Happy Saturday, and welcome back to our super skimmable Street Tweets newsletter.

Before we dive in, there’s something interesting going on with AI and banks we just have to talk about.

JPMorgan Chase rolled out a generative AI assistant that will be used by tens of thousands of its employees. People with knowledge of the bank’s long-term plans say that the AI software will become as ubiquitous as videoconferencing programs like Zoom.

JPMorgan isn’t the first investment bank to implement AI. In June, Morgan Stanley unveiled its OpenAI-powered assistant, Debrief, which is expected to eliminate thousands of hours of labor.

When it comes to companies set to benefit from AI innovation, don’t overlook America’s biggest banks. The new tech is set to maximize cost reduction, transaction volumes, and risk management — which could be big boons for the banks’ stocks.

Plus, today’s partner is highlighting AI’s next mag seven. Check them out…

TOGETHER WITH OXFORD CLUB

AI's NEXT Magnificent Seven

The Original Magnificent Seven Produced 16,894% Average Returns Over 20 Years.

But the Man Who Called Nvidia at $1.10 Says "AI's Next Magnificent Seven Could Do It Even Faster."

See His Breakdown of the Seven Stocks You Should Own Here.

MARKET REVIEW

TL;DR: This week saw extreme volatility in the stock markets, marking the most tumultuous period of 2024 so far. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all experienced sharp declines early in the week, with the S&P 500 suffering its worst day since 2022 on Monday, driven by disappointing payroll data and concerns over delayed Federal Reserve rate cuts.

However, a strong rebound ensued, with the S&P 500 almost erasing its weekly losses by Friday, ending just 0.04% down for the week. Despite the mid-week recovery, the Dow and Nasdaq still closed the week in negative territory, down 0.6% and 0.18%, respectively. Investors’ fears were calmed somewhat by Thursday’s positive jobless claims report and the belief that the recent sell-off was more about hedge funds unwinding positions rather than a sign of economic distress.

Click here to read the full market review

MARKET PREVIEW

TL;DR: The upcoming week features a range of U.S. economic data that could offer insights into inflation trends, consumer sentiment, and manufacturing strength. Monday's federal budget report will shed light on the government's fiscal position.

On Tuesday and Wednesday, inflation data through the Producer Price Index (PPI) and Consumer Price Index (CPI) will be closely watched, especially as markets assess whether inflation is cooling as expected. Thursday will be particularly busy with jobless claims, regional manufacturing surveys, retail sales, and industrial production data, which will provide a comprehensive view of economic activity. Finally, Friday’s consumer sentiment and housing starts data will offer a glimpse into consumer confidence and the state of the housing market. These reports are critical as they may influence the Federal Reserve's next moves on interest rates.

Click here to get ready for the week ahead

RIP to Disney shareholders.

Every investor is bound to pick some losers from time to time, and unfortunately for those holding Disney for the long run, its stock has soured — shares of Disney have declined 52% over the last three years.

Disney’s earnings results released this past Wednesday didn’t do its stock any favors either.

Despite posting its first-ever streaming profit, the primary issue investors had with the earnings report was slowing demand for its theme parks, projecting a mid-single-digit percentage decline in Q4 operating income.

Why so much focus on theme parks? Well, Disney's theme parks have been a bright spot for the company since the pandemic, as its other business segments struggled.

If consumers continue to feel the pain of high inflation, analysts believe Disney’s Experiences unit could slip for several more quarters.

Buy the dip?

To say that US markets were volatile this past week would be an epic understatement:

• Wall Street’s “fear gauge,” the VIX, rose to its highest level since the pandemic.

• The Dow tumbled more than 1,000 points on Monday.

• Monday was also the S&P 500’s worst day since September 2020.

• The Nasdaq pulled back into correction territory.

The two primary causes of this sell-off spree were weak US jobs growth data and a surging Japanese yen that blew up the carry trade.

However, it may not be time to sound the alarm and exit positions. JPMorgan CEO Jamie Dimon said the US economy has “not at all” entered a recession and urged investors to remain calm despite this week’s market volatility.

Sorry for the whiplash.

While Jamie Dimon is encouraging investors to keep calm, those who rely on the Heavy Truck Index are saying the opposite.

The Heavy Truck Index is considered a leading economic indicator because sales in this industry reflect overall business confidence and outlook in the US.

Over the past 40 years, the index has always led the S&P 500 with a lag of over a year. If we are to trust the index, a recession could be on the horizon.

Click here to see a chart from MacroMicro comparing the S&P 500 to Heavy-Weight Truck sales (truck sales are slipping…)

Be careful what you tweet…

The last time we talked about Left, he closed his GameStop short position due to its “cult-like” investor following.

Things are now dramatically worse for the infamous short-seller. Left is being charged with 17 counts of securities fraud and faces a maximum sentence of 370 years in prison.

As it turns out, Left was too slow to scrub his social media accounts.

The SEC claims he used his social media posts to recommend taking long or short positions in 23 companies and, on at least 26 occasions, he reversed his position once those companies’ shares moved.

While it certainly looks like Left engaged in wrongdoing, the Institutional Investor describes how his case could lead to “Draconian limits” on activist short sellers. 

TOGETHER WITH OXFORD CLUB

AI's NEXT Magnificent Seven

The Original Magnificent Seven Produced 16,894% Average Returns Over 20 Years.

But the Man Who Called Nvidia at $1.10 Says "AI's Next Magnificent Seven Could Do It Even Faster."

See His Breakdown of the Seven Stocks You Should Own Here.

Intel is having its “Come to Jesus” moment.

Over the past month, Intel’s shares have tumbled a staggering 42%… and for good reason, given its latest financial results.

The story of Intel’s collapse is one of competitive disadvantage. While its competitors, the likes of AMD, Nvidia, and Broadcom, outsource chip manufacturing, Intel owns and manages the majority of its production.

Outsourcing has allowed Nvidia, AMD, and Broadcom to focus on chip design and innovate their way to the top of the market.

In simplest terms, Intel has fallen behind on the times. Once the darling of the computer age, it’s now barely a competitor in the AI race.

Click here to read our full breakdown of Intel’s disastrous earnings and the issues it faces moving forward.

TRIVIA

Last week, we asked: Which stock exchange is generally known for hosting the largest number of IPOs annually?

The correct answer was the Nasdaq.

This week’s question…