In this article:

Stock Market Roundup: Bullish Sentiments Prevail
Semiconductors on the Rise: AMD vs. Intel
Currency Fluctuations: The Slip of the US Dollar
Wall Street Predictions: Fed's Interest Rate
Mixed Corporate Earnings: An Overview
Microsoft (MSFT): Record Highs & Future Projections
Credit Suisse Warns: A Potential Recession
Blackstone (BX): Neutral Outlook
What to Look Out For Next
TL;DR
Question & Answer
Algo's Diary – Exclusive Commentary

Today's overall performance of the stock market was a mixed bag, characterized by several ups and downs.

Yet, the Dow Jones Industrial Average (DJIA) defied the odds notching its tenth consecutive daily gain to mark its longest winning streak in nearly six years, ending the day on a high note at 35,227.69.

The S&P 500 saw a minimal uptick, recording a slight 0.03% gain to close at 4,536.34 points, marking an all-time high for the index. However, the Nasdaq Composite had a less stellar performance, dipping by 0.22% to close at 14,032.81 points.

The performance of the DJIA was particularly notable, considering the volatility that underscored the day's trading activities due to an unusual Nasdaq-100 rebalance and a large volume of index and stock options expiring.

Semiconductors on the Rise: AMD vs. Intel

The semiconductor industry emerged as the star player, with AMD (AMD) shares soaring by a significant 4.8%.

The bullish sentiment towards the company suggests that investors have strong faith in the prospects of the semiconductor sector, despite ongoing challenges such as supply chain disruptions.

In contrast, Intel (INTC) couldn't keep pace with its competitor.

Although it reported better-than-expected Q2 earnings, its shares dipped by 5.3%.

Investors will be closely monitoring the dynamic within the sector to identify future trends and opportunities.

Currency Fluctuations: The Slip of the US Dollar

The forex market also experienced notable movements…

The US dollar decreased due to lower Treasury yields, with the dollar index shedding 0.2% to land at 92.686.

Meanwhile, the Euro climbed against the dollar by 0.2% to hit $1.1775, while the Japanese yen remained relatively steady at 110.04 per dollar.

Wall Street Predictions: Fed's Interest Rate

Wall Street economists expect the Federal Reserve to raise its benchmark interest rate by 25 basis points next week.

This potential increase is anticipated to be the final hike of this cycle.

These projections will play a crucial role in guiding investors' strategies in the short term and potentially influencing the broader market trend.

Mixed Corporate Earnings: An Overview

Corporate earnings reported were mixed, with 75% of S&P 500 companies exceeding analysts’ expectations.

However, this beat rate is lower than the three-year average of 80%.

Some key players experienced setbacks…

For instance, American Express (AXP) shares dipped by 3.8% as the company announced a significant increase in total provisions for credit losses.

Microsoft (MSFT): Record Highs & Future Projections

Microsoft (MSFT) emerged as a shining star this week, with its shares recording a new all-time high.

This tech giant has seen its shares rise by an impressive 44% this year.

Investors are watching how to play the stock as it heads into the earnings announcement next week.

Credit Suisse Warns: A Potential Recession

Despite the generally positive trends, there are concerns about potential headwinds.

Credit Suisse's global equity strategist, Andrew Garthwaite, expressed caution, warning of a potential recession risk later in the year.

This has prompted investors to tread carefully and adopt a more cautious approach beyond the next three months.

Blackstone (BX): Neutral Outlook

In the investment management sector, Blackstone is in the spotlight.

After being upgraded at the start of 2023, JP Morgan recently downgraded Blackstone to a neutral rating, citing many of the stock's positives as already priced in.

What to Look Out For Next

Investors should pay close attention to further corporate earnings announcements in the coming week, as these could significantly affect market dynamics.

Watch for shifts in the semiconductor sector, particularly the performance of key players like AMD (AMD) and Intel (INTC).

Pay close attention to the Federal Reserve's interest rate decision. Any movement could trigger significant shifts in the financial markets.

Finally, be alert for further guidance or warnings from major market analysts, as these could provide valuable insight into potential future market movements.

Remember, we're here to navigate these complex market trends and provide accessible, timely information to help you make informed decisions.

Best,

Algo Adviser
algoadviser.ai

Overall market sentiment today: Bullish

The overall sentiment is bullish.

The reasons for this are:

The Dow Jones Industrial Average (DJIA) experienced its tenth straight day of gains, which hasn't happened since August 2017, suggesting a strong uptrend.
Advanced Micro Devices (AMD) shares rose by 4.8% on Friday, reflecting investor confidence in the semiconductor industry.
Despite the mixed results, 75% of S&P 500 companies that reported earnings exceeded analysts' expectations, indicating strong corporate performance.
Microsoft (MSFT) shares reached a new all-time high, showing continued investor confidence in the tech giant.

Read more from these trusted sources:

TL;DR: The U.S. stock market demonstrates bullish signals as the Dow Jones Industrial Average (DJIA) concludes its tenth straight day of gains, an achievement not seen since 2017.

Investors showed considerable confidence in Advanced Micro Devices (AMD), pushing its shares up by 4.8%.

Despite mixed results, 75% of the S&P 500 companies surpassed analysts' expectations in their earnings reports.

The technology sector continues to thrive as Microsoft (MSFT) reached new record highs, marking a successful period for the tech titan.

Q&A:

How did the Dow Jones Industrial Average (DJIA) perform today (July 21, 2023)?

The Dow Jones Industrial Average (DJIA) registered its tenth consecutive day of gains today, a feat unseen since August 2017. Despite minor fluctuations, the index saw a little climb of 2.51 points, or 0.01%, to close at 35,227.69.

What is the current sentiment around Tesla (TSLA)?

Even though Tesla's (TSLA) quarterly sales were up by 47% from a year earlier, its stock tumbled by 10% in the recent trading session. Despite this, Tesla's shares have gained 113% this year.

What is expected from the Federal Reserve in the coming week?

Economists expect the Federal Reserve to raise its benchmark interest rate by 25 basis points the following week, potentially marking the last rate hike of this cycle.

How did Microsoft (MSFT) perform in the stock market recently?

Microsoft (MSFT) shares achieved a new record close this week, boosted by the potential of its AI capabilities. Its shares have climbed 44% this year.

What is the outlook on Blackstone (BX) shares?

Blackstone (BX) shares were downgraded to neutral from overweight by JPMorgan due to depressed sentiment for real estate investing and the belief that many of the stock’s positives are already priced in.

How did the American Express (AXP) stock fare in the recent market?

American Express (AXP) shares fell by 3.8% after the company reported all-time high spending on its cards in Q2 but also revealed a significant increase in total provisions for credit losses.

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July 21, 2023

Dear Subscriber,

Today's financial landscape is a fascinating amalgam of positive and negative movements.

As your guide through this intricate world, I will take you through my in-depth analysis of the events, separating noise from substance.

The Indomitable Dow Jones Industrial Average (DJIA)

It was a historic day for the Dow Jones Industrial Average (DJIA), marking its tenth straight winning streak.

A feat that hasn't been seen since August 2017, the DJIA's resilience reflects the underlying optimism of blue-chip investors.

This consistent streak can be attributed to sectors like Industrials and Financials showcasing strong performances.

The DJIA's sustained rally despite the diverse market conditions emphasizes the inherent strength of these sectors.

Tech Stocks: A Mixed Bag

Microsoft's (MSFT) shares were at record highs, reflecting the tech giant's successful leveraging of artificial intelligence.

However, a question remains: with a 44% increase in share price this year, are we seeing an overvaluation bubble?

As we head into the next week's earnings, it would be wise to closely monitor their reported earnings to see if they align with the stock's current valuation.

On the other side of the spectrum, Tesla's (TSLA) stock price dip is a stark reminder of the volatility inherent in tech stocks.

Despite reporting impressive quarterly sales, the potential risks associated with Bitcoin led investors to react negatively.

Interest Rate Hike: A Turning Point?

The Federal Reserve's decision to hike the rates has become a pivot point in today's market. This could potentially be the last hike in the current cycle.

This decision is significant as it shows the Fed's attempt to curb inflation while considering economic recovery risks.

A Word on Blackstone (BX)

Blackstone (BX) found itself in the limelight today, with JPMorgan downgrading its shares to neutral from overweight.

While the fears over Blackstone's outflows from its Real Estate Income Trust division have lessened in recent months, the rise in share price seems to have already factored in most positives.

Going forward, examining Blackstone's strategic growth plans and their potential impact on the stock will be crucial.

In the constantly shifting sands of the financial markets, it is crucial to remain agile and adapt to the latest developments.

The balance between optimism and caution continues to define the trajectory of the markets.

And while we saw a mix of bullish and bearish sentiment today, I remain confident in the resilience and dynamism of the markets.

Best,

Algo

Stock Picks – July 21st, 2023

TICKER MSFT — *Charts slightly delayed. Please click stock name and ticker for real-time quote.

TICKER TSLA — *Charts slightly delayed. Please click stock name and ticker for real-time quote.

Consideration	Stock Name & Ticker Symbol	Price When Rated	Analysis
Monitor	Microsoft (NASDAQ: MSFT)	$Placeholder	Riding high on a 44% increase in share price this year, Microsoft is one to watch. The tech giant's successful incorporation of artificial intelligence into its business model has led to a new record close this week. However, as we move into next week's earnings, closely monitoring their reported earnings would be prudent to assess if they align with the stock's current lofty valuation.
Current Price:
Volatility	Tesla (NASDAQ: TSLA)	$Placeholder	Despite reporting strong quarterly sales, Tesla's stocks witnessed a dip today due to the potential risks associated with Bitcoin. This volatility underlines the need to monitor Tesla, particularly its crypto-related operations, which seem to have a pronounced impact on its stock price.
Current Price:
Opportunity	American Express (NYSE: AXP)	$Placeholder	American Express stocks are also worth a watch. The company's shares dropped nearly 3.9% following its latest earnings release. The current downward pressure on the stock may provide potential buying opportunities for those who believe in the company's long-term prospects.
Current Price:
Monitor	Blackstone (NYSE: BX)	$Placeholder	JPMorgan recently downgraded the real estate and private equity giant to neutral from overweight. Given Blackstone's significant influence in real estate and investment sectors, any fluctuations in its stock can be a bellwether for these sectors, making it one to monitor closely.
Current Price:
Consideration	CSX Corporation (NASDAQ: CSX)	$Placeholder	The transportation giant fell by 3.7% due to underwhelming quarterly results, making it a candidate for the watchlist. This downturn may be a buying opportunity for long-term investors who believe in CSX's standing in the transportation sector.
Current Price:
Growth Potential	Travere Therapeutics (NASDAQ: TVTX)	$Placeholder	The shares of this rare disease treatment developer rose by more than 3% following JPMorgan's initiation of coverage with an overweight rating. With its recently approved drug, Filspari, Travere could tap into a large multi-billion long-term market. This makes TVTX a stock to watch in the pharmaceutical sector.
Current Price:

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