08/03/26 LET'S TALK ABOUT THE

@kristenzisek

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The Bell Clubseen in 12 videos →https://the-bell-club.com/link ↗

Why it worked

The video provides a concise and informative market update, breaking down complex financial news into digestible points. It highlights key companies and trends, making it relevant to a broad audience interested in finance and technology.

Summary

The stock market experienced a mixed week with Big Tech companies like Amazon, Microsoft, and Alphabet seeing significant gains due to strong earnings and cloud business growth, while Apple faced a downturn after a disappointing forecast. Meanwhile, the bond market showed pessimism with rising long-term rates, indicating concerns about inflation and the overall economy. The video also touches on strong profits for oil companies, a stock drop for Reddit, and upcoming economic data and earnings reports.

Structure

1Big Tech's monster week and massive value increase.
2Amazon's strong performance driven by AWS growth.
3Apple's stock drop due to disappointing forecast and rising costs.
4Bond market pessimism and rising long-term rates.
5

Original caption

Last week, earnings beat everything, even a nervous bond market. Big Tech had a monster week: Amazon, Microsoft, and Alphabet added about $1.5 trillion in combined value. Amazon capped it with its best day in over a decade, up more than 15%, as its cloud business grew at its fastest pace in years. The exception was Apple, which fell about 7% and shed roughly $360 billion after warning that chip shortages are raising its costs. Underneath it all, long-term interest rates hit their highest since 2007, but strong profits kept stocks climbing anyway. This week is all about jobs, with the big monthly report on Friday. $AMZN $AAPL #stockmarket #financetok #stocks #marketupdate #investing

More from @kristenzisek

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Transcript

Let's talk about the stock market. So good morning and happy Monday. Let's recap the wild week that we just had and talk about what's ahead in the week to come. So the headline last week was Big Tech monster week. Amazon, Microsoft, and Alphabet Google's parent company added nearly one and a half trillion dollars in combined value in a single week. Now for the week, Microsoft was up almost 22%. Amazon was up 17%, and Alphabet was up over 11% following Thursday's earnings report. After the close, Amazon jumped more than 15% on Friday alone. It was its best single day in over a decade. Investors were excited over Amazon's cloud business AWS, which grew 37% at its fastest pace in over four years. When the AI spending visibly turns into cloud growth like that, investors pile in. We saw the same reaction to Microsoft's strong Azure news following its earnings report as well. Apple on the other hand fell over 7% on Friday, wiping out roughly 360 billion in value in a single day. The problem with its earnings report, a disappointing forecast. Apple is struggling to get as the AI data center boom strains supply chains, which is raising costs for Apple. And Apple's reportedly considering of iPhones and other devices to offset some of these costs. Weaker sales in China did not help Apple either. So underneath the stock market optimism last week, the bond market was pushing a different sentiment. The 30 year treasury yield climbed to about 5.27%, its highest level since 2007. And here's why that matters. So the Fed only really controls short term rates. Long term rates are set by the market by what investors demand to lend money for 30 years. And right now investors are demanding more. These longer term treasury rates, including the ten year rate, are what actually impact mortgage rates, which just hit a one year high. So the stock market is still betting on an AI boom and a little bit optimistic while the bond market is worried about inflation, government debt levels and the overall economic picture. Bond pessimism can live alongside stock market optimism for a while, but probably not forever. And eventually, the bond market wins that tug of war. Big oil Exxon and Chevron together raked in 26 and a half billion dollars in profit last quarter as the higher oil prices from the Middle East conflict flowed straight to their bottom line. Exxon alone made about $160 million a day. Reddit, the platform built on user run communities dropped almost 21% on Friday despite posting $805 million in revenue, up 61% from a year ago. The problem was the worry that Google's AI generated search results are answering questions before users ever click through to read it, which threatens a key source of traffic for Reddit. Now zooming out, all of this capped a really choppy July for the month. The S&P 500 was basically flat and the Nasdaq actually fell over 3%. However, the Dow did squeeze out its fourth straight winning month. We also had a Fed meeting last week. They held rates steady, but the market was a bit spooked on Wednesday when three officials actually wanted to raise rates. Now this morning, futures are slightly higher to start off August. It is a jobs heavy week with the big employment report out Friday, which the Federal Reserve will definitely be watching. Plus we have tons of earnings from companies like Palantir, Disney, Uber and many many more. You will see how it all shakes out. For even more detail, check out the Bell Club website or my daily newsletter.