HaiKhuu Weekly Recap & Analysis
January 29 - February 2, 2024
MAJOR EVENTS OF LAST WEEK
Major Indices’ Weekly Movement:
S&P 500: +1.35%
Nasdaq: +1.69%
Dow Jones: +1.41%
Highlights:
Interest Rates remain UNCHANGED at 5.5%
Fed does not expect it will be appropriate to reduce rates until there is greater confidence inflation is moving sustainably toward 2%
Fed Chairman Jerome Powell FOMC Press Conference:
Our policy rate is likely at its peak; I am prepared to maintain the current policy rate for longer if needed
It will likely be appropriate to begin reducing rates sometime this year
Microsoft Earnings:
EPS of $2.93, beating expectations of $2.77
Revenue of $62B, beating expectations of $61.1B
DAILY EVENT BREAKDOWN
Monday, January 29
Stock Related News:
Amazon and iRobot have scrapped their acquisition plan, see no path of regulatory approval in the EU
iRobot will layoff 31% of its workforce
BlackRock and VanEck are advertising Spot Bitcoin ETFs on Google following new policy update
Walmart store managers can now make up to $400,000 per year, including stock grants
Ryanair has told Boeing that if any customers refuse to take delivery of 737 MAX 10 aircraft, it will buy them "at the right price"
FanDuel parent company, Flutter is listing itself on the NYSE under the ticker $FLUT
Economic News:
Dallas Fed Mfg. Bus. Index -27.4 (Forecast -11.8, Previous -9.30)
Treasury Borrowing Estimates:
Expects to borrow $760 billion in January-March 2024, down $55 billion from October estimate
Expects to borrow $202 billion in April-June quarter, assuming end-June cash balance of $750 billion
January-March borrowing estimate assumes end-March cash balance of $750 billion
Major Indices:
S&P 500: +0.79%
Nasdaq: +1.02%
Dow Jones: +0.58%
Tuesday, January 30
Stock Related News:
UPS plans to cut 12,000 jobs, sees $1 Billion in cost reductions
Microsoft & OpenAI are in talks to lead Figure AI funding round
Robotics startup Figure AI is said to discuss over a $2 bln valuation
Elon Musk's Neuralink successfully implanted its first brain chip in a human
JetBlue and Spirit Airlines file for expedited appeal to merger block ruling
American Airlines is laying off 656 customer service reps
PayPal began company-wide layoffs
X(Twitter) received a money transmitter license for payment services in Nevada
Square (Block) is laying off close to 1,000 people
Google Earnings:
EPS of $1.64, beating expectations of $1.60
Total Revenue of $86.3, beating expectations of $85.3B
Microsoft Earnings:
EPS of $2.93, beating expectations of $2.77
Revenue of $62B, beating expectations of $61.1B
Economic News:
House Price Index YoY 6.6% (Forecast -, Previous 6.3%)
MoM 0.3% (Forecast 0.3%, Previous 0.3%)
CaseShiller 20 YoY 5.4% (Forecast 5.8%, Previous 4.9%)
CB Consumer Confidence Actual 114.8 (Forecast 114.45, Previous 110.7)
Conference Board: Average 12-month inflation expectations fell to 5.2%, prior 5.6%, the lowest since March 2020 (4.5%)
JOLTS Job Openings 9.026M (Forecast 8.75M, Previous 8.790M, Revised 8.925M)
Major Indices:
S&P 500: -0.08%
Nasdaq: -0.67%
Dow Jones: +0.31%
Wednesday, January 31
Stock Related News:
Elon Musk’s $55 Billion Tesla pay package was voided by a judge, prompting Elon Musk to hold a shareholder vote to transfer Tesla’s incorporation state from Deleware to Texas
Paramount shares spiked on news of a buyout offer from Byron Allen, founder of Allen Media Group
The PGA Tour has officially received up to a $3B investment by a group of US investors as its LIV Golf merger hands in the balance
Walmart announced a 3:1 split and will open or expand 150 stores over the next five years
SpaceX has signed a deal with Starlab, the private space station joint venture of Voyager and Airbus, to launch on the company’s Starship rocket
FTX says it expects to repay its crypto customers in full
Economic News:
Interest Rates remain UNCHANGED at 5.5%
Fed does not expect it will be appropriate to reduce rates until there is greater confidence inflation is moving sustainably toward 2%
Fed Chairman Jerome Powell FOMC Press Conference:
Our policy rate is likely at its peak; I am prepared to maintain the current policy rate for longer if needed
It will likely be appropriate to begin reducing rates sometime this year
Based on the meeting today, I don't think likely we will have a rate cut in March
Chicago PMI 46 (Forecast 48, Previous 46.9)
ADP Employment Change 170k (Forecast 150k, Previous 164k, Revised 158k)
Employment Costs 0.9% (Forecast 1%, Previous 1.1%)
Major Indices:
S&P 500: -1.63%
Nasdaq: -1.96%
Dow Jones: -0.81%
Thursday, February 1
Stock Related News:
Meta to deploy new version of in-house custom AI Chips
Apple announced more than 600 apps and games designed to take advantage of the unique and powerful capabilities of Apple Vision Pro
JPMorgan & Bank of America are in talks to finance a $13 Billion buyout of Docusign
Tesla upgraded the Model Y in China with Advanced Self-Driving Hardware 4 (HW 4)
OKTA to cut 400 jobs as part of restructuring and aimed at improving profitability
Lululemon expands footwear offerings with its first-ever men’s collection
Snapchat is recalling and refunding every drone it ever sold
Apple Earnings:
EPS of $2.18, beating expectations of $2.10
Revenue of $119.6B, beating expectations of $118.3B
Meta Platforms Earnings:
EPS of $5.33, beating expectations of $4.97
Revenue of $40.1B, beating expectations of $39.2B
Introducing a dividend & $50B buyback program
Amazon Earnings:
EPS of $1.00, beating estimate of $0.80
Revenue of $170B, beating expectations of $166.3B
Economic News:
Jobless Claims:
Initial 224k (Forecast 212k, Previous 214k)
Continued 1.898M (Forecast 1.839M, Previous 1.833M)
S&P Manufacturing PMI Final 50.7 (Forecast 50.3, Previous 50.3)
ISM Manufacturing PMI 49.1 (Forecast 47.2, Previous 47.4)
New Orders Index 52.5 (Forecast 48.2, Previous 47.1)
Employment Index 47.1 (Forecast 47, Previous 48.1)
Prices Paid 52.9 (Forecast 46.9, Previous 45.2)
Productivity Prelim 3.2% (Forecast 2.5%, Previous 5.2%)
Unit Labor Costs Prelim 0.5% (Forecast 1.2%, Previous -1.2%)
Major Indices:
S&P 500: +1.31%
Nasdaq: +1.18%
Dow Jones: +0.98%
Friday, February 2
Stock Related News:
S&P 500 reached a new all-time high of $495.75
Meta shares surged 22% following earnings and reached a new all-time high of $485.96
Joe Rogan has renewed his podcast deal with Spotify for upwards of $250M and the ability to distribute it on different platforms
Apple's Vision Pro headset now available in all U.S. Apple Stores & online
Economic News:
UMich Inflation Expectations & Sentiment:
1-Yr Inflation 2.9% (Forecast 2.9%, Previous 2.9%)
5-Yr Inflation 2.9% (Forecast 2.8%, Previous 2.8%)
Sentiment Final 79 (Forecast 78.9, Previous 78.8)
Expectations 77.1 (Forecast 76, Previous 75.9)
Conditions 81.9 (Forecast 83.5, Previous 83.3)
Employment Data:
Unemployment Rate 3.7% (Forecast 3.8%, Previous 3.7%)
Labor Force Participation 62.6%, Previous 62.5%)
Average Earnings MoM 0.6% (Forecast 0.3%, Previous 0.4%)
Average Earnings YoY 4.5% (Forecast 4.1%, Previous 4.1%)
Nonfarm Payrolls 353k (Forecast 185k, Previous 216k, Revised 333k)
Factory Orders MoM 0.2% (Forecast 0.2%, Previous 2.6%)
Durable Goods Revised 0%, as forecasted and previous
Core Durable Goods Revised 0.5% (Forecast 0.6%, Previous 0.6%)
