Week Ahead: Investing Ideas, Key Highlights to watch. Week ending 8 July.
Hello new half-year, quarter, month!
July is traditionally one of the best months for equities in the US and Australia. In fact, it’s the third-best month of the year for returns as capital is put to work (invested) - the same capital that may have been taken off the table at the end of half-year.
What were the best-performing US stocks in the first half of 2023?
Among the S&P500, Dow Jones 30 and the Nasdaq 100, the best performers included:
Travel stocks such as Royal Caribbean and Wynn Resorts, up 191%, and 76% respectively.
While some entertainment and social media businesses flourished with Netflix up 145%, and Meta Platforms up 73%.
Solar companies also performed well, with First Solar soaring up by 176%.
Software giants/chip makers also dominated the leaderboard, with Nvidia up by 171%, and other semiconductor companies including On Semiconductor up 75% and Applied Materials up 53%.
And lastly, we also saw defense and military companies make it to the center stage with General Electric up 117% and Axon Enterprise up 110% after the NATO alliance pledged for countries to put 2% of GPD toward defense.
Clients are investing in market leaders
If we reflect on the most traded stocks at moomoo over the last year, we can see that clients have been investing in companies that are the leaders in their fields. Based on 12-month trading data up to 30 June 2023, the most traded stocks were:
Tesla - the largest EV car maker by sales volume as of Q1 2023
BHP - the world’s largest mining company, with the biggest iron and copper resources
Tencent - China’s biggest listed company, and the global pioneer in internet-based tech
Investing ideas to consider
Last week, Jessica Amir, our market analyst wrote about the stocks to watch in the wake of a trifecta of stimulus in China. Click here to read the article. She discussed why investors should be watching:
The Electric Vehicle industry and related stocks. This is on the back of China unveiling the biggest round of EV stimulus to boost sales in the way of $72.3 billion of tax breaks.
Building-sector-related companies; after China’s central bank cut two key lending rates for the first time in a year. Investors need to reflect on potential building and construction stocks in HK and China.
Also, global commodity companies supply resources that are needed to make building materials. For example, BHP, the world's biggest iron ore producer sells the majority of its iron ore to China. Iron ore is the key ingredient needed in steel.
Consumer spending stocks. This is on the back of China wrapping up its first major shopping festival, after the pandemic, ‘The 618 festival’.
News to watch that could move markets
One of the most important things to be across this week is that the US central bank, the Fed, will release their meeting minutes from their last policy meeting. Investors will dissect the minutes on Wednesday to gauge what the Federal Reserve's interest rate outlook is.
On the data front, the latest US jobs report in the form of ‘non-farm payrolls’ will be released and is widely expected to show that jobs rose by 200,000 in June, which will be the lowest rise in jobs since December 2020, while the unemployment rate is expected to remain unchanged at a seven-month high of 3.7%. Also- the ISM reports are likely to show a modest rise in service sector activity.
Happy investing!
The moomoo team
This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. Read more
