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- Rippers Weekly Recap 7/08
Rippers Weekly Recap 7/08
Hey everyone, itβs @StockMKTNewz Evan!
I spend 70 hours every week looking for news so you don't have to. That causes me to tweet a lot which can be hard to keep up with. Having somewhere to put all the major stories in 1 easy to view place is really valuable, and that's why I make this newsletter!
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How The Stock Market Performed This Past Week
All images below are sourced from finviz.com
Heat Map of the S&P 500
How The Largest Stocks Performed
Best Performing Large Cap Stocks
Worst Performing Large Cap Stocks
π‘SaberTrade Ideas: How To Trade a Potentially Disastrous Labor Dispute At UPS
Disclaimer: Not Financial Advice
UPS is in the process of negotiating a new contract with the International Brotherhood of Teamsters β the union that represents its workers. Negotiations broke down Wednesday in a nasty way, with finger pointing on both sides. The current contract is set to expire at the end of the month β and a massive strike will begin in August if a deal is not reached. A similar dispute occurred in the late 90s, ending with a huge strike that damaged UPS.
As traders, we ask ourselves the eternal question: How do I make as much money as possible off this? π
If you think the market is underestimating the likelihood or magnitude of this strike, there are a few ways to play it:
Simply sell short UPS.
Buy a direct competitor like Fedex, betting that a theoretical strike at UPS will make some of its customers start using Fedex instead.
Both of these ideas leave you with exposure to a lot of factors besides the strike, which could impact your profit.
A cleaner way is to:
Buy Fedex and short UPS so that you can hedge out a lot of these factors while still gaining the exposure you want.
Use options to bet on the volatility term structure. At the time of this writing, the implied at-the-money vol for the first week in August is very close to the implied at-the-money vol for the last week in July. This means the market is assigning minimal likelihood to a big move in UPS immediately after the union contract expires. To take advantage of this, you could buy an ATM put β expiring Aug 4 β and sell an ATM put β expiring July 28.
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This Week's Major Headlines
Mark Zuckerberg and $META βs Twitter Clone is now live
β Evan (@StockMKTNewz)
11:40 PM β’ Jul 5, 2023
JUST IN:
Twitter is threatening to sue Facebook $META over its new Twitter Clone - Semafor
β Evan (@StockMKTNewz)
6:27 PM β’ Jul 6, 2023
Mark Zuckerberg just put out his first tweet in over a decade
β Evan (@StockMKTNewz)
12:36 AM β’ Jul 6, 2023
Costco $COST just reported June sales of $22.86B up 0.4% YoY
β Evan (@StockMKTNewz)
8:17 PM β’ Jul 6, 2023
Nvidia $NVDA in February reportedly quietly acquired OmniML, a two-year-old AI startup whose software helped shrink machine-learning models so they could run on devices rather than in the cloud - The Information
β Evan (@StockMKTNewz)
9:31 PM β’ Jul 7, 2023
Apple $AAPL is planning a retail launch of its Vision Pro headset with appointments and in-store promotion in select US markets early next year - Bloomberg
β Evan (@StockMKTNewz)
4:22 PM β’ Jul 7, 2023
Yahoo CEO Jim Lanzone just said his goal is to take the company public again through an IPO - Financial Times
β Evan (@StockMKTNewz)
4:17 AM β’ Jul 4, 2023
Disney $DIS CEO Bob Iger is reportedly likely to seek a contract extension beyond his current one which expires in December of next year - Fox Business
β Evan (@StockMKTNewz)
7:38 PM β’ Jul 6, 2023
BREAKING
Tesla $TSLA just announced it delivered 466,140 vehicles in Q2 beating expectations of 448K twitter.com/i/web/status/1β¦
β Evan (@StockMKTNewz)
4:16 PM β’ Jul 2, 2023
The US added 209K jobs (Non farm payroll) in June below expectations of 225K
This is the first miss for NFP in the last 15 months
β Evan (@StockMKTNewz)
12:33 PM β’ Jul 7, 2023
ChatGPT downloads on iPhones in the US were down 38% MoM in June
Microsoft $MSFT Bing app downloads, which includes a ChatGPT-based chatbot in the US, were also down 38% in June according to a note from BofA - CNBC
β Evan (@StockMKTNewz)
6:37 PM β’ Jul 5, 2023
Amazon $AMZN CEO Andy Jassy today challenged the notion that Amazon has fallen behind Microsoft $MSFT and Google $GOOGL in AI
Jassy likened the buzz around generative AI chatbots to the βhype cycleβ before the βsubstance cycleβ - CNBC twitter.com/i/web/status/1β¦
β Evan (@StockMKTNewz)
11:24 PM β’ Jul 6, 2023
Bank of America $BAC just announced it plans to increase its quarterly dividend to $0.24 per share up from $0.22 per share starting in Q3
β Evan (@StockMKTNewz)
9:07 PM β’ Jul 5, 2023
BLACKROCK'S CEO LARRY FINK SAYS BITCOIN $BTC 'IS AN INTERNATIONAL ASSET'
β Evan (@StockMKTNewz)
7:53 PM β’ Jul 5, 2023
Rivian $RIVN is in final negotiations with Amazon $AMZN to sell its vans to other companies - Bloomberg
β Evan (@StockMKTNewz)
8:42 PM β’ Jul 5, 2023
Mercedes-Benz said today its EVs in North America will adopt Tesla's $TSLA NACS charging standard from 2025 and also get access to more than 12,000 of its Superchargers from next year - Reuters
β Evan (@StockMKTNewz)
2:17 PM β’ Jul 7, 2023
Google $GOOGL is testing an AI program trained to expertly answer medical questions - WSJ
β Evan (@StockMKTNewz)
3:04 PM β’ Jul 8, 2023
Warren Buffett's Berkshire Hathaway $BRK.B hit new 52 week highs again today
β Evan (@StockMKTNewz)
6:08 PM β’ Jul 7, 2023
Get Prepared For The Week Ahead!
That's it for today β thanks for reading! Want more Rippers? Make sure you're subscribed to this newsletter and never miss a weekly recap
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