Good morning. Happy Friday.
The Asian/Pacific markets leaned down. Japan, Hong Kong, and India posted the biggest losses. Europe, Africa and the Middle East are currently mostly down. Denmark and the UAE are up; Poland, Germany, South Africa, Switzerland, Norway, the Netherlands, and Portugal are down. Futures in the States point towards a mixed open for the cash market.
————— VIDEO: Rotation Isn’t Stopping the Uptrend —————
The dollar is up. Oil is up; copper is down. Gold and silver are down. Bonds are down. Bitcoin is down.
Stories/News from Seeking Alpha…
New chapter
It’s finally happening. More than a year after agreeing to a merger, Paramount Global (PARA) has finally gotten the necessary clearance to combine with David Ellison’s Skydance Media. The hope here is to resurrect a Hollywood icon that has shed much of its market value, which had also been sought after by Sony Pictures (SONY), Apollo (APO) and IAC Chair Barry Diller. PARA +2.5% premarket.
Snapshot: It’s been a tough environment out there for legacy media. Streaming giants like Netflix (NFLX), Amazon (AMZN) and Disney (DIS) have upended the production and distribution landscapes, while YouTube (GOOGL), Instagram (META) and TikTok (BDNCE) have also captured much of the screentime of the next generation. The new merger is aimed at competing in this “rapidly changing environment,” with a “clear strategic vision and the resources to take it to its next stage of growth.”
The upcoming $8.4B tie-up will bring together old and new Hollywood, with the end of the road for the Redstone dynasty and the rise of the Ellison era after big hits like Top Gun: Maverick and Reacher. Paramount and Skydance have even worked together in the past, co-producing films in the Terminator, Transformers, and Mission: Impossible franchises. Once the deal closes, Ellison will become CEO of the new Paramount, while former NBCUniversal CEO Jeff Shell (who works at Skydance investor RedBird Capital) will run the day-to-day as president.
The optics? The last step to secure the combination was approval from the Federal Communications Commission. Clearance dragged on for more than 250 days, and the green light only happened after Paramount (PARA), the owner of CBS, agreed to a $16M settlement with President Trump (Stephen Colbert’s show was subsequently canceled). FCC Chair Brendan Carr also required that Skydance make commitments on “programming from across the political and ideological spectrum” and measures that can “root out bias,” as well as promises of “fair, unbiased and fact-based” reporting at CBS, and not to establish “diversity, equity and inclusion policies” at New Paramount.
What else is happening…
Elon Musk ‘sorry’ after Starlink suffers rare outage.
… Trump wants his companies to ‘thrive’ in the U.S.
Foundry gains at Intel (INTC); restructuring charges hit EPS.
U.S. allows Chevron (CVX) to resume pumping oil in Venezuela?
UnitedHealth (UNH) cooperating with DOJ’s Medicare billing probe.
Report: Morgan Stanley (MS) taps China’s panda bond market.
Troubles pile up for VW: Slashes outlook as profit plunges.
Congo aims to set cobalt price to encourage domestic processing.
Union Pacific (UNP), Norfolk Southern (NSC) in advanced merger talks.
Trump talks costs and interest rates at Fed construction tour.
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Good morning. Happy Thursday.
The Asian/Pacific markets posted solid gains. Japan, China, Hong Kong, Malaysia, Indonesia, and Singapore did great. India and Thailand were weak. Europe, Africa and the Middle East are currently mostly up. The UK, Denmark, Turkey, Finland, Norway, Spain, Austria, and Sweden are up; Israel is down. Futures in the States point to a positive open for the cash market.
————— MoneyShow Presentation: How Far Can AI Take the Market —————
The dollar is up. Oil and copper are up. Gold and silver are down. Bonds are down. Bitcoin is down.
Stories/News from Seeking Alpha…
The next charge
Tesla (TSLA) shares are continuing to slide in the premarket session following some disappointing numbers in its latest quarter. Q2 net income fell 23% Y/Y, revenues were down 12% Y/Y, and unit sales slumped 14% Y/Y – putting the electric vehicle maker under pressure from several different sides. The stock fell 4.4% AH to $317.87, and extended losses to over 6% this morning, with CEO Elon Musk warning of an increasing probability of a “few rough quarters” ahead and only reaching “compelling economics” by the end of next year.
Snapshot: Besides an image problem and Musk’s heavy drift into politics, key financials and a promising growth story are looking shaky. Without the hefty EV tax credits that have been a major driver of profits for the carmaker (worth $2.8B in 2024), the company would be cash flow negative. Those credits will continue to go down every quarter and will eventually be gone following the passage of the “Big Beautiful Bill,” while the firm must emphasize stability amid an executive exodus in recent months.
Tesla (TSLA) also needs to get new products to market – and fast. That includes its much-touted robotaxis and Optimus humanoid robots, which the company is banking on as its next growth story. It will also be crucial to get more affordable electric car models that can compete with low-cost Chinese brands and other rivals, as well as monetize its other businesses, like energy solutions and its charging network. A geographic expansion might also be necessary, getting Tesla (TSLA) into more markets across the globe.
Here’s the new game plan from Elon Musk and Co., as discussed on the post-earnings conference call. See the full transcript here
Robotaxis: “We’re getting the regulatory permission to launch in the Bay Area, Nevada, Arizona, Florida, and a number of other places. I think we’ll probably have autonomous ride-hailing in probably half the population of the U.S. by the end of the year.”
Humanoid robots: “Optimus 3 is an exquisite design. I predict it will be the biggest product ever. I’d be surprised if at the end of 5 years, if we are not roughly making 100,000 Optimus robots a month in 60 months, I would be shocked.”
Market expansion: “We had record Powerwall deployment again in Q2… Model Y in June became the best-selling car in Turkey, the Netherlands, Switzerland and Austria. It is, I believe, the best-selling car of any kind in the world.”
Elsewhere: “We also launched the Tesla Diner, which has been a huge hit. It actually got worldwide attention, which is unusual for a diner.”
Keeping prices down: “We’ll be ready with new, more affordable models available for everyone in Q4… It’s just a Model Y. Let the cat out of the bag there.”
Artificial intelligence: “xAI is – Grok is the smartest AI overall, but it’s – Grok 4 is a giant beast sort of at the terabyte level. And so kind of important to note, Tesla has the best intelligence density. Intelligence density will be a very big deal in the future. It is now.”
SA commentary: “While Tesla has potential in robotics and robotaxis, it remains to be seen when, if ever, these ventures start generating profits. At the same time, the headwinds and problems are very clear and impact Tesla right now — margins are falling, revenues are falling, profits, and especially cash flows are getting worse,” Investing Group Leader Jonathan Weber writes in A Disastrous Quarter. “The company has earned $0.45 per share so far this year, which pencils out to $0.90 annualized — which makes for a ~370x earnings multiple. Can Tesla turn things around? It may do so. Do I want to speculate on that at a time when TSLA stock is extremely expensive? No.”
What else is happening…
Trump to visit Federal Reserve, escalating pressure on Chair Powell.
Alphabet (GOOGL) earnings: High spending plans and key takeaways.
BNY (BK), Goldman (GS) to bring money market funds to the blockchain.
T-Mobile (TMUS) impresses Wall Street with solid report.
Sweeping impacts: Changes to California’s auto renewal law.
‘It’s not easy’: Trump once considered breaking up Nvidia (NVDA).
U.S.-South Korea trade talks delayed over Bessent’s schedule.
Chipotle (CMG) slides after rare negative comparable sales quarter.
Planned merger: Dick’s (DKS), Foot Locker (FL) extend regulatory review.
Columbia University to pay more than $220M to restore federal funding.
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Good morning. Happy Wednesday.
The Asian/Pacific markets posted solid gains. Japan, Hong Kong, Taiwan, Australia, Malaysia, Indonesia, Thailand, and the Philippines did great. Europe, Africa and the Middle East are currently mostly up. Denmark, France, Germany, Greece, the UAE, Switzerland, the Netherlands, Italy, Sweden, and Saudi Arabia are posting the biggest gains. Futures in the States point to a moderate positive open for the cash market.
————— MoneyShow Presentation: How Far Can AI Take the Market —————
The dollar is up. Oil is down; copper is up. Gold is down; silver is up. Bonds are down. Bitcoin is down.
Stories/News from Seeking Alpha…
New frenzy
The meme stock rally is resurfacing as equity markets continue to hit new highs. It’s being bolstered by optimism over economic data, trade deals, and expectations for a coming Fed easing cycle. Earnings season has also been another boon for stocks, with Big Tech set to report this week amid the AI revolution and heavy investment coming into the U.S.
Snapshot: While optimism is definitely in the air, that doesn’t necessarily mean there is froth, with plenty of money coming off the sidelines and more to go around. While that can spell good tidings for the overall market, traders looking to make a quick buck off the accompanying meme stock rally face the risk of being left holding the bag. Wild trading has ensued for this group of speculative names, with some new players being flagged on social media, like Opendoor Technologies (OPEN), QuantumScape (QS), Krispy Kreme (DNUT), GoPro (GPRO) and Beyond Meat (BYND). Charles Schwab Expands Overnight Trading
Buyers beware: While Opendoor (OPEN) was changing hands at only $0.50 at the beginning of the month, it has since soared over 460% to above the $3 level before taking a turn south. The digital real estate stock tumbled 10% in a volatile session yesterday and is down another 7% in premarket trading. “The company remains highly leveraged, unprofitable, and exposed to real estate market risks, despite operational progress and cost controls,” SA analyst Julia Ostian wrote in Opendoor’s Meme Moment: Big Bet Or Big Trap? “Upcoming earnings on August 5 could fuel further volatility; a strong report may trigger another rally, while disappointment could crash the stock.”
Meme on! Some legacy meme names have also made a comeback, like Kohl’s (KSS), whose high short interest makes it a popular play among the retail crowd. Shares of the department store operator surged 38% on Tuesday in a volume-packed session that saw the stock reach its highest level since November 2024. Smaller gains were also seen among the broader meme group, including Koss Corporation (KOSS), Clover Health (CLOV) and Mullen Automotive (MULN), as well as Avis (CAR), Cyngn (CYN) and MicroAlgo (MLGO).
What else is happening…
U.S. strikes ‘massive’ trade deal with Japan; Ishiba to step down.
Coca-Cola (KO) confirms cane-sugar version coming to the U.S.
Cocoa costs drive another price hike at Hershey (HSY).
Powell should resign to maintain Fed independence – El-Erian.
PNC (PNC) to offer crypto trading in Coinbase (COIN) deal.
Surprise at Lockheed Martin (LMT) slashes Q2 earnings.
GM extends losses as tariff headwinds eclipse results.
Amazon (AMZN) acquires wearable personal AI company Bee.
DOE suspends student loan forgiveness for 2M borrowers.
House ending session early as GOP clashes over Epstein vote.
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Good morning. Happy Tuesday.
The Asian/Pacific markets leaned down. China and Hong Kong did well, but South Korea, Taiwan, New Zealand, Malaysia, and Thailand were weak. Europe, Africa and the Middle East are currently mostly down. Poland, France, Germany, Greece, South Africa, Finland, Switzerland, Hungary, the Netherlands, and Saudi Arabia are posting the biggest losses. Futures in the States point to a flat open for the cash market.
————— MoneyShow Presentation: How Far Can AI Take the Market —————
The dollar is up slightly. Oil is down; copper is up. Gold and silver are up. Bonds are down. Bitcoin is up.
Stories/News from Seeking Alpha…
Fresh off the press
The Los Angeles Times will soon become a publicly traded company, joining The New York Times (NYT), The Wall Street Journal (NWS) and USA Today (GCI) in offering its shares to everyday investors. Billionaire owner Patrick Soon-Shiong made the announcement on The Daily Show, describing the move as a way for the paper to become democratized. “Whether you’re right, left, Democrat, Republican, you’re an American,” he told host Jon Stewart. “So the opportunity for us is to provide a paper that is the voices of the people.”
Backdrop: The Los Angeles Times has been bleeding money, and lots of it. Soon-Shiong bought the paper, along with the San Diego Union-Tribune, for nearly half a billion dollars in 2018, but it hasn’t been a profitable investment. The LA Times reportedly lost $50M in 2024 as paid subscriptions slumped to just over 300K, while Soon-Shiong offloaded the San Diego paper to MediaNews Group in 2023. Complicating matters has been the backlash Soon-Shiong received while steering the newspaper in a new direction.
Things first went south after he blocked the editorial board from endorsing Elizabeth Warren in the Democratic presidential primary in 2020, but allowed the backing of Joe Biden in the general election. The struggles only continued as ideological differences between staff and ownership became magnified and really hit a breaking point after Soon-Shiong blocked the editorial board’s endorsement of Kamala Harris in 2024, while expressing a desire to incorporate more moderate and conservative voices. That led to a wave of subscription cancellations and high-profile resignations, as well as several rounds of newsroom layoffs.
As advertised? The new strategy shift to go public will happen over the next year, though it may not be a traditional one in terms of listed shares on the stock market. The LA Times ownership structure would be similar to the NFL’s Green Bay Packers, according to Soon-Shiong. If replicated, that would give the public a say on the board and reveal its financials, but the largely symbolic shares wouldn’t be transferable, hold any intrinsic market value, or pay a dividend.
What else is happening…
WSB survey: Take it here and see the latest SA Sentiment.
Opendoor (OPEN) stock adds to meteoric rise amid retail frenzy.
U.S. lawmakers ask tech giants to respond to subsea cable concerns.
The entire Federal Reserve should be examined – Treasury’s Bessent.
Michael Saylor’s Strategy (MSTR) now owns 3% of all BTC in existence.
Report: Netflix (NFLX) testing Runway AI for video production.
Tesla’s (TSLA) retro-futuristic diner opens in Los Angeles.
Microsoft (MSFT) server hack hit about 100 organizations.
Design software company Figma sets price range for NYSE IPO.
Here are the top 10 stocks fueling the Nasdaq-100’s rally in 2025.
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Good morning. Happy Monday. Hope you had a good weekend.
The Asian/Pacific markets did great. China, Hong Kong, South Korea, India, New Zealand, Indonesia, and the Philippines posted solid gains; Australia was weak. Europe, Africa and the Middle East are currently mixed. Turkey, Finland, and Austria are up; Poland, the UAE, Greece, and Italy are down. Futures in the States point to a positive open for the cash market.
————— MoneyShow Presentations: How Far Can AI Take the Market —————
The dollar is down. Oil is down; copper is up. Gold and silver are up. Bonds are up. Bitcoin is up.
Stories/News from Seeking Alpha…
It’s the Real Thing
A post from President Trump last week caught the eye of soda drinkers and the American agriculture industry, as well as the biggest beverage giant in the world. “I have been speaking to Coca-Cola (KO) about using REAL Cane Sugar in Coke in the United States, and they have agreed to do so,” he wrote on social media. “I’d like to thank all of those in authority at Coca-Cola.” The company might have more to say on a conference call when it reports earnings tomorrow.
Backdrop: The United States is only one of a handful of markets where Coca-Cola produces its flagship drink with high-fructose corn syrup instead of cane sugar. Things weren’t always that way. The company changed its recipe in 1984, opting for a cheaper sweetener that could keep its margins down and yield significant cost savings. It was also a change that consumers could swallow, compared to the debacle that ensued following the debut of “New Coke” in the 1980s, which was pulled after only 79 days of its initial release.
The reason why corn-based sweeteners like HFCS are more affordable than cane sugar in America is due in large part to government subsidies given to corn farmers. Those are aimed at food security and support for rural economies, and while potential changes at Coca-Cola (KO) could rattle the industry, it would initially be for only one specific beverage from one specific company. Currently, sugar-sweetened Coke is only available in the U.S. in glass bottle imports from Mexico and seasonal “yellow cap” bottles in the springtime that are Kosher-for-Passover.
New product line? There’s a lot of speculation over why Trump is interested in the change, especially since his drink of choice is Diet Coke, which is sweetened with aspartame. “We appreciate President Trump’s enthusiasm for our iconic Coca-Cola brand,” responded company spokesperson Michelle Agnew. “More details on new innovative offerings within our Coca-Cola product range will be shared soon.” For those looking for investment exposure to U.S. cane sugar production, there aren’t many publicly traded shares available, with the industry dominated by private firms and cooperatives. Take the SA Sentiment Survey.
What else is happening…
Big win for banks! 90% of companies beat EPS estimates last week.
Chevron (CVX) closes Hess (HES) takeover following Exxon dispute.
EU may require car-rental companies to buy only EVs by 2030.
London Stock Exchange (OTCPK:LNSTY) considers 24-hour trading.
Peter Thiel-backed crypto exchange Bullish files for IPO.
Trump sues WSJ (NWS) over Epstein birthday card report.
Trade talks enter pivotal phase ahead of Aug. 1 deadline.
AI for kids? Elon Musk announces ‘Baby Grok’ app.
No. 1 spot! ‘Superman’ (WBD) soars again at the box office.
SA Asks: What’s the most attractive robotaxi stock right now?
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