RiskReversal Recap
Posts
RiskReversal Recap: July 22, 2024

RiskReversal Recap: July 22, 2024

Stocks Rebound from Worst Week Since April

RiskReversal Media
July 22, 2024

MARKET WRAP

Stocks rebounded from their worst weekly loss since April as investors shook off President Joe Biden's withdrawal from the presidential race.

The S&P 500 was up 1%, the tech-heavy Nasdaq gained 1.5%, and the small-cap Russell 2000 index was up nearly 2%.

The tech rally was driven by Nvidia, rallying nearly 5% after Reuters reported the company was preparing a version of its new flagship AI chip for the Chinese Market. Alphabet and Meta were up around 2%, and Tesla was up 5% in the session.

CNBC notes that by midday, nine S&P 500 stocks, including DR Horton and Intuitive Surgical, had hit new 52-week highs.

Verizon was among the biggest laggards in the index, dropping 6% after missing its quarterly revenue estimates due to slowing phone upgrades in the U.S.

Technology was the top sector, up 2%, while energy was the only sector to close in the red.

MRKT MATRIX: July 22, 2024

Today’s Top Stories:

S&P 500 rises as Nvidia leads tech rebound (CNBC)
Exclusive: Nvidia preparing version of new flagship AI chip for Chinese market (Reuters)
Biden dropping out adds more uncertainty to markets. What investors are saying (CNBC)
A Stock-Market Rotation of Historic Proportions Is Taking Shape (WSJ)
CrowdStrike shares tumble as fallout from global tech outage continues (CNBC)
Delta Expects More Cancellations on Slow Recovery From Outage (Bloomberg)
China Surprises With Rate Cut After Xi’s Big Meeting Disappoints (Bloomberg)

Today’s On The Tape is Presented by CME Group, iConnections and SoFi

Market’s Musical Chairs & A Conversation with Jonathan Litt

Dan Nathan and Guy Adami discuss with the significant news of President Biden dropping out of the race, leading to conversations about the implications for the market and potential changes in political leadership. The episode also covers recent earnings reports, particularly focusing on the tech sector's performance and future outlook. Additionally, the guys delve into the Chinese economy's challenges and the potential global repercussions. The guys also dive into cybersecurity vulnerabilities highlighted by a major tech outage at CrowdStrike and its market impact.

Jonathan Litt, Founder & CIO at Land & Buildings Investment Management. The conversation spans Jonathan’s background, his transition from a sell-side analyst to founding Land & Buildings, and the evolution of activist investing in real estate. Jonathan discusses various trends in the real estate market, including the impact of office vacancies, the dynamics of senior housing, and the growing demand for data centers due to AI. He also touches on the complexities of investing in the public and private real estate markets and the challenges faced by office spaces in blue states versus red states.