Daily Briefs

• NVIDIA Corp (NVDA US) and Apple (AAPL US) switched positions in June setting off huge flows. Those flows could reverse in September if the current index methodology is used.
• To avoid frequent reverse turnover, S&P DJI have started a market consultation to change the index weighting methodology. We believe feedback will be positive and the proposals will be approved.
• Apple (AAPL US) will have inflows in September while there will be outflows from Microsoft Corp (MSFT US) and NVIDIA Corp (NVDA US). 

• July saw only 114,000 new jobs versus a forecast of 180,000. Unemployment rose to 4.3%, the highest since October 2021. 
• The S&P 500 fell 1.8% and dropped below its 50-day moving average, tech and semiconductor sectors led significant market declines. 
• Implied volatility surged as the S&P 500 saw high put options activity. Analysts expect a potential market rebound later in August.

• Palantir Technologies Inc. provides software solutions for government customers in national security and intelligence
• Facing competition in AI products in the commercial sector, which may affect stock performance
• Company founded in 2003, known for utilizing technology to extract insights from data for government operations, with significant impact on Western society.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Gold, silver, and copper futures fell by 3%, 6.7%, and 4.6% respectively on Monday amidst recession fears
• Gold and silver options showed bullish sentiment with significant call option buildup, while copper options saw mixed activity with high put interest in the front-month
• Implied volatility surged for gold, silver, and copper, with copper IV increasing by 7 percentage points to 27% post non-farm payroll report

• It has been a massive bloodbath across the financial markets, not just in crypto.
• The Japanese Nikkei 225 Index experienced its largest intraday percentage drop since 1987.
• The S&P 500 opened about 3.5% down, with the Magnificent Seven stocks plunging around 9% at the opening.

• We are downgrading our long-term outlook to neutral (had been bullish since early-November 2023) due to rapidly deteriorating market dynamics
• We still believe the S&P 500 is going through a 1- to 4-month consolidation phase, but odds have increased that this consolidation phase could be a topping pattern.
• SPX is initially holding at 5100-5191 as discussed last week, but we’re not interested in knife-catching or picking a bottom, want to see stabilization/price discovery before adjusting our still-defensive posture.

• FiscalNote is a legal data and analytics company with a $170 million market cap
• The company provides software and services in the public policy and geopolitical intelligence sector
• FiscalNote generates revenue through recurring subscription services and is seen as a compelling investment opportunity with potential for margin expansion.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Microsoft, a technology giant with a market-leading position across various sectors, finds itself at a crossroads.
• The company has demonstrated remarkable growth, with annual revenue surpassing $245 billion, driven largely by its cloud services and AI-driven innovations.
• However, recent events have cast a shadow over its future prospects.

• Dun & Bradstreet’s exploration of potential sale stems from numerous strategic motivations typically involved in such decisions, including efforts to maximize shareholder value, capitalize on market opportunities, or strategic repositioning for future growth.
• In certain instances, companies may explore sales if they believe a buyer could offer more resources, technology, or market presence that could significantly amplify the existing operations or drive deeper market penetration than could be achieved independently.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Titan International is a global manufacturer of off-the-road tires, wheels and undercarriages.
• The company serves the agricultural, earthmoving / construction, and consumer markets.
• Recent strategic actions have created higher margins in recent years and brought the leverage ratio down to 1.8x.