📊 NYCB's Troubles Escalate

» $NYCB reveals "material weaknesses" in loan oversight, appoints Alessandro DiNello as new CEO, replacing Thomas Cangemi. In protest of the reorganization, board member Hanif Dahya stepped down. Shares plummet 22% after the announcement, as the bank faces challenges with commercial real estate lending and regulatory filings. (link)

» January's inflation data, as measured by the PCE price index, matched Federal Reserve expectations, rising by 0.4% monthly and 2.8% year-over-year, excluding food and energy costs. This alignment with projections, combined with an unexpected jump in personal income and cautious consumer spending, underscores the ongoing economic balancing act between stimulating growth and controlling inflation. (link)

» Tesla ($TSLA) has begun allowing Ford ($F) and General Motors ($GM) electric vehicles to use its Supercharger network in the U.S., a move that could significantly boost its revenues. This strategic partnership not only enhances the EV charging infrastructure but also opens up new revenue streams for Tesla, potentially generating billions annually. (link)

» Dell Technologies' ($DELL) shares surged 15% in extended trading as the company surpassed earnings expectations with strong demand for its AI-optimized servers, reporting an adjusted EPS of $2.20 against the expected $1.73. Despite a revenue dip to $22.32 billion from last year's $25.04 billion, Dell's significant net income increase and optimism about AI-driven growth highlight a robust financial performance. (link)

» Goldman Sachs' ($GS) clients are accelerating their mergers and acquisitions (M&A) activities to the first half of the year to avoid uncertainties surrounding the US election, according to Christina Minnis, the firm's head of acquisition finance. (link)

» JAB Holding is aiming to raise up to $2.5 billion by selling approximately 87 million shares of Keurig Dr Pepper ($KDP), with plans to use the proceeds to finance recent investments in pet insurance. The shares are being offered at a slight discount, and KDP intends to repurchase 35 million shares as part of the transaction. (link)

» Cleveland Fed President Loretta Mester highlights that recent inflation data indicates the Fed still has significant work to do in managing price pressures, despite plans for three interest rate cuts this year. Additionally, Mester supports the Basel III proposal to increase capital requirements for large banks, aiming to enhance the financial system's stability. (link)

No major earnings releases today. Earnings season is winding down so there will be fewer updates in the coming weeks.

Yesterday’s economic release results summarized below, along with today’s calendar. Red = Important

Champions keep playing until they get it right.

Billie Jean King