📊 Office Vacancy Hits 20%

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Ticker Tea
April 03, 2024

Good morning!

Yesterday's market downturn was influenced by a rise in the 10-year Treasury note yield to a four-month peak. This uptick in yields, a reaction to unexpectedly strong US manufacturing data and robust factory orders, has dampened expectations for imminent Federal Reserve rate cuts.

Further insights came from the US labor market, where February's JOLTS reported an unexpected rise in job openings, suggesting a more resilient labor market than anticipated. Meanwhile, February saw factory orders climb by 1.4% month-on-month, surpassing the forecasted 1.0% increase, signaling a healthier economy but potentially complicating the Fed's interest rate decisions.

In the crypto sphere, Bitcoin experienced a 5%+ drop on Tuesday, attributable to reduced demand for Bitcoin ETFs and the stronger-than-expected US economic indicators. Investment outflows from Bitcoin ETFs were notably substantial, with a net withdrawal of $86 million on Monday alone, according to Bloomberg data.

A flurry of equity news from yesterday 👇

*Health insurance stocks fell due to unexpected US regulatory decisions, with Humana (HUM) down -13%, CVS Health (CVS) down -7%, and UnitedHealth Group (UNH) down -6%. (chart)

*Tesla (TSLA) shares dropped over -5% following Q1 vehicle deliveries significantly missing expectations. (chart)

*PVH Corp (PVH) tumbled over -22% after predicting a decline in 2025 revenue, impacting other apparel stocks like VF Corp (VFC), Ralph Lauren (RL), and Tapestry (TPR). (chart)

*Autodesk (ADSK) declined over -3% after delaying its annual 10-K report due to an investigation into financial practices. (chart)

*Homebuilders like Lennar (LEN), PulteGroup (PHM), DR Horton (DHI), and Toll Brothers (TOL) fell over -3% as rising T-note yields dampened housing demand. (chart)

*Cruise and airline stocks such as Norwegian Cruise Line (NCLH) and American Airlines (AAL) retreated with rising WTI crude oil prices. (chart)

*Mining stocks, including Freeport McMoRan (FCX) and Newmont (NEM), advanced as gold hit a record high. (chart)

*Molson Coors Beverage (TAP) increased over +1% on positive industry data comparison with Anheuser-Busch. (chart)

*Walt Disney (DIS) saw shares rise after reportedly leading in a proxy battle against activist investor Peltz. (chart)

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» U.S. office vacancies reached a new high of 19.8% in Q1, reflecting the impact of hybrid work models and the Federal Reserve's interest rate hikes. Despite this, early data suggest a stable quarter for commercial real estate. (link)

» Amid higher auto loan rates, American consumers are opting for cheaper, compact sedans and SUVs. Toyota ($7203), Honda ($7267), and General Motors ($GM) report sales gains, highlighting the trend towards affordability in the auto industry. (link)

» The LSU vs. Iowa game, highlighted by star talents like Caitlin Clark, set a new FanDuel record as the biggest women's sports betting event ever. This surge in betting accompanies a broader rise in women's sports popularity, confirmed by record ESPN viewership for the women's Sweet 16. (link)

» Express ($EXPR) is in talks for bankruptcy financing amid a shift towards ultra-fast fashion. The retailer, struggling to revamp operations and facing a severe cash crunch, may file for Chapter 11 as early as next week. (link)

» Rivian ($RIVN) outperformed EV production estimates but maintained its 2024 target, leading to a 4.6% share drop amidst investor concerns. Production changes for the new R2 model will limit next quarter's sales. (link)

» Tesla ($TSLA) shares fell after reporting an 8.5% year-on-year drop in Q1 2024 vehicle deliveries, marking the first such decline since 2020. Total deliveries were 386,810 against a production of 433,371 vehicles. (link)

» Trump Media ($DJT) sues its co-founders for mismanagement, seeking to prevent them from owning shares or appointing board members. The conflict centers on a disputed 8.6% stock share, now worth $601 million. (link)

Major ($10bn+) earnings releases scheduled the next five business days 👇 Click here for a comprehensive list of upcoming earnings releases

Results from yesterday’s economic releases & today’s schedule below 👇 Click here for full schedule & live updates of Wall Street estimates.

 

“It’s always too soon to quit.”
Norman Vincent Peale

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