HaiKhuu Weekly Recap & Analysis
October 9 - October 13, 2023
MAJOR EVENTS OF LAST WEEK
Major Indices’ Weekly Movement:
S&P 500: +0.94%
Nasdaq: +0.88%
Dow Jones: +1.12%
Highlights:
Microsoft (MSFT) closed the acquisition of Activision Blizzard (ATVI)
Birkenstock (BIRK) IPO’d at $41/share and a valuation of ~$8 billion
CPI Data:
CPI YoY 3.7% (Forecast 3.6%, Previous 3.7%)
Core CPI YoY 4.1% (Forecast 4.1%, Previous 4.3%)
Core CPI MoM 0.3% (Forecast 0.3%, Previous 0.3%)
DAILY EVENT BREAKDOWN
Monday, October 9
Stock Related News:
Tesla shares were down after the reported deliveries in China were below expectations
General Motors laid off 200 workers due to the UAW strike
Unity (U) announced its CEO and Board Chairman will retire from his roles immediately
Google Cloud announced new AI-powered search capabilities that will help healthcare workers quickly pull accurate clinical information from different types of medical records
Economic News:
Fed’s Logan on the Inflation and Interest Rates:
It is too soon to say inflation is reaching 2% in a sustainable way
If higher long-term rates are due to higher term premiums, there may be less need for the Fed to raise rates
Higher yields may mean there's less need to raise rates
Fed's Barr on Boosting Capital Requirements for Banks:
The proposed higher capital requirements could raise funding costs for banks but will enable them to absorb more losses
The proposed capital hikes would primarily impact banks' trading and have a limited impact on banks' lending costs
Major Indices:
S&P 500: +0.64%
Nasdaq: +0.51%
Dow Jones: +0.60%
Tuesday, October 10
Stock Related News:
AMD is planning to buy an artificial intelligence startup Nod.ai as part of an effort to bolster its software capabilities
Over 100 Amazon (AMZN) workers in the UK are planning to strike for 4 days in November
4,280 General Motors (GM) workers in Canada joined the strike in the US
Economic News:
NFIB Business Optimism Index Actual 90.8 (Forecast 91, Previous 91.30)
Redbook YoY Actual 4.0% (Previous 3.5%)
Wholesale Sales MoM Actual 1.8% (Forecast 0.4%, Previous 0.8%)
Wholesale Inventories MoM Rev. Actual -0.1% (Forecast -0.1%, Previous -0.1%)
Fed’s Kashkari says the Fed may need to hike further if the economy is more resilient
New York Fed Inflation Expectations:
1-yr inflation views rise to 3.7% in September vs
3-year inflation expectations rise to 3% from 2.8%
Major Indices:
S&P 500: +0.52%
Nasdaq: +0.55%
Dow Jones: +0.40%
Wednesday, October 11
Stock Related News:
Exxon Mobil (XOM) is acquiring Pioneer Natural Resources (PXD) for $60 billion
Samsung SDI and Stellantis (STLA) will invest over $3.2 billion in a new electric vehicle battery plant in Kokomo, Indiana
Birkenstock (BIRK) IPO’d at $41/share and a valuation of ~$8 billion
Disney is planning to raise prices at its theme parks
Economic News:
Producer Price Index:
PPI MoM 0.5% (Forecast 0.3%, Previous 0.7%)
PPI YoY 2.2% (Forecast 1.6%, Previous 1.6%)
Core PPI MoM 0.3% (Forecast 0.2%, Previous 0.2%)
Core PPI YoY 2.7% (Forecast 2.3%, Previous 2.2%)
FOMC Minutes:
Participants project that the economy will grow at a moderate pace, with inflation remaining below the 2% target and the unemployment rate gradually declining to 4.5% by the end of 2023
Participants recommend maintaining the current monetary policy until there is clear evidence of further progress toward FOMC’s goals
Major Indices:
S&P 500: +0.41%
Nasdaq: +0.71%
Dow Jones: +0.17%
Thursday, October 12
Stock Related News:
ChatGPT maker OpenAI says they are generating revenue at a pace of $1.3 billion a year
Qualcomm (QCOM) is reducing its workforce by 1200 people
Comcast (CMCSA) and Disney (DIS) have hired investment banks to value Hulu
The UAW expanded strikes to Ford’s biggest factory in Kentucky
8500 workers joined the strike
A Ford (F) executive says they have reached their limit on economic proposals
Social Security benefits will increase by 3.2% in 2024
Economic News:
Jobless Claims:
Initial Claims 209k (Forecast 210k, Previous 207k)
Continued Claims 1.702M (Forecast 1.676M, Previous 1.664M)
CPI Data:
CPI YoY 3.7% (Forecast 3.6%, Previous 3.7%)
Core CPI YoY 4.1% (Forecast 4.1%, Previous 4.3%)
Core CPI MoM 0.3% (Forecast 0.3%, Previous 0.3%)
Major Indices:
S&P 500: -0.61%
Nasdaq: -0.35%
Dow Jones: -0.52%
Friday, October 13
Stock Related News:
Microsoft (MSFT) closed the acquisition of Activision Blizzard (ATVI)
The SEC adopted a rule to increase transparency in short-selling
The UAW president said the union does not expect to announce new strikes on Friday
JPMorgan (JPM) Earnings:
EPS of $4.33, beating expectations of $3.97
Revenue of $39.9B, beating expectations of $39.4B
Economic News:
UMich Inflation Data:
1 Yr Inflation Prelim Actual 3.8% (Forecast 3.2%, Previous 3.2%)
5 Yr Inflation Prelim Actual 3% (Forecast 2.8%, Previous 2.8%)
Sentiment Prelim Actual 63 (Forecast 67, Previous 68.1)
Condition Prelim Actual 66.7 (Forecast 70.3, Previous 71.4)
Expectations Prelim Actual 60.7 (Forecast 65.7, Previous 66.0)
Export Prices MoM Actual 0.7% (Forecast 0.5%, Previous 1.3%)
Import Prices MoM Actual 0.1% (Forecast 0.5%, Previous 0.5%)
Fed’s Harker on the Economy:
There is always a chance of recession but doesn't expect a downturn
An economic soft landing is quite possible
Major Indices:
S&P 500: -0.56%
Nasdaq: -1.33%
Dow Jones: +0.07%
