The Wednesday Roundup: July 31, 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:

• Market Rotation: Equity markets have seen a significant rotation from mega-cap technology stocks to small-cap, value, and cyclical sectors, driven by cooling inflation and anticipation of Federal Reserve rate cuts.
• Political Uncertainty: Vice President Kamala Harris has become the Democratic nominee following President Biden's withdrawal, leading to a closer race with former President Trump and increased market volatility.
• Economic Resilience: U.S. GDP growth for the second quarter exceeded expectations at 2.8%, supported by strong consumer spending, despite forecasts of economic cooling in the upcoming quarters.

Historical Comparison:

Comparing these market headlines to October 1987, a period marked by the infamous "Black Monday" crash, provides an interesting contrast. In October 1987, the market experienced a sudden and dramatic collapse, driven by a combination of overvaluation, market psychology, and automated trading systems. Unlike the current scenario, where a controlled rotation and political developments are creating volatility, the 1987 crash was characterized by a lack of clear economic fundamentals and a rapid, widespread sell-off. Today's environment, with its focus on diversification and a resilient economy, suggests a more measured and potentially sustainable market adjustment.

Stock Study for Tuesday

Kohl's Corporation, established in 1988, operates 1,174 stores along with an e-commerce platform, offering a diverse range of moderately-priced private and national brand apparel, footwear, accessories, beauty, and home products. The company has exclusive agreements with recognized brands like Food Network and LC Lauren Conrad to develop private brands. To manage their supply chain, Kohl’s operates nine retail distribution centers and six e-fulfillment centers, ensuring efficient digital sales through shipping or in-store pick-up options. Emphasizing human capital, diversity, equity, and inclusion, Kohl's provides competitive compensation and benefits for its 96,000 associates.