HaiKhuu Weekly Recap & Analysis
October 23 - October 27, 2023
MAJOR EVENTS OF LAST WEEK
Major Indices’ Weekly Movement:
S&P 500: -2.11%
Nasdaq: -2.23%
Dow Jones: -1.70%
Highlights:
The UAW has reached a new contract agreement with Ford (F)
Ford has agreed to give factory workers a 25% wage increase over the life of the agreement, including an 11% bump in the first year
Microsoft Earnings:
EPS of $2.99, beating expectations of $2.65
Revenue of $56.5B, beating expectations of $54.6B
Google Earnings:
EPS of $1.55, beating expectations of $1.45
Revenue of $76.7B, beating expectations of $75.8B
DAILY EVENT BREAKDOWN
Monday, October 23
Stock Related News:
Chevron (CVX) to acquire Hess Corp (HES) for $53 Billion in an all-stock deal
Microsoft to invest $3.2B to boost AI and tech in Australia
Apple plans to invest $1 billion yearly in generative AI to enhance Siri, Messages, & Apple Music
6,800 autoworkers joined UAW's Stand Up Strike at Stellantis' (STLA) largest plant
There are now a combined 40,425 UAW workers on strike at Ford (F), General Motors (GM) and Stellantis (STLA)
Nvidia is planning to enter the PC chip market with Arm-based (ARM) CPU chip as early as 2025
Economic News:
Chicago National Activity Index 0.02
Forecast -0.135, Previous -0.16, Revised -0.22
Major Indices:
S&P 500: -0.17%
Nasdaq: +0.30%
Dow Jones: -0.56%
Tuesday, October 24
Stock Related News:
Meta Platforms is being sued by 41 states and DC for intentionally building products (Facebook/Instagram) with addictive features that harm young users
5,000 General Motors (GM) UAW workers in Texas joined the strike
The California DMV suspended GM Cruise’s autonomous vehicle deployment and driverless testing permits Tuesday, citing safety concerns
Microsoft Earnings:
EPS of $2.99, beating expectations of $2.65
Revenue of $56.5B, beating expectations of $54.6B
Google Earnings:
EPS of $1.55, beating expectations of $1.45
Revenue of $76.7B, beating expectations of $75.8B
The Las Vegas Sphere (SPHR) is now the jersey sponsor for the New York Knicks
Economic News:
Flash PMI:
S&P Services PMI 50.9 (Forecast 49.9, Previous 50.1)
S&P Manufacturing PMI 50 (Forecast 49.5, Previous 49.8)
S&P Composite PMI 51 (Forecast 50, Previous 50.2)
Richmond Fed Comp. Index Actual 3 (Forecast 3, Previous 5)
Redbook YoY 5.0% (Previous 4.6%)
Major Indices:
S&P 500: +0.75%
Nasdaq: +0.97%
Dow Jones: +0.64%
Wednesday, October 25
Stock Related News:
The UAW has reached a new contract agreement with Ford (F)
Ford has agreed to give factory workers a 25% wage increase over the life of the agreement, including an 11% bump in the first year
Cisco (CSCO) is partnering with Nvidia to “unleash the power of hybrid workspaces”
The Fed are to propose lowering debit-card swipe fees; the proposal would lower fees by about 30% on average debit transaction of $50
House Republican Mike Johnson secures the votes needed for speaker
Meta Earnings:
Revenue $34.15B, beating expectations $33.51B
EPS $4.39, beating expectations $3.60
Economic News:
New Home Sales:
Units 0.759M (Forecast 0.68M, Previous 0.675M)
Change MoM 12.3% (Forecast 0.7%, Previous -8.7%)
Major Indices:
S&P 500: -1.44%
Nasdaq: -2.45%
Dow Jones: -0.33%
Thursday, October 26
Stock Related News:
BP announced a deal in which BP Pulse, BP's EV charging business, will acquire charging hardware units from Tesla for $100 Million
Goldman Sachs (GS) created the Goldman Sachs Global Institute to offer geopolitical & tech insights
Amazon Earnings:
EPS of $0.93, beating expectations of $0.60
Net Sales of $143.1B, beating expectations of $141.6B
Economic News:
Jobless Claims:
Initial Claims 210k (Forecast 207k, Previous 198k)
Continued Claims 1.79M (Forecast 1.74M, Previous 1.734M)
GDP:
QoQ Advance 4.9% (Forecast 4.5%, Previous 2.1%)
Price Index 3.5% (Forecast 2.7%, Previous 2.7%)
Pending Homes Data:
Pending Homes Index 72.6 (Previous 71.8)
Pending Home Sales Change MoM 1.1% (Previous -7.1%)
PCE Prices Advance 2.9% (Previous 2.5%)
Core PCE Prices Advance 2.4% (Forecast 2.5%, Previous 3.7%)
Durable Goods 4.7% (Forecast 1.8%, Previous 0.1%)
Core Durable Goods 0.5% (Forecast 0.2%, Previous 0.4%)
Advance Goods Trade Balance -85.8B (Forecast -86B, Previous -84.64B)
Wholesale Inventories MoM Adv. 0% (Forecast 0.1%, Previous -0.1%) 
Retail Inventories Ex-Auto Adv. 0.3% (Previous 0.5%)
Yellen on Yields:
The yield rise reflects a strong US economy
Not much of the yield surge is connected to deficits; the surge in bond yields is happening in most advanced countries and is not an indicator of recession
Part of the increase in yields is a reflection of expectations that interest rates will be higher for longer
Kansas City Fed Composite Index Actual -8, same as previous
Major Indices:
S&P 500: -1.20%
Nasdaq: -1.91%
Dow Jones: -0.77%
Friday, October 27
Stock Related News:
JPMorgan CEO Jamie Dimon intends to sell 1 million of the 8.6 million JPM shares he owns in 2024, marking his first sale in 18 years at the company
Citi (C) is planning to grant the majority of its 40K+ coders access to Generative Artificial Intelligence
General Motors (GM) and UAW are nearing a labor deal after a marathon negotiating session
Ford (F) hit 52-week lows of $9.97
Economic News:
PCE Price Index:
YoY 3.4% (Forecast 3.4%, Previous 3.5%)
MoM 0.4% (Forecast 0.3%, Previous 0.4%)
Core PCE YoY 3.7% (Forecast 3.7%, Previous 3.9%)
Core PCE MoM 0.3% (Forecast 0.3%, Previous 0.1%)
University of Michigan Inflation Data:
1 Yr Inflation 4.2% (Forecast 3.8%, Previous 3.8%)
5 Yr Inflation 3% (Forecast 3%, Previous 3.0%)
Sentiment 63.8 (Forecast 63, Previous 63.0)
Expectations 59.3 (Previous 60.7)
Conditions 70.6 (Previous 66.7)
Consumer Spending MoM 0.7% (Forecast 0.5%, Previous 0.4%)
Real Personal Consumption MoM 0.4% (Forecast 0.3%, Previous 0.1%)
Personal Income MoM 0.3% (Forecast 0.4%, Previous 0.4%)
Major Indices:
S&P 500: -0.74%
Nasdaq: +0.18%
Dow Jones: -1.33%
