TLDR

MARKET RECAP → On Monday, the S&P 500 (VOO) edged up as Wall Street prepared for a bustling week of corporate earnings and anticipated a crucial policy announcement from the U.S. central bank.

TEMU AND SHEIN SHAKE UP E-COMMERCE GIANTS → 🛍️ Temu and Shein surged in popularity, eating into Amazon's (AMZN) market share with their ultra-low prices and direct shipments from China, forcing Meta (META) and others to adapt to higher ad costs and shifting consumer trends.

MCDONALD'S Q2 EARNINGS MISS EXPECTATIONS → 📉 McDonald's (MCD) Q2 sales and EPS both missed expectations due to consumer spending shifts and rising costs, with a slight revenue dip and squeezed profit margins.

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MARKETS

Today’s S&P 500 Heatmap

Notable Earnings This Week

TODAY’S TOP NEWS

Temu and Shein Shake Up E-commerce Giants

🛍️ Temu and Shein's Rise: Temu and Shein's explosive growth posed significant challenges to e-commerce giants like Amazon, Meta, and eBay. Temu saw a tenfold increase in U.S. monthly unique visitors to 70.5 million by March 2023, while Shein nearly doubled its U.S. visitors to 41 million in the same period.

📈 Amazon's Market Share Woes: Despite Amazon's dominant position, its U.S. market share stagnated at 38% since 2021. Temu and Shein's low-cost strategies, leveraging direct shipments from China, allowed them to attract cost-conscious consumers, impacting Amazon's growth.

📉 Meta and E-commerce Ad Battles: Meta benefited from the intense ad spend by Temu and Shein, but this also drove up advertising costs for other brands. These competitive pressures forced companies to rethink their advertising strategies and market positioning.

TODAY’S TOP NEWS

McDonald's Q2 Earnings Miss Expectations

📉 Revenue Missed the Mark: McDonald's Q2 2024 sales reached $6.49 billion, falling short of the $6.61 billion expected by analysts. This slight dip of 0.12% year-over-year highlighted shifts in consumer spending that impacted overall revenue​.

💸 Profit Margins Squeezed: Operating income declined by 6% to $2.92 billion, with operating margins dropping from 47.8% to 44.99%. Increased operating costs and a 1% decrease in global comparable sales contributed to this decline​.

🍟 Flat Franchise Revenue: While sales from company-operated restaurants dipped 1% to $2.46 billion, franchised restaurant sales remained flat at $3.94 billion. Despite these challenges, loyalty members contributed over $7 billion in systemwide sales for the quarter​.

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