈 Biotech and health care stocks, in general, had a strong week. Meanwhile, Cotton was down nearly 20%, as commodities quietly pulled back from their highs on rising recessionary fears and improving supply chains.

✈️ Airline unions are leveraging strong travel demand to negotiate better compensation for their workers, striking across the U.S. and Europe. Additionally, U.K. rail workers shut the country down by striking after reaching a stalemate during negotiations with the government as many face a cost-of-living crisis.

🤩 The Nasdaq Top 25 list stood out this week, as the S&P 500 and Russell 2000 lists were held back by their exposure to energy and tech stocks shined.

💰 Zendesk’s buyout drama ends in a lackluster $10.2 billion deal, just months after rejecting a $17 billion bid.

🚭 Shares of Altria went up in smoke after the FDA banned Juul sales in the U.S.

₿ In crypto news, FTX is making moves amid market turmoil, bailing out several firms by extending credit facilities and taking stakes in them. Additionally, hackers stole $100 million in crypto from Horizon, a blockchain bridge developed by crypto start-up Harmony.

🔥 Several names were on the Stocktwits trending tab for a good portion of the week, including $RDBX, $REV, $TSLA, $MULN, $BTC.X, and $ETH.X.

Those are the major stories from the week. And here are the final prints:

S&P 500 3,912 +6.45%
Nasdaq 11,607.62 +7.49%
Russell 2000 1,766 +6.00%
Dow Jones 31,501 +5.39%

Bullets

Bullets from the Weekend

💰 Gold sanctions cripple Russia’s ‘war machine.’ Biden encouraged G7 leaders to stick together against Russia as soaring inflation, and other issues within each country test their unity. The countries continue to enforce financial sanctions against Russia aimed at crippling their ability to further finance the war in Ukraine. Reuters has more.

🏥 Shanghai declares victory over COVID. China’s two largest cities are significantly easing lockdown measures after months of strict enforcement to curb the omicron COVID variant. These lockdowns have presented significant challenges for businesses and supply chains, so the hope is that this “victory” marks a turning point for the better. Read more from Reuters.

🌵 Global M&A faces a dry spell as boardrooms pull back. Global M&A activity in the second quarter was down 25.5%, driven by rising interest rates, recession fears, and valuation mismatches. Many companies are stepping back and preparing their businesses for a potential recession rather than being aggressive to take advantage of lower valuations. Reuters has more.

🏗️ Biden pushes G7 to fund global infrastructure. In another attempt to counter China’s “Belt and Road Initiative,” Biden is pushing G7 leaders to back his “Build Back Better World” plan that would provide an alternative to Chinese financing for infrastructure projects worldwide. China has spent over a decade expanding its foothold in other countries by providing much-needed funding. Biden’s plan would provide and support projects in the four key areas of climate, health, digital technology, and gender equity. More from NPR.


The Brief

Need a concise summary of what’s going on this week? Look no further. Here’s an overview of important earnings and economic data for the trading week ahead.

Economic Calendar

6/27 Durable Goods Orders (8:30 AM ET)
6/27 Pending Home Sales (10:00 AM ET)
6/27 Dallas Fed Manufacturing Index (10:30 AM ET)
6/28 Wholesale/Retail Inventories (8:30 AM ET)
6/28 S&P/Case-Shiller Home Prices (9:00 AM ET)
6/28 CB Consumer Confidence (10:00 AM ET)
6/28 Fed Daily Speech (12:30 PM ET)
6/29 Final Q1 GDP (8:30 AM ET)
6/29 Fed Chair Powell Speech (9:00 AM ET)
6/30 Personal Income/Spending  (8:30 AM ET)
6/30 PCE Price Index (8:30 AM ET)
6/30 Chicago PMI (9:45 AM ET)
6/30 Quarterly Grain Stocks Corn/Soy/Wheat (12:00 PM ET)
7/01 S&P Global Manufacturing PMI (9:30 AM ET)
7/01 ISM Manufacturing PMI (10:00 AM ET)

Grain data is not something that typically gets a lot of attention, but may be in focus given the impact of food price inflation around the world. In addition to the above, check out this week’s full list of economic releases.

Earnings This Week

Only 45 companies report this week. Some tickers you may recognize are $NKE, $TCOM, $BBBY, $GIS, $MU, $WBA and $STZ.

Above is a quick summary. Check out the full Stocktwits earnings calendar to see the other names reporting this week.