On Thursday’s edition of Asking for a Trend, Host Josh Lipton delves into major market stories and trends.
The auto sector is in the spotlight as companies like Stellantis (STLA) and Ford (F) report disappointing second-quarter earnings. Kevin Roberts, Director of Industry Insights and Analytics at CarGurus, comments that while the earnings are lackluster, the auto industry remains “quite healthy” and is currently undergoing “a bit of a rebalancing.”
The major indexes (^DJI, ^IXIC, ^GSPC) ended mixed on Thursday as they attempt to recover from a three-day tech sell-off. This decline was spurred by weak earnings reports from Tesla (TSLA) and Alphabet (GOOG, GOOGL), two of the “Magnificent Seven” tech giants. Yahoo Finance reporter Jared Blikre explores the day’s key market trends, highlighting the shift towards small-cap stocks and Japan’s financial markets, which seem to be experiencing a “capitulation.”
The regulatory future for startups and large corporations hinges on the 2024 election, with former President Donald Trump and Vice President Kamala Harris presenting very different platforms. Jordan Nof, co-founder and managing partner at Tusk Venture Partners, suggests that a new administration could lead to a new leader at the Federal Trade Commission (FTC) and potentially a different stance on antitrust issues. He notes concerns among investors that Big Tech’s reluctance to engage in transactions is dampening deal-making and exits. Nof also points out that investors and early-stage fund managers tend to favor Trump-era policies over Biden’s current ones, which could influence their voting behavior.
Josh Lipton concludes by highlighting what to watch for on Friday, July 26th, and reviewing notable movers in after-hours trading, including Skechers (SKX) and L3Harris Technologies (LHX).
