The Wednesday Roundup: July 17, 2024

The biggest movers over the last week on price and volume (Mid Cap S&P 400 and Small Cap S&P 600)

Price and volume moves last week for every stock and sector (Mid Cap S&P 400 and Small Cap S&P 600)

Last week vs. history (Mid Cap S&P 400 and Small Cap S&P 600)

AI Oracle Commentary (Alpha testing)

Key News Highlights:

• U.S. Equity Markets Surge: Large-cap stocks led a robust rally in U.S. equity markets, gaining 15.3% in the first half of 2024, driven by enthusiasm around artificial intelligence and strong profit growth in technology and communications sectors.
• Interest Rate Adjustments: The European Central Bank and Bank of Canada became the first G7 central banks to lower policy rates after a series of rate hikes, while the U.S. Federal Reserve is expected to pivot to rate cuts later this year due to moderating inflation.
• International Market Gains: Emerging-market stocks outperformed developed international large-cap stocks, bolstered by fiscal support from China and improving economic conditions in Europe and Japan.

Historical Comparison:

To draw a historical parallel, let’s revisit the market conditions of 1985.

• Equity Market Surge: Similar to 2024, the mid-1980s saw a significant rally in the equity markets. In 1985, the Dow Jones Industrial Average surged by over 27%, driven by declining interest rates and robust corporate earnings, particularly in technology and industrial sectors.
• Interest Rate Adjustments: The Federal Reserve under Chairman Paul Volcker had been aggressively lowering interest rates to combat the recession of the early 1980s, which is comparable to the current easing by the ECB and BoC following a period of rate hikes.
• International Market Gains: The international markets in 1985 also saw notable gains, particularly in emerging markets, as global economic conditions improved and fiscal policies in countries like Japan and Germany supported growth, echoing today’s fiscal support from China and economic improvements in Europe and Japan.

Stock Study for Tuesday

Gentherm Inc. (THRM)

Gentherm Inc. is a global leader in thermal and pneumatic comfort technologies, primarily serving the automotive and medical sectors. In the automotive sector, the company offers a wide range of products including Climate Control Seats®, heated interior systems, and battery performance solutions, catering to major OEMs in North America, Europe, and Asia. Their advanced electronic devices, like memory seat modules and hands-on detection sensors, enhance safety and comfort in vehicles. Gentherm's innovative products such as WellSense™ and ClimateSense® are designed to provide personalized in-cabin comfort, which is expected to drive future revenue and profit growth.