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- ๐ Another ATH for the S&P
๐ Another ATH for the S&P
โ๏ธ But, earnings are coming in weak
Tomorrow, options guru Benedict Maynard will tell you how to hedge these all-time highs. Make sure to subscribe if you want the full briefing.
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๐ฐ Market Headlines
The S&P 500 set another record yesterday despite mixed earnings. A disappointing profit forecast from 3M helped push down the Dow.
Tesla, AT&T, and IBM all report earnings today. Tesla is under pressure after slipping 15% since the start of the year.
India's stock market is now the fourth largest in the world, overtaking Hong Kong. Its value doubled in the past four years.
Donald Trump defeated Nikki Haley in the NH primary.
Five takeaways.
The most likely GOP VP picks.
๐ถ๏ธ Market Vibes
๐ฐ Market Forecasts and Futures
๐ฑ Fear and Greed Index
๐ง What do you think?
Tesla reports Q4 earnings after the bell today.
Analysts expect:
Revenue of $25.87 billion, up 6.4% YoY
Adjusted EPS of $0.73, down 36.4% YoY
Will TeslaBack your play in the comments |
๐ค What you said last time
๐ช Jumping without a parachute is awesome.
Sorry about cropping answer two. Iโll be more concise next time.
Something else
โI feel like the correction will be late in the year, August'ish. And that it will be 5-7% at most. I'm buying long for another month or two, then keeping my cash until late year, but no, I'm not doing anything else. Also buying mostly Berkshire at the moment.. that is my hedge, ha.โ
โI use trailing stop-loss orders on all my equities. For blue chips it's around 10%. For stocks I'm concerned about, but don't want to miss a bull run, I set the TSL at 5%. For the ones I intend to sell, rather than an immediate sale I use a 2% TSL.โ
โI'm buying 8 acres and planting fruit trees so I can resell the homegrown organic fruit.โ
๐ Trends you need to know
Search results are from our friends at Glimpse, my favorite way to spot trends.
Search volume for Netflix subscriptions is up 15% YoY, with particular strength coming from Nigeria, the Philippines, and Singapore.
๐ Stocks
Want to invest like Buffet? With Public.com, you can emulate Berkshire Hathawayโs portfolio with just a few clicks.
Winners and losers
Earnings, upgrades, and acquisitions
Netflix smashed expectations. The streaming company added 13.1 million new subscribers, bringing it to a record-high 260.8 million members. Profits were up 19x over last year. Shares up 6.5%.
3M missed revenue estimates and guided down for 2024 after a fairly tepid 2023. I expect the company to cut costs, starting with jobs, this year. Shares were down 11%.
Procter & Gamble beat on adjusted earnings but missed on revenue. The company came in below expectations, factoring in the Gillette write-down. Sales volume was weak globally, but the company raised prices, which gave it a boost. Shares were up 4%.
Macy's rejected Arkhouse and Brigade's $5.8 billion offer.
Verizon added 318,000 new consumer wireless retail postpaid phone customers in Q4 vs just 41,000 last year. This was the strongest result on that metric in four years. Shares rose 5%.
Texas Instruments threw up all over itself, missing earnings and revenue and guiding lower. Shares down 4%.
Market movers
Blackstone bought Tricon Residential for $3.5 billion, adding 38,000 homes in the Atlanta area.
Netflix is paying TKO Inc. $5 billion over ten years to bring WWE Raw onto its streaming platform. ยฟ Wen Lucha Libre?
Jack Ma bought $50 million worth of Alibaba shares, while co-founder Jo Tsai added $151 million, sending the stock up 6%.
Tesla is building a mass-market EV codenamed โRedwood.โ They aim to launch it in mid-2025.
More layoffs:
Blackrock upped its stake in iRobot to 17.1%, which sent the stock up 8%. The company is trading at 0.5x sales.
Ideas, trends, and analysis
Consumer sentiment is up 29% in two months as stocks go up and inflation comes down.
Grayscale could be an acquisition target as BTC ETF funds look to grow quickly.
Buy biopharma if you want to play defense.
Californiaโs labor market is the worst in America.
Duolingo's 2024 earnings could quintuple.
Swiss auto parts maker Autoneum's stock could jump 75%.
Three tech stocks that could outperform the Mag7, including an under-the-radar tech giant that soared 333% in the past five years.
๐ Global Perspectives
๐น๐ท ๐ธ๐ช ๐ญ๐บ Turkey finally approved Sweden's NATO membership bid. Hungary still hasnโt ratified the countryโs application.
๐จ๐ณ One weird derivative that could decimate the Chinese economy.
๐ฎ๐ฑ Bill Ackman is buying a 5% stake in the Israeli stock exchange.
๐น๐ญ The Thai economy is in โcrisisโ as the government continues to slash growth estimates. Rates there are at a decade-high 2.5%.
๐ธ๐ฆ Saudi Arabia jumped 25 spots in the World Bankโs Statistical Performance Indicators report.
๐ฐ๐ต ๐ฐ๐ท After calling it an โeyesoreโ a few days ago, unconfirmed reports say Korean Dictator Un has demolished the Arch of Reunification, abandoning reconciliation with South Korea.
๐ Income
ZIM Integrated may pay out a special dividend as it benefits from the Red Sea crisis.
Three stocks that pay out a monthly dividend with > 12% yields.
Three tempting dividend stocks to avoid.
๐ Crypto
The SEC Twitter hacker used a compromised phone number to change the account's password.
Bitcoin bounced off its recent plummet to peak its head back above $40,000.
๐ง Errata
The number of measles cases is up 30x in Europe since Covid, because people arenโt up to date on their vaccinations. Three unvaccinated babies have died.
A woman and her twelve-year-old daughter were killed when a car crashed into their protest barricade in France.
Sanjay Shah, the CEO of Vistex Asia, fell 15 feet to his death when a party stunt went horribly wrong.
Despite high-profile strikes in 2023, union membership has plateaued.
๐บ What to Watch Today
This has nothing to do with investing, but it looks awesome and is a great way to spend an afternoon teaching science to your kids (or yourself).
Thatโs all for today. Did I miss anything? Smash the reply button to let me know.
Cheers,
Wyatt