HaiKhuu Weekly Recap & Analysis
November 6 - November 10, 2023
MAJOR EVENTS OF LAST WEEK
Major Indices’ Weekly Movement:
S&P 500: +1.17%
Nasdaq: +2.66%
Dow Jones: +0.62%
Highlights:
Fed Chair Powell’s Comments at the IMF Conference:
We are not confident we've achieved a sufficiently restrictive stance
We are attentive to the risk that stronger growth could undermine inflation progress, which could warrant a monetary policy response
The Fed is still trying to judge if it needs to do more, then we will consider how long to keep rates high
Nvidia plans to release 3 new chips for China after the US blocked it from selling certain chips to Chinese Firms
Eli Lilly’s (LLY) diabetes drug was approved for weight loss by the FDA
DAILY EVENT BREAKDOWN
Monday, November 6
Stock Related News:
Disney names former Vice Chairman and CFO of PepsiCo Hugh Johnston as CFO
Citigroup (C) considering at least 10% job cuts in major businesses
Elon Musk announced an AI chatbot, Grok, to compete with openAI's ChatGPT
Elon Musk and Tesla executives informed workers at its German Gigfactory that the company would raise wages by 4%
Bumble (BMBL) announced their CEO is stepping down, and shares were down 8% on the news
Economic News:
WH Economic Advisor Brainard on the Economy:
The economy is coming to a point of sustainable growth
Most forecasters are taking recession calls off the table
The economy is performing exceptionally well, though we have still got to work on kitchen-table economics
Major Indices:
S&P 500: +0.23%
Nasdaq: +0.41%
Dow Jones: +0.13%
Tuesday, November 7
Stock Related News:
Netflix announced more price hikes ahead of the holidays, bringing the cost of their premium tier subscription to $22.99/month
WeWork (WE) officially filed for bankruptcy
Apple developers are pausing work on next year’s software updates for its devices to focus on fixing existing problems
Lucid (LCID) announced it has signed an agreement with Tesla to adopt its North American Charging Standard
Economic News:
Consumer Credit Actual 9.057B (Forecast 9.5B, Previous -15.63B)
Trade Balance Actual -61.5B (Forecast -59.8B, Previous -58.3B)
NY Fed Data:
Credit card balances up $48 bln in the third quarter to $1.08 tln
The third-quarter aggregate delinquency rates rose by 3%
Total US household debt rises 1.3% to $17.29 tln in the third quarter
Third-quarter student loan balances up $30 billion to $1.6 trillion
Fed's Bowman expects further rate hikes to be needed
Fed's Logan: Inflation readings look like they're trending toward 3%, not 2%
Major Indices:
S&P 500: +0.28%
Nasdaq: +0.95%
Dow Jones: +0.15%
Wednesday, November 8
Stock Related News:
GM's Cruise is recalling 950 driverless cars after a crash involving a pedestrian
Eli Lilly’s (LLY) diabetes drug was approved for weight loss by the FDA
Amazon announced its health care program will be available to Prime Members at $9 a month
Take-Two Interactive (TTWO) shares rallied 8% after announcing they will be releasing a trailer for GTA VI in early December
The US SEC is said to have opened talks with Grayscale on a spot Bitcoin ETF push
Disney Earnings:
EPS of $0.36, beating expectations of $0.26
Revenue of $806M, beating expectations of $747M
Disney+ subs 150.2M, beating expectations of 147.07M
Economic News:
Wholesale Sales MoM 2.2% (Forecast 0.9%, Previous 1.8%)
Wholesale Inventories MoM Rev. 0.2% (Forecast 0%, Previous 0.0%)
Major Indices:
S&P 500: +0.07%
Nasdaq: +0.06%
Dow Jones: -0.12%
Thursday, November 9
Stock Related News:
Nvidia plans to release 3 new chips for China after the US blocked it from selling certain chips to Chinese Firms
Netflix and Warner Bros. Discovery's Max team up with Verizon (VZ) to offer discounted streaming bundle
Disney is planning on reinstating their dividend
AMC Entertainment files for $350M offer of common stock
Economic News:
Jobless Claims:
Initial 217k (Forecast 218k, Previous 217k)
Continued 1.834M (Forecast 1.82M, Previous 1.818M)
Fed Chair Powell’s Comments at the IMF Conference:
We are not confident we've achieved a sufficiently restrictive stance
We expect GDP growth to moderate in coming quarters, but remains to be seen
We are attentive to the risk that stronger growth could undermine inflation progress, which could warrant a monetary policy response
The Fed is still trying to judge if it needs to do more, then we will consider how long to keep rates high
Major Indices:
S&P 500: -0.78%
Nasdaq: -0.77%
Dow Jones: -0.59%
Friday, November 10
Stock Related News:
Microsoft hit an all-time high of $370.10
Amazon has committed $1 billion over 5 years to use Microsoft 365, including 550,000 licenses for corporate employees and 1 million for warehouse workers
Amazon expanded its Amazon Fresh grocery delivery program to non-Prime members in all cities where Amazon Fresh is available
Meta has struck a preliminary deal to sell a new, lower-priced version of its virtual-reality headset in China
Honda to boost wages by 11% for many US factory workers
The IRS announced higher federal income tax brackets and standard deductions for 2024
Economic News:
University of Michigan Data:
1 Yr Inflation Prelim 4.4% (Forecast 4%, Previous 4.2%)
5 Yr Inflation Prelim 3.2% (Forecast 3%, Previous 3.0%)
Sentiment Prelim 60.4 (Forecast 63.8, Previous 63.8)
Condition Prelim 65.7 (Forecast 70.3, Previous 70.6)
Expectations Prelim 56.9 (Forecast 61, Previous 59.3)
Fed's Bostic:
There's still more work to be done on inflation
We will continue to see spending and demand slow; it's going to take time
Policy is effectively tighter as inflation falls and rates rise
Major Indices:
S&P 500: +1.49%
Nasdaq: +2.15%
Dow Jones: +1.11%
