Hala,
A Maryland woman tried Racetrax lottery for kicks and won $31,233!(1) 🐎💰 “I wanted to mix things up,” she said. She missed the race while chatting but checked her ticket and was stunned. Now she’s rolling in dough! 💸
amana’s Take
- OPEC maintains its projections for robust global oil demand growth in 2024 and 2025, driven by resilient economic activity and a strong rebound in air travel. The forecast remains unchanged with an anticipated rise of 2.25 million barrels per day (bpd) in 2024 and 1.85 million bpd in 2025.
- The forecast for non-OPEC+ liquids supply growth remains stable, with significant contributions expected from the U.S., Canada, and Brazil. However, OPEC+ crude production fell by 125,000 bpd to 40.8 million bpd in June, missing OPEC’s projections.
- Despite the Energy Information Agency’s (EIA) lower growth estimates, OPEC remains optimistic due to strong economic momentum and potential Federal Reserve rate cuts. The report highlights high U.S. interest rates’ impact on capital costs and commodity prices but expects continued growth driven by strong mobility and air travel.
Stock Market Update
🚀📈 Wall Street was in full swing on Wednesday, powered by sharp gains in tech stocks like TSMC and Nvidia. The S&P 500 jumped 1.02% to break 5,600 for the first time, closing at 5,633.91(2), while the Nasdaq 100 soared 1.09% to a new high of 20,675.38 and the Dow also climbed 1.09% to 39,721.36.(3) Talk about a mid-week market frenzy! 💃💥
↗️↘️ Meanwhile, Gulf stocks closed mixed on U.S. rate cut hopes. Abu Dhabi was flat at 9,138, and Dubai added 0.1% to 4,080.(4) 📊📶
🏥📊 Quarterly Earnings: Time for a Check-Up!
Second-quarter earnings season is set for a big reveal during the second full week of July, led by banking giants JPMorgan Chase, Wells Fargo, and Citigroup.(5) Investors are eagerly awaiting these results, ready to dissect the financial health of these key players and diagnose the broader economic conditions. Get your medical charts ready, because this check-up is going to be thorough! 🩺📈
🔬 What the Doctor Ordered: Key Symptoms to Watch
- Unrealized Losses on Balance Sheets: Banks are harboring about $517 billion in unrealized losses. This condition has been “unusually high” for almost 2½ years, thanks to rising interest rates impacting the value of government bonds. 🏦📉
- Commercial Real-Estate Losses: With banks holding 40%-50% of all commercial real-estate debt, delinquencies are on the rise. Small and regional banks are especially vulnerable, potentially facing tougher times ahead. 🏢💔
- Profits from Lending: While banks are making more from lending than post-pandemic, the growth in these profits is slowing down as customers shift to interest-bearing accounts. Analysts predict this profit margin will decline further. 🏦💸
🩺 More Follow-Up Appointments: What’s Next?
Beyond the banking sector, heavyweights like Johnson & Johnson, Netflix, Alphabet, Tesla and Microsoft, among others, are also scheduled to present their results in July. The financial check-up extends to these diverse sectors, promising insights into consumer health, entertainment, and tech innovation. The prognosis? A mixed bag of challenges and opportunities, as companies navigate the ever-evolving economic landscape. 📅🎬💡
Closer to Home
- 🏦 Abu Dhabi’s FAB crushes rumors of a $5 billion stake acquisition in India’s Yes Bank, dismissing them as “unfounded.” They pledge to keep stakeholders in the loop.(6) After all, in finance, facts are more valuable than speculation. 🙅♂️
- 💸 Meanwhile, Saudi-listed Ayyan Investment Company is poised to strengthen its financial position through a SAR 200 million ($53.3 million) rights issue, kicking off next week with 20 million shares at SAR 10 per share.(7) 🤑
- ✅ In other news, Saudi Arabia greenlights designs for Riyadh’s next big thing: the Global Sports Tower, set to rise as the world’s tallest sports tower at 130m high, aiming to elevate Riyadh’s lifestyle and global economic status.(8) 🗼
What Else Is Trending
- 🧑💻 HubSpot’s shares dropped 12% on Wednesday as Alphabet, Google’s parent company, backed out of an acquisition deal with them. Both firms stayed tight-lipped, leaving investors in suspense like a cliffhanger episode.(9) 👀
- 🛢️ Meanwhile, oil prices climbed on Wednesday on lower U.S. inventories and OPEC’s demand optimism amid robust economic growth. WTI gained 0.85% to $82.10 per barrel, while Brent added 0.5% to $85.08.(10) ⛽
- 🪙 Lastly, gold prices shimmered higher on Fed rate cut expectations. Spot gold gained 0.6%, sparkling at $2,378.25 per ounce.(11) ✨
💬Quote of the Day
“Investors are on the lookout for more signs of weakness in the banking system after last year’s bank failures.” — Wall Street Journal
Sign up now: https://amana.app/campaigns/dave-floyd
Get the amana app.
Sources:- (1) UPI, (2) The Globe and Mail, (3) (9) (10) (11) CNBC, (4) Reuters, (5) The Wall Street Journal, (6) (7) (8) Zawya
