HaiKhuu Weekly Recap & Analysis
October 30 - November 3, 2023
MAJOR EVENTS OF LAST WEEK
Major Indices’ Weekly Movement:
S&P 500: +5.11%
Nasdaq: +5.70%
Dow Jones: +4.36%
Highlights:
FOMC Interest Rate Decision 5.5%, remains unchanged as forecasted
The economy showed strong growth in Q3 with moderate job gains and low unemployment but persistently elevated inflation
Disney is buying complete ownership of Hulu from Comcast for $8.6B
Apple Earnings:
EPS of $1.46, beating expectations of $1.39
Revenue of $89.5B, beating expectations of $89.42B
DAILY EVENT BREAKDOWN
Monday, October 30
Stock Related News:
General Motors reached a tentative agreement with the UAW to end the strike
All of the Detroit 3 automakers have now reached tentative agreements, ending the month-plus-long strike
Lockheed Martin (LMT) was awarded a $996.2M contract with the Air Force for the MK21A Reentry Vehicle (RV) program
Facebook is offering a subscription to users in Europe who don't want to see ads on Facebook and Instagram, costing €9.99/month
Economic News:
Standard & Poors’ Comments: Fed officials will probably leave interest rates at elevated levels until inflation shows a meaningful move down
Dallas Fed Manufacturing Bus. Index -19.20 (Forecast -16, Previous -18.10)
Major Indices:
S&P 500: +1.20%
Nasdaq: +1.13%
Dow Jones: +1.55%
Tuesday, October 31
Stock Related News:
X (formerly Twitter) is reportedly valued at $19 billion, based on the firm's employee equity compensation plan
Microsoft and Siemens are partnering to bring "the benefits of generative AI to industries worldwide”
President Biden signed an executive order to regulate AI
The order aims to reduce risks to consumers, workers, minorities, and national security
AMD Earnings:
Adj. EPS of $0.70, beating estimate of $0.68
Revenue $5.8B, beating estimate of $5.69B
Economic News:
CB Consumer Confidence 102.6 (Forecast 100.5, Previous 103.0)
1-year consumer inflation rate expectations 5.9%
4-year consumer inflation rate expectations 5.9%
House Price Index
YoY 5.6% (Previous 4.6%)
MoM 0.6% (Previous 0.8%)
Case-Shiller 20 YoY 2.16% (Forecast 1.75%, Previous 0.13%)
Employment Costs 1.1% (Forecast 1%, Previous 1.0%)
Chicago PMI 44.0 (Forecast 45, Previous 44.1)
Redbook YoY 5.3% (Previous 5.0%)
Major Indices:
S&P 500: +0.63%
Nasdaq: +0.48%
Dow Jones: +0.38%
Wednesday, November 1
Stock Related News:
WeWork (WE) announced they will be filing for bankruptcy
Charles Schwab is laying off up to 2,154 workers
Amazon Web Services announced today the launch of a new service that will let customers rent Nvidia GPUs for quick AI projects
An analyst values Disney's ESPN at $24B, likely buyers include Apple and Verizon (VZ)
22 Democratic senators call for FTC investigation into acquisitions by Exxon (XOM) and Chevron (CVX), citing concerns about higher prices and reduced competition
Economic News:
FOMC Interest Rate Decision 5.5%, remains unchanged as forecasted
The economy showed strong growth in Q3 with moderate job gains and low unemployment but persistently elevated inflation
Tighter financial conditions for households and businesses may impact economic activity, hiring, and inflation
ISM Manufacturing:
PMI 46.7 (Forecast 49, Previous 49.0)
New Orders Index 45.5 (Forecast 49.8, Previous 49.2)
Prices Paid 45.1 (Forecast 45, Previous 43.8)
Employment Index 46.8 (Forecast 50.6, Previous 51.2)
ADP Employment Change 113k (Forecast 150k, Previous 89k)
JOLTS Job Openings 9.553M (Forecast 9.4M, Previous 9.610M)
S&P Manufacturing PMI Final 50 (Forecast 50, Previous 50.0)
Construction Spending MoM 0.4% (Forecast 0.4%, Previous 0.5%)
Major Indices:
S&P 500: +1.07%
Nasdaq: +1.74%
Dow Jones: +0.67%
Thursday, November 2
Stock Related News:
Disney is buying complete ownership of Hulu from Comcast for $8.6B
Amazon and Affirm (AFRM) announced an expanded partnership that makes Affirm the first pay-over-time option available at checkout on Amazon Business
Apple Earnings:
EPS of $1.46, beating expectations of $1.39
Revenue of $89.5B, beating expectations of $89.42B
Economic News:
Jobless Claims:
Initial Claims 217k (Forecast 210k, Previous 210k)
Continued Claims 1.818M (Forecast 1.8M, Previous 1.790M)
Productivity Prelim 4.7% (Forecast 4.3%, Previous 3.5%)
Unit Labor Costs Prelim -0.8% (Forecast 0.3%, Previous 2.2%)
Factory Orders MoM 2.8% (Forecast 2.3%, Previous 1.2%)
Core Durable Goods Revised 0.4% (Forecast 0.5%, Previous 0.5%)
Durable Goods 4.6% (Forecast 4.7%, Previous 4.7%)
Major Indices:
S&P 500: +1.92%
Nasdaq: +1.82%
Dow Jones: +1.72%
Friday, November 3
Stock Related News:
Sam Bankman-Fried of FTX has been found guilty of fraud and conspiracy
He faces a maximum of 110 years in prison
Nio is laying off 10% of its staff
Nio may also spin off non-core businesses to reduce costs and improve efficiency
Google scrapped a $15B real-estate development deal with Lendlease
Economic News:
Unemployment Rate 3.9% (Forecast 3.8%, Previous 3.8%)
Labor Force Participation 62.7% (Forecast 62.8%, Previous 62.8%)
ISM Services Data:
PMI 51.8 (Forecast 53, Previous 53.6)
Employment 50.2 (Forecast 53.5, Previous 53.4)
New Orders 55.5 (Forecast 51.5, Previous 51.8)
Prices Paid 58.6 (Forecast 56.6, Previous 58.9)
Nonfarm Payrolls 150k (Forecast 180k, Previous 336k)
Manufacturing Payrolls -35k (Forecast -10k, Previous 17k)
Private Payrolls 99k (Forecast 145k, Previous 263k)
S&P Services PMI Final 50.6 (Forecast 50.9, Previous 50.9)
S&P Composite PMI Final 50.7 (Forecast -, Previous 51.0)
Major Indices:
S&P 500: +1.00%
Nasdaq: +1.22%
Dow Jones: +0.68%
