📈 The Great Rotation

Good morning.

The Fast Five → Great rotation trade sees investors dump AI giants, the US economy is pulling off something historic, Apple’s no longer among top smartphone vendors in China, OpenAI announces a “SearchGPT” search engine, and starter home prices top $1 million in 200+ US cities…

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Calendar: (all times ET)

• Today: PCE index, 8:30 AM

  • Consumer sentiment, 10:00 AM

Your 5-minute briefing for Friday, July 26:

A Message From Percent

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BEFORE THE OPEN

PRE-MARKET

MARKETS

• Major US stocks ended lower as investors continued to cozy to small caps

• S&P and Nasdaq fell for a third-straight day

• VIX hit a fourteen-week high

• US 2Y-10Y yield curve inversion hit -11 bps, the lowest since October

EARNINGS

• American Airlines rose ~4% after beating Q2 EPS estimates despite a 46% YoY decline and a slashed FY guidance due to an industry supply glut (link)

• Full calendar here

NEWS BRIEFING

Great Rotation Trade Sees Investors Dump AI Giants for Less Obvious Stocks

The US Economy is Pulling off Something Historic

• US economy grew at 2.8% rate in second quarter (link)

• 2-year Treasury yield dips as investors look to key inflation data (link)

• 30-year fixed-rate mortgage edges up to 6.78% (link)

• Yen steady, Asian stocks weak as wild week winds down (link)

• Starter home prices top $1 million in more than 200 US cities (link)

• Apple no longer among top 5 smartphone vendors in China (link)

• OpenAI announces a search engine called SearchGPT (link)

• Southwest scraps open seating, ending decades-long practice (link)

• Meta to be hit with first EU antitrust fine for linking Marketplace and Facebook (link)

• Kroger, Albertsons agree to temporarily halt merger plans while Colorado lawsuit proceeds (link)

• Helmerich & Payne to buy KCA Deutag for $1.97 bln to boost Middle East presence (link)

CRYPTO

• Ethereum ETFs saw $113 million in outflows on their second trading day, with Grayscale's fund losing $326.9 million (link)

• Marathon Digital acquired $100 million in Bitcoin, continuing its "full HODL" strategy with over 20,000 BTC (link)

• Coinbase appointed three new board members, including an OpenAI executive, to strengthen its influence on US crypto policy (link)

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DAILY SHARES

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