Market review — week 30

The market is trading near historic highs: over five sessions, the S&P 500 rose 0.6% and the Nasdaq rose 1.3%. 

Netflix shares fell 5.1% on Friday despite a strong report and an increased revenue forecast for the year. NFLX may find support around $1,160, with Barron's consensus forecast at $1,320. Wells Fargo also fell, down 2%, as investors were disappointed by the interest income of the US mortgage lending leader.

NVIDIA added 4.3% over the week amid the resumption of H20 AI chip shipments to China. According to the company's estimates, the ban cost it $10.5 billion in revenue over six months. Lucid jumped 30% thanks to a partnership with Uber: the taxi aggregator is investing $300 million in Lucid and will introduce its electric cars into its fleet.

On Tuesday, Fed Chairman Powell will deliver a keynote speech at a conference of major banks in Washington. Trump denied rumors of Powell's dismissal but said the Fed chief is “already under investigation.”  

Cryptocurrency payments are now legal means of payment in the US — on Friday, Trump signed the GENIUS Act, which regulates stablecoins, requirements for their issuers, and compatibility standards. Robinhood Markets +8.8%, Coinbase Global +7% against this backdrop. Bitcoin reached $122,000 but then rolled back. BTC is currently trading at $118,600.

The earnings season is gaining momentum, with the most interesting reports this week coming from giants Alphabet, Tesla, Coca-Cola, and Intel. 

Top 5 ideas for trading this week

🔴 Domino’s Pizza (DPZ). Reported mixed results today before the market opening. Revenue grew stronger than expected, but earnings per share were lower than analysts had predicted. Usually, DPZ performs well after reporting. 

🟡 Sap SE (SAP). Report on July 22 after the close. According to analysts' forecasts, the German IT giant is set to report a 38% year-on-year increase in profits. Will this be enough for the stock to break through its historical highs, or will investors start to take profits and provide a good opportunity for shorting? We will find out after the results are released. 

🔴 Tesla (TSLA). Report on July 23 after closing. Recently, the huge volatility in TSLA has been linked not to fundamentals or macro factors, but to tweets from Musk or Trump. How fairly the company is valued will become clear after the report. Despite the launch of autonomous taxis, analysts are much more interested in the company's core business — cars. Strong movements in either direction are possible.

🟡 Alphabet (GOOG). Report on July 23 after closing. The AI race is in full swing, and the threat to Google's search business is becoming increasingly serious. This G7 giant is currently trading at a significant discount to the major stock indices. A good quarterly report could push it to significant growth from current levels.

🟡 Deckers Outdoor (DECK). Report on July 24 after closing. The stock is trading at late 2023 levels. The support formed in around $100 provides an opportunity to buy, including for the long term. The report could be a growth driver.

Trade what suits you best:

🔴 high risk, for the pros;

🟡 medium risk, for traders with little experience.

Profitable deals!

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