Social media and biotech stocks are firmly in bubble territory.
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Hedgeye Risk Management CEO Keith McCullough and JonesTrading chief market strategist Michael O’Rourke discuss geopolitical risk and whether the bull market in stocks is getting long in the tooth on Fox Business' "Opening Bell." According to McCullough, "the real bull market is in bonds, gold, and anything slow-growth, yield-chasing that reflects a slower economy."
The 3rd week of July provides us with the placeholder table revenue figure of HK$5,425 million or HK$775 million per day. Thus, we would caution investors not to rely on this number. The fourth and fifth (stub) weeks should provide some volatility to catch up on the placeholder 3rd week.
Our full month projection is for July YoY GGR growth down low single digits.
In terms of market share, Galaxy continues to crush it at the expense of MPEL and MGM. We remain negative on the Macau stocks general but like the long setup here for Galaxy.
Hedgeye CEO Keith McCullough handpicks the “best of the best” long and short ideas delivered to him by our team of over 30 research analysts across myriad sectors.
Takeaway: Hedgeye Retail Ideas List. WWW - international opportunity. KATE talks e-comm strategy.
HEDGEYE RETAIL IDEAS LIST
WWW - In Person: Jim Zwiers Takes Wolverine To New Heights
Takeaway: At the time of the PLG acquisition in 2012, WWW was the most global footwear company in the world with over 60% of its unit sales coming outside the US, while International accounted for just 5% of sales for the four brands it acquired (Sperry, Saucony, Keds, and Stride-Rite). Over the next 5 years we see $600mm in International revenue opportunity for the acquired PLG brands as WWW layers these brands on to its global infrastructure spanning 200+ markets and 10,000+ points of distribution.
KATE - Kate Spade's Mary Beech Talks Brand Storytelling
Takeaway: KATE is a brand that built a strategy around selling product across multiple categories (handbags, accessories and apparel, etc…), to multiple affluent consumers (Kate Spade, KS Saturday, and Jack Spade) in several channels of distribution (wholesale, retail, dot.com, and concessions) in several regions of the world. These characteristics might be expected from a multi-billion dollar company. But keep in mind that KATE was less than $800mm in sales in FY13.
LULU - Lululemon seeks a leg up on knockoffs
Herman Miller to acquire Design Within Reach
TGT - YouTube Stars Sell Target to College Set
Tesco - Appointment of Chief Executive Officer and Trading Update
AMZN, BKS - Amazon Starts $9.99-a-Month Service for Unlimited E-Books
Below are key European banking risk monitors, which are included as part of Josh Steiner and the Financial team's "Monday Morning Risk Monitor". If you'd like to receive the work of the Financials team or request a trial please email .
European Financial CDS - Swaps across Europe were narrowly changed with one exception: Russia's Sberbank, which widened +35 bps to 265 bps.
Sovereign CDS – Sovereign swaps were little changed last week as the largest move came from Italy at +3 bps, while the average move was 0 bps.
Euribor-OIS Spread – The Euribor-OIS spread (the difference between the euro interbank lending rate and overnight indexed swaps) measures bank counterparty risk in the Eurozone. The OIS is analogous to the effective Fed Funds rate in the United States. Banks lending at the OIS do not swap principal, so counterparty risk in the OIS is minimal. By contrast, the Euribor rate is the rate offered for unsecured interbank lending. Thus, the spread between the two isolates counterparty risk. The Euribor-OIS spread tightened by 1 bps to 13 bps.
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