A true bull market – it’s not Wall Street

Traders work on the floor of the New York Stock Exchange on July 25, 2023 in New York City.

Angela Weiss | AFP | Getty Images

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open provides investors with everything they need to know, no matter where they are. Do you like what you see? You can subscribe here.

What you need to know today

S&P record No. 37
S&P 500 closed over 5,600 for the first time before Thursday inflation data, which could provide evidence for a rate cut. The index rose for a seventh straight day and registered its 37th record close this year. The Nasdaq Composite also reached an all-time high. The Dow Jones Industrial Average added 258 points. Land stocks were among the winners, with advanced micro devices rising by almost 4% after agrees to buy Silo AI. Industry leader Nvidia jumped and Apple broke his seventh record in a row. The return in 10 years Treasury slid, while US oil prices step that OPEC predicts strong demand. You can read more at what to expect from the inflation report here.

Archegos Hwang guilty
Founder of Archegos Capital Management Bill Hwang was convicted of fraud and other charges by a jury in Manhattan. Prosecutors accused Hwang and his deputy, Patrick Halligan, of lying to banks to secure billions of dollars used to inflate stock prices. Archegos collapsed in 2021. Both pleaded not guilty to multiple charges. They face up to 20 years in prison for each conviction.

Google “ditch the deal”
HubSpotpp the stock plummeted 12% after a report from Bloomberg Alphabet will not acquire the software company. The news comes amid heightened regulatory scrutiny of proposed major technology acquisitions, including those by Amazon and Microsoft. The acquisition of HubSpot, which specializes in marketing automation software for small and medium-sized businesses, would have bolstered Google’s business software revenue and diversified Alphabet’s portfolio.

Samsung smart ring
Samsung unveiled the Galaxy Ring, its first smart ring, which aims to expand its health tracking ecosystem and compete with Apple’s advances in the segment. The lightweight ring, equipped with 24/7 health monitoring sensors, comes amid slowing smartphone sales, prompting device makers to explore new revenue streams. Samsung is banking on the Galaxy Ring’s health-tracking features, alongside its new AI-enhanced foldable smartphonesto increase its market share.

Tesla meme stock
Bill Gross, famous investor and co-founder of Pimco, believes in Elon Musk Tesla behaves like one speculative gambling among private investors. “Tesla is acting like a meme stock — failing fundamentals, straight price action,” the former chief investment officer and co-founder of Pimco said in a post on X Tuesday afternoon. “But then there seems to be a new meme stock every other day now. Most pump and dump.” Tesla has risen for 11 straight days and is up 44% since June 24.

(PRO) Doubling the revenue growth
Needham analyst Laura Martin raised her price target for Apple to $260, indicating a 13.7% upside from recent levels. While Apple shares have outperformed S&P 500 this year, they have seen smaller gains than the technology-focused ones Nasdaq Composite. Martin believes Apple can double its revenue growth — this is how.

The point

The S&P 500 hit its 37th record high. That may sound impressive, but the market is being grinded higher on the backs of a handful of megacaps. However, there is another market that is in the midst of a broad-based bull run – clocking up record in 17 of 27 sessions in June.

India’s benchmark NSE Nifty 50 is up almost 12% this year. Not to be outdone, India’s S&P BSE Sensex is up nearly 11% so far this year.

India is a completely unique case on your own,” Ruchir Sharma, chairman of Rockefeller International, told CNBC. “It’s the most expensive market in the world today. It’s the only country that has a real bull market, even compared to the US. The breadth of the Indian bull market is what you usually see in bull markets – everything is increasing there, from midcaps to small caps, they are doing better than the big companies.”

The Indian election appears to be nothing more than a blip on the radar – continuity under Prime Minister Narendra Modi and the prospect of economic growth have supercharged the market. Although, Modi’s recent visit to Moscow has raised concerns in Western capitals as they seek to support a alliance against Russian President Vladimir Putin.

“I wouldn’t say geopolitics is a big risk for emerging market investors,” Sharma said. “In fact, if anything, I think we will look back in history at the time when the United States has imposed sanctions on Russia in an unprecedented way by weaponizing the dollar, which has set in motion where countries are trying to find their own alliances and trying to reduce its dependence on the US dollar.”

“That is why the price of gold is going so well, with central banks around the world buying gold in record numbers. I think emerging markets outside India are extremely cheap.”

Back on Wall Street, the S&P climbed above 5,600 for the first time — with Nvidia, Apple and Tesla among mega-caps continues its inexorable rise. That has many investors wondering if other stocks will make a comeback.

“Is mean return dormant or is it dead?” asked Sharma. “If the vicious reversion is dead, this is going to be a pretty dull market where the same few stocks keep on growing, keep doing well in a way that has never happened before. “

CNBC’s Jeff Cox, Brian Evans, Samantha Subin, Yun Li, Arjun Kharpal, Alex Harring, Spencer Kimball and Jesse Pound contributed to this report.

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