Amazon, AMD, and D-Wave and Key Economic Reports

This report summarizes the key insights from the “Charts and Checks” podcast, episode six and a half, hosted by Alvaro and Don Fojani. The episode provides a comprehensive look at the upcoming market week and offers analysis on several stocks.

Macroeconomic Discussion & Upcoming Week

The hosts highlighted several key economic reports to watch this week:

• Tuesday: The July inflation report will be released, with expectations for core CPI at 0.3%. A significantly higher number could jeopardize a potential September rate cut.
• Thursday: The Producer Price Index (PPI), a leading indicator for inflation, is expected to show a 0.2% increase in the headline number and 0.3% for core PPI.
• Friday: The US retail sales report for July will come out. Expectations are for a 0.5% increase in headline sales, but a weaker number could fuel recession fears.

Stock Analysis & Discussion

The podcast covered a range of stocks with both technical and fundamental analysis:

• Oaklo (OKLO): A nuclear energy company focused on AI data centers. The stock has surged 369% since early April, but the hosts are skeptical as the company has no revenue or profit, and they see a significant downside risk.
• Amazon (AMZN): While some analysts were disappointed by AWS’s performance, it still grew 18% year-over-year. The hosts noted that Amazon’s forward P/E ratio is at a historical low of 32, suggesting it’s potentially undervalued. Technically, a close above $225 would be a bullish sign.
• Apple (AAPL): The stock broke above its 200-day moving average, a positive technical signal. The hosts believe Tim Cook’s recent White House visit helped alleviate tariff concerns. A potential acquisition of an AI company could be the “final spark” for a new high.
• AMD (AMD): After an initial post-earnings dip, the stock found support at its 20-day moving average. The next key level is $175, and a breakout above this could lead to a retest of its 52-week high.
• UnitedHealth Group (UNH): The hosts described the stock as a “disaster,” trading near its pandemic low. They advised against “bottom picking” and recommended waiting for a clear reversal before buying.
• Meta (META): The stock is consolidating at a new all-time high. The hosts are bullish on the company’s execution and believe it’s not expensive given its performance. They see it as a “buy the dip” opportunity in a market correction.
• Other Stocks: The podcast also touched on Sofi (SOFI), which is consolidating nicely; Circle (CRCL), a crypto stock sensitive to interest rates; Applied Materials (AMAT), a semiconductor equipment maker that may have a lot of good news already priced in; Cisco (CSCO), which broke out to a new multi-year high with a low valuation; Netflix (NFLX), which shows a strong chart pattern with key resistance levels to watch; Robinhood (HOOD), which is at a new all-time high despite crypto-related news; and Corwith (CWRB), an AI data center play with an expected high move after its earnings report.