Daily Brief United States: NVIDIA Corp, Copper, Flex, S&P 500 INDEX, Crude Oil, Royal Caribbean Cruises, Quest Diagnostics, Bitcoin Pro, Kellogg Co, 3M Co and more

• The Technology Select Sector SPDR (XLK US) ETF tracks the Technology Select Sector Index and has an AUM of over US$65bn.
• The recent drop in NVIDIA Corp (NVDA US) has taken its market cap and free float market cap lower than Microsoft Corp (MSFT US) and Apple (AAPL US). 
• If that continues to be the case on 13 September, there will be huge outflows for NVIDIA (NVDA) and huge inflows for Apple (AAPL) at the close on 20 September.

• China’s state grid is increasing spending by 13% this year, which could boost sentiment in the copper sector
• Chinese steel rebar standards are changing, leading to concerns about obsolete inventories and potential pressure on steel prices
• India’s rising demand for metals, particularly in steel production, could have a significant impact on the global market by 2030

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• Flex Ltd. reported solid financial results, reflecting a combination of strategic positioning and operational resilience.
• The company delivered $6.3 billion in revenue for the quarter, slightly exceeding expectations, while achieving an adjusted operating margin of 4.8%.
• This translated into an adjusted earnings per share (EPS) of $0.51, which is a 9% increase year-over-year.

• The S&P 500 INDEX is massively oversold WEEKLY (and DAILY).
• Our models indicate the index is trading in the “Tails” area of the LONG model, a reversal is probably imminent, but forecasts in this  price area are less reliable.
• Accumulation can start from Monday’s low prices (around 5100), the reversal will probably come next week.

• The US oil and gas rig count declined by three to 586 for the week ending 02/Aug, following two consecutive weeks of increases. 
• The US oil rig count held steady at 482, after rising by 5 last week. Gas rigs decreased by three to 98, marking a second consecutive weekly decline.  
• In May, US crude oil production experienced its first monthly decline since January, while natural gas output dropped to its lowest level since February 2023. 

• Royal Caribbean Group has reported a robust set of results for the second quarter of 2024, showcasing strong demand and positive momentum across its portfolio of offerings.
• The company’s success is evident in the achievement of its ‘Trifecta’ financial targets 18 months ahead of schedule.
• This three-year financial performance program aimed to deliver triple-digit adjusted EBITDA per APCD, double-digit adjusted earnings per share (EPS), and a return on invested capital in the teens, all of which have been met.

• Quest Diagnostics delivered a mixed yet overall positive performance in its recent financial results.
• The company reported a 2.5% increase in total revenues, with base business revenues growing by nearly 4%.
• This growth is attributed to the expansion of new physician and hospital customers and an improved test mix, with advanced diagnostics seeing greater adoption and healthcare utilization remaining strong.

• Financial markets are a humbling mechanism.
• The past two weeks remind us just how difficult predicting the future can be.
• Since our market cycle indicator signalled a crypto slowdown on June 2nd, we have been risk-off.

• Kellanova, a renowned snack food manufacturer known for brands like Cheez-It and Pringles, has recently attracted the interest of Mars, the global confectionery giant behind M&M’s and Snickers.
• With a market value of approximately $27 billion, including debt, Kellanova is a significant player in the packaged food sector.
• Despite its robust market presence and diverse product portfolio, Kellanova’s shares have underperformed relative to peers, presenting a potential acquisition opportunity.

• In the second quarter of 2024, 3M Company reported a robust financial performance, characterized by a 40% increase in non-GAAP earnings per share to $1.93 and modest organic revenue growth of 1%.
• The adjusted free cash flow for the period was $1.2 billion, showcasing a conversion rate of 109%.
• These results reflect the company’s ongoing efforts to navigate significant structural changes and market challenges, leveraging operational efficiencies, and recent strategic adjustments, including the spin-off of its Health Care business and the organizational shift to a global business unit structure.