The Big Short – Burry Misses On CVS

WORD ON THE STREET 

• So The Bear Market Is A Thing – For the third straight session, the market was down with the Dow dropping more 290 points. The 10-year U.S. Treasury yield has its highest point since October 2022. The NASDAQ composite was down 1.17%.

• Walmart Beats Expectations, Stock Declines (Of Course) – WMT raised its full-year guidance as it reported better than expected earnings and revenue before the market opened yesterday. However, the stock was down more than 2.2%, declining further in after-hours. You just can’t win with some people.

• 53% Say No To Trump No Matter What – Former president Donald Trump’s domination of the GOP has 45 confident enough to skip the first GOP debate. However, according to an AP/NORC Center poll, 53% of Americans say that they will definitely not support him in 2024, with an additional 11% saying they will “probably” not support him. We will have to wait and see if this is fake news.

• Atlanta Fed Predicts 5.8% GDP Increase – According to the Atlanta Fed, the GDPNow forecast for the third quarter has hit a 5.8% annualized increase in GDP. The booming labor market is a major reason why. Of course, good news can be bad news – that may be a reason for the Fed to increase interest rates again.

HOT SPOTS: What’s Going on in Geopolitics

• China Evergrande Files For Bankruptcy – And so it begins. China Evergrande Group is seeking Chapter 15 bankruptcy protection. It’s one of the major Chinese property developers but it may not be the last domino to fall – Country Garden Holdings is another major company worrying observers.
  

• US Approves More F-16s To Ukraine – The Netherlands and Denmark will send F-16 fighter jets to Ukraine after American approval. Ukrainian pilots are expected to be trained on the jets beginning this month in Denmark. They should be in combat airspace in early 2024.

• Milei Says He Will Shutter Argentina’s Central Bank – Surprise Argentinain presidential favorite Javier Milei pledged that he would avoid a default to the nation’s creditors. However, he also had bigger plans to reform the financial system, including a permanent end to the central bank. “Central banks are divided in four categories,” he explained, “the bad ones, like the Federal Reserve, the very bad ones like the ones in Latin America, the horribly bad ones, and the Central Bank of Argentina.” I guess it’s good that here in America we just have “the bad one.”

CUTTING EDGE: What‘s Happening In Tech

• Bitcoin Plunges After SpaceX Reported Sale– Bitcoin has been plunging since the release of the minutes from the Federal Reserve’s July meeting. However, the real decline took place after reports that SpaceX may have sold its Bitcoin holdings. Tesla has also been reportedly been liquidating much of its Bitcoin holdings.

• Roblox Declines Even Further – Roblox (RBLX) has declined by another 4.75%. Making matters worse, RBLX also suffered another outage, with thousands reporting an inability to connect to servers. RBLX is also down about 39% over the last month.

• Gary, Indiana: The Next Tech Hub? – Gary, Indiana is renovating its old Union Station for $8 million in order to turn it into a “Fiber Smart House.” It will be used for workforce trainings and attract tech businesses. It is scheduled to open in the fall of next year.

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