Casper Sees a Ghost | The Daily Peel | 7/15/21

...analysts at Goldman really do hate sleep...

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The Silver Banana goes to...

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Market Snapshot

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What's Ripe

Apple ($AAPL) – A 2.4% rise might not seem like much, but for Apple that means adding $2bn more than the entire value of Twitter in a single day. The $60bn gain came after announcing a new buy-now-pay-later feature for Apple Pay together with Goldman Sachs (R.I.P. Affirm). With that, Jobs' empire also revealed that the company has planned a 20% increase in next-gen iPhone production for this year.

American Airlines ($AAL) – After receiving financial CPR from the taxpayer yet again in 2020 (you're welcome), American Airlines is back. So back, in fact, that shares shot up as much as 6.9% (nice) on Wednesday to finish up 3%. As earnings guidance was revised for the better, some analysts upped their ratings, causing shares to take off.

Datasea ($DTSS) – Onto our big mover of the day, shares in Datasea opened up almost 115%, then subsequently fell 36.7% to close up 35.8%. WHAT. A. DAY. That emotional and financial rollercoaster came as the firm signed 6 distribution deals related to its 5G messaging service and marketing cloud platform. 6 deals around 5G...is it time to break out the tinfoil hats?

 
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What's Rotten

Casper Sleep ($CSPR) – It has been confirmed - analysts at Goldman Sachs really do hate sleep. That hatred was expressed yesterday as the firm downgraded its price target for the company to less than the nightly recommended number of hours. Selling ensued, with shares falling 7.3%.

Occidental Petroleum ($OXY) – Being the worst performer in the S&P for your sector isn't great news, but on the bright side, it will land you a spot in The Daily Peel. Falling 7.5% yesterday, OXY led the oil & gas team downward on news of OPEC reaching a deal. The U.A.E, one of OPECs member nations, agreed to increase production throughout 2021. If you got above a D+ in high school Econ, you know that means lower oil prices in the future, which reduces O&G firm's profit margin.

Weed – Pot stocks are coming off their high and investors are getting slightly paranoid. They fear that federal legalization will take longer than anticipated. This seems justified, as a recent Senate bill around broadening banking services and allowing trade on major market exchanges for cannabis firms has lost attention. As a result, the industry ETF MJ got smoked 4.5% yesterday.

Macro Monkey Says

JPow Speaks, We Listen: Hump day can be tough to get through, but every day is a good day when JPow speaks. In his testimony to Congress on Wednesday, Chairman Powell focused on inflation, inflation expectations, and how the Federal Open Market Committee (FOMC) is thinking about tapering QE (Quantitative Easing = purchasing securities to inject money into the economy). Despite the absence of any human emotion whatsoever, as expected from a Fed Chair, Powell seemed confident a return to normalcy is likely to emerge in Q4. One thing is clear, this is JPow's world and we're just along for the ride.

Food for Thought:

El Salvador & BTC's Romance: Microstrategy's Michael Saylor won't have many friends in El Salvador. He seems like a nice enough guy, but not being able to go 5 minutes without bringing up BTC, won't bode well in a country where 46% of people know nothing about it. Despite President Nayib Bukele's attempt at becoming the Jon Snow of BTC (young, unexpected, and leading the revolución), Bukele's people aren't behind him. Only 20% of the population supports the legislation that would give BTC legal tender status.

"Luck, is largely responsible for my reputation for genius. I don't walk into the office in the morning and say, 'Am I smart today?' I walk in and wonder, 'Am I lucky today?" - Jim Simons

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Happy Investing,

Patrick & The Daily Peel Team

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