• How is the U.S. dollar's decline impacting inflation?
• How is Recursion leveraging Nvidia's investment to accelerate AI models for drug discovery?
• What are the consequences of China's increasing control over the tech sector?
MARKET MOVEMENTS
Dow Jones
S&P 500
Nasdaq
34,347.43 (+0.25%)
4472.16(+0.74%)
13,918.96 (+1.15%)
Opening price as of 07/13/2023 compared to last close
IN THE HEADLINES
U.S. dollar tumbles, hitting over a one-year low as inflation eases in June
The U.S. dollar reached its lowest level in over a year after data revealed that the increase in U.S. consumer prices slowed down in June, suggesting that the Federal Reserve may only raise interest rates one more time this year. The dollar index dropped to its lowest point since April 2022, while the Swiss franc saw its highest value against the dollar since early 2015. Core U.S. consumer prices rose less than expected, leading to a decline in the dollar against various currencies. Traders still anticipate a rate hike at the Fed's July meeting but now see a lower likelihood of another rate hike before the end of the year. Read more
FTC appeals its loss to Microsoft in Activision Blizzard case
The judge denied the FTC's motion for a preliminary injunction, allowing Microsoft to proceed with the merger. However, the FTC can appeal the decision to the U.S. Court of Appeals for the 9th Circuit. Additionally, the companies still need to address opposition from the Competition and Markets Authority in the United Kingdom. The judge's decision stated that the FTC failed to demonstrate that the merger would substantially reduce competition in the industry, citing evidence that it could potentially increase consumer access to Activision content. Read more
Nvidia deepens bets on AI in drug discovery with Recursion investment
Recursion's AI models for drug discovery, which it can potentially license out via BioNeMo. Recursion will train AI models on Nvidia's cloud platform using its own datasets exceeding 23,000 terabytes. Recursion plans to use Nvidia's software to support its own pipeline as well as current and future partners, and is conducting human trials for five of its drugs. Read more
TradeUP TIDBITS
“If the [Chinese] government is more and more controlling of things like AI internally—if it is more controlling of technology sector internally—the best and the brightest Chinese engineers may flow outside as they have been. Again, we’ve seen that last year, we’ve seen that this year….Secretary Yellen’s visit [to China] went from decoupling to de-risking…and diversifying. I think every country, having experienced [the supply chain issues during COVID], is diversifying its sources of input and trade. And we saw, for example, Mexico overtake China in terms of trade.”
—Afsaneh Beschloss, CEO of RockCreek
INVESTOR TIPS
Types of Orders
Market Order: When an investor wishes to purchase, or sell, a specific security and is willing to pay or sell for whatever its current market price is, with no negotiation or haggling.
Limit Order: When an investor has a specific maximum price they’re willing to pay to buy a specific security or a specific minimum price at which they wish to sell. If their limit price is never reached, then the order will never be executed.
Stop Order: An investor who already owns a stock may wish to put in an order to sell the stock if it declines below a specific level, called the stop price. This can be an effective way to protect already-existing profits in a stock. In the past, Wall Street referred to these as stop loss orders because they were widely used to stop the erosion of a position, to stop losses from growing excessively.
Good-til-Canceled Order: If an investor places an order which has a specific limit price, or stop price, then they must inform their brokerage firm how long they want the order to remain on the books. A day order is good for today only and, if not executed, will be canceled at the close of the market. A good-til-canceled (GTC) order is one in which the investor wants the order to remain on the books until it is filled, or until they change their mind and cancel it.
GTC orders do not typically remain active indefinitely. Most GTC orders expire 90 days after the investor places them.
Discretionary vs. Non-Discretionary Order: There are instances in which a client wishes to give their registered representative (RR) limited power of attorney, enabling the RR to make trading decisions on behalf of the client without having to contact the client in advance. This is referred to as discretionary power and the account is a discretionary account. Discretion may not be used until the proper documents are signed by the client and returned to the brokerage firm.
Solicited vs. Unsolicited Order: When an investor knows what they want to buy or sell, they contact their RR and place the order. This is known as an unsolicited order since it is 100% the client’s idea. A solicited order occurs when the RR makes a recommendation to the client that results in a transaction. All order tickets must be marked solicited or unsolicited to comply with regulations.
Solicited vs. Unsolicited Order: When an investor knows what they want to buy or sell, they contact their RR and place the order. This is known as an unsolicited order since it is 100% the client’s idea. A solicited order occurs when the RR makes a recommendation to the client that results in a transaction. All order tickets must be marked solicited or unsolicited to comply with regulations.
It’s Time to Vote!
Share your thoughts with us on social media!
This week's topic is: Do you think the recent decline of the USD will have a significant impact on global markets?
TradeUP Securities, Inc. is a member of FINRA/SIPC and regulated by the US Securities and Exchange Commission. Registered office: 437 Madison Ave 27th Floor New York, NY, 10022. For further information about TradeUP Securities, Inc., see FINRA BrokerCheck. For further information about SIPC insurance coverage for accounts at TradeUP Securities, Inc., see www.sipc.org or request an explanatory brochure from TradeUP Securities, Inc..
All investments involve risk, including possible loss of principal. Past performance of a security, market, or financial product does not guarantee future results. Electronic trading poses unique risk to investors. System response and access times may vary due to market conditions, system performance, and other factors. Market volatility, volume, and system availability may delay account access and trade executions.
No content on the website shall be considered a recommendation or solicitation for the purchase or sale of securities, futures or other investment products. All information and data on the website are for reference only and no historical data shall be considered as the basis for judging future trends.
