Weekend Update 7/24/2022

Weekend Update recaps market highlights and major news from Ursa’s portfolio. Not on Ursa yet? Download Ursa from the App Store!

Snapchat outlook warning topples strong consumer sentiment

🥳  Consumer power. While last month #ConsumerNoConfidence sentiment drove markets lower, earnings are proving resilient and near-term concerns may be overblown. Strong midweek rally with S&P 500 up +4%.

👻  Rally snapped. Sentiment soured with Snap warning inability to provide outlook due to “uncertainties” from #RecessionWatch macro environment. Not great when a company can’t produce a forecast for itself. Ad spending typically leading indicator of consumer demand. S&P 500 falls -1% Friday, but still finishing week up +2.5%.

🏭  CHIPS moves forward. Senate moves CHIPS Act forward with 64-34 vote. Bill grants ~$54B subsidies and 4-year 25% tax credit to encourage building #MadeintheUSA semiconductor fabs in US for national security. Semi names have been running with deal looking imminent.

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The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.