Good morning. Happy Friday.
The Asian/Pacific markets leaned to the downside. Malaysia and the Philippines did well, but China, Hong Kong, South Korea and Australia were weak. Europe, Africa and the Middle East are down big. Denmark, Poland, France, Germany, Greece, South Africa, Finland, Switzerland, Hungary, Spain, the Netherlands, Italy, Austria and Sweden are posting the biggest losses. Futures in the States point towards a moderate gap down open for the cash market.
————— VIDEO: A Recession – What’s the Big Freaking Deal —————
The dollar is up. Oil is up; copper is down. Gold is down; silver is up. Bonds are down.
Stories/News from Seeking Alpha…
The Big Game
It’s that time of the year again. Wings, dips and hot dogs are on the menu this weekend as the Kansas City Chiefs take on the Philadelphia Eagles in Super Bowl LVII. Households across the U.S. will huddle around screens, and many have already been betting on the big game, wagering a total of $16B, according to the American Gaming Association. It’s even anticipated to see the most legal bets ever placed on an event in the U.S., so keep an eye on shares of DraftKings (NASDAQ:DKNG) and FanDuel (OTCPK:PDYPY), as well as Barstool (NASDAQ:PENN), Caesars Sportsbook (NASDAQ:CZR) and BetMGM (NYSE:MGM).
SA commentary: Many of the companies in the online sports betting industry are operating in a potentially lucrative market, according to contributor Tangerine Capital, who asks if DraftKings (DKNG) is Being Outdone By Competition? Marketplace author Howard Jay Klein also discusses FanDuel’s grip on market share leadership, and if it will continue even after a possible spinoff by Flutter (OTCPK:PDYPY). For those looking for more entertainment, note that Molson Coors (NYSE:TAP) and DraftKings are running a unique Super Bowl promotion, where fans could bet on Coors Light and Miller Lite commercials.
Speaking of advertising, there will be some notable industry players missing. The biggest commercials last year centered around crypto, even leading some to call the game the “Crypto Bowl” – a play on the “Dot-Com Bowl” in 2000 – when speculative internet companies sought to gain mainstream acceptance (remember the Pets.com liquidation?). Well, it seems like the sector is also going through its own day of reckoning following the notorious collapse of FTX. Does fortune still favor the brave?
Go deeper: In recent times, watching commercials has turned into somewhat of a similar tradition as the game itself, with many firms shelling out around $7M for a 30-second slot. It gives them the ability to advertise on the largest stage in the world, which will be shared by Rihanna during the halftime show. Fox (NASDAQ:FOX) even sold out its Super Bowl ad inventory a couple of weeks ago, and while the broadcaster cut it a little too close for comfort, many big brands were eager to make a splash from traditional beverages made by Anheuser-Busch (BUD) to EV promotions from General Motors (NYSE:GM) and Netflix (NASDAQ:NFLX).
Dodging a recession
While the U.K. just staved off a technical recession, partly due to bumper sales at pubs during the World Cup in November and December, it’s not out of the woods yet. Like many parts of the Europe, higher energy bills following Russia’s invasion of Ukraine have weakened household spending (though things have been better in recent months due to an unusually warm winter and government price caps). Business investment has also flatlined since Brexit and the number of workers in the labor pool has shrunk since COVID-19. In fact, among the G7, the U.K. has recorded the weakest recovery since the pandemic, and while the Bank of England doesn’t expect a recovery to its pre-COVID peak until 2026, the domestic stock market continues to hit record highs. (5 comments)
Staking on staking
Regulatory rumblings are hitting the crypto sector once again. Notable exchange Kraken has reached a deal with SEC that will shutter its crypto staking platform, which allows investors to earn a yield by temporarily depositing their tokens with an intermediary or crypto network to facilitate blockchain transactions. A $30M settlement was also reached over Kraken’s failure to register the program, causing further jitters elsewhere in the sector. Shares of rival crypto exchange Coinbase (NASDAQ:COIN) slumped 14% on Thursday, with CEO Brian Armstrong saying the SEC may want to get rid of crypto staking for retail customers entirely. Coinbase reported $62M in revenue from “blockchain rewards,” which include staking, in the third quarter of 2022, accounting for roughly 10% of its total revenue for the period. (17 comments)
Russia responds
WTI crude futures (CL1:COM) advanced 2.5% overnight to regain the $80/bbl level after Russia said it will cut oil output by 500,000 barrels a day next month. Brent futures (CO1:COM) climbed 2.4% to $86.50/bbl. Moscow said the output decrease, which is around 5% of its production, was in response to sanctions such as price caps on crude and oil products that are an “intervention in market relations and an extension of destructive energy policies of the collective West.” It’ll also deepen the 2M bpd curbs announced late last year by OPEC+, and comes as Russia is said to prepare for a fresh offensive in Ukraine ahead of the one-year anniversary of the war that started on Feb. 24, 2022. (10 comments)
Today’s Economic Calendar
10:00 Consumer Sentiment
12:30 PM Fed’s Waller Speech
1:00 PM Baker-Hughes Rig Count
2:00 PM Treasury Statement
4:00 PM Fed’s Harker Speech
What else is happening…
Peltz calls off Disney (DIS) proxy fight after restructuring talk.
Compared to ‘strong’ Uber (UBER), things look terrible at Lyft (LYFT).
Yahoo (APO) lays off more than 20% of staff in digital ad strategy shift.
Is Exxon (XOM) creating a new trading division for global energy?
SpaceX (SPACE) ignites Starship in key test before going to orbit.
‘Completely unacceptable’: Massive outflows hit Credit Suisse (CS).
PayPal (PYPL) earnings are out; CEO Dan Schulman to retire.
Safeguarding its chips, GM (GM) inks deal with GlobalFoundries (GFS).
Belt-tightening: Micron (MU) suspends bonuses, cuts executive salaries.
Wedbush eyes Salesforce (CRM) ‘risk-reward’ as activists get involved.
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Good morning. Happy Thursday.
The Asian/Pacific markets leaned to the downside. China and Hong Kong did great, but Malaysia, Indonesia, Singapore and the Philippines were weak. Europe, Africa and the Middle East are currently mostly up. Saudi Arabia is down but the UK, Poland, France, Germany, Greece, Hungary, the Netherlands, Italy, Austria and the Czech Republic are posting solid gains. Futures in the States point towards a moderate gap up open for the cash market.
————— VIDEO: A Recession – What’s the Big Freaking Deal —————
The dollar is down. Oil is down; copper is up. Gold is up; silver is down. Bonds are up.
Stories/News from Seeking Alpha…
House of Mouse renovations
The return of Bob Iger to Walt Disney’s (DIS) CEO job in November promised a reversal of the company’s recent fortunes – and some potentially big changes to the company’s structure. That will include cutting 7,000 workers and $5.5B in costs, Iger confirmed on the company’s earnings call, following a quarterly beat that pushed the stock higher in after-hours trading. Shares even rose as much as 9% after he mentioned an effort to reinstate Disney’s dividend that was suspended during the pandemic (it may also help address the demands of activist investor Nelson Peltz).
Quote: “I’ve always believed that the best way to spur great creativity is to make sure the people who are managing the creative processes feel empowered,” Iger declared. “Therefore, our new structure is aimed at returning greater authority to our creative leaders and making them accountable for how their content performs, financially. Our former structure severed that link and it must be restored.”
That means reorganizing the company into three business units: Disney Entertainment, ESPN, and Disney Parks, Experiences and Products. Iger said he knew breaking out ESPN into its own unit would lead to persistent questions about a potential spinoff, but confirmed that the “brand was ‘very healthy,’ we just have to figure out how to monetize it in a disrupting world.” With regards to turning a profit at Disney+, Iger emphasized that reestablishing the connection between content decisions and their financial performance is “one of the most important steps we can take to improve the economics of our streaming business” and was his “No. 1 priority.” See subscriber totals and quarterly figures here.
Linear vs. Streaming: “It’s at least conceivable, if not likely, that ESPN+ is in turn propping up linear ESPN, which could mean streaming is subsidizing linear,” SA contributor Max Greve writes in a new article that crunches the numbers. “Even if not, the existence of such hidden subsidies shows that the separation of linear and streaming profit is largely arbitrary. If Disney does try to split off ESPN, it will have to come to grips with this issue and outline for investors and the buyer what it has been doing.” (137 comments)
Streaming rules
Looking for additional sources of revenue in the current macro environment, Netflix (NFLX) is adding more members to the roster of countries where it has cracked down on password-sharing. Canada, Portugal, Spain and New Zealand have been added to a list that already includes Chile, Costa Rica and Peru, and makes account holders choose a primary address, verify that location once a month, and gives the ability to buy access for two additional users. It’s only a matter of time before the password crackdown comes to the U.S., which could be a “core problem,” according to Marketplace author The Value Portfolio, as Netflix is no longer the only game in town. A recent Jefferies survey on “password borrowers” indicated that 62% of respondents would stop using Netflix, but then again, they weren’t paying for the service in the first place. (7 comments)
Robinhood retrieval
Shares of Robinhood (NASDAQ:HOOD) rose nearly 5% in after-hours trading on Wednesday despite missing estimates on the top and bottom lines. Traders instead focused on an increase in average revenue per user and a second straight quarter of positive adjusted EBITDA as the retail broker’s expenses slid from a year ago. With over $6B on its balance sheet, Robinhood also revealed that it’s in talks with the DOJ to buy a 7.6% stake of the company from disgraced crypto tycoon Sam Bankman-Fried (see the full transcript here). The plan is a little complicated, however, as SBF’s ownership has been disputed since his crypto empire imploded in November. (29 comments)
Which is it?
Last June, JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon warned of an economic “hurricane” down the road, but yesterday, he told Reuters that the U.S. economy was in good shape. Still, “sticky” inflation could compel the FOMC to hike interest rates above 5% (from the 4.50%-4.75% level it’s at now), echoing the recent views of many Fed officials. Earlier in the day, Minneapolis Fed President Neel Kashkari said he expects the federal funds rate to break above 5% at some point this year, and Fed Governor Christopher Waller expressed a similar outlook, but no one suggested that January’s blowout jobs report would make them more aggressive in setting monetary policy. (23 comments)
Today’s Economic Calendar
8:30 Initial Jobless Claims
10:30 EIA Natural Gas Inventory
4:30 PM Fed Balance Sheet
What else is happening…
It’s official: CVS (CVS) to acquire Oak Street (OSH) for $10.6B.
Southwest (LUV) testifies on flight network after December debacle.
Nearing pre-COVID peak, this Aerospace & Defense ETF is on the radar.
Alphabet (GOOGL) slips: Blame Bard mistake, underwhelming AI event.
Alibaba (BABA) and JD.com (JD) are also testing ChatGPT-like tech.
Tesla (TSLA) has a new master plan coming out on March 1.
‘Strongest quarter ever’ at Uber (UBER) drives a wave of bookings.
Get ready for the biggest Chinese IPO in the U.S. since DiDi Global.
Affirm (AFRM) tumbles on higher borrowing costs, cuts 19% of workforce.
U-turn: BofA flips from being a bear to a bull on Tripadvisor (TRIP).
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Good morning. Happy Wednesday.
The Asian/Pacific markets leaned to the upside. South Korea, India, Taiwan and the Philippines did well, while China and Thailand were weak. Europe, Africa and the Middle East are currently up big. Turkey and Russia are weak, but the UK, Denmark, Poland, France, Germany, Greece, Finland, Switzerland, Norway, Hungary, Spain, Italy, Austria and the Czech Republic are up big. Futures in the States point towards a down open for the cash market.
————— FREE: Mini Masterclass in Trading —————
The dollar is down. Oil is up; copper is down. Gold and silver are up. Bonds are mixed.
Stories/News from Seeking Alpha…
Returning to normal
With a mixed bag of economic data only getting more muddled, investors are looking to more specific indicators to assess the health and direction of the global economy. A.P. Moller-Maersk (OTCPK:AMKBY), one of the world’s biggest shipping companies, is out with its quarterly earnings, which are widely seen as a barometer for global trade and the supply chain. The Danish firm controls about one-sixth of the world’s container trade, with offices across 130 countries and more than 100K employees worldwide.
By the numbers: Earnings before interest, tax, depreciation and amortization (EBITDA) fell 18% Y/Y to $6.54B, coming in below consensus estimates of $6.95B, and lower than the $10.9B seen last quarter. Freight rates also fell by nearly a quarter, compared to the previous three months, which is important to highlight when assessing the economic outlook. While things appear to be cooling fast – triggering fears about a recession – when looking deeper into the details, the economy appears to be readjusting from an “overconsumption of goods” to a “sharp correction in demand” after major pandemic-fueled bubbles.
For example, Maersk expects the global container market to grow between -2.5% and +0.5% in 2023, which signifies a slowdown, but is a far cry from the “dark clouds on the horizon” it predicted just a quarter ago. In fact, the shipping giant based its guidance for 2023 “on the expectation that inventory correction will be complete by the end of the first half leading to a more balanced demand environment.” Another common theme to many other industries, is that Maersk, which brought aboard a new CEO in December, is determined to “speed up our business transformation” and “increase our operational excellence” as it faces down macroeconomic headwinds.
Strategies will include streamlining and consolidating the increasingly sensitive supply chain, looking to score new business by becoming an integrated logistics provider, and diversifying revenue sources by expanding air freight services. “It wasn’t hard over the last 12 months to make money,” said Ditlev Ingemann Blicher, Maersk President of Asia Pacific. “If you had something that could float and could carry your container – that was not hard. Now, skills matter.” The shipping behemoth has also made some high-profile deal decisions, like recently ending a partnership with Mediterranean Shipping that could perhaps trigger a price war.
Outlook: Note that Maersk (OTCPK:AMKBY) is coming off the “best financial result in the history of the company,” with 2022 witnessing an “exceptional” rise in ocean freight rates before dropping off in the back half of the year. With Maersk now showing more of a decline, Marketplace author Wolf Report says this will only improve the valuation of the company (do you agree?). Maersk is also on the list of 10 large-cap stocks with the lowest P/E (with a ratio of 1.42). Check out the rest here.
Fedspeak
Breaking a two-session losing streak, roller-coaster trading on Tuesday ended with stocks firmly in positive territory, as traders parsed the latest remarks from Fed Chair Jerome Powell. He repeated sentiments that were delivered as part of the FOMC’s last policy announcement, noting that the economy had entered a “disinflationary process.” While the central bank chief added that the effort will take “a good amount of time,” markets took heart from the fact that he didn’t take an aggressively hawkish turn following Friday’s hotter-than-expected jobs. Powell also declined to say whether the FOMC would have raised rates by more than a 25 basis-point hike if it had known about the blowout numbers during last week’s meeting. (114 comments)
Another day, another AI update
Competing with Google (GOOG, GOOGL) in the lucrative market, Microsoft (MSFT) topped $2T in market value yesterday as it said it would integrate artificial intelligence into its Bing search engine and Edge browser. “I think this technology is going to reshape pretty much every software category,” CEO Satya Nadella declared. “I have not seen something like this since I would say 2007-2008 when the cloud was just first coming out.” The new version of Bing is now available for desktop in limited preview, with a wider rollout and mobile version expected to come soon. Analyst Dan Ives, who has an Outperform rating and a price target of $280 on MSFT, said the integration of ChatGPT into Microsoft’s products would set off an “AI arms race,” while chipmakers rallied on the developments. (60 comments)
Last gasp effort
Meme favorite Bed Bath & Beyond (BBBY) is looking for multiple avenues to shore up its flailing business model as the retailer looks to create value beyond its 20% off coupons. Shares tumbled over 50% on Tuesday – following a 92% gain the previous session – after Bed Bath announced the issuance of convertible preferred stock and associated warrants. The transactions could buy the company a few more quarters to turn around its operation, but it still faces a weak macro backdrop and high execution risk with inventory, assortment, customer re-engagement and cost savings initiatives under an interim new management team. In the meantime, Bed Bath expects to close some stores under its namesake banner, and anticipates to ultimately operate about 360 stores, as well as 120 buybuy BABY locations. (19 comments)
Today’s Economic Calendar
7:00 MBA Mortgage Applications
9:20 Fed’s Williams Speech
10:00 Fed’s Bostic Speech
10:00 Wholesale Inventories (Preliminary)
10:30 EIA Petroleum Inventories
12:30 PM Fed’s Kashkari Speech
1:00 PM Results of $35B, 10-Year Note Auction
1:45 PM Fed’s Waller Speech
What else is happening…
Takeaways from President Biden’s State of the Union speech.
Manchester United (MANU) surges on reports of a Qatari bid.
Apple (AAPL) ‘Pay Later’ is coming soon amid push into financial services.
Zoom (ZM) lays off 15% of workforce, eBay (EBAY) also announces cuts.
Deeper dive on where the layoffs are: white collar over blue collar.
Chipotle’s (CMG) comparable sales tally misses estimates.
Delta Air Lines (DAL) to implement second pay hike in 12 months.
Disney (DIS) and CEO Iger facing multiple questions with earnings on tap.
Meta (META) settles suit over infinity-symbol logo; teens heading to metaverse.
Democratic & GOP politicians’ stock picks are now tradable through these ETFs.
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Good morning. Happy Tuesday.
The Asian/Pacific markets were mixed. Hong Kong, South Korea and Indonesia moved up; Australia, New Zealand, Malaysia and the Philippines moved down. Europe, Africa and the Middle East currently lean up but are mostly quiet. Greece, Norway, Hungary and Austria are up; Turkey and Saudi Arabia are down. Futures in the States point towards flat open for the cash market.
————— FREE: Mini Masterclass in Trading —————
The dollar is up. Oil is up; copper is down. Gold and silver are up. Bonds are down.
Stories/News from Seeking Alpha…
Shot down
SOTU
The economy will be a big theme in President Biden’s State of the Union address tonight, which is set to be broadcast from Capitol Hill starting at 9 p.m. ET. He’ll take the podium as inflation shows signs of slowing, as well as a blowout jobs report that put the unemployment rate at its lowest level since 1969. GDP growth has also beat expectations, but remains under pressure amid concerns about a recession, while the current debt ceiling battle also threatens to derail any economic progress and the broader financial markets.
Counteroffer: According to the White House, Biden will call for “reducing the deficit through additional reforms to ensure the ultra-wealthy and largest corporations pay their fair share.” He’ll specifically renew proposals like enacting a tax on billionaires’ unrealized investment gains, as well as quadrupling the 1% excise levy on corporate stock buybacks, which was passed as part of the Inflation Reduction Act of 2022. Many of those plans are likely to be dead on arrival, given prior opposition from moderate Democrats and with the GOP in control of the U.S. House following November’s midterm elections.
“While [the] 1% [buyback tax] may not sound like much, it adds up,” wrote SA Marketplace author High Yield Investor. “This is especially true considering the fact that buybacks have become a more and more popular method of returning cash to shareholders in recent years. To the degree that the new stock buyback tax actually deters stock buybacks, capital allocators are likely to instead use the money to reduce debt and/or increase dividend payouts – both of these uses of cash would be beneficial to dividend stock investors.”
Not the only speech to watch: Fed Chair Jerome Powell will speak at the Economic Club of Washington today for the first time since his FOMC decision-day presser. It’ll be interesting to hear the remarks, especially regarding how the central bank views Friday’s blockbuster jobs report and what that will mean for monetary policy going forward. Yesterday, Treasury Secretary Janet Yellen told ABC’s Good Morning America that “you don’t have a recession when you have 500K jobs and the lowest unemployment rate in more than 50 years.”
Landing strip
The jobs report threw a wrench into the accepted Fed path, reviving the debate over recession prospects and inflation stickiness. Opinion across Wall Street is divided. J.P. Morgan’s Marko Kolanovic argues that Goldilocks is all wet and an equity air pocket is coming, while ABP Invest sees just a 10% chance of a hard recession. Deutsche Bank’s chart shows why the jobless rate may not be a good predictor and Goldman sees a big equity haircut in the event of a hard landing. (36 comments)
More M&A
Shares of Oak Street Health (OSH) are up 35% in premarket trading following reports that CVS Health (CVS) would acquire the company for $10.5B. If the deal goes through, it would give CVS access to a bigger footprint of primary care doctors, with a large network of clinics focused on seniors. It will also push the company deeper into the direct provision of healthcare after the $8B buyout of Signify Health (SGFY) in September. “CVS can be a winner, but they need to keep making acquisitions. Multiple acquisitions every year,” wrote SA Premium user Insouciant Investor. “If you aren’t on board then sell your shares now because it’s not going to change for many years.” Join the discussion, which also explores CVS rival UnitedHealth (UNH), in the comments section.
AI competition
“In the spirit of an internal hackathon,” Google (GOOG, GOOGL) will need all employees to test its chatbot, Bard A.I., as it looks to catch up in the artificial intelligence space. The chatbot will be powered by Language Model for Dialogue Applications, or LaMDA, which gained notoriety last year when a former Google engineer claimed it was sentient. Microsoft (MSFT), which has made a “multi-billion dollar investment” in OpenAI, has already started to integrate ChatGPT into products including its Azure cloud service. China is also getting in on the action, with Baidu (BIDU) confirming reports overnight that it will complete internal testing and launch the “Ernie Bot” in March.
Today’s Economic Calendar
8:30 Goods and Services Trade
12:40 PM Jerome Powell Speech
1:00 PM Results of $40B, 3-Year Note Auction
2:00 PM Fed’s Barr Speech
3:00 PM Consumer Credit
What else is happening…
WSB poll results: Are personal finances looking better in 2023?
Australia has hiked rates 9 times straight and more are coming.
BP (BP) ups dividend after joining Big Oil earnings bonanza.
Occidental (OXY) says buybacks take priority over production growth.
62% of Netflix (NFLX) password-sharing users would stop using service.
Pinterest (PINS) slips as revenues miss, guidance comes in light.
Teva (TEVA) follows AbbVie (ABBV) to leave top pharma industry group.
Boeing (BA) set to cut 2,000 white-collar jobs in finance and HR.
Lockheed Martin (LMT) double-upgraded to Outperform at Credit Suisse.
Concerns: U.K. may oppose Microsoft (MSFT)-Activision (ATVI) deal.
Bed Bath (BBBY) pares monster gain after convertible stock deal.
Top stock picks for 2023 from BofA – tech, media and telecom.
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Good morning. Happy Monday. Hope you had a good weekend.
The Asian/Pacific markets were mostly down; there were some big losses. Japan did well, but China, Hong Kong, South Korea, Taiwan and the Philippines were very weak. Europe, Africa and the Middle East are currently mostly down. The UAE and Russia are up, but the UK, Poland, France, Turkey, Germany, South Africa, Finland, Hungary, the Netherlands and Sweden are down. Futures in the States point towards a moderately big gap down open for the cash market.
————— FREE: Mini Masterclass in Trading —————
The dollar is up. Oil is up; copper is down. Gold and silver are up. Bonds are down.
Stories/News from Seeking Alpha…
Shot down
There had been some hope of cooling tensions between the U.S. and China in recent months, but things now appear to be moving in the opposite direction. An American F-22 Raptor fighter jet shot down what was dubbed a Chinese spy balloon over the weekend, with Secretary of State Antony Blinken canceling a top-level meeting with President Xi Jinping citing violations to U.S. sovereignty. In response, Beijing called the use of force a “violation of international conventions” and warned of “serious repercussions,” insisting that its “civilian unmanned airship” was merely collecting meteorological data and strayed off course due to high winds.
Backdrop: The U.S. had recently attempted to get relations back on track following a tension-filled visit to Taiwan by former House Speaker Nancy Pelosi in the summer. Treasury Secretary Janet Yellen held discussions with her Chinese counterpart Liu He at the World Economic Forum in Davos, while President Biden met Xi Jinping in Bali during the G20 summit in November. Friction between the world’s two largest economies already lingers over areas like trade, but bigger economic risks are at stake with a battle over access to key cutting-edge technologies.
If things continue to escalate, it could lead to a new long-term crisis. Reports have surfaced that China previously sent high-altitude surveillance balloons over the U.S. that went undetected, while Beijing’s ties to Russia during the Ukraine war are under the microscope. Other policies against China could also be taken as public opinion shifts towards a more unified voice. In January, both Democrats and Republicans voted overwhelmingly to establish the House Select Committee on the Strategic Competition Between the U.S. and the Chinese Communist Party. Did the U.S. or China emerge victorious in the trade war?
SA commentary: “A recently leaked memo from a U.S. Air Force four-star General indicates that the U.S. and China could likely be at war in 2025,” writes Marketplace author, Samuel Smith, who discusses the potential ramifications of such a scenario on the global economy and stock market. He also shares his top pick to buy today to prepare any portfolio for a war between the world’s two biggest economies. (15 comments)
Paycheck-to-paycheck
While January’s non-farm payrolls report was a blowout, with the unemployment rate hitting the lowest mark since 1969, the majority of Americans have seen their budgets squeezed last year. In fact, at the end of 2022, some 64% of U.S. consumers were living paycheck-to-paycheck, up from 61% in the year-ago period, according to a recent study by LendingClub and Pymnts.com. That means 9.3M more Americans are living paycheck-to-paycheck, and what’s even more alarming is that 86% of them earned more than $100K annually, underscoring the heightened scale of the surge in the cost of living. Take Wall Street Breakfast’s latest survey on whether you believe there will be an improvement in personal finances in 2023. (351 comments)
More layoffs
Due to a decline in the demand for personal computers, Dell Technologies (DELL) is laying off around 6,650 employees, which will impact 5% of its global workforce. “We’ve navigated economic downturns before and we’ve emerged stronger,” co-COO Jeff Clarke declared. “We will be ready when the market rebounds.” Device shipments including PCs took a hit in 2022, with Dell seeing the largest decline, and a further downfall is expected in 2023. The news comes at a time when most tech companies are slashing headcounts to save cost and survive the current macro environment (rival PC competitor HP (HPQ) also recently announced layoffs). (5 comments)
Merger Monday
Looking to form a global gold giant, Newmont (NEM) has made a $17B offer to acquire Australia’s top miner of the precious metal – Newcrest Mining (OTCPK:NCMGY). That’s not all. Public Storage (PSA) is ramping up efforts to purchase its smaller rival, making an unsolicited offer to buy Life Storage (LSI) for $11B in an all-stock deal. As with most transactions, the stocks of the buyers and suitors are moving in opposite directions in early trading. Pre-event merger & acquisition investors are also set to have a busy week in store with several companies scheduled to report their quarterly results. (12 comments)
Today’s Economic Calendar
12:30 PM Investor Movement Index
What else is happening…
Here are the 10 most shorted stocks on Wall Street.
EU and the U.K. agree to price caps on Russian oil products.
Powerful quake kills at least 640 people in Turkey and Syria.
Musk wins Tesla (TSLA) shareholder suit over ‘funding secured’ tweet.
Also lifts Model Y (TSLA) prices in the U.S. following recent cuts.
Carlyle (CG) plans to name Goldman vet Harvey Schwartz as CEO.
Apple (AAPL) says artificial intelligence ‘is a major focus of ours.’
Take a look at Zim (ZIM), which sailed to the top of industrial gainers.
Rivian (RIVN) eyes micromobility play with electric bike concept.
Catalent (CTLT) soars on takeover interest from Danaher (DHR).
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