Weekend Edition EP77: Fresh Records as investors remain in “Extreme Greed” mode

In this weekly MPC Markets newsletter, the focus is on the booming AI datacenter sector’s resource demands and its investment implications, alongside a preview of Q2 2025 US earnings season where mega-cap tech shines amid economic challenges like tariffs. Highlights include key ASX and US stock updates, commodities and FX trends (with visual data on performance), political maneuvers by Donald Trump, and a trade recommendation for Austin Engineering. The edition also promotes related media content like podcasts and articles.

Key Takeaways:

• AI Datacenter Boom: AI hyperscalers are driving massive demand for key resources to build data centers, influencing investments in related sectors; check the new article by Mark for details on effects and opportunities.
• US Earnings Season Preview: Q2 2025 kicks off July 18 with Big Tech expected to fuel S&P 500 growth through AI monetization, while cyclicals (discretionary, materials, industrials) face contractions due to headwinds like tariffs and global shifts; defensive sectors emerge as strong performers.
• ASX Stock Highlights: Johns Lyng Group (JLG) agrees to a $1.1B takeover by Pacific Equity Partners at $4.00/share (26% premium); Ventia Services (VNT) secures a $2M revenue boost over 5 years via NBN Co contract for fiber upgrades; Lifestyle Communities (LIC) risks debt covenant breach after a tribunal ruling on fees, leading to a 37% share drop and downgrades.
• US Stock News: Positive earnings reactions include Netflix (+1% post-earnings, raised guidance on subscriber growth and ads); Johnson & Johnson (+9.19%, top-line acceleration); Goldman Sachs (profit jump from trading/investment banking); Citigroup (+3%, 21% EPS beat, raised outlook); Taiwan Semiconductor (+3.4%, record profit from AI demand, upgraded 2025 revenue to 30% YoY).
• Commodities & FX: Visual charts show day and 5-day performance across assets (data appears to include repeated 4% figures, likely indicating stable or incremental changes in various commodities and currencies).
• Economy & Politics: Donald Trump distracts media by floating the idea of firing Fed Chair Jerome Powell over renovations (legally challenging), causing market volatility before backpedaling; portrayed as a “media magician” steering attention from potential image threats.
• Trade of the Week: Buy Austin Engineering (ANG) up to 38c (global engineering firm recovering from downtrend); stop loss at 28c, initial target 53c; earnings due August 26, 2025—general advice only.