What Moved The Markets This Week 📈

W6 - Google Launches Bard AI, Tech Layoffs Reach 100K, Biden State of the Union, Mortgage Volume Jumps, Death Count In Turkey Exceeds 20K, Kraken Shuts Down Staking, and Disney + Uber + PayPal Earning

Feb 12, 2023

Sunday Morning Markets

Trading Week 6, covering Monday, Feb 6 through Friday, Feb 10. Your weekly financial markets update, in less than 5 minutes.

The Week In Review ⏪

President Biden delivers his State of the Union Address
Google unveils ‘Bard AI’ to compete with ChatGPT
Layoffs announced by Disney, Dell, Zoom, Affirm, and others. Tech layoffs now exceed 100K in 2023.
Mortgage refinancing volumes jump as rates fall for fifth straight week
Death count from earthquakes in Turkey & Syria now exceeds 20K
Kraken shuts down staking to settle SEC suit
Binance suspends USD transfers on the platform
FTX bankruptcy fees total $20m in first 51 days
Earnings from Disney, Uber, PayPal, and more - view breakdowns below

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US Markets 🇺🇸

President Biden’s State of the Union Address highlighted a few key plans for the future such as a minimum tax for billionaires, combating ‘junk fees’, a focus on antitrust, more substantial labor rights, and a price cap on insulin.
Layoffs continue to mount this week as Disney, Dell, Zoom, Affirm, eBay, GitLab, and others make cuts. According to layoffs.fyi, 340 tech companies have laid off 102K workers so far in 2023.
Jobless claims increased to 196K, slightly higher than expected but the labor market remains tight. Continuing claims jump 38K to 1.69m as it retraces back to its December highs.
Mortgage refinance volumes jump 18% as interest rates drop for the fifth straight week but are still 75% lower than the same week one year ago. The average 30Y interest rate for a conforming loan hovers around 6.18%.
Google unveils its ChatGPT rival for AI-powered conversation and notes the new program, named ‘Bard’, will go live to the public in the coming weeks. “Soon, you’ll see AI-powered features in Search”
General Motors & Global Foundries strike a deal to establish exclusive production capacity of U.S.-produced semiconductor chips. GM expects its usage of semiconductors to more than double over the next several years.

Rest of World 🌏

Powerful earthquakes leave over 20,000 dead in Turkey and Syria as hundreds of buildings collapsed. The first quake hit early Monday morning with a 6.7-magnitude aftershock, followed by a 7.8-magnitude quake eight hours later.
Canada’s Ivey PMI rebounds to 8-month high as employment rises. The seasonally adjusted index came in at 60.1, above consensus estimates of 42.3 and up from the prior reading of 49.3.
Eurozone retail sales fell by 2.7% in December as households cut back on spending amid high inflation and rising interest rates. Economists were expecting a drop of 2.7% following November’s 1.2% rise.

Crypto ⚡

Kraken shuts down staking operations to settle SEC charges over offering unregistered securities. They’re also expected to close down their crypto-lending product offering up to 24% yields.
Binance suspends all USD transfers but says all other methods of buying and selling crypto remain unaffected. The company noted that only 0.01% of monthly active users use USD bank transfers.
FTX asks politicians to return SBF’s donations by the end of the month. FTX said it’s sending “confidential letters” to politicians and other political beneficiaries, in an attempt to recoup as much as $93m in donations.
FTX bankruptcy fees hit $20m in first 51 days as legal and financial advisors have billed the company over $380K per day. Those firms will only be paid 80% of the value of their work, under a court-ordered compensation plan.

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Earnings Reports 💰

Follow our Twitter account for real-time breakdowns of earnings reports.

Disney ($DIS) - Report
Revenue: $23.5B vs $23.4B expected and $21.8B year ago (+8% YoY)
EPS: $0.70 vs $0.79 expected and $0.63 year ago (+11% YoY)
Segment Breakdown:
Media & Entertainment: $14.8B (+1% YoY)
Parks & Experiences: $8.8B (+21% YoY)
Note: Announces restructuring plan to split into three segments, cut 7K jobs. Disney+ grew 25% YoY, but 0% QoQ.
Market Reaction: -1.3%

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Uber ($UBER) - Report
Revenue: $8.61B vs $8.51B expected and $5.78B year ago (+49% YoY)
EPS: $0.29 vs ($0.15) expected and $0.44 year ago (-34% YoY)
Metrics:
Monthly Active Users: 131m (+11% YoY)
Trips: 2.104B (+19% YoY)
Gross Bookings: $30.75B (+19% YoY)
Adjusted EBITDA: $665m (+673% YoY)
Guidance: Adjusted EBITDA of $660m - $700m, on gross bookings $31B - $32B.
Market Reaction: +5.3%

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PayPal ($PYPL) - Report
Revenue: $7.38B vs $7.39B expected and $6.92B year ago (+7% YoY)
EPS: $1.24 vs $1.20 expected and $1.11 year ago (+12% YoY)
Metrics:
Total Payment Volume: $357.4B (+5% YoY)
Active Accounts: 435m (+2% YoY)
Free Cash Flow: $1.43B (-8% YoY)
Guidance:
Q1 revenue to grow 7.5%, non-GAAP EPS to grow 23-25%
FY23 non-GAAP EPS to grow 18%
CEO to retire at end of year
Market Reaction: +3.0%

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Other Reports
Activision ($ATVI) - Pinterest ($PINS) - ZoomInfo ($ZI) - Chipotle ($CMG) - Robinhood ($HOOD) - Affirm ($AFRM) - Cloudflare ($NET) - Hilton ($HLT)

Week Ahead 📅

Monday

Japan - GDP (Q4) 🇯🇵
Australia - Westpac Consumer Confidence (FEB) 🇦🇺
Earnings Reports: Palantir, Nu Holdings 💰

Tuesday

US - CPI Inflation (JAN) 🇺🇸
UK - Unemployment (DEC) 🇬🇧
Earnings Reports: Coca-Cola, Airbnb, Marriott, Upstart💰

Wednesday

US - Retail Sales (JAN) 🇺🇸
US - Industrial Production (JAN) 🇺🇸
UK - CPI Inflation (JAN) 🇬🇧
Earnings Reports: Cisco, Shopify, Synopsys, TradeDesk, Twilio, Zillow, Roku💰

Thursday

US - PPI Inflation (JAN) 🇺🇸
US - Building Permits (JAN) 🇺🇸
US - Philly Fed Manf. Index (FEB) 🇺🇸
US - Housing Starts (JAN) 🇺🇸
Earnings Reports: Applied Materials, Airbus Group, Datadog, Doordash, Hubspot, Toast, Dropbox, Draftkings, WeWork💰

Friday

UK - Retail Sales (JAN) 🇬🇧
Earnings Reports: Deere & Co💰

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