HaiKhuu Weekly Recap & Analysis
October 2 - October 6, 2023
MAJOR EVENTS OF LAST WEEK
Major Indices’ Weekly Movement:
S&P 500: +0.69%
Nasdaq: +1.77%
Dow Jones: -0.66%
Highlights:
ChatGPT creator OpenAI, is exploring making its own AI chips to reduce costs and avoid shortages
Intel (INTC) said it plans to operate its programmable chip unit as a standalone business starting in January, with plans to hold an IPO over the next 2-3 years
FTX Founder Sam Bankman-Fried's fraud trial started; he faces 110 years in jail
DAILY EVENT BREAKDOWN
Monday, October 2
Stock Related News:
Tesla missed Q3 delivery estimates by 7%. Despite the miss, Tesla expects to maintain its yearly target of 1.8 million vehicles
Kellanova, formally Kellogg, announced the completion of its brand spinoff. WK Kellogg Co will begin regular trading under the ticker $KLG
General Motors (GM) and Ford (F) said they're laying off another 500 workers at 4 Midwestern plants because of the impact on some of the facilities of the United Auto Workers strike
Economic News:
US ISM Manufacturing Data:
PMI Actual 49 (Forecast 47.9, Previous 47.6)
Employment Index Actual 51.2 (Previous 48.5)
Prices Paid Actual 43.8 (Forecast 49, Previous 48.4)
New Orders Index Actual 49.2 (Previous 46.8)
Construction Spending MoM Actual 0.5% (Forecast 0.5%, Previous 0.7%)
Fed's Bowman on Monetary Policy:
I expect progress on inflation to be slow, given the current level of monetary policy restraint.
I remain willing to support rate increase at a future meeting if data indicates progress on inflation has stalled or is too slow to return to it to 2% in a timely way
Major Indices:
S&P 500: -0.04%
Nasdaq: +0.83%
Dow Jones: -0.26%
Tuesday, October 3
Stock Related News:
CVS said it will close 900 stores by the end of 2024, 10% of all its shops, as it moves to an online strategy amid the rampant increase in shoplifting
Chipotle (CMG) just announced it is testing an automated digital makeline, which would see bowls and salads created by an automated system
Krispy Kreme (DNUT) is analyzing strategic alternatives for Insomnia Cookies, including an all-cash sale
Eli Lilly (LLY) announced it has agreed to acquire Point Biopharma (PNT) for $12.50/Share in cash
Netflix (NFLX) is planning to raise the prices of its ad-free service after the Hollywood strike ends
Zoom (ZM) is releasing its own version of Google Docs
United (UAL) ordered 110 new aircraft with deliveries starting in 2028
FTX Founder Sam Bankman-Fried's fraud trial started; he faces 110 years in jail
Economic News:
JOLTS Job Openings Actual 9.61M (Forecast 8.815M, Previous 8.827M)
Redbook YoY Actual 3.5% (Previous 3.8%)
Major Indices:
S&P 500: -1.34%
Nasdaq: -1.75%
Dow Jones: -1.23%
Wednesday, October 4
Stock Related News:
Walmart (WMT) said it’s already seeing an impact on shopping demand from people taking appetite-suppressing medications like Ozempic and Wegovy
Meta announced new generative AI tools for its Ad Manager software
Ford reported an 8% increase in US auto sales for Q3. Ford's quarterly sales reached 500,504 vehicles, compared to 464,674 the previous year
Tens of thousands of nurses and healthcare workers launched a 3-day strike at Kaiser Permanente facilities across the US
Intel (INTC) said it plans to operate its programmable chip unit as a standalone business starting in January, with plans to hold an IPO over the next 2-3 years
Apple CEO Tim Cook filed for the sale of 511K shares of Apple stock worth ~$87.8M
General Motors secured a new $6 billion line of credit and estimated the cost of the United Auto Workers strike at $200 million during Q3
President Biden announced another $9 Billion in student debt relief for 125,000 borrowers
Economic News:
ISM Services:
PMI Actual 53.6 (Previous 54.5)
New Orders Actual 51.8 (Previous 57.5)
Prices Paid Actual 58.9 (Previous 58.9)
Employment Actual 53.4 (FPrevious 54.7)
S&P Composite PMI Final Actual 50.2 (Forecast 50.1, Previous 50.1)
S&P Services PMI Final Actual 50.1 (Forecast 50.2, Previous 50.2)
ADP Employment Change Actual 89k (Forecast 150k, Previous 177k, Revised 180k)
Fitch Analyst: A US government shutdown will not affect the US AA+ stable sovereign rating
After the ousting of the US House speaker, brinkmanship around government funding negotiations will likely remain tense
Major Indices:
S&P 500: +0.73%
Nasdaq: +1.36%
Dow Jones: +0.31%
Thursday, October 5
Stock Related News:
Disney (DIS) owned ESPN just announced it has acquired the exclusive broadcasting rights to the TGL, the new golf league created by Tiger Woods and Rory McIlroy, which is set to begin play in 2024
General Motors has at least 20 million vehicles built with a potentially dangerous air-bag part that the government says should be recalled
Hyundai and Kia announced they’re adopting Tesla’s NACS EV charging standard
Rivian (RIVN) announced plans to offer $1.5 Billion of green convertible senior notes due 2030
Economic News:
Jobless Claims:
Initial Claims 207k (Forecast 210k, Previous 204k)
Continued Claims 1.664M (Forecast 1.671M, Previous 1.670M)
Fed’s Daly on Interest Rate Hikes:
Tighter financial conditions reduce the need for fed hikes.
If cooling in inflation stalls or financial conditions loosen, we will need to raise rates further
Trade Balance Actual -58.3B (Forecast -59.8B, Previous -65.0B)
Major Indices:
S&P 500: -0.04%
Nasdaq: -0.29%
Dow Jones: +0.05%
Friday, October 6
Stock Related News:
OpenAI is exploring making its own AI chips to reduce costs and avoid shortages
The UAW plans to spare Ford and Stellantis from new strikes this week
UAW is considering a plan to strike GM’s SUV plant in Texas
Amazon launched the first pair of prototypes for its Project Kuiper satellite internet system
Tesla cut the price of the Model Y
Model Y Long Range: $48,490 (from $50,490)
Model Y Performance: $52,490 (from $54,490)
Economic News:
Unemployment Rate Actual 3.8% (Forecast 3.7%, Previous 3.8%)
Nonfarm Payrolls Actual 336k (Forecast 170k, Previous 187k)
Average Earnings YoY Actual 4.2% (Forecast 4.3%, Previous 4.3%)
Manufacturing Payrolls Actual 17k (Forecast 5k, Previous 16k)
Labor Force Participation Actual 62.8% (Forecast 62.8%, Previous 62.8%)
Major Indices:
S&P 500: +1.48%
Nasdaq: +1.94%
Dow Jones: +1.19%
