Market review from UTEX – week 30

The S&P 500 lost 3.5% for the week, the Nasdaq – minus 4%. Interestingly, the Russell 2000 index, which includes small-cap companies, closed in positive territory, despite declines on Thursday and Friday.

Among the large caps, ASML Holding (-17%), AMD (-16%), Taiwan Semiconductor (-11%) and LLY (nearly -10%) were the worst performers. Unitedhealth Group was a positive surprise with a 10% gain.

In contrast to the stock market, bitcoin is feeling confident and is already trading above $67,000. One driver is Trump's nomination of his potential vice president, James David Vance, a cryptocurrency supporter. In addition, spot ETH ETFs are expected to launch on July 23rd.

Thursday will see the release of preliminary data on U.S. GDP dynamics for the second quarter, and on Saturday Donald Trump will address Bitcoin 2024 conference. The most anticipated events of the week are the Google and Tesla reports, which will be released on Tuesday after the markets close.

Do you think that last week's decline will turn into a full-blown correction? How much of a percentage drop from current levels are you laying down?

Here are 5 trading ideas for the next few days!

Top 5 ideas for this week

Texas Instruments (TXN). Report on July 23 after the close. One of the largest semiconductor companies has barely reacted to the sector's decline. If the report doesn't meet expectations, could correct quite well. The stock hit an all-time high last Tuesday – not a bad profit-taking point.

AT&T (T). Report on July 24 before the open. Shares of the telecom giant declined from early 2020 to mid-2023, pushed off the bottom, and are finally up 30% over the past year. Only for the mid-term, the stock trades poorly intraday.

United Parcel Service (UPS). Report on July 23 after the close. Express delivery and logistics company. Another mid-term idea. The stock closed last week in the plus side despite a falling market. Good support level at $134, still 80 points from all-time highs – room to grow.

Spotify Technology (SPOT). Report on July 23 after the close. The music streaming service is up 64% year-to-date. Despite this, almost every investment house has a price target in the neighborhood of $400 (now $295). Back in January 2023, the stock was trading around $80 – an impressive run in a year and a half. If the report disappoints, we could see some nice intraday volatility.

Tesla (TSLA). Report on July 23 after the close. The stock is up 60% for the quarter. Likely to see strong intraday moves after the report. General Motors (GM) reports the same day and Ford Motor (F) the next day. Both companies are ramping up production of their electric cars, but for now they are competing more with each other than with Tesla: GM and F each have a market cap of $55 billion, 14 times smaller than Tesla's $762 billion.

Good deals!