High Beta Merge Ideas

Jul 29, 2022 • 4 Min Read

Data Dump

Last week, we discussed the market’s positive reaction to the deluge of negative economic data. Despite a continued murky economic outlook, risk assets performed well. This was an encouraging sign that gave us confidence that we have seen the market put in this year’s lows.

We also mentioned that this past week would be another crucial week of data, with an expected negative real GDP report, a consequential FOMC meeting, and a slate of critical tech earnings.

On Wednesday, Chairman Powell took to the podium and announced that the Fed was raising rates by 75 bps. The market reacted positively and perhaps even interpreted the FOMC press release and subsequent press conference as dovish, given the sustained rally the following day.

On Thursday, GDP came in negative for the 2nd consecutive quarter, which was unsurprising. However, like the action around rate hikes, markets took this in stride.

The video in this report is only accessible to members

The other critical risk heading into the week was a slate of big tech earnings. While Facebook had its metaverse-driven woes, other large-cap names, including Amazon, Microsoft, and Apple, all had relatively positive earnings compared to market expectations.

We think this is a good sign that implies a more robust consumer than GDP would suggest and removes t...

Unlock this page with a FREE 30-Day Trial!

*Free trial available only on a monthly plan

Reports you may have missed

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 1/1

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 1 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In