HaiKhuu Weekly Recap & Analysis
January 8 - January 12, 2024
MAJOR EVENTS OF LAST WEEK
Major Indices’ Weekly Movement:
S&P 500: +1.76%
Nasdaq: +2.90%
Dow Jones: +0.71%
Highlights:
The Bitcoin Spot ETF was officially approved by the SEC
Consumer Price Index (CPI)
CPI YoY 3.4% (Forecast 3.2%, Previous 3.1%)
CPI MoM 0.3% (Forecast 0.2%, Previous 0.1%)
The FAA announced that the Boeing 737 9 Max aircraft will remain grounded after a loose bolt caused a fuselage to come off mid-flight
Microsoft briefly passed Apple as the largest public company in the world
DAILY EVENT BREAKDOWN
Monday, January 8
Stock Related News:
The FAA announced that the Boeing 737 9 Max aircraft will remain grounded after a loose bolt caused a fuselage to come off mid-flight
Apple announced their Vision Pro headset will be available at all US stores starting February 2
NVIDIA announced new graphics chips for AI personal computers
Pharmaceutical Company Buyouts:
Johnson & Johnson has agreed to acquire Ambrx Biopharma for $2B or $28 per share
Merck has struck a deal to buy Harpoon Therapeutics for $680M or $23 per share
Boston Scientific will acquire Axonics for $3.7B in cash or $71 per share
Economic News:
NY Fed Inflation Expectations:
December 1-year inflation expectations fall to 3% vs 3.4%
Expected inflation 3-years ahead at 2.6% in December vs 3% in November
Expected inflation 5-years ahead at 2.5% in December vs 2.7% in November
Fed's Bostic on Inflation:
The rise in unemployment has been far less than what would typically be the case given the reduction in inflation
The Fed can let restrictive policy continue to work to slow inflation
I see two quarter-point rate cuts appropriate by end of year
Consumer Credit Actual 23.751B (Forecast 9B, Previous 5.13B)
Major Indices:
S&P 500: +1.43%
Nasdaq: +2.07%
Dow Jones: +0.59%
Tuesday, January 9
Stock Related News:
The SEC’s Twitter account posted an unauthorized tweet claiming the Bitcoin Spot ETFs were approved causing crypto markets to fall
Amazon unveiled a cross-platform feature called Matter Casting to rival Apple Airplay
Microsoft’s investment in OpenAI may be investigated by the European Commission
Google is teaming up with TikTok to stream videos from phones to TV
Honda unveiled a new logo for all future EVs
Shopify is partnering with X to make social commerce easier for merchants
Videogame developer Unity Software to cut 25% of jobs
Economic News:
Trade Balance Actual -63.2B (Forecast -64.9B, Previous -64.3B)
Major Indices:
S&P 500: -0.15%
Nasdaq: +0.20%
Dow Jones: -0.44%
Wednesday, January 10
Stock Related News:
The Bitcoin Spot ETF was officially approved by the SEC
Walmart debuted two AI tools at CES:
GenAI search: Combining Microsoft's AI with shopper data for specific product searches
My Assistant: Expanding to 11 countries, and Sam's Club stores pilot AI to verify receipts, aiming to expand to 600 clubs due to positive feedback
Tesla released the new refreshed Model 3 in North America
Amazon is laying off several hundred employees in its Prime Video and Amazon MGM Studios
Economic News:
Fitch Analyst: We no longer expect a US recession in 2024
We forecast three rate cuts this year
Fed’s Williams' Expectations:
In 2024, I see GDP at around 1.25%, unemployment at 4%
I see inflation ebbing to 2.25% in 2024, 2% in 2025
The Fed will need restrictive policy stance for some time
The Fed can cut rates when confident inflation moving to 2%
Wholesale Sales MoM 0% (Forecast 0.4%, Previous -1.3%)
Wholesale Inventories MoM -0.2% (Forecast -0.2%, Previous -0.2%)
Major Indices:
S&P 500: +0.57%
Nasdaq: +0.68%
Dow Jones: +0.47%
Thursday, January 11
Stock Related News:
Microsoft passed Apple as the largest public company in the world
At the time: Microsoft Market Cap $2.886T, Apple $2.883T
Stablecoin firm Circle confidentially files for US IPO
Tesla tells staff all US production workers are getting a pay raise
Vanguard is banning all Bitcoin ETFs from their platform
DocuSign shares surged 9% after a report that Bain Capital and Hellman & Friedman are competing to acquire the company
Economic News:
Consumer Price Index (CPI)
CPI YoY 3.4% (Forecast 3.2%, Previous 3.1%)
CPI MoM 0.3% (Forecast 0.2%, Previous 0.1%)
Core CPI YoY 3.9% (Forecast 3.8%, Previous 4.0%)
Core CPI MoM 0.3% (Forecast 0.3%, Previous 0.3%)
Jobless Claims:
Initial Jobless Claims 202k (Forecast 210k, Previous 202k)
Continued Jobless Claims 1.834M (Forecast 1.8695M, Previous 1.855M)
Fed's Mester on Inflation:
We won't get to 2% (inflation) target this year
We need to see housing and goods price pressures continue to move down
March is too early for me for a rate cut
Major Indices:
S&P 500: -0.04%
Nasdaq: +0.21%
Dow Jones: +0.06%
Microsoft and Apple’s Change in Market Cap Since 2000
Friday, January 12
Stock Related News:
JP Morgan Earnings:
EPS of $3.04
Revenue of $39.9B, beating expectations of $39.8B
JPM hit all-time highs of $176.31 following their earnings
Tesla plans to halt production at its biggest factory in Europe for two weeks as the conflict in the Red Sea continue
One of the world’s largest tanker companies Hafnia halted all southern Red Sea shipping
Lucid Group is recalling more than 2,000 Air luxury sedans for potential faults with their coolant heaters
Economic News:
Producer Price Index
PPI YoY 1% (Forecast 1.3%, Previous 0.9%)
PPI MoM -0.1% (Forecast 0.1%, Previous 0.0%)
Core PPI YoY 1.8% (Forecast 2%, Previous 2.0%)
Core PPI MoM 0.0% (Forecast 0.2%, Previous 0.0%)
Major Indices:
S&P 500: +0.07%
Nasdaq: +0.05%
Dow Jones: -0.33%
