Nasdaq Markets Outlook

equities rise + bond yields fall on CPI report | Nasdaq Index > R2K | US CPI (deflationary trend): Headline +3.2% YoY = less than expected; +0.2% MoM in-line w/ forecast. Core +4.7% YoY = less than expected; +0.2% MoM | shelter +0.4% MoM while airline fares -8.1%

* source: CNBC

We are at peak Fed funds rate

"Yesterday’s negativity was from a +27% spike in European natural gas prices (with a +40% intra-day high), the largest percentage increase since early March 2022, albeit still -87% below the peaks back in late August 2022...LNG supply risks reared their head with news of a possible strike that could affect LNG export facilities in Australia." -Jim Reid, Deutsche Bank

1) KEY TAKEAWAYS

1) Equities + TYields HIGHER | Weekly AAII (retail) sentiment: Bullish + neutral ticked down. Bearish rose | Initial jobless claims: +21K, to 248K, job market remains tight | next week: retail earnings

| ‘It’s Hard to Be an Activist These Days’: Gadfly Investors Trail Stock-Market Returns. So-called activist shareholders are up about 14% through July, lagging behind the S&P 500’s gains -WSJ

| bonds supported by strong 10YR auction

DJ +0.5% S&P500 +0.6% Nasdaq +0.7% R2K +0.4% Cdn TSX +0.7%

Stoxx Europe 600 +0.6% APAC stocks MIXED, 10YR TYield = 3.995%

Dollar LOWER, Gold $1,924, WTI -1%, $84; Brent -0%, $87, Bitcoin $29,588

2) stocks approaching rich valuation territory | 2023 rally all based on multiple expansion

* source: JP Morgan Asset Management

3) "S&P 500 companies see largest negative price reaction to positive EPS surprises since 2011" -Factset Insight

* source: Factset Insight

4) Energy prices continue to rise... | today's AAA national average gas price = $3.828

* source: Yardeni Research

* source: CNBC

5) housing = not affordable...

* source: Goldman Sachs Global Investment Research

6) Lending standards tightening which may not bode well for the economy...

* source: FRED, created by Gavin Zaentz

7) Food for thought | with monetary policy normalizing after 14+ years will we see a paradigm shift?

* source: BofA

8) CPI (inflation) + Small Biz Optimism + Consumer Survey = highlights this week

* source: Grindstone Intelligence

2) ESG, COMPILED BY NATHAN GREENE

OFF TODAY

3) MARKETS, MACRO, CORPORATE NEWS

· China’s internet giants order $5bn of Nvidia chips to power AI ambitions-FT
· Coach owner Tapestry in talks to buy Capri Holdings – WSJ-RTRS
· Online booking agents turn up heat in long-running Ryanair battle-FT
· Osaka Gas, Sumitomo near deal for Think Gas stake, sources say-BBG
· EastLink auction kick off delayed by two months; eyes on ACCC decision-AFR

· Oil/Energy Headlines: 1) Oil output inches up at top US shale firms, with faster growth elusive-RTRS2) US federal court keeps the brakes on oil, gas leasing activities in Arctic refuge-Platts