Good morning. Happy Friday.
The strong>Asian/Pacific markets were split. Japan, China, Hong Kong, South Korea, Taiwan and the Philippines posted big gains while Australia, New Zealand and Indonesia posted big losses. Europe, Africa and the Middle East are currently mostly up. Denmark, Poland, France, Germany, Greece, South Africa, Finland, Hungary, Spain, the Netherlands, Italy, Portugal and Sweden are up big. Futures in the States point towards a big gap up open for the cash market.
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The dollar is up. Oil and copper are up. Gold and silver are up. Bonds are up.
Stories/News from Seeking Alpha…
Big Tech stunner
While Meta’s (META) heavy AI spending and light revenue outlook alarmed investors, huge investments in the new technology from other Big Tech players Alphabet (GOOG, GOOGL) and Microsoft (MSFT) are paying off. Both companies reported earnings that topped expectations across the board, cementing their dominance in the AI field and convincing investors that their huge AI bets are reaping more immediate returns.
Search strength: Alphabet surged by double digits AH on Thursday – GOOG +11.4%, GOOGL +11.6% – after its Q1 results easily cleared analyst expectations, with strong performance particularly at YouTube. The tech giant also rewarded investors with its first ever dividend and announced a $70B stock buyback. “Our results reflect strong performance from Search, YouTube and Cloud,” said CEO Sundar Pichai. “We are well under way with our Gemini era and there’s great momentum across the company.” He also noted that Google’s AI offerings boosted core search results in the quarter.
AI cloud boost: Microsoft (MSFT) rose 4.4% AH on Thursday, as the tech giant’s Q3 results beat expectations, helped by AI adoption across its cloud services, and its forecast largely matched Street estimates. “Microsoft Copilot and Copilot stack are orchestrating a new era of AI transformation, driving better business outcomes across every role and industry,” said CEO Satya Nadella. To note, the company’s AI-driven spending in the quarter was about $1B more than what analysts expected, but that didn’t deter investors as it appears warranted given huge customer demand.
SA commentary: Investing Group Leader Ahan Vashi said while Alphabet is spending big on AI, it is on track to generate around $80B free cash flow in 2024. However, he is moving to the sidelines as its “valuation is now too rich, and long-term risk/reward warrants a rating downgrade.” SA analyst Livy Investment Research noted that Microsoft has a “lofty” valuation premium relative to its Magnificent 7 and broader tech sector peers. “However, we remain confident in further upside potential, given its expansive reach into AI opportunities across different layers of the value chain.” (89 comments)
Inflation fears
Don’t expect the inflation picture to get much, if any, better when the Commerce Department releases its March data for personal income and outlays today. Economists expect both the PCE price index and core PCE, which excludes volatile food and energy prices, to rise 0.3% M/M in March. To note, Q1 GDP didn’t rise as much as expected, but PCE inflation came in hotter, unnerving investors. “This implies upside risks to the key monthly core PCE deflator and makes a near-term rate cut even less likely,” said ING Economic and Financial Analysis. Even so, Treasury Secretary Janet Yellen affirmed that the fundamentals are in line with inflation continuing back down to normal levels. (10 comments)
Net neutrality
The Federal Communications Commission has voted to bring back net neutrality rules that had been repealed in 2017 under Trump’s administration. The rules would prohibit internet providers from favoring or limiting certain kinds of traffic across the network, by re-establishing the treatment of internet providers as Title II common carriers. The FCC also used its new authority to block certain Chinese firms from providing broadband services in the U.S. over national security concerns. The FCC’s decision “will deter investments and innovation necessary to connect all Americans,” said Jordan Crenshaw, senior vice president, U.S. Chamber of Commerce Technology Engagement Center. (3 comments)
NBA streaming
Discussions are ongoing for the National Basketball Association’s next round of media packages, which will be effective after the 2024-2025 season, and competition is heating up. Amazon (AMZN) and Google’s (GOOG, GOOGL) YouTube are vying for a new NBA streaming package. Meanwhile, Comcast’s (CMCSA) NBCUniversal has set its sights on a major TV deal currently held by Disney’s (DIS) ESPN and Warner Bros. Discovery’s (WBD) TNT. Both Disney and Warner have pitched paying much more while airing fewer games under a new pact. The companies’ exclusive negotiating window to renew their contracts has expired, allowing the NBA to negotiate with other suitors. (3 comments)
Today’s Economic Calendar
Personal Income and Outlays
10:00 Consumer Sentiment
1:00 PM Baker Hughes Rig Count
What else is happening…
US2Y yield tops 5%, US10Y yield hits five-month high after GDP data.
Bristol-Myers (BMY) to cut 2,200 jobs as part of $1.5B cost savings plan.
Anglo American (OTCQX:AAUKF) rejects BHP’s $39B takeover offer.
Intel (INTC) stumbles as weak guidance and AI, foundry issues weigh.
Cannabis stocks outperform as pressure mounts for rescheduling weed.
Microsoft (MSFT)-backed cybersecurity firm Rubrik soars 21% in debut.
PG&E (PCG) CEO: Warren Buffett ‘got it wrong’ on California wildfire risk.
Paramount (PARA) sinks amid report deal with Skydance is getting closer.
Hertz (HTZ) slides 20% as depreciating Teslas (TSLA) dent bottom line.
Cleveland-Cliffs (CLF) CEO still interested in acquiring U.S. Steel (X).
BOJ keeps interest rate unchanged; yen hits weakest level in 34 years.
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Good morning. Happy Thursday.
The Asian/Pacific markets leaned down. Hong Kong and India did well; Japan, South Korea, Taiwan and Indonesia were weak. Europe, Africa and the Middle East are mostly down. The UK, Russia, Norway and Portugal are up; Denmark, France, Germany, Greece, Finland, Switzerland, Israel, Sweden and Saudi Arabia are down. Futures in the States point to a big gap down open for the cash market.
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The dollar is down. Oil and copper are up. Gold is down; silver is up. Bonds are down.
Stories/News from Seeking Alpha…
AI frenzy
Meta Platforms (META) slumped 15.1% to $418.85/share AH on Wednesday despite the company topping expectations with its Q1 earnings report, as its revenue guidance for the current quarter came in on the light side. Investors also appeared to be irked by Meta’s forecast of heavy spending on artificial intelligence, amid concerns that these huge investments could take years to pay off.
AI push: CEO Mark Zuckerberg launched the earnings call with a decided look forward rather than back, acknowledging a “good start” to the year and focusing most of the call on the company’s work on AI. “Overall, I view the results our teams have achieved here as another key milestone in showing that we have the talent, data and ability to scale infrastructure to build the world’s leading AI models and services,” he said. “And this leads me to believe that we should invest significantly more over the coming years to build even more advanced models and the largest scale AI services in the world.”
Meta, which is already spending a lot on AI research and development, raised its capital expenditure guidance for the year to $35B-$40B (from $30B-$37B). The increased spending will support the company’s new AI products and the required computing infrastructure. “Realistically, even with shifting many of our existing resources to focus on AI, it will still grow our investment envelope meaningfully before we make much revenue from some of these new products,” said Zuckerberg.
SA commentary: Seeking Alpha analysts were mostly unfazed by the stock reaction after seeing highlights in the report. Alex King of Investing Group Leader Cestrian Capital Research said it was an “excellent” quarter, pointing to Meta’s unlevered pretax free cash flow margins hitting 38%, the best since March 2022. SA analyst The Asian Investor is aggressively buying the drop, as Meta’s reasonably strong earnings suggest that the digital advertising rebound that started in 2023 has staying power. “I also believe the market overreacts to Meta’s push into AI, which is not something the company should be punished for.” (95 comments)
GDP watch
The U.S. economy likely grew at a slower pace in Q1, as consumer and government spending remains strong. The Bureau of Economic Analysis will publish its first gross domestic product estimate for Q1 before the bell today. Economists largely expect GDP to have risen at a 2.5% annualized rate, compared to 3.4% in Q4. While some expect GDP numbers could surprise to the upside amid a strong labor market and a pickup in the manufacturing cycle, Wells Fargo said weakness in shipments may mean a softer-than-expected reading. Anecdotal evidence suggests that GDP estimates may be too low, warned Investing Group Leader Mott Capital Management. (1 comment)
Ozempic scrutiny
A key Senate committee has launched an investigation into how Novo Nordisk (NVO) prices its popular weight-loss drug semaglutide in the U.S. Senator Bernie Sanders (I-VT), chairman of the Senate Health, Education, Labor, and Pensions Committee, said the drugmaker charges “outrageously high prices” for its semaglutide versions, Ozempic and Wegovy, indicated for diabetes and obesity. “The result is that Ozempic and Wegovy are out of reach for millions of Americans who need them,” he said, arguing that Novo sells the same product in Canada and Europe at far lower prices. A study in March showed that Ozempic can be produced for less than $5 a month, but costs far more. (11 comments)
Mega deal
BHP (BHP) has reportedly proposed to buy out Anglo American (OTCQX:AAUKF) for about $39B, in what would rank as one of this year’s biggest M&A deals. If a deal is finalized, it would create the world’s biggest copper miner that would account for 10% of the metal’s global production. Anglo has been struggling with major setbacks over the past year – a drop in prices for some of its key products, operational difficulties forcing it to slash production targets and declining profits. Deal deliberations are at an early stage and there is no certainty that BHP will proceed with a deal. “If BHP does indeed continue to pursue this deal, we would be surprised if other bidders do not emerge,” said Jefferies. (12 comments)
Today’s Economic Calendar
8:30 GDP
8:30 International Trade in Goods (Advance)
8:30 Initial Jobless Claims
8:30 Retail Inventories (Advance)
8:30 Wholesale Inventories (Advance)
10:00 Pending Home Sales
10:30 EIA Natural Gas Inventory
11:00 Kansas City Fed Mfg Survey
1:00 PM Results of $44B, 7-Year Note Auction
4:30 PM Fed Balance Sheet
What else is happening…
Boeing (BA) slides as loss narrows amid scrutiny of plane safety.
UnitedHealth (UNH) said to wind down Optum telehealth business.
Blinken in China: Contentious talks with Chinese officials begin.
Nvidia to buy two startups aiming to run AI models more cheaply.
DOT forcing airlines to give full refunds for canceled, delayed flights.
HP (HPQ) gains as Einhorn’s Greenlight takes stake on AI potential.
IBIT (IBIT) sees one of the longest daily ETF inflow streaks of all time.
U.S. natural gas futures plunge on oversupply, LNG terminal issues.
Big Tech earnings: Alphabet (GOOG), Microsoft (MSFT) on deck.
Grocer shares hint at Amazon (AMZN) low-cost delivery concerns.
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Good morning. Happy Wednesday.
The strong>Asian/Pacific markets did great. Japan, China, Hong Kong, South Korea, Taiwan, New Zealand, Malaysia, Indonesia, Singapore and the Philippines all posted solid gains. Europe, Africa and the Middle East are currently mixed. The UK, France, Greece, South Africa and Norway are up; Denmark, Poland, Portugal and Saudi Arabia are down. Futures in the States point towards a positive open for the cash market.
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The dollar is up. Oil is down; copper is up. Gold and silver are down. Bonds are down.
Stories/News from Seeking Alpha…
Phaseout delay
Google (GOOG, GOOGL) is delaying the phaseout of third-party cookies on its browser Chrome for the third time because of regulatory hurdles, and now expects the process to start early next year. “We recognize that there are ongoing challenges related to reconciling divergent feedback from the industry, regulators and developers, and will continue to engage closely with the entire ecosystem,” the search giant said. The announcement comes days before quarterly status reports from Google and the U.K.’s Competition and Markets Authority on the phaseout of third-party cookies, which will be replaced by Privacy Sandbox technologies to improve consumer privacy.
Regulatory pushback: The phaseout – which will transform targeted advertising – has attracted regulatory scrutiny over concerns that the move could further boost Google’s dominance in the digital advertising market due to increased reliance on first-party data and its advertising platforms. The U.K.’s Information Commissioner’s Office last week told the CMA, which is overseeing the phaseout, that Google’s plan has gaps that advertisers can exploit. “It’s critical that the CMA has sufficient time to review all evidence, including results from industry tests, which the CMA has asked market participants to provide by the end of June,” said Google. “We remain committed to engaging closely with the CMA and ICO, and we hope to conclude that process this year.”
Delay after delay: The company has spent years preparing for the phaseout, following in the footsteps of Apple (AAPL) and Mozilla, which already have options to block third-party cookies on their browsers. Google even began restricting cookies in January for 1% of Chrome users as part of a limited test. However, it delayed its phaseout deadline twice already since it was originally set in 2020, giving advertisers more time to prepare for the change.
As for the Privacy Sandbox that will replace third-party cookies, advertisers believe the solution is inadequate. “Our findings identify multiple challenges to implementation due to limitations in accomplishing key advertising objectives,” Anthony Katsur, CEO, IAB Tech Lab previously said. In response, Google argued that IAB Tech Lab’s analysis contained “many misunderstandings and inaccuracies.” Adtech names to watch out for: Trade Desk (TTD), Digital Turbine (APPS), AppLovin (APP), Magnite (MGNI), Perion Network (PERI), PubMatic (PUBM), Viant (DSP), Integral Ad Science (IAS), and Innovid (CTV).
Affordability shift
Tesla (TSLA) shot up 13% to $163.96/share AH on Tuesday, despite a sharp drop in Q1 earnings, deliveries, and margins, as investors latched on to the automaker’s commitment to launch more affordable models that can be produced on existing production lines. CEO Elon Musk also talked up the latest Full Self-Driving software release, adding that Tesla is in talks with at least one major automaker about licensing FSD. SA analyst Steven Fiorillo said the market is giving Tesla credit for its vision and product roadmap despite its weak quarter. But Investing Group Leader Jonathan Weber warned that Tesla has considerable operational problems while still trading at a premium valuation. (290 comments)
A step closer
A bill that would force ByteDance (BDNCE), the Chinese parent company of TikTok, to sell the social media app or else force a ban in the U.S. passed the Senate Tuesday night. The measure was attached to a larger $95B foreign aid package in support of Ukraine, Israel, and Taiwan. President Biden has voiced his support for the aid package as well as the TikTok measure. If he signs the bill into law, ByteDance would have about nine months to divest the app. If the TikTok bill becomes law, Meta Platforms (META), Google (GOOG, GOOGL) and to a lesser extent Snapchat (SNAP) stand to gain the most. (10 comments)
Non-compete ban
The Federal Trade Commission has voted to ban for-profit employers from making workers sign contracts with non-compete clauses, which the regulator said kept wages low and hampered innovation. Non-compete clauses ensured that employees couldn’t join their employers’ rivals or launch competing businesses. FTC Chair Lina Khan said the ban, which will be effective in August, will result in more than 8,500 additional new businesses created each year. The ban “lacks all nuance” and “will expose the trade secrets of American companies and harm investors, including pensions, foundations, and endowments,” warned Jennifer Han, chief counsel at trade group MFA. (8 comments)
Today’s Economic Calendar
7:00 MBA Mortgage Applications
8:30 Durable Goods
10:30 EIA Petroleum Inventories
11:00 Survey of Business Uncertainty
11:30 Results of $30B, 2-Year FRN Auction
1:00 PM Results of $70B, 5-Year Note Auction
What else is happening…
Slowing economy? PMI Manufacturing slips into negative territory.
Meta Platforms (META) Q1 Preview: Focus on ad sales, AI growth.
Grayscale files to launch lower-fee spot ethereum (ETH-USD) ETF.
Solar woes: SunPower to restate results, Enphase outlook misses.
Analyst: Apple (AAPL) slices 2024-25 Vision Pro shipment forecast.
HashiCorp (HCP) spikes on report IBM (IBM) nearing deal to buy firm.
GM (GM) delivers ‘prove me’ quarter as turnaround seems underway.
Indie Semiconductor (INDI) spikes before close amid takeover talk.
Goldman: Higher oil prices won’t really have impact on global inflation.
Jamie Dimon: Economy booming, but beware of fiscal dominance.
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Good morning. Happy Tuesday.
The Asian/Pacific markets leaned up. Hong Kong, Taiwan, Australia, Indonesia, Singapore, Thailand and the Philippines did well; China and New Zealand were weak. Europe, Africa and the Middle East are mostly up. Denmark, Germany, Greece, Switzerland, Hungary, Span, the Netherlands, Italy, Portugal and Sweden are doing well. Futures in the States point to a positive open for the cash market.
————— VIDEO: Breadth is Getting Less Bad —————
The dollar is down. Oil and copper are down. Gold and silver are down. Bonds are down.
Stories/News from Seeking Alpha…
Brace for impact
Slowing demand… Intense competition… Price cuts… Layoffs… Tesla (TSLA) has had it rough in the recent past, and shareholders are now preparing for what could be the automaker’s worst results in around seven years. The earnings report due after the bell today follows a chaotic week for Tesla, which slashed prices in many of its major markets, following notable price cuts in the U.S. Its billionaire CEO Elon Musk also had to postpone a trip to India – where he’d planned to announce the company’s entry into the market with a $2B-$3B investment – blaming “very heavy Tesla obligations.”
Earnings preview: Tesla is expected to report Q1 revenue of $22.5B and EPS of $0.50. The biggest focus may be on the automotive gross margin line, with traders looking out for comments on AI initiatives, margin expectations, FSD take rates, as well as what the product roadmap looks like, including if the mass-market Model 2 is still part of the master plan. Deutsche Bank analyst Emmanuel Rosner said TSLA stock will need to undergo a potentially painful transition in ownership base, with investors previously focused on Tesla’s EV volume and cost advantage potentially throwing in the towel.
While Musk is likely to talk up the potential of the robotaxi business, Morgan Stanley warned investors to keep their hopes down. “The event should offer some important clues as to how Tesla approaches autonomy (gen AI, non-rules based) and why the company is seemingly rapidly stockpiling its computational horsepower. However, while we are prepared to see evidence of improved system efficacy, we ultimately believe the path to commercialization at scale for driverless cars is much further out than the market expects,” warned analyst Adam Jonas. Options trading on Tesla implies a 10% share price swing after the report drops. To note, Tesla’s (TSLA) stock has slid around 43% so far this year, and is among the worst performers in the S&P 500 (SP500).
SA commentary: SA analyst ValueAnalyst doesn’t think it’s all doom and gloom for Tesla investors, although they are staying on the sidelines for now. “I will be keeping my eye on actual data and material management guidance on the topics that matter to long-term investors, rather than drama. I highlight the recent slowdown in the pace of Tesla’s resale value declines as a glimmer of hope.” SA analyst Brendan O’Boyle said Tesla’s discounted cash flow analysis suggests that the stock is becoming reasonably priced, despite the pessimism in the market. “Potential new products such as: Full Self-Driving, Cybertruck, and Advanced Battery Technology, new markets, and Tesla’s Energy Division may drive the stock in years to come.” (99 comments)
‘Substantial’ leak
UnitedHealth (UNH) said a preliminary review of data involved in February’s cyberattack on its Change Healthcare unit indicates that personal information was involved and that a “substantial proportion of people in America” could be impacted. The health insurer said around 80% of Change’s functionality has been restored, with full restoration expected in the coming weeks. The hackers behind the hack reportedly gained access to computer systems nine days before launching the ransomware attack using compromised credentials. UnitedHealth had paid a ransom to the hackers to protect patient data, although the amount has not been disclosed. (31 comments)
Chip reselling
Chinese research institutes have been able to buy Nvidia’s (NVDA) high-end artificial intelligence chips through resellers, underscoring the challenges the U.S. faces in restricting chip exports to China. These advanced chips were embedded in server products made by Super Micro Computer (SMCI) and Dell Technologies (DELL), according to tenders fulfilled between November 20 and February 28. This was after the U.S. had widened chip export controls, although it’s unclear if the chips had been acquired prior to this. An Nvidia spokesperson said the tenders show that the products were exported before U.S. restrictions and “are a negligible fraction of the products sold worldwide.” (6 comments)
24/7 trade?
The New York Stock Exchange, owned by Intercontinental Exchange (ICE) has started polling market participants on their interest in and potential implications of an exchange that trades stocks 24/7. While the polling doesn’t necessarily mean that NYSE is considering moving to round-the-clock trading, the move underscores growing interest in trading stocks in off-hours. The survey comes after 24 Exchange, backed by Steven Cohen’s Point72, applied with the Securities and Exchange Commission to start the first 24-hour exchange. The prospect of 24-hour trading, which would likely lead to changes across the ecosystem, becomes a heavier lift for exchanges as they’re supervised by the SEC. (53 comments)
Today’s Economic Calendar
9:45 PMI Composite Flash
10:00 New Home Sales
10:00 Richmond Fed Mfg. Index
1:00 PM Results of $69B, 2-Year Note Auction
1:00 PM Money Supply
What else is happening…
WSB survey results: Rescheduling of cannabis unlikely this year.
Not in the bag: FTC sues to block $8.5B Capri (CPRI) sale to Tapestry.
California bill aims to ban Clear Secure (YOU) from airport security lines.
Exxon leads industry fight against UN talks on plastic production cap.
Matterport (MTTR) shares more than double on sale to CoStar (CSGP).
Ending dispute: Petrobras board endorses 50% payout of extra dividends.
Meta (META) opens up Quest headset OS in challenge to Apple (AAPL).
Albertsons (ACI), Kroger (KR) to sell more stores to clear way for merger.
Archer Daniels Midland (ADM) CFO to step down in wake of DOJ probe.
IEA sees strong EV sales, but affordability and charging roadblocks remain.
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Good morning. Happy Monday.
The Asian/Pacific markets mostly did very well. China and Taiwan were weak, but Japan, Hong Kong, South Korea, India, Australia, Malaysia, Singapore and Thailand did great. Europe, Africa and the Middle East are currently mostly doing well. The UAE and Italy are down, but the UK, Poland, Germany, Greece, Finland, Hungary, Spain, the Netherlands, Portugal and Sweden are doing well. Futures in the States point towards a moderate gap up open for the cash market.
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The dollar is up. Oil is down; copper is up. Gold and silver ar down big. Bonds are down.
Stories/News from Seeking Alpha…
Change comes slowly
It’s that time of the year again when the budding marijuana legalization conversation lights up on the federal level. It’s actually been going on for quite some time, and witnessed some momentum in 2022 with the introduction of the Cannabis Administration and Opportunity Act in the Senate and the Marijuana Opportunity Reinvestment and Expungement Act in the House. Things continued in 2023 as the HHS concluded its independent review, with any change in scheduling now in the hands of the DOJ.
Backdrop: When state and federal laws conflict, the latter preempts the former as per Article IV of the Constitution. However, the 10th Amendment – as interpreted by the Supreme Court – outlines that the federal government cannot “commandeer the state,” meaning it cannot force states to arrest cannabis sellers or users that comply with their own state laws. In turn, states also cannot block the federal government from enforcing their laws. As a result, federal agents could be dispatched to make arrests within states if there was a will to do so and the resources were available, but in recent decades, sentiment has turned with regard to weed’s place in society.
“The process is still going, the review is still going,” White House Press Secretary Karine Jean-Pierre said at her latest briefing. “On decriminalization, the President has been very, very clear. He doesn’t believe that anyone should be in jail or be prosecuted just for using or – or possessing marijuana.”
Oregon led the effort towards decriminalization in 1973, California kicked off medical marijuana in 1996, and recreational weed even became legal in Colorado and Washington in 2012. As of today, pot is now legal recreationally in nearly half of all U.S. states, though it still remains a Schedule I drug under the Controlled Substances Act of 1970. The illegal classification makes it complicated for companies to operate within their own state borders, as many business activities and banks are regulated by federal law, as well as taxes, trademarks, and legal processes like bankruptcy. Reclassifying cannabis as a proposed Schedule III substance also doesn’t mean weed would be legalized, but would be a step towards doing so on the federal level.
Outlook: Cannabis market research firm BDSA expects legal U.S. cannabis sales to grow nearly 10% to $32.4B by the end of 2024. For investors trying to gain exposure to the sector, check out the latest Seeking Alpha analysis and news on multistate operators like Cresco Labs (OTCQX:CRLBF), Curaleaf (OTCPK:CURLF), Green Thumb Industries (OTCQX:GTBIF) and Trulieve Cannabis (OTCQX:TCNNF). Cannabis-related ETFs include the AdvisorShares Pure Cannabis ETF (YOLO) and funds like the Amplify Alternative Harvest (MJ). Take the WSB survey here.
Tesla trouble
There was a lot of news that came out of the Tesla (NASDAQ:TSLA) camp this past weekend as shareholders brace for a painful earnings report tomorrow. Facing headwinds ranging from slowing demand to rising competition, the EV maker slashed prices in many of its major markets, including China and Germany, following notable price cuts in the United States. Other news recently saw Tesla miss delivery estimates, lay off more than 10% of its global workforce, announce a Cybertruck recall, slash the price of FSD software by a third, and Elon Musk cancel a high-profile trip to India. TSLA is down more than 40% YTD. (21 comments)
National security
The U.S. House of Representatives on Saturday voted 360 to 58 to approve a bill that would force Chinese tech giant ByteDance (BDNCE) to sell its popular video platform TikTok or face having it banned in U.S. app stores. The national security legislation extends the divestiture timeline to 270 days from 180 days and allows President Biden to extend the timeline by another 90 days. It was also passed alongside a $95B foreign aid package in support of Ukraine, Israel and Taiwan. The measures now head to the U.S. Senate and are expected to pass this week. (766 comments)
Not happening
Shares of Informatica (NYSE:INFA) are down over 6% premarket after talks by Salesforce (NYSE:CRM) to acquire the data-management software company were said to have fizzled. The parties couldn’t agree on terms, according to the Wall Street Journal. The original WSJ report sent Salesforce shares down 7.3% on April 15 as investors didn’t appear to like the prospects of a large deal amid past pressure from activists. Informatica has a market cap of $10.4B and is scheduled to report Q1 results on May 1. (6 comments)
Today’s Economic Calendar
8:30 Chicago Fed National Activity Index
What else is happening…
VW workers vote to unionize in historic win for UAW.
‘Civil War’ retains top spot at the weekend box office.
Quantitative tightening could halt in 2025 – New York Fed.
IMF warns Washington on dangers of continued deficit spending.
J&J (JNJ) and Kenvue (KVUE) ordered to pay in latest talc lawsuit.
Shoe-Be-Doo: Sneakerheads losing interest and spending less.
EPA approves summer sales of higher-ethanol gasoline blend.
Beige Book district sentiment may help predict recessions.
Surging demand: 13 new obesity drugs could hit the market by 2029.
Short selling spat sees Citadel call Trump Media CEO ‘proverbial loser.’
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