🔥 The GDP print incinerated my inbox

📈 But what will today's inflation report tell us?

Author

Wyatt from Alts
January 26, 2024

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*past 24-hour performance

📰 Market Headlines

  • As predicted here (SO MUCH ALPHA), yesterday’s GDP print came in way hotter than expected. This pushed the S&P 500 to its sixth straight record high. The Dow and Nasdaq climbed as well.

  • US futures are down this morning ahead of the all-important PCE inflation report.

  • The FTC opened an antitrust investigation into the relationships between AI companies and Amazon, Google, and Microsoft.

  • Tesla's shares plunged 12% yesterday, wiping out $73 billion in market value after a horrific earnings report.

  • The median price of new homes in the US has dropped to a two-year low.

🕶️ Market Vibes

🎰 Market Forecasts and Futures

Hope you guys bet on GDP coming in hot yesterday (I did).

😱 Fear and Greed Index

🧠 What do you think?

Why is Tesla struggling?

Login or Subscribe to participate in polls.

🎤 What you said last time

You guys were right in line with the consensus, but the print came in hot.

Sorry about cropping answer two. I’ll be more concise next time.

📈 Trends you need to know

Search results are from our friends at Glimpse, my favorite way to spot trends.

Not great, Bob.

📊 Stocks

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Winners and losers

Earnings, upgrades, and acquisitions

  • Intel tumbled 11% as it projected Q1 adjusted earnings of 13 cents per share, far below the 34 cents EPS analysts expected.

  • American Airlines soared 10% post-Q4 earnings beat. Last quarter American cut $500 million off its debt, reaching a total of $3.2 billion for the year.

  • Humana shares hit a four-year low, down 13%. High Medicare Advantage costs slashed its expected earnings per share in half.

  • Indiana-based First Financial Corporation will acquire SimplyBank in Tennessee for $73.4 million, continuing the trend of midsize bank consolidation.

  • Luxury brand LVMH beat earnings and raised its dividend. Shares were up 8%. 🍾

Market movers

  • After several consecutive days without catastrophic mishaps, the FAA approved a plan for Alaska Airlines and United Airlines to resume Boeing Max 9 flights by next week. Boeing's stock still fell 5.7%.

  • Apple is now the most popular smartphone in China.

  • The EU forced Apple to drop its App Store commission from 30% to 17% and open iOS up to third-party app stores. Apple responded by adding a $0.50 fee for every app download past a million. J.P. Morgan estimates little effect on revenue. The fee will balance out the commission rate, and Europe is only 6% of earnings.

  • Layoffs:

    • Paramount confirms it is cutting jobs, with CEO Bob Bakish citing cost reductions and possible private buyout discussions.

    • Microsoft fired 1,900 people from its gaming division.

  • GM's self-driving unit Cruise is under investigation by three federal agencies and the state of California after a bungled response to a crash with a pedestrian.

  • Levi Strauss and the 49ers have agreed to a ten-year $170 million naming rights extension.

Ideas, trends, and analysis

  • UBS raised AMD's target to $220 on strong GPU sales and 3D chip leadership. AMD reports earnings next week.

  • Alibaba and JD.com stocks rose in anticipation of Beijing's stimulus.

  • There’s a “super squeeze” on commodities; expect prices to remain higher for longer.

🌍 Global Perspectives

🇹🇷 Turkey's central bank raised interest rates to 45% to combat 65% inflation. This is the eighth recent hike attempting to stabilize the economy and currency.

🇨🇳 China’s bailout continues to send property stocks higher.

🇰🇷 South Korean lawmaker Bae Hyunjin was hospitalized after an attack by an assailant with a rock. The political climate in South Korea has become intensely polarized. This comes several weeks after another attack where an opposition leader was stabbed in the neck.

🇪🇺 The EU plans to counter Starlink with its own satellite system, IRIS². The project will cost €3 billion, with full deployment by 2027-2028.

🇭🇹 Gang violence in Haiti jumped by 122% last year. Gangs now control 80% of the capital Port-au-Prince.

📊 Income

📊 Crypto

  • North Korean hackers got away with 41% less crypto theft in 2023.

🧠 Errata

  • The family of a woman killed by an alligator sued her Florida retirement home. They alleged the managers ignored warnings, and workers even fed the gator.

  • Why retiring sucks.

  • Global war deaths are at a 35-year high.

📺 What to Watch Today

That’s all for today. Did I miss anything? Smash the reply button to let me know.

Cheers,

Wyatt