Torrent Trading Observations

• Another quiet night as we await Powell Fri

• PANW higher LOW flat on earnings

• Pushed thru 5595 which brings the old highs at 5569 into play as next real resistance

Wave Watch

Futures

DOW -46

S&P +1

Nasdaq -2

Mainstream Metrics

10 Year

GOLD - Gold in record-setting form on expectations of September Fed rate cut

BITCOIN

Consumer/Financial Healthcare

SQ – JPM out saying Square’s performance from here could be driven by multiple expansion on accelerating growth. They are downgrading ALIT and AVDX as well on the industry noe.

CNBC – “Travel is too expensive right now”.

Chinese home prices “slump” as the government has stepped back from market interventions and developers rush to move units to raise cash – Bloomberg

PYPL, Ayden – These two competitors are said to compete in the payments world for the first time ever.

HA, ALK – DOJ ends antitrust review. Hawaiian Air up 12%.

KR (Kroger) – Kicking off a bond sale to pay for the Albertson’s tie up. High leverage, low margins, what could go wrong?

Berkshire resumed its sales of BAC unloading 14M shares…drops his stake to 12%

LLY - Eli Lilly & Co.’s weight-loss drug, Zepbound, helped cut the risk of diabetes by 94% in obese patients. Dentsply Sirona’s CFO resigns to join Premier Inc.

Technology

Quiet from a headline perspective as market continues to wait for Powell on Friday and Nvidia earnings next Wed. Path of least resistance remains higher… more talk about the post-NFP/BoJ drawdown as a technical move rather than any meaningful shift in the macro narrative, particularly with the VIX down over 60% in the last couple of weeks. Nothing on the US economic calendar again today.

PANW revenue beat by 1% while EPS 7% ahead and company talked up momentum behind platform strategy. Boosts buyback by additional $500MM. Majority of street taking PT up. Question is did PANW take market share from CRWD?

AAPL - Apple’s First Made-in-India iPhone Pro Models Coming This Year – Bloomberg

FN - Shares rise 8.8% after first-quarter forecasts for adjusted earnings per share and revenue topped the average analyst estimates. Analysts note AI momentum as company issues strong outlook for the current quarter.

Industrials 

US adds most power generation capacity by since 2003 in first half of 2024 as AI demand surges - Bloomey

TSLA – EU plans 9% tariff on Tesla cars EU slashes planned tariff on Tesla's China-made EVs to 9% (yahoo.com) [finance.yahoo.com]

BA grounded 777X test fleet on engine mounting structure issues.

HA boosted by Justice Department decision not to challenge proposed merger with ALK.

Short-term overbought on the oscillators so some chop would be healthy and not unexpected

CTAs a tailwind

Companies not seeing recession thru Q2

Breadth really held up well during the selloff and improving again

Credit card defaults rise to record levels

Rapid Review

Openwater Opinion