The Saturday Hark Back - 27 Apr 2024
Capturing the themes of the week when there’s more time to digest them.
The Hark Back
The key narratives that drove markets last week:
Theme 1 - The AI money is made in the cloud
Theme 2 - Buy the dip?
Theme 3 - Slower growth + higher price pressures = stagflation
Theme 4 -BoJ / MOF show little cares for JPY weakness
Theme 5 - #ccywars...
Theme 6 - Funding secure
Theme 7 - On the campaign trail
Theme 8 - Last week's AI stories
Top 10 Reads of the Week on Harkster.com
Top 5 Podcasts of the Week
Week Ahead Preview
Theme 1 - The AI money is made in the cloud
Hectic week of earnings, with some clear winners and losers...
Elon nuked the bears, the mkt got caught underweight Tesla and was wrongfooted by his pivot to deliver affordable saloons. He sold a new dream and left the details for later.
Microsoft revenue and cloud sales beat expectations on robust AI demand.
Alphabet paid a cash dividend for the first time and boosted its share buyback program by $70bln.
Intel disappointed and continues to lag in the AI chip theme.
The market was not happy with Meta spending big on AI.
Reuters - Meta shares sink on higher AI spending, light revenue forecast
Stock Market Nerd - Meta (META) Q1 Earnings
Theme 2 - Buy the dip?
With tensions in the middle east thawing, oil returning into range and yields softening, some strategists are supporting the notion that this is a correction to be bought. However, others like JPM's Kolanovic see a deeper slide.
The Lead Lag Report - Utilities Continue To Warn
NY Times - G.M. Reports Big Jump in Profit on Gasoline Car Sales
Bloomberg - Citi Strategists Say Buy the Dip in Stocks on Solid Earnings
Bloomberg - JPMorgan’s Kolanovic Says ‘Correction’ in US Stocks Isn’t Over
Steno Research - TRADE ALERT: BUYING THE DIP
The Economist - How far could America’s stockmarket fall?