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- 📊 From AI to Hedge Funds: Google's Pivot & Regulatory Tightening
📊 From AI to Hedge Funds: Google's Pivot & Regulatory Tightening
Ticker Tea
February 09, 2024
Green screens across the board yesterday as the 30-year treasury auction had stronger demand than expected.
The calendar is relatively light today & the market is largely expected to be focused on CPI revisions to be released in the morning.
The crucial issue is whether the updated information will validate the initial reports of a swift decrease in inflation over the previous six months, or if it will suggest that the reduction in inflation was more consistently distributed throughout the entire year.
Looking ahead to next week, all eyes will be on inflation data released on Tuesday. The market is expecting CPI of +2.9% YoY (down from prior +3.4%). This would be the first 2-handle CPI print since April 2021.
▪️ Earnings Today: Pepsi, Blue Owl, Top Golf (calendar below)
▪️ Economic Data Today: CPI revisions (calendar below)
▪️ Fed Speak: Logan
▪️ Hawaiian airlines will be the first major U.S. airline to use SpaceX’s Starlink for in-flight service (link)
▪️ S&P 500 profit margins moved down to to 10.7% in Q4 2023, the lowest since Q2 2020 (link)
▪️ Unemployment claims have marginally decreased to 218k from 227k the previous week. However, continuing claims remain high, indicating that individuals who have been laid off are finding it more difficult to secure new employment.
▪️ Pinterest ($PIN) shares experienced a drop after announcing a weaker-than-expected revenue outlook and missing revenue expectations, with the stock declining nearly 10%. However, the announcement of a new partnership with Google ($GOOGL) helped pare some losses, showcasing potential for future growth and ad demand enhancement. (60 second blog)
▪️ Google ($GOOGL) rebrands its AI chatbot Bard to Gemini, introducing a new Android app and a subscription model, Gemini Ultra 1.0, for $19.99 per month. This move signifies Google's deepening investment in AI technology and its ambition to develop a comprehensive AI assistant capable of performing a wide array of tasks. (60 second blog)
▪️ Cloudflare's ($NET) stock jumped 21% in after-hours trading following an earnings report that exceeded analyst predictions, with the company announcing significant customer deals and ambitious expansion plans. The web security firm reported a 32% revenue increase to $362.5 million and outlined plans for extensive GPU deployment for AI applications. (60 second blog)
▪️ The SEC and CFTC have mandated hedge funds to provide more detailed confidential reports on their investment strategies, marking a significant regulatory expansion in a decade. This move aims to improve risk monitoring within the financial system. (60 second blog)
▪️ Arm's ($ARM) stock soared 48%, reaching a valuation of over $116 billion, significantly outpacing Nvidia's ($NVDA) and AMD's ($AMD) earnings multiples amidst growing AI demand. Despite challenges in the smartphone market, Arm's expansion into AI and new technologies has positioned it strongly against competitors, reflecting positively on SoftBank's significant stake. (60 second blog)
▪️ Treasury Secretary Janet Yellen warns of the risks and potential failure of nonbank mortgage lenders in stressful market conditions, emphasizing the Financial Stability Oversight Council's focus on these institutions. The FSOC considers increased regulatory oversight due to nonbanks' reliance on unstable short-term financing and their significant expansion in the finance sector. (60 second blog)
Today’s earnings releases listed below. Full list for the week is here
Yesterday the US government sold $25 billion of 30-year notes at a 4.360% yield, below the expected 4.380%, indicating strong demand.
We have one Fed speech today: Logan
Yesterday’s economic release results:
The only way to excellence is to improve yourself every day.
have a great Super Bowl weekend 🏈
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