August 28, 2022

The Weekend Rip: August 28, 2022

Happy Sunday evening y’all.

We’re all waiting with bated breath to see if this week starts as messy as the last one ended.

So let’s recap what happened and prepare you for the week ahead.

What Happened?

📉 Stocks fell sharply following Jerome Powell’s hawkish comments at Jackson Hole.

🤩 This week’s Stocktwits Top 25 report showed significant outperformance from the group, with a Biotech stock nabbing the “Top Dawg” spot for the fifth straight week.

🧑‍🎓 The Biden administration finally decided on a student loan policy, forgiving $10,000 per borrower and introducing several other relief measures.

🏘️ Housing data continues to soften, as U.S. new home and exiting home sales plummeted and price growth slowed.

🛍️ Retail stocks continue to struggle in the current macro environment. Whether they’re middle to high-income retailers like Nordstrom or lower-income retailers like Dollar Tree, inflation, supply chain issues, and inventory mismanagement remain key themes.

🚴 Volatility around Peloton continues, with the stock popping on a partnership with Amazon and then giving it all back after reporting weak earnings.

⚖️ 3M received an unfavorable ruling regarding the 230,000 outstanding lawsuits related to faulty earplugs, sending the stock down 11%.

🤖 Technology earnings remain mixed, with companies like Zoom flopping and Snowflake popping.

🚗 Tesla shares began trading post-split, allowing us to review stock splits for the community.

🦍 $APE shares began trading and are off to a rough start.

🔥 Several names were on the Stocktwits trending tab for a good portion of the week, including $MEGL, $STBX, $BBBY, $GCT, $APRN, and $AMC.

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

S&P 500	4,058	-4.04%
Nasdaq	12,142	-4.44%
Russell 2000	1,900	-2.94%
Dow Jones	32,283	-4.22%

Bullets

Bullets From The Weekend

🛢️ U.S. energy secretary urges refiners to rebuild reserves. Domestic oil refiners are increasing exports of fields like gasoline and diesel, a concern for the Biden administration ahead of the country’s peak hurricane season. Currently, U.S. inventories are low, and federal weather forecasters have projected an above-average Atlantic hurricane season, which could impact refiners’ operations. The administration considered a ban on exports earlier this summer but eased off as gasoline prices began trending lower. Refiners have said export bans would be counterproductive to price and supply. Reuters has more.

💾 Another day, another data breach. Whether it’s in the U.S. or internationally, data breaches are something we hear more about every day. This time it’s India’s Akasa Air, which exposed sensitive information from thousands of its customers. The breach highlights a growing issue in India, where many domestic companies do not have dedicated programs to award and incentivize researchers to help find flaws in their systems. More from TechCrunch.

⚖️ Meta looks to settle the Cambridge Analytica suit. Facebook’s parent company reached a tentative settlement regarding the 2018 incident where the company allowed Cambridge Analytica to access millions of its users’ personal information. The tentative settlement agreement comes just weeks before the deadline for Mark Zuckerberg and Sheryl Sandberg to submit depositions during the final phases of pre-trial evidence gathering. AP News has more.

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

After Powell’s speech at Jackson Hole startled the market, eyes will be on other Fed Governors’ speeches and August’s employment data. In addition to the above, check out this week’s complete list of economic releases.

Earnings This Week

Earnings season remains quiet, with 108 companies reporting this week. Several tickers you may recognize are $BBY, $CRWD, $CHPT, $OKTA, $MDB, $WB, $LULU, and $AVGO.