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2023

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For today, I used ChatGPT to ask which companies store raw materials. After all, you cannot have capital investing in infrastructure without raw materials. You cannot have geopolitical issues without concerns about oil and energy. You cannot have weather issues without worrying about supply and supply chain.

How do we make stuff without stuff?

The charts are of copper, through the COPX ETF, and agricultural, soft commodities, through the DBA ETF. The interesting feature is that both are still underperforming the SPY. Both are in bullish phases, and both have lots of upside as they are above the July 6-month calendar ranges.

Here is a list of the types of companies that store raw materials.

Agriculture and Food Processing Companies: Companies in the agricultural and food processing sectors store raw materials such as crops, grains, fruits, vegetables, livestock, and seafood. These raw materials are used to produce various food products.Mining Companies: Mining companies extract raw materials such as minerals, metals, coal, and oil from the earth. These companies often have storage facilities to hold the extracted raw materials before further processing or distribution.Oil and Gas Companies: Companies involved in the exploration, production, and refining of oil and gas typically have storage facilities for crude oil, natural gas, and refined petroleum products.Warehousing and Distribution Companies: Warehouses and distribution centers play a crucial role in storing raw materials for various industries. They may handle and store a wide range of raw materials, including chemicals, textiles, electronics components, and more.Commodity Traders and Exchanges: Commodity traders and exchanges facilitate the trading of raw materials, including agricultural products, metals, energy resources, and other commodities. They may have storage facilities to store these materials until they are bought or sold.Construction Companies: Construction companies often store raw materials such as lumber, cement, bricks, steel, and other building materials at construction sites or in dedicated storage yards.

First one we featured was on Monday, International Paper (IP). At the time of writing, IP was challenging the July calendar range. Today, IP cleared up 5% on the day.

Other companies to watch are:

Glencore (GLEN.L): Commodity trading and mining company that stores metals, minerals, and energy products.Billiton Limited (BHP): Iron ore, coal, copper, nickel, and manganese.Amazon (AMZN): They store a wide range of raw materials and products for various industriesExxonMobil (XOM): Stores crude oil, natural gas, and refined petroleum products.Dow Chemicals (DOW): Stores chemicals, plastics, and specialty materials

The charts of BHP and DOW have similar setups. Both are still underperforming the benchmark. Both have potential momentum building.

Most importantly, both look like investment opportunities if the theory of buying store houses for raw materials makes sense to you.

For more detailed trading information about our blended models, tools and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.

“I grew my money tree and so can you!” – Mish Schneider

Get your copy of Plant Your Money Tree: A Guide to Growing Your Wealth and a special bonus here.

Follow Mish on Twitter @marketminute for stock picks and more. Follow Mish on Instagram (mishschneider) for daily morning videos. To see updated media clips, click here.

Mish in the Media

Mish talks PCE inflation picks in this video from Business First AM.

Mish covers gold, oil, grains and the SPX — all actionable — in this video from CMC Markets.

Mish discusses recession, inflation, and AI picks on the open with BNN Bloomberg.

Mish and Angela Miles discuss the next moves for your money on Business First AM.

Mish talks her approach to being a professional trader in this Options Insight interview with Imran Lakha.

Nicole Petallides and Mish discuss crypto, basic materials, inflation and gold in this appearance on TD Ameritrade.

Mish and Ash Bennington cover a lot in this video from Real Vision, discussing everything from the Fed, to inflation, to the incredible move in stocks and what is next.

Mish talks day-trading tactics, currency pairs, gold, oil, and sugar futures in this video from CMC Markets.

Mish and Angie Miles talk tech, small caps and one new stock in this appearance on Business First AM.

Mish examines the old adage “Don’t Fight the Fed” in this interview on Business First AM.

Mish and Charles Payne talk the Fed, CPI, Inflation, yields, bonds and sectors she likes on Fox Business’ Making Money with Charles Payne.

Mish, Brad Smith and Diane King Hall discuss and project on topics like earnings, inflation, yield curve and market direction in this appearance on Yahoo Finance.

Coming Up:

July 26:Your Daily Five, StockCharts TV

July 27: Live Coaching

July 28: IBD Live

ETF Summary

S&P 500 (SPY): 452 July calendar range high now support.Russell 2000 (IWM): 193 is the 23-month holy grail.Dow (DIA): 35,000 support.Nasdaq (QQQ): Under its 6-month calendar range high, already showing signs of stress.Regional banks (KRE): Consolidating over its July calendar highs, positive.Semiconductors (SMH): Holds here okay; needs to clear 161 and under 147 trouble.Transportation (IYT): Right on the July calendar range high.Biotechnology (IBB): 128 support now to hold.Retail (XRT): Never cleared the July calendar range high-now, 66 is key support.

Mish Schneider

MarketGauge.com

Director of Trading Research and Education

In this episode of StockCharts TV‘s The Final Bar, guest host Tom Bowley discusses how, though sector rotation is displaying a slight shift towards bullish sentiments, things have still been rough. Acknowledging the recent rough patch in the market, Tom believes that market manipulation through options expiration might be partially responsible. With the onset of earnings season, Tom directs his attention towards high-profile companies such as Microsoft, Alphabet, and Texas Instruments. He wraps things up by discussing how you can best use ChartLists this earnings season.

This video was originally broadcast on July 25, 2023. Click on the above image to watch on our dedicated Final Bar page on StockCharts TV, or click this link to watch on YouTube.

New episodes of The Final Bar premiere every weekday afternoon. You can view all previously recorded episodes at this link.

Spotify announced Monday it will increase the price of its premium service by $1, to $10.99.

The music streaming giant said existing premium plan subscribers would be notified via email of when the increase would kick in, and they would be given a one-month grace period before it becomes effective unless they cancel before the period ends.

It represents the first price increase for the company since 2011.

‘The market landscape has continued to evolve since we launched,’ Spotify said in a release. ‘So that we can keep innovating, we are changing our Premium prices across a number of markets* around the world.’

In addition to being advertisement-free, Spotify Premium gives users an unlimited number of individual songs to play at will.

Last month, Bloomberg News reported Spotify was planning a new super-premium tier that was expected to include hi-fi audio.

Spotify’s announcement comes a few days after YouTube announced it would be increasing the price of its individual YouTube Premium plan by $2, to $13.99 per month, and of its YouTube Premium Music service by $1, to $10.99 per month. Apple and Amazon have also increased the price of their music subscription services in the past year.

In April, Spotify reported hosting more than 500 million users. However, fewer than half of those represented paid subscribers, with one tech news outlet noting that Spotify’s ratio of paid to free subscribers has been ‘in free-fall.’

Following Monday morning’s announcement, Spotify’s stock fell as much as 5%. The company is expected to report earnings Tuesday.

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MIAMI — At the height of the Covid pandemic, Miami — the new home of soccer superstar Lionel Messi — emerged as an unlikely destination for individuals seeking an escape from lockdowns and a return to normal life — to the extent that was possible.

Long known as a ‘fun in the sun’ hot spot whose economy had long struggled to diversify, the city was suddenly garnering headlines as a hot destination for financial groups, tech firms and entrepreneurs seeking relatively lax Covid protocols, with Florida’s lower tax burden as an added bonus.

The wave was also fueled by surging interest in cryptocurrency, as Miami became seen as a nexus for libertarians and the newly rich. The coastal city played host to the world’s largest Bitcoin conference for three consecutive years, drawing tens of thousands of attendees who saw the unveiling of a much-hyped crypto-bull statue.

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U.S. consumer confidence increased to a two-year high in July amid a persistently tight labor market and receding inflation, bolstering the economy’s prospects in the near term.

But the economy is not out of the woods, with the survey from the Conference Board on Tuesday offering mixed signals. Consumers remain fearful of a recession over the next year following hefty interest rate hikes from the Federal Reserve.

While more consumers planned to buy a motor vehicle or house in the next six months, fewer anticipated purchasing major household appliances like refrigerators and washing machines.

Consumers also continued to report that they intended to spend less on discretionary services, including travel, recreation and gambling. They, however, expected to increase spending on healthcare, as well as streaming services from home.

That supports economists’ views that consumer spending was flattening out after rising at its fastest pace in two years in the first quarter. Still, the survey joined data on inflation, the housing market and retail sales in raising optimism that the economy could skirt a recession this year.

“We seem to be in an unusual eddy in this expansion, with consumer confidence up but consumer spending clearly leveled off,” said Robert Frick, corporate economist with Navy Federal Credit Union in Vienna, Virginia. “Lower inflation is why confidence has surged, but Americans have become cautious, trimming spending and increasing savings.”

The Conference Board’s consumer confidence index increased to 117 this month, the highest reading since July 2021, from 110.1 in June. Economists polled by Reuters had expected the index to increase to 111.8.

The improvement in confidence was across all age groups, with the largest increase among consumers aged 35 and below. Confidence was higher among consumers with annual incomes below $50,000 as well as those making more than $100,000.

Consumers’ perceptions of the likelihood of a recession over the next year rose, but stayed below the recent peak earlier in the year. About 70.6% of consumers this month said a recession was “somewhat” or “very likely,” up from 69.9% in June.

The share expecting better business conditions over the next six months was the highest since January.

The survey was published as Fed officials started a two-day policy meeting. The U.S. central bank is expected to raise interest rates by 25 basis points on Wednesday after keeping borrowing costs steady in June. The Fed has raised its policy rate by 500 basis points since March 2022.

Stocks on Wall Street were trading higher. The dollar was little changed against a basket of currencies. U.S. Treasury prices fell.

Tight labor market

“This likely reveals consumers’ belief that labor market conditions will remain favorable,” said Dana Peterson, the Conference Board’s chief economist.

The survey’s so-called labor market differential, derived from data on respondents’ views on whether jobs are plentiful or hard to get, widened to 37.2 this month from 32.8 in June, a sign labor market conditions remain tight despite job growth slowing. This measure correlates to the unemployment rate in the Labor Department’s closely followed employment report.

Consumers’ 12-month inflation expectations slipped to 5.7%, the lowest reading since November 2020, from 5.8% last month.

The improvement in inflation expectations was, however, not enough to convince more consumers to make big-ticket purchases over the next six months. And while more households planned to buy houses, they could run into affordability challenges.

House prices have resumed their upward trend because of tight supply after earlier slowdowns and outright declines in some regions as higher mortgage rates depressed demand. With the labor market still resilient, demand for housing is rising again. But many homeowners have mortgage loans with rates below 5%, reducing the incentive to put their houses on the market.

A separate report from the Federal Housing Finance Agency on Tuesday showed monthly house prices rising 0.7% in May after increasing by the same margin in April. Prices climbed 2.8% in the 12 months through May after advancing 3.1% in April.

“Low inventory and surprisingly resilient housing demand have kept home prices stable or rising in many markets,” said Lisa Sturtevant, chief economist at Bright MLS in Alexandria, Virginia.

“But we are going to hit an affordability ceiling in many places which will happen just as more inventory begins to come on line later this year. As a result, it’s possible that the ‘bottoming out’ of home prices is just the first half of a ‘W-shaped’ pattern in the market.”

Reuters reporting by Lucia Mutikani; Reuters editing by Paul Simao, Chizu Nomiyama and Andrea Ricci

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The yearslong legal fight over former President Donald Trump’s decision to divert billions of dollars to build a U.S.-Mexico border wall formally ended on Tuesday.

Wisconsin became the last of 20 states to drop out of the two lawsuits, which were rendered all but moot when President Joe Biden issued an executive order in 2021 that halted wall construction using up to $6.7 billion intended for National Guard units, military construction projects and police.

Wisconsin stood to lose $8 million that was supposed to cover a new National Guard firing range. The federal government has since restored the money for the firing range, according to the Wisconsin Legislature’s attorneys and the state Justice Department.

The 9th Circuit U.S. Court of Appeals had ruled in favor of the states in October 2020, prompting the federal government to ask the U.S. Supreme Court to review the cases. After Biden’s executive order, the justices sent the cases back to a lower court.

A federal judge in Oakland, California, dismissed the other states, including California, New York, Colorado, Hawaii and Minnesota, from the lawsuits on July 17.

The Wisconsin Legislature’s finance committee granted the state Justice Department permission to drop out of the lawsuit Tuesday. The Republican-controlled committee voted unanimously and without debate.

The state Justice Department made its formal request to exit the lawsuits on July 18, triggering Tuesday’s meeting.

The department needed permission from legislators to get out of the cases because of a 2018 law that requires the agency to seek permission from the finance committee before settling lawsuits. Wisconsin Republicans passed the law to give themselves more oversight of Democratic Attorney General Josh Kaul’s activities after he defeated his Republican predecessor in the November 2018 elections.

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Gov. Kim Reynolds can proceed with an appeal on a temporary block on the state’s new, restrictive abortion law, the Iowa Supreme Court said Tuesday.

Reynolds announced her intentions to appeal last week and said it was ‘just a matter of time’ before lawyers for the state filed the request, which they did Friday. The Iowa Supreme Court had to say whether the request could move forward.

The Republican-controlled Legislature approved the measure to ban most abortions after about six weeks of pregnancy during a July 11 special session, and the law went into effect days later, immediately after Reynolds signed it. The ACLU of Iowa, Planned Parenthood North Central States and the Emma Goldman Clinic launched a legal challenge and Judge Joseph Seidlin on July 17 granted their request to pause the law as the courts assess its constitutionality.

Abortion remains legal in Iowa up to 20 weeks of pregnancy while the new law is on hold.

Reynolds is asking the state Supreme Court to override the lower court’s ruling and allow the law to go back into effect. The full court considered Reynolds’ application for appeal, but a spokesperson declined to say whether all the justices will also consider the appeal itself.

A justice’s recusal led to a rare 3-3 decision in June and left the block intact on the nearly identical 2018 law, prompting Reynolds to call the special session. The 2018 law was passed despite state and federal court decisions at the time, including Roe, that affirmed a woman’s constitutional right to abortion. Both courts reversed those decisions last year.

The state Supreme Court can rule on the temporary injunction alone, or it can decide to fast-forward a decision on merits of the law itself.

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FIRST ON FOX: Sen. Jacky Rosen, D-Nev., considered one of 2024’s most vulnerable Democrats up for re-election, served as the president of a Las Vegas area synagogue that invited a drag queen to preside over services and discuss transgender ideology with children.

Congregation Ner Tamid, which touts being the largest Reform Synagogue in Nevada, held a ‘Rainbow Shabbat – Don’t Be A Drag, Just Be A Queen/Torah Study,’ as well as an LGBTQ Shabbat targeted toward children in March. 

The Rainbow Shabbat included drag queen Miss Livinya Karr, a biological male named Raymond Zachary, discussing drag and transgender ideology and claiming historical figures in the Torah and Bible wore drag, while at the LGBTQ Shabbat for children, those in attendance wore rainbow clothing and were read to from the book, ‘You Are Loved,’ which introduces readers to families with two moms and two dads.

During the Rainbow Shabbat, Karr boasted of being a ‘big old queen standing where the Rabbi normally goes,’ and claimed ‘drag is an art form’ that usually involves a male wearing makeup and clothing to ‘exaggerate female gender signifiers for entertainment purposes. The technical term is a gender illusionist.’

‘We are all drag queens. As our lord and savior RuPaul once said we are all born naked and everything else is drag,’ Karr said, referencing celebrity drag performer RuPaul, before claiming, ‘The Torah has many examples of drag whether we even notice them. Aside from the fact that every single one of our Bible stories centers around a man wearing a dress.’

Karr also claimed the story of Joseph in the Torah and Bible was the ‘first actual example of drag,’ and that it compared to the feeling he ‘felt the night they handed me my rehearsal [stiletto] shoes.’

It’s unclear whether Karr, who is based out of Huntington Beach, California, was paid for his appearance at the events, although he advertises on his website that he has ‘reliable transportation’ for ‘gigs and bookings.’

Rosen served as president of Congregation Ner Tamid from 2013 to 2016, prior to her 2017 election to Congress, and has maintained an active role in the synagogue according to numerous posts on social media.

In April 2021, the synagogue honored Rosen for her ‘years of dedication as our synagogue President and the significant service to our great state and community,’ and Rosen appeared in multiple photos posted on the synagogue’s Facebook page in April and May 2022.

In another Facebook post in November, the synagogue touted its connection to Rosen and noted her service as its president.

Fox News Digital reached out to Rosen’s Senate office, her re-election campaign and Congregation Ner Tamid for comment but did not receive responses.

Rosen faces what is expected to be a tough challenge from Republican Sam Brown, a former U.S. Army captain and veteran of the Afghanistan War.

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A Democratic congressman began a ‘thirst strike’ on the steps of the U.S. Capitol on Tuesday to protest a Texas law critics say will override local ordinances such as mandatory water breaks for people working in the heat and to call for federal protections for those who work in hot temperatures. 

Rep. Greg Casar, whose congressional district includes parts of Austin and San Antonio, tweeted a photo of himself Tuesday with civil rights activist Dolores Huerta, while taking his last sip of water before his all-day strike. 

‘Just took my last drink of water before my thirst strike with the one and only, Dolores Huerta. #WorkersCantWait,’ he captioned the image. 

Casar planned to abstain from liquids to call for a federal heat rule to protect workers as record-setting temperatures continue to break across the country. The forecast in Washington D.C. was expected to reach 90 degrees on Tuesday. 

‘Today I’m on a thirst strike on the steps of the U.S. Capitol—not drinking water or taking breaks, through rain or shine, in solidarity with our nation’s workers,’ Casar said in another tweet. ‘Currently there are NO federal protections for workers exposed to heat.’

In a letter signed by more than 110 Democrats, Casar demanded the Biden Administration implement an Occupational Safety and Health Administration (OSHA) workplace heat standard as soon as possible.

The signatories noted a law recently signed by Texas Gov. Greg Abbott they claim would strip power from cities and could eliminate existing heat protections in Dallas and Austin.

‘Our nation—and my home state of Texas—is experiencing a historic heatwave—exposing workers to deadly 100°+ temperatures,’ Casar tweeted. ‘Yet in the middle of this heatwave, @GregAbbott_TX signed a law *eliminating* workers rights to water breaks.’

House Bill 2127 doesn’t mention water breaks specifically but prohibits cities across the state from creating rules that go beyond state law. Currently, there are no federal or state rules that require employers to provide paid water breaks. The law is intended to prevent what is described as a ‘patchwork of regulations that apply inconsistently across this state’ 

During Tuesday’s thirst strike, several progressive Democrats were seen showing support for Casar, including Reps. Alexandria Ocasio-Cortez, Silvia Garcia, Hakeem Jeffries, Maxwell Frost and Ilhan Omar.

‘In the wealthiest country in the history of the world, workers shouldn’t be dying from heat-related illnesses. Proud to join this effort led by @GregCasar,’ Omar tweeted. 

Casar said he spoke with Acting Secretary of Labor Julie Su, who said the White House was ‘working hard to get a federal heat standard done, and it’s up to us to fight corporate greed so they can get it done.’

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The Obamas’ personal chef who drowned Sunday while paddleboarding near the former president’s home on Martha’s Vineyard was not wearing a life vest and no foul play is suspected in his death, Massachusetts State Police said.  

The body of Tafari Campbell, 45, of Dumfries, Virginia, was recovered Monday morning from Edgartown Great Pond after an extensive search. 

A paddleboarder who was with Campbell told investigators they’d seen him standing on his paddleboard and lose his balance before falling into the water. The paddleboarder said Campbell struggled to stay afloat before submerging. Investigators were told Campbell was not wearing a personal flotation device.  

The fellow paddleboarder told investigators they tried to swim to Campbell’s location but couldn’t reach him in time. The paddleboarder swam to shore and asked someone to call 911. The Dukes County Regional Emergency Communications Center initiated an immediate emergency search and rescue response by multiple public safety agencies. 

The search was paused late Sunday but on Monday state police said sonar from a boat located the body about 100 feet from shore at a depth of about 8 feet.

The on-scene observation of the victim by State Police personnel and the post-mortem examination by the Office of the Chief Medical Examiner revealed no external trauma or injuries.  

Though a 911 call came from the Obamas’ home, the former president and his wife, Michelle Obama, were not present at the time of the accident. Fox News Digital has requested an audio recording of the 911 call. 

The Daily Mail on Tuesday published photos of Malia and Sasha Obama leaving Martha’s Vineyard. 

In a statement, the former president and his wife, Michelle Obama, called Campbell a ‘beloved part of our family.’

‘When we first met him, he was a talented sous chef at the White House – creative and passionate about food, and its ability to bring people together,’ the couple said. ‘In the years that followed, we got to know him as a warm, fun, extraordinarily kind person who made all of our lives a little brighter.’

‘That’s why, when we were getting ready to leave the White House, we asked Tafari to stay with us, and he generously agreed. He’s been part of our lives ever since, and our hearts are broken that he’s gone.’

The Obamas said Campbell is survived by his wife and their twin boys.

Campbell is not the first former White House chef to drown. In June 2015, Walter Scheib, an executive chef at the White House who served former Presidents Bill Clinton and George W. Bush, drowned while hiking a trail in Taos, New Mexico. 

Fox News’ Bryan Llenas and The Associated Press contributed to this report. 

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