MarketBeat Week in Review – 07/20- 07/24

Summary

Stocks were down broadly this week as investors chase value over growth. There are plenty of factors that support that strategy. The conflict between the U.S. and Iran has intensified. Investors are finding it hard to look past the massive capital expenditure (CapEx) being poured into artificial intelligence. It’s also summer, which is historically a time when stocks make big moves on lighter volume. On a brighter note, earnings season has been largely as advertised. According to FactSet, as of July 17, out of the 10% of S&P 500 companies that had reported, 88% reported a positive earnings per share (EPS) surprise and 85% reported a positive revenue surprise.Get Oracle alerts:Sign Up That’s likely to continue when four of the Magnificent 7 report earnings next week. However, that’s not the only thing moving the market. Next week, the Federal Reserve will announce its latest interest rate decision. Rates are likely to remain unchanged, but investors will be looking for any clues about potential rate hikes. Articles by Sam Quirke Oracle Corp. NYSE: ORCL has become the face of the debate on which companies, if any, can afford the AI buildout. S&P Global Ratings downgraded Oracle's credit rating to BBB on concerns over the company’s negative free cash flow. Sam Quirke explained why the problem isn’t unique to Oracle, and why it’s taking the brunt of the backlash. Quirke also explained why a similar CapEx story is emerging with Tesla Inc. NASDAQ: TSLA. The company missed on earnings expectations, but it was the company’s forecast for CapEx that had investors dumping their shares. Apple Inc. NASDAQ: AAPL has been an outlier in the tech trade. Quirke covered why the company has steered clear of the tech wreck, but also why its current valuation will face a tough test when it reports earnings on July 30. Articles by Chris Markoch Netflix Inc. NASDAQ: NFLX delivered an earnings report that confirmed investors’ worst suspicions. Engagement is lagging; content creation is a ne...