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Every weekend we publish “The Weekly Wrap-Up” — your ticket to being well informed and staying ahead in the investment game!

This report is designed to help investors of all skill levels break down important stories/topics within the stock market. And best of all, we cut through all of the BS and give you exactly what you need to know in easy to digest, bite sized pieces of content.

Grab your coffee and let’s dive in.

The AI trade was hit hard this week with SNDK, MU, and WDC leading the decline, though the rest of the market held up relatively well, especially energy and banks. All three major indexes did end the week lower.

These are some of the biggest stories from the second half of the week that had an influence on market action.

Chip stocks fell sharply this week even as Taiwan Semiconductor $TSM ( ▲ 1.87% ) posted record profit and gave strong guidance. Chinese startup Moonshot released Kimi K3, a new open source AI model that rivals top US systems. The release renewed fears that China is closing the technology gap despite years of chip export limits, adding another layer of pressure to an already shaky week for chip stocks.

🔑 Key Points

👀 What You Need to Know

This week shows how sensitive chip stocks have become to any sign of rising costs or new competition. TSMC's spending increase should signal confidence in future demand, but investors instead worried about how much it costs to keep up. China's new AI model adds a separate worry, since it suggests US firms may not hold their lead as easily as expected. Investors should expect more volatility as these pressures continue playing out.

This week brought two key inflation reports of the month, covering both what consumers pay and what producers charge. Consumer prices posted their sharpest monthly drop in years, while producer prices also came in softer than expected. Falling energy costs drove much of the decline in both reports, raising questions about how long the relief will last once oil prices stabilize.

🔑 Key Points

👀 What You Need to Know

This week showed why inflation calls are so hard right now. Just two days before the data, Fed Governor Waller warned that a hot CPI or PPI reading could push the Fed toward a near term hike. Both reports came in soft instead, easing some of that pressure and pulling July hike odds lower. September odds have not moved much, so the debate is far from settled, especially with US/Iran tensions heating up again and pushing oil prices higher again.

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It was a loaded week for Q2 reports across banking, tech, healthcare, and semiconductors, with beats across the board but reactions split hard between rewarded execution and priced-in perfection.

Netflix $NFLX ( ▼ 0.99% ) posted a narrow EPS beat and a slight revenue miss, with shares falling nearly 8% as investors focused on next quarter's growth pace and the company's move to cut back on subscriber engagement disclosures.

Taiwan Semiconductor $TSM ( ▲ 1.87% ) delivered record margins and beat on every headline metric, yet shares dropped more than 7.5% as an expanded capital spending plan raised concerns about near-term free cash flow.

JPMorgan $JPM ( ▲ 0.94% ) crushed estimates on a record quarter, shares rose more than 2% this week as investors weighed a one-time Visa share gain against a higher expense outlook.

Johnson & Johnson $JNJ ( ▲ 0.37% ) beat on both lines and raised full-year guidance again, with strength in Innovative Medicine and MedTech offsetting continued Stelara biosimilar erosion, though shares slipped about 2% this week.

UnitedHealth Group $UNH ( ▲ 0.6% ) delivered one of the largest beats of the cycle and raised full-year guidance well above where analysts had it, sending shares up nearly 2% as improved medical cost management showed further progress.

For full breakdowns of these earnings, including graphics and all key takeaways. head to the earnings channel in our Discord.

In this section, we'll be curating a selection of news headlines we think you'll find interesting. If a topic catches your eye, click the provided links to read more about it.

We continue to push out more and more content every week to give investors that edge. Here are the posts Investor’s Edge+ subscribers received this week.

Mondays are for the investors. Every Monday morning we share exactly what we’re watching in the week ahead, how we’re positioning, and even share a sneak peek into our systems and models. This week we discussed the upcoming inflation reports, the start of Q2 earnings season, and our game plan for the second half of the year. See the latest full report here:

Every month we share a full access look into our portfolios, including holdings, performance, activity and our watchlists for the upcoming month. You can see both of our portfolios, what moves we made in June, and how we are performing YTD here:

Q2 earnings season ramps up next week, which along with any news between US/Iran, will be the major catalysts for trading next week.

Earnings season continues next week with Alphabet and Tesla as the major headliners. Here is the full calendar of scheduled earnings releases:

Here is the list of names we will be covering:

Next week is very quiet on the economic news front, with only jobless claims, composite PMI and new home sales on the calendar.

Here is the full calendar of events we will be watching:

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Here’s what you’re missing in the Discord:

🗨️ Chat rooms: Investors discussed the the huge moves from mega cap tech. Members also dove into the number of jobs reports and shared their views on the overall economy.

📊 Earnings / Economic reports: No more waiting for our newsletters to hit your inboxes - see earnings results and economic data as they are released. And more importantly, get our reactions and insights immediately.

🚨 Trade Alerts: Chris and Mark shared several trades, including additions to the portfolio and trades that set up their portfolios for the week.

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Thank you for reading this edition of the Weekly Wrap-Up. Have a great weekend!

Until next time investors!

Mark & Chris

The Investor’s Edge

This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.