Amazon (AMZN), one of the Magnificent 7, risks breaking an uptrend that started in February. After a post-earnings breakout on July 30, regulatory risks loom.
The FTC (Federal Trade Commission) filed a complaint that Amazon extracted billions of dollars from its unwitting advertising customers. Amazon had a bidding system where merchants competed to offer various ads. This promoted their brand when a shopper started a search. However, the FTC said that Amazon hiked ad prices by adding an undisclosed surcharge (“soft reserve”).
Long-term US Treasuries (TLT) are potentially about to re-test a 52-week low. The 20+ Year T-bill closed at $82.52, not far from its $81.17 low. U.S. Treasury Secretary Scott Bessent countered Stanley Druckenmiller’s criticism. The former is increasing the buyback of 30-year debt. That equates to using a credit card to pay for long-term debt.
Bessent said that U.S. bonds performed best compared to other major government debt. He cited Fitch’s credit rating, too. Unfortunately, the US2Y and US10Y yields resumed their climb. Markets are demanding higher yields for U.S. debt.
Howmet Aerospace (HWM) lost 7.51% on Monday. SpaceX’s (SPCX) CEO, Elon Musk, posted on X that the company and Tesla (TSLA) are developing 100 GW in solar production capacity. The firm would cast natural-gas turbine blades in-house.
The drop in HWM stock appears overdone.
