Shesa's Weekend Stock Market Updates - 7|19|26

Welcome to weekend's update

Last week the stock market was marked by volatility, a pullback in major indices driven by tech/semiconductor weakness, concerns over AI spending, and geopolitical tensions in the Middle East (U.S - Iran). The current market has not been favorable for the AI/tech investors. The options expiration caused more volatility, with semiconductors and AI-related names under significant pressure and keep getting slaughtered. The escalating between U.S. and Iran tensions pushed oil prices higher $82.49 per barrel. The big technology companies will start reporting starting this week. There are a few key earning which I will write later. First, let's take a look at last week's stock rake performances. 
 
• S&P 500: Closed at 7,457.69, down -1.6% for the week. 
• Nasdaq: It was hit harder, down -2.9% for the week, closing near 25,520. There were heavy selling for technology stocks, especially in chips, was the primary reason 
• Dow: was more robust down -0.9%, closing around 52,146. The rotation away from high-growth tech continued.

Economic Rreport Last Week
  • The consumer price index (CPI) fell a 0.4% for the month, bringing the annual inflation rate down to 3.5% vs. 3.8% expected
  • The produce price index declined -0.3% for the month of June vs. 0% (unchanged) expected by the street. On an annual basis, it came at 5.5% vs. 6.2% expected.
Economic Report this week
No major report expected.
Friday, 7/24: Services and Manufacturing PMIs 

Earnings last week
JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and Goldman Sachs all reported earnings Tuesday that beat expectations on revenue and EPS. The banks also reported strong revenue from equities trading.

Earnings this week
Wed, 7/22: TSLA, GOOG
THU, 7/23: INTC

One major earnings that I would like to see this week is Tesla (TSLA). Analysts expect $27.6B in revenue and $1.3B in net income for Q2 2026. I am anticipating that Tesla should be able to beat the revenue and earnings visualizing its strong European sales. But as always, I would like to hear what Elon Musk says about RoboTaxi, CyberCab and more importantly Optimus. Google and Intel are also expected to come with good results. We will see how it goes.

Other News
  • California Governor signed legislation today creating a new state point-of-sale rebate that gives all first-time EV buyers $3,500 off a new electric vehicle. Th buyers will get $3,500 off new EVs with an MSRP up to $50,000
  • Sold all my SLV Position. It will be removed from my Blog Portfolio
  • China’s economy grew 4.3% in the second quarter, its weakest pace since 2022.
Stock to watch
TSLA, GOOG, INTC, NVDA, MU, DELL, AMAT, AMD, SOXL, DRAM, HOOD

Note: The above are not recommendation to buy/sell

What can we expect?
Next week brings major earnings from Tesla, Alphabet (Google), Intel - All these earnings will be key for technology stocks and AI spending and growth outlooks. Last time many big techs came with solid earnings but failed to gain momentum due to CapEx plan. The expectations are very high. So, it's difficult to predict whether good earnings will be enough for tech stock bounce. So, volatility is likely to stay elevated. The resumption of tension between U.S. and Irans and higher oil prices are not good news for the market. Hence, better to stay watchful. Have a good evening!

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