What to Watch in Netflix and Tesla’s Earnings

Plus: Undervalued bank stocks, how to know when we’re really in a new bull market, why sustainable strategies struggled in Q2. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=46431&elqTrackId=55696aa4c17a4acfa4e1241c04d8000e&elq=107fc4b8cd7148a2b8e601eeca1185ee&elqaid=46431&elqat=1&elqCampaignId=22839) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this newsletter: - [How to Know When We’re Really in a New Bull Market]( - [8 Most Undervalued, Quality Bank Stocks]( - [Good News From the June CPI Report: Inflation Is Truly Declining]( - [What to Watch in Netflix’s Earnings]( - [Ahead of Earnings, Is Tesla Stock a Buy, Sell, or Fairly Valued?]( It’s pretty darn unlikely that the Federal Reserve is going to hang a “Mission Accomplished” banner on the front of its home at the Marriner S. Eccles Building. But the latest news on inflation probably has officials at the central bank at least breathing a sigh of relief. This past week’s reading on inflation from the Consumer Price Index came in a touch softer than expected, but more importantly, the details suggested inflation is actually decelerating. As Morningstar chief U.S. economist Preston Caldwell says, this could presage a further fall in inflation that gives the Fed room to start significantly lowering rates next year. But what does it mean for the Fed’s next meeting? We [take a look here](. This past week, the good news on inflation helped the stock market extend the rally it’s experienced during the first half of the year. But we’re still looking at a pretty narrowly based run. It’s still unclear what this tells us about the prospects for a continued push higher in the market. [Lauren Solberg looks under the hood]( for hints about what may lay ahead. Meanwhile, it’s that time again: earnings season. Big banks and financials kicked off their second-quarter earnings reports this past week. You can see what our analysts thought of results from [JPMorgan](/stocks/bank-stress-tests-2023-lower-stress-capital-buffers-likely-coming-many-our-banks?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=46431), [BlackRock]( and [Wells Fargo](. The real fun starts another week from now, when some of the biggest names in the stock market report their results for the latest quarter. We’ll preview earnings and our analysts’ takes on [Tesla]( and [Netflix](. Stay tuned this week for previews of earnings from Apple, Meta, Microsoft, and Amazon. While we’re waiting for earnings results, our weekly stock screen took a look at bank stocks, and we found eight high-quality banks trading at [discount prices](. And lastly this week, our fund screen dips into mid-growth funds, home to many of the stock market’s up-and-comers. We highlight [nine top-performing funds]( from this interesting category. Keep a close watch this week on the [Markets page]( on Morningstar.com for our latest coverage and our live stock market updates. [8 Most Undervalued, Quality Bank Stocks]( [8 Most Undervalued, Quality Bank Stocks]( Big names in the banking industry like Truist, U.S. Bancorp, and Wells Fargo are trading at discounted prices. Jülide Sengil [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [How to Know When We’re Really in a New Bull Market]( [How to Know When We’re Really in a New Bull Market]( An overly concentrated market is a sign investors are uncertain about the economy. Lauren Solberg, Caryl Anne Francia [Good News From the June CPI Report: Inflation Is Truly Declining]( [Good News From the June CPI Report: Inflation Is Truly Declining]( The market-friendly number is still above the Fed’s target, and a July interest-rate hike looks likely. Lauren Solberg [Ahead of Earnings, Is Tesla Stock a Buy, Sell, or Fairly Valued?]( [Ahead of Earnings, Is Tesla Stock a Buy, Sell, or Fairly Valued?]( After the company delivered a record-high number of vehicles during the second quarter, here’s what we think of Tesla stock. Seth Goldstein [Going Into Earnings, is Netflix Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, is Netflix Stock a Buy, a Sell, or Fairly Valued?]( Here’s what we think of Netflix’s earnings and stock. Neil Macker [Going Into Earnings, Is Charles Schwab Stock a Buy?]( [Going Into Earnings, Is Charles Schwab Stock a Buy?]( A key question for Schwab’s earnings: How fast are clients moving money out of its low-yielding sweep accounts? Michael Wong [Why U.S. Equities Have Beaten International Equities Since 2010]( [Why U.S. Equities Have Beaten International Equities Since 2010]( Plus, insights from fund managers on whether the trend will continue. Adam Sabban [A 7% Yielding Dividend Stock With 60% Upside]( [A 7% Yielding Dividend Stock With 60% Upside]( The stock of this narrow-moat company with reliable cash flows is trading in 5-star range. Michael Hodel [Have Older Investors Become Too Aggressive?]( [Have Older Investors Become Too Aggressive?]( What to make of their love affair with equities. John Rekenthaler [ESG Investing Indexes Struggled in Q2 2023]( [ESG Investing Indexes Struggled in Q2 2023]( ESG benchmarks were raised by tech stocks again, but fell short against the broader equity market. Caryl Anne Francia [What the Nasdaq 100 Rebalance Means for ETF and Index Fund Investors]( [What the Nasdaq 100 Rebalance Means for ETF and Index Fund Investors]( Investors of funds tracking the index can expect a slightly different portfolio. Bryan Armour [Should Emerging Markets Play a Role in Your Portfolio?]( [Should Emerging Markets Play a Role in Your Portfolio?]( Maybe, but handle with care. Amy C. Arnott [3 Cheap Stocks to Buy and Hold This Summer]( [3 Cheap Stocks to Buy and Hold This Summer]( Plus, our outlook for the travel industry. David Sekera [2 New Wide-Moat Stocks to Watch]( [2 New Wide-Moat Stocks to Watch]( Morningstar’s analysts recently began covering these high-quality stocks. Susan Dziubinski [Bill Bernstein: Revisiting ‘The Four Pillars of Investing’]( [Bill Bernstein: Revisiting ‘The Four Pillars of Investing’]( The author discusses the new edition of his popular investing book, plus the returns outlook, TIPS ladders, and more. Christine Benz [Taking the Slow Road to Investment Success]( [Taking the Slow Road to Investment Success]( Lessons from Bill Bernstein’s updated “The Four Pillars of Investing.” John Rekenthaler [What a Bitcoin ETF Would Mean for Investors]( [What a Bitcoin ETF Would Mean for Investors]( A BlackRock ETF would broaden the bitcoin market, which would have both benefits and drawbacks. Madeline Hume Chart of the Week [9 Top-Performing Mid-Cap Growth Stock Funds]( [9 Top-Performing Mid-Cap Growth Stock Funds]( Funds from Baron, Baird, and Virtus lead the pack. Sadhika Thapa [Read More]( Share: [facebook]( [twitter]( [linkedin]( Earnings [BlackRock: Better Bottom-Line Results Despite Weaker Than Expected Flows and Market Gains]( We expect to slightly lower our $810 fair value estimate on BlackRock stock. [Coinbase: Ripple’s Long-Running Battle With SEC Ends With Positive News]( With the market’s reaction adding to an already-substantial rally, we now view Coinbase stock as overvalued. [Uber: Strong Network Effect Has Brought Domino’s Onboard]( We maintain our $68 fair value estimate for Uber, and continue to view its stock as attractive. [Disney: Iger Extends His Comeback for Two More Years]( We are maintaining our $145 fair value estimate for the company’s stock. [UnitedHealth: Despite Higher Medical Utilization Trends, 2023 Outlook Mildly Increases]( At first glance, we do not intend to change our $462 fair value estimate for UnitedHealth stock, and its shares appear fairly valued [Activision Blizzard: Microsoft Merger Appears Set To Close After Court Win Over FTC]( With deal highly likely to close, raising fair value estimate on Activision stock to $95. [Meta Platforms: An Impressive Start for Threads, but Questions Remain]( Amid uncertainty about retention and monetization, impact on Meta stock’s fair value likely not material. [Berkshire Hathaway: Cove Point Deal Fits With Focus on Energy and Utilities]( We see no reason to alter our fair value estimate for Berkshire Hathaway stock. [Dimensional Takes Aim at Vanguard’s Hybrid Mutual Fund-ETF Structure]( Dimensional lays out its case for adding an ETF share class to its mutual funds. Listen Now Get the latest investing insights and market updates with [Morningstar’s podcasts]( available on your iPhone, iPad, Android, PC, or smart speaker. Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2023 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602