00:00 Speaker A
I want to talk about Elon Musk companies. I was looking at the July returns and SpaceX and Tesla are having a bit of a go at it. Tesla’s down about $400 billion dollars in market cap and SpaceX is down about 800 billion. These are intraday figures from earlier today. Um meanwhile, Apple is up $700 billion. So kind of carrying the freight there. And meanwhile, let’s not forget, we got Alphabet earnings last week and we saw a $300 billion sell-off net in the month.
00:25 Speaker A
That was precipitate a lot of that was after that earnings sell off. So there’s a lot going on here with the mega caps, but it’s important to say this is a rotation that’s taking place. But before we get to uh before we get to the rotation, I just want to show you that was market cap basis. Let me show you returns. And so I have about the top 10 or 11 market cap companies here and we can see at the very bottom, we got SpaceX down 33%.
00:50 Speaker A
That’s just this month. It has been cut in half. And let me just show you a chart here real quickly. From the peak we had, and if I show you a three-month chart, that should cover all of it since the IPO. Yes, from here and intraday was about $225 uh to uh half of that. That was reached sometime last Friday and we are below that mark right now. So we dip below, I think $110 today in SpaceX.
01:13 Speaker A
And you take a look, I said I wasn’t going to talk about chip stocks too much, but here we see Micron down 22%. Uh, Alphabet is its own story, but really this has been a high beta smackdown. So some of the stocks that were up the most this year, uh, saw a a big punishing uh return this month and those are the chip stocks. But also within the Mag 7 and some of those mega caps, we’ve seen rotation.
01:40 Speaker A
Now, they were in favor for a brief moment recently, uh but we’ve seen them sell off since then. Uh I want to show you what’s going on in Sector Land because this is the rotation part I promised you. And this is the good news. The market is pretty healthy right now. This is a month to date chart of all the sectors and you can see there’s been kind of a rotation into value and uh defensive stocks.
02:03 Speaker A
So energy is up 10%. That’s a crude oil story. Uh financials have done well in earnings, so we see them up 6%. Real estate, health care and staples, that’s your defensive play. Uh but in a really unhealthy market, you’re going to see everything go down. That’s not what we’re seeing here. We’re just seeing uh selected markets. But you take a look at tech, that’s partly that mega cap story that I was talking to you about, but uh that’s probably mostly socks actually.
02:32 Speaker A
Because a lot of those mega cap drops that we’re seeing in SpaceX and Tesla, those are showing up in other sectors, like Tesla’s consumer discretionary. I believe SpaceX is industrials. And here you see industrials down 1.1%. Um here’s that consumer discretionary trade. And then XLC is not doing great, but that’s uh being kind of weighed down by Alphabet right now because it was at a much higher percentage one week ago.
02:59 Speaker A
So, I’m going to close with one more chart. This is the S&P 500. The regular S&P 500 we talk about every day, it is down 1.15%. and then we have the equal weighted version, which is up 1%. Equal weighted is where every stock gets one vote. And that’s important because that means the rest of the market besides these mega cap companies are doing very well. And uh we saw this again today. Friday, I think we had 350 uh out of 500 winners in the S&P 500.
03:27 Speaker A
It’s about 300 today, something in that range. So the the rest of the market is doing well benefiting from rotation, but we are seeing weakness in those mag sev- some of those Mag 7 names right now, not Apple. And we’re also seeing weakness, of course, in chips.
