❗️The Market Just Flipped the Script

Good afternoon! In a plot twist straight out of a tech drama, a 21-year-old founder just secured $2.5 million in funding for Friend, an AI-powered wearable that promises to keep you company—literally around your neck. But here’s the kicker: He blew a whopping $1.8 million of that on the domain friend.com. Yes, you read that right. They even came out with a product video/trailer that will leave you confused as if it was a skit or not.

So, what does Friend do? For $99, this AI pendant listens to you all day and sends you texts to keep loneliness at bay. It’s your personal cheerleader, TV-watching buddy, and occasional nag to call your mom. It’s like having a friend on speed dial—except this one hangs out on a chain and runs on algorithms.

MARKETS

• For the third consecutive week, both the S&P 500 and Nasdaq slid further, while the Dow broke its four-week winning streak. The Nasdaq reached its lowest point since May, the S&P 500 dipped back to levels last seen in June, and the Dow took a staggering 989-point plunge at one point, marking its worst trading day since September 2022.

• Market volatility surged, with the VIX spiking to an 18-month high up 25.82%, driven by fears of a recession following a disappointing jobs report.

• Snap ($SNAP) nosedived 26.93% after warning that revenue might hit the low end of its expected range, even as monthly active users grew.

STOCKS
Winners & Losers

What’s up 📈

• VSee Health ($VSEE) surged an astonishing 74.90% after unveiling its new robot designed to assist patients in intensive care units.

• Clorox ($CLX) climbed 7.42%, with investors focusing on its strong bottom line despite disappointing sales.

• Trump Media & Technology ($DJT) soared 7.39% following the rollout of its new streaming strategy.

• GoDaddy ($GDDY) spiked 6.96% after the company raised its full-year revenue guidance.

• Cloudflare ($NET) advanced 6.81% on the back of a strong earnings beat and raised guidance.

What’s down 📉

• Reborn Coffee ($REBN) plunged 21.50%, just days after announcing a strategic partnership with Chinese AI company Pengai Data Store.

• Atlassian ($TEAM) dropped 17.06% despite solid earnings, as its revenue guidance for the rest of the year disappointed investors.

• Prudential Financial ($PRU) slid 10.02%, with stronger-than-expected earnings failing to meet Wall Street’s expectations.

• Booking Holdings ($BKNG) dipped 9.17% after reporting fewer room nights booked than analysts had anticipated.

• Micron Technology ($MU) fell 8.68%, leading semiconductor stocks lower today.

MARKETS
❗️The Market Just Flipped the Script

For the last couple of years, we’ve been living in an upside-down world where bad economic news was actually good news for investors. The logic? If the economy looked rough, the Fed might ease up on those pesky interest rates. But now, we’re back in the real world—bad news is just…well, bad.

Let’s talk numbers: The latest employment data is out, and it's not pretty. Unemployment has crept up to 4.3%, the highest since October 2021. Employers added a measly 114,000 jobs in July, a far cry from last year’s monthly average of 251,000. It’s like expecting fireworks and getting a sparkler.

But wait—there's a twist. Some experts are saying that the rise in unemployment is due to temporary layoffs, so this could just be a blip rather than the beginning of a downward spiral. Still, the S&P 500 ($SPY) didn’t take the news lightly, dropping around 2% in what might be the biggest market slump over jobs data in two years.

The Fed’s Tightrope Walk Just Got Trickier

If you’re scratching your head wondering why the market had a meltdown over a job report, here’s the tea: Investors are spooked that the Fed might have overdone it with the rate hikes. The delicate balance between cooling inflation and keeping the economy afloat is starting to look more like a juggling act with one too many balls.

Here’s where it gets juicy: Just yesterday, Fed Chair Jerome Powell hinted at a potential rate cut in September. But with this latest job data, economists are now betting the Fed might have to slash rates even deeper than anticipated. Think of it as the Fed hitting the brakes a little too late, and now everyone’s bracing for a bumpy ride.

Despite the drama, analysts are urging investors to keep calm and carry on. Volatility might be making a comeback, but that’s par for the course as the Fed gets ready to shift gears.

In short, the market’s mood just did a 180, and we’re all buckled in for whatever comes next.

NEWS
Market Movements

• Intel ($INTC) announced it’s cutting 15,000 jobs, or 15% of its workforce, as it falls behind in chip manufacturing. Intel stock plunged, marking its steepest decline in 40 years amid massive restructuring

• Apple ($AAPL) reported a 5% increase in sales last quarter, driven by strong performance in iPads and services. However, iPhone sales, which account for nearly half of the company’s total revenue, declined as upgrades slowed

• Nvidia ($NVDA) reportedly faces a U.S. DOJ antitrust probe following complaints from rivals

• 23andMe ($ME) is considering going private after years of market struggles

• Commercial real estate continues to struggle: A 23-floor midtown Manhattan office building that sold for $332M in 2006 just sold for $8.5M this week

• Job growth totaled 114,000 in July, much lower than expected, as the unemployment rate rose to 4.3%

• Netflix ($NFLX) kicks off its “Geeked Week” on Sept. 16, featuring an in-person event in Atlanta. Expect updates on “Squid Game,” “Stranger Things,” and the platform’s gaming ventures

• Google ($GOOGL) is hiring the co-founders and many researchers from the AI chatbot startup Character.AI

• Don Lemon is suing Elon Musk and X over their scrapped partnership

• Speaking of Musk, he has agreed to fight Venezuelan President Nicolas Maduro

EARNINGS
Earnings Olympics: Winners and Losers

This week’s earnings reports felt like a high-stakes competition, with some companies nailing their routines while others took a tumble. Let’s take a look at who’s bringing home the gold and who’s licking their wounds.

Intel’s Bad Day
Intel ($INTC) had a week so rough, it could use a hug. The chipmaker saw its stock nosedive by 26.06%—its worst single-day performance since the Nixon era—after missing earnings expectations left and right. Revenue fell short at $12.83 billion versus the anticipated $12.98 billion, and EPS was a jaw-dropping 80% lower than expected at just $0.02. To top it off, Intel announced a 15% workforce reduction, meaning 15,000 employees are getting the pink slip.

Apple Bites Back
On the flip side, Apple ($AAPL) kept the doctor away with some solid numbers. The tech giant reported $85.78 billion in revenue, outpacing expectations of $84.38 billion, and EPS hit $1.40, beating the $1.34 forecast. iPhone sales made up nearly half of Apple’s total revenue, but the real MVP was the iPad, with sales skyrocketing 24% year-over-year to $7.16 billion.

Amazon’s Mixed Bag
Amazon ($AMZN) gave investors a rollercoaster ride, plunging 8.78% despite a mostly solid report. The company missed on revenue, pulling in $147.98 billion compared to the $148.76 billion expected, but managed to beat EPS estimates with $1.26 versus the anticipated $1.02. While its ad business grew 20%, it still didn’t meet the $13 billion sales target, clocking in at $12.8 billion.

Carvana’s Comeback
Carvana ($CVNA) was the comeback kid of the week, with shares surging after an earnings surprise. The online car dealer reported an EPS of $0.39, smashing the expected loss of -$0.12. Revenue also cruised past expectations at $3.41 billion, up 15% from last year. The cherry on top? Carvana sold 101,000 vehicles this quarter, a 33% increase year-over-year.

Microsoft’s AI Miss
Microsoft ($MSFT) had a mixed day, staying mostly on target but missing the mark on AI. The tech titan reported EPS of $2.95, barely above the expected $2.94, and revenue of $64.73 billion, edging out the $64.44 billion forecast. However, its “intelligence” cloud revenue, which includes its AI efforts, came in at $28.5 billion, just shy of the $28.7 billion target, leaving investors less than thrilled.

In the chaotic world of earnings, one slip can send stocks tumbling, while nailing the numbers keeps you in the winner's circle.

Calendar
On The Horizon

What’s Coming Next Week:

After a rollercoaster of economic announcements, next week is shaping up to be a much-needed breather. We’ll get a few data points—July ISM services on Monday, June trade balance on Tuesday, and June consumer credit on Wednesday—but nothing that’s likely to shake the market’s foundation.

However, Thursday’s weekly initial jobless claims report is the one to watch. Given how this week’s job numbers rattled investors, these reports are becoming key indicators for where the market might head next.

Earnings to Watch:

With 70% of the S&P 500 having already spilled the tea on their quarterly earnings, and Big Tech mostly out of the way, you’d think we could relax. But no, there are still some big names reporting next week that you’ll want to keep an eye on:

Monday: Tyson Foods ($TSN), Hims & Hers Health ($HIMS), Palantir Technologies ($PLTR), The Carlyle Group ($CG)

Tuesday: Caterpillar ($CAT), Uber ($UBER), Marathon Petroleum ($MPC), Yum! Brands ($YUM), Planet Fitness ($PLNT), Amgen ($AMGN), Airbnb ($ABNB), Reddit, Wynn Resorts ($WYNN), TripAdvisor ($TRIP)

Wednesday: Disney ($DIS), Novo Nordisk ($NVO), Sony ($SONY), Shopify ($SHOP), CVS Health ($CVS), Hilton Worldwide ($HLT), Lyft ($LYFT), Monster Beverage ($MNST), Warner Bros. Discovery ($WBD), Robinhood ($HOOD), Duolingo ($DUOL)

Thursday: Eli Lilly ($LLY), Brookfield ($BAM), US Foods ($USFD), Six Flags Entertainment ($SIX), Yeti ($YETI), Under Armour ($UA), Warby Parker ($WRBY), Krispy Kreme ($DNUT), Paramount Global ($PARA), Sweetgreen ($SG)

Friday: Hawaiian Electric Industries ($HE), Getty Images ($GETY), Canopy Growth ($CGC), Soho House & Co. ($SHCO)

So, while the market may be taking a breather, there’s still plenty to keep your portfolio on its toes.