Wall Street’s focus this week will be on key inflation data and on any further developments around trade and Russia and Ukraine.
A busy economic calendar will take center stage, with the July consumer price index and producer price index reports due on Tuesday and Thursday, respectively. Market participants and monetary policymakers will be keeping a close eye on the data for any effects of U.S. President Donald Trump’s tariffs on consumer and producer prices. Friday will see the retail sales reading for July.
The main event on Friday will be a scheduled meeting between Trump and Russian President Vladimir Putin. Trump has expressed hope that a truce could be near and could involve “some swapping of territories” between Russia and Ukraine, a proposal that Ukrainian leader Volodymyr Zelenskyy contested. WTI crude oil futures (CL1:COM) will be on watch.
Turning to the earnings season, Dow 30 component Cisco (CSCO) will headline another busy few days of quarterly results.
Investing Group Spotlight
Members of Margin of Safety Investing continue to be focused on the Invesco QQQ ETF (QQQ) and its mega-cap components. While earnings for most are now past, we will be looking to see if volume continues to weaken and if that leads to the potential correction investment group leader Kirk Spano discussed recently in Double Top QQQ Euphoria Is Likely Ending.
On tap for earnings are a slew of mid-cap and small-cap stocks. Many are challenged by tight financial conditions and slowing growth across multiple industries. While Margin of Safety Investing members are generally stock pickers, a weakening macro picture could increase volatility, adding both risk and opportunity.
Of particular interest this week is service favorite AST SpaceMobile (ASTS), which Kirk recommended to members below $5 per share, and in Seeking Alpha Premium article AST SpaceMobile Screams ‘Watson, I’m Calling You From Space.‘ The company, now trading above $50 per share, reports on Monday.
ASTS will be discussing progress on launching the rest of their satellite constellation for direct-to-cell 5G wireless services, which no other company is currently able to offer. ASTS shareholders, like Alphabet (GOOGL), American Tower (AMT), and AT&T (T), among others, will be listening. Margin of Safety Investing members know that launches come with glitches and delays, and if there is a dip in share price on some news, they have a game plan for adding to their positions and selling cash-secured puts for big premium incomes. Get more analysis and real-time trades from Kirk Spano with Margin of Safety Investing (currently offering a 14-day free trial).
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