Weekly Financial Market Insights 📈
Trading Week 41 ... Nikola Founder Found Guilty of Fraud, Hotter Than Expected Inflation Data, IMF Says "Worst Is Yet To Come", and Delta + UnitedHealth + JPMorgan Earnings
Sunday Morning Markets ☕
Your weekly financial markets update, in less than 5 minutes. Covering Monday, Oct 10 through Friday, Oct 14.
The Week In Review ⏪
US Treasury yields continue their steep climb as September inflation data came out hotter than expected. Core consumer prices rose 0.6% during the month and 6.6% during the year - the fastest rate since 1982. The US2Y yield has now hit 4.5% after starting the year at just 0.75%.
Social Security payments set to rise 8.7% next year, Trevor Milton convicted of fraud, Beyond Meat announces layoffs, Bank of England intervenes in its bond market again, crypto-metaverse projects see bleak user activity, and the IMF says “the worst is yet to come” — all that and more on this week of Sunday Morning Markets.
US Markets 🇺🇸
CPI inflation was hotter than expected as consumer prices rose 0.4% during the month of September, and 8.2% for the year. Core-CPI (excluding food & energy) came in well above estimates at a 0.6% increase in September and 6.6% for the year.
Wholesale prices jump 0.4% during the month as inflation continues to persist. The move was primarily led by a 1.2% surge in food prices and a 0.7% rise in energy costs. Core-PPI inflation (excluding food, energy & trade services) also rose 0.4% for the month and 5.6% for the year.
Social Security will see largest increase in 40 years as the cost-of-living adjustment is expected to be 8.7% for 2023. The average Social Security retiree benefit will increase by $146 per month, to $1,827 in 2023, from $1,681 in 2022.
Nikola founder convicted of fraud over statements he made while CEO of the EV company. Trevor Milton was charged with two counts of securities fraud and two counts of wire fraud. ( NKLA 0.00%↑ )
Beyond Meat lays off 19% of its workforce or about 200 employees, as a part of a major restructuring plan in an effort to achieve cash flow positive operations by 2H’23 ( BYND 0.00%↑ )
US Labor Dept. proposes a change to gig economy on Tuesday, causing the shares of Uber, Doordash, and Lyft to plunge. The proposed rule would make it possible for gig workers to be reclassified as employees, rather than contractors. ( UBER 0.00%↑ , DASH 0.00%↑ , LYFT 0.00%↑ )
Netflix to charge $6.99 for ad-supported plan starting November 3rd in the US. Commercials will be 15 or 30 seconds long and will play before and during Netflix’s content. ( NFLX 0.00%↑ )
Rest of World 🌏
BoE intervenes in bond markets again and warns of ‘material risk’ to UK financial stability. The move marks the second expansion of the central bank’s extraordinary rescue package in as many days.
IMF cuts global growth forecasts and warns that “the worst is yet to come”. The International Monetary Fund predicts global growth will slow to 2.7% in 2023. Its GDP estimate for this year remained steady at 3.2%, which was down from the 6% seen in 2021.
The US restricts chip exports to China in a move that will likely hobble China’s domestic chip industry. The Dept. of Commerce introduced sweeping rules aimed at cutting China off from obtaining or manufacturing key chips and components for supercomputers.
Crypto ⚡
Decentraland has just 38 daily active users inside its $1.3B ecosystem, DappRadar’s data suggests. Its competitor, Sandbox, had just 522 “active users” in that same time. Decentraland’s team disputed this data and offered an alternative measurement method.
Google partners with Coinbase to accept crypto payments for Google Cloud with the goal of making building in Web3 faster and easier. The tech giant will also use Coinbase's custody service, Coinbase Prime.
Crypto DEX Uniswap raises $165m in a Series-B financing round led by Polychain Capital. The capital will enable Uniswap to invest more into its web app, developer tools, and NFT projects, in a move to support mobile users.
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Earnings Reports 💰
PepsiCo ($PEP) — View report
PepsiCo ($PEP) shares jumped +4.2% in the 24 hours following the earnings release.
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Taiwan Semiconductor ($TSM) — View report
$TSM - Taiwan Semiconductor Manufacturing Quarterly Results Report: investor.tsmc.com/english/encryp…Taiwan Semiconductor ($TSM) shares jumped +4.0% in the 24 hours following the earnings release.
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Delta Airlines ($DAL) — View report
$DAL - Delta Quarterly Results Guidance Q4: - Revenue growth 5-9% - EPS of $1 - $1.25 Report: s2.q4cdn.com/181345880/file…Delta Airlines ($DAL) shares jumped +4.0% in the 24 hours following the earnings release.
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UnitedHealth Group ($UNH) — View report
$UNH - UnitedHealth Group Earnings Results Guidance: Increased its FY'22 EPS outlook to $20.85 - $21.05 & Adj EPS to $21.85 - $22.05 Report: unitedhealthgroup.com/content/dam/UH…UnitedHealth Group ($UNH) shares rose +0.5% in the 24 hours following the earnings release.
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JPMorgan Chase ($JPM) — View report
$JPM - JPMorgan Chase Earnings Results Guidance: 4Q22 net interest income of ~$19B and FY2022 of ~$66B FY2022 adjusted expense of ~$77B Report: jpmorganchase.com/content/dam/jp…JPMorgan Chase ($JPM) shares rose +1.7% in the 24 hours following the earnings release.
Week Ahead 📅
Monday
Empire State Manf. Index (Oct) 🇺🇸
China Industrial Production (Sep) 🇨🇳
Earnings Reports: Bank of America ($BAC), Charles Schwab ($SCHW)💰
Tuesday
German ZEW Economic Sentiment (Oct) 🇩🇪
Earnings Reports: Johnson & Johnson ($JNJ), Netflix ($NFLX), United Airlines ($UAL)💰
Wednesday
Building Permits (Sep) 🇺🇸
UK CPI Inflation (Sep) 🇬🇧
Canada CPI Inflation (Sep) 🇨🇦
Earnings Reports: Tesla ($TSLA), ASML ($ASML), Procter & Gamble ($PG)💰
Thursday
Philidelphia Fed Manf Index (Oct) 🇺🇸
Existing Home Sales (Sep) 🇺🇸
Earnings Reports: Danaher ($DHR), Philip Morris ($PM), Union Pacific ($UNP), AT&T ($T), American Airlines ($AAL)💰
Friday
UK Retail Sales (Sep) 🇬🇧
Earnings Reports: Verizon ($VZ), Goldman Sachs ($GS), American Express ($AXP)💰
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Until next Sunday…