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Credit Ratings

BAC

BRK

JPM

This week's economic highlights include Warren Buffett's indifference to Fitch's U.S. rating downgrade, JPMorgan CEO Jamie Dimon's concerns about fiscal spending and the Ukraine crisis, Bank of America's withdrawal of its recession forecast due to a strong job market, Paul Krugman's praise for Bidenomics, and Jim Cramer's skepticism about China's economic strategy.

Portfolio Pulse from Benzinga Neuro

August 06, 2023 | 8:48 am

BLK

HOOD

JPM

MSCI

TSLA

UBER

The major stock indexes experienced a down week, with the Nasdaq, S&P, and Dow falling by roughly 2.9%, 2.3%, and 1.1% respectively. Fitch Ratings lowered the U.S. government's credit rating from AAA to AA+. Despite this, the job market remained robust with the unemployment rate dropping to 3.5%. Tesla, Inc. (TSLA) was suggested to buy Uber Technologies, Inc. (UBER) to capitalize on autonomous ride-hailing. Robinhood Markets, Inc. (HOOD), Uber, and Wayfair Inc. (W) achieved unexpected profitability in Q2. X, formerly Twitter, is exploring the possibility of building a trading hub for cryptocurrencies. Ford Motor Co's (F) Q2 revenue surge overshadowed a $4.5 billion loss in EV. BlackRock Inc (BLK) and MSCI Inc (MSCI) are under scrutiny for allegedly channeling investments into Chinese companies accused of human rights violations. JPMorgan Chase & Co (JPM) CEO Jamie Dimon expressed heightened concern over fiscal spending, quantitative tightening, and the Ukraine crisis.

Portfolio Pulse from Michael Cohen

August 05, 2023 | 1:20 pm

AAPL

AMZN

HOOD

PYPL

QCOM

SBUX

The S&P 500 dropped after Fitch Ratings downgraded the US government's credit rating from AAA to AA+. Treasury yields reached a nine-month high, causing investors to sell equity assets in favor of bonds. Apple's shares fell due to a drop in iPhone sales, while Amazon's shares climbed to a 12-month high after reporting strong Q2 profits. Robinhood, Qualcomm, and PayPal also saw a decrease in share prices, while Starbucks' shares rose due to increased sales in China. Next week, earnings reports from Lucid Group, Eli Lilly and Company, AMC Entertainment, Fox Corp, United Parcel Service, The Walt Disney Company, Sony Group, Alibaba Group, and Novo Nordisk will be closely watched.

Portfolio Pulse from Natan Ponieman

August 04, 2023 | 8:28 pm

SQQQ

TQQQ

ProShares UltraPro Short QQQ ETF (SQQQ) shares are trading higher following recent weakness. The ETF has seen increased volatility after Fitch downgraded the long-term credit rating of the US, which has negatively impacted market sentiment and pressured growth sectors. The downgrade can lead to a broad-based market sell-off, affecting equities including technology stocks represented by TQQQ. The technology sector, which TQQQ seeks to track, relies heavily on global trade and economic stability, and a credit rating downgrade may affect tech companies' revenue and earnings expectations.

Portfolio Pulse from Henry Khederian

August 04, 2023 | 3:51 pm

QQQ

SQQQ

ProShares UltraPro Short QQQ ETF (SQQQ) shares are trading lower after Fitch downgraded the long-term credit rating of the US. This has affected market sentiment and pressured growth sectors. SQQQ rises when the Nasdaq-100 (QQQ) index falls, and a credit rating downgrade can trigger a decline in the broader market indices. As investors move away from riskier assets, they may seek protection in inverse ETFs like SQQQ.

Portfolio Pulse from Henry Khederian

August 04, 2023 | 3:49 pm

SPY

Bloomberg TV cited Goolsbee's statement that he doesn't believe the Fitch downgrade of U.S. will make much difference.

Portfolio Pulse from Happy Mohamed

August 04, 2023 | 3:42 pm

TLT

iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) fell sharply after Fitch downgraded the long-term credit rating of the U.S. Traders expect TLT to trade lower through October expiration. There was a buyer of 2,400 of the October 94-puts at an average price of $2.78 per contract.

Portfolio Pulse from Lisa Levin

August 04, 2023 | 3:21 pm

MCO

Moody's has reaffirmed its outlook for the full year 2023, which was previously updated on July 25, 2023, in connection with its second quarter earnings.

Portfolio Pulse from Benzinga Newsdesk

August 04, 2023 | 2:45 pm

SPY

Fitch has downgraded muni ratings tied to US sovereign ratings to 'AA+' from 'AAA', with a stable outlook. The downgrade affects certain categories of debt directly tied to the creditworthiness of the United States or related entities.

Portfolio Pulse from Benzinga Newsdesk

August 04, 2023 | 2:42 pm

MCO

Moody's Corporation's CFO, Mark Kaye, will step down on September 5, 2023, to take up a CFO role at another company. Caroline Sullivan, the current Chief Accounting Officer & Corporate Controller, will take over as Interim CFO while maintaining her existing responsibilities.

Portfolio Pulse from Benzinga Newsdesk

August 04, 2023 | 2:39 pm