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- 📊 S&P 500 Warming Up For The 5K
📊 S&P 500 Warming Up For The 5K
Ticker Tea
February 08, 2024
The S&P 500 closed at 4,995 on the back of a better-than-expected 10-year treasury auction and mostly positive earnings releases. If you’ve been itching to look at your retirement account, now is the time.
Today all eyes are on jobs data & the 30-year treasury auction.
» Disney reported earnings per share of $1.22 ($0.99 est.). They announced several initiatives:
1️⃣ $1.5bn stake in Fortnite studio Epic Games
2️⃣ Flagship ESPN streaming service will launch in fall 2025
3️⃣ Taylor Swift’s ‘Eras Tour’ concert film will be aired exclusively on Disney+ (March 15)
» Arm reported revenue of $824mm ($761mm est.) and raised its guidance for the next quarter to $850mm-$900mm. The street was estimating $780mm. The stock was up as much as ~41% after hours.
» PayPal reported revenue of $8.03bn ($7.87bn est.). While revenue increased 9% in the quarter, the number active accounts fell 2%. PayPal issued full-year guidance slightly lower than the street expected: earnings of $5.10 per share ($5.48 eps est.). The stock was down ~8% after hours.
▪️ Earnings Today: Philip Morris, S&P Global, ConocoPhillips, Apollo, Hershey, Pinterest, Affirm, Under Armour (calendar below)
▪️ Economic Data Today: mainly focused on jobs and the 30yr auction scheduled for noon (calendar below)
▪️ Fed Speak: Barkin x2 (AM & PM Thurs), Logan (Fri)
▪️ Consumers drastically cut back on borrowing in December (+$1.5bn) vs November (+$23.4bn) (link)
▪️ Ratio of equal-weighted S&P / cap-weighted S&P is at its lowest level since 2009 (link)
Ratio: equal-weight S&P / cap-weighted S&P
▪️ Billionaire Bill Ackman is introducing Pershing Square USA, a fund aimed at US retail investors. This move, mirroring the structure of the successful $14 billion Pershing Square Holdings fund in Europe, targets investing in a select group of large, undervalued North American companies, promising broad appeal due to Pershing Square's high-profile brand and Ackman's active public engagement. (link to micro blog)
▪️ China's consumer price index fell by 0.8% in January, marking the most significant drop since 2009, as the nation grapples with ongoing deflationary pressures. Despite recent efforts to stimulate domestic demand, persistent price declines across both consumer and producer sectors highlight the challenges facing the world's second-largest economy in reviving growth and consumer confidence. (link to micro blog)
▪️ Warner Music ($WMG) is set to cut 600 jobs, equating to approximately 10% of its workforce. The layoffs will primarily affect its digital media outlets, including its podcast network, aiming to redirect $200 million in annual savings towards new ventures. (link to micro blog)
▪️ Disney ($DIS) is investing $1.5 billion in Epic Games, the creator of Fortnite, to integrate Disney's iconic franchises, including Star Wars, Marvel, and Avatar, into the gaming universe. This collaboration, Disney's largest foray into the gaming sector, will also extend to developing new titles and leveraging synergies with Disney's theme parks, offering expansive growth and engagement opportunities. (link to micro blog)
▪️ In response to Nelson Peltz's ongoing proxy fight, Disney ($DIS) announced a series of exciting initiatives, including the launch of its ESPN streaming service and a Taylor Swift “Eras Tour” film on Disney+. Despite these efforts aimed at revitalizing investor confidence and showcasing strategic direction, Peltz remains steadfast in his campaign for board changes (including appointing himself), critiquing the company's performance and leadership. (link to micro blog)
▪️ Tesla ($TSLA) is scrutinizing its workforce, with managers asked to identify critical positions, hinting at possible layoffs amidst slowing sales growth and aggressive spending on future projects. This move aligns with CEO Elon Musk's cost-cutting drive, reflecting the company's strategic shift to ensure financial efficiency while gearing up for its next major product launch. (link to micro blog)
Today’s earnings releases listed below. Full list for the week is here
*Estimates Provided by Bloomberg
Yesterday the US government sold $42 billion of 10-year notes at a 4.093% yield, below the expected 4.105%, indicating strong demand and confidence that the Fed will cut interest rates.
We have two Fed speeches today: Barkin (morning and afternoon)
*Estimates Provided by TradingEconomics.com
“Raise up your glasses against evil forces; Whiskey for my men, beer for my horses.”
- Toby Keith
kick ass out there
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