What Moved The Markets This Week 📈
W7 - Credit Card Debt Levels Surge, Hotter Than Expected Inflation Data, Youtube CEO Steps Down, Do Kwon Charged With Fraud, Japan's New BOJ Governor, and Airbnb + Shopify + Doordash Earnings
Sunday Morning Markets
Trading Week 7, covering Monday, Feb 13 through Friday, Feb 17. Your weekly financial markets update, in less than 5 minutes.
The Week In Review ⏪
Hot inflation data 🔥 January CPI climbs 0.5% & PPI jumps 0.7%
Retail sales surge as credit card debt levels hit an all-time high
Tech layoffs exceed 108K in first six weeks of 2023
Susan Wojcicki to step down as Youtube’s CEO
Japan nominates Kazuo Ueda as the new BoJ governor
Do Kwon charged with securities fraud by SEC
SEC charges Paxos and orders to halt BUSD minting
Earnings from Airbnb, Shopify, Doordash, and more - view breakdowns below
US Markets 🇺🇸
Consumer prices rose more than expected in January as the CPI rose 0.5% during the month (0.4% exp) and 6.5% during the year (6.4% exp). Excluding food and energy, the core CPI rose 0.4% during the month (0.3% exp)
Wholesale prices surge 0.7% in January, significantly higher than the 0.4% expected. Excluding food and energy, core PPI increased by 0.5% (0.3% exp). The PPI is not as commonly followed but tends to lead the other inflation indexes
US retail sales ripped 3% higher last month, easily topping the 1.9% Dow Jones estimate. Leading the way, food & drink sales surged 7.2%, while motor vehicle and parts dealers increased 5.9%
Consumer debt hits a new record at $16.9T in Q4 as credit card debt reaches an all-time high. Mortgages, auto loans, and credit card delinquencies all trended up. The average interest rate is now ~20%, the highest level in 37 years
Layoffs in tech continue to surge as LinkedIn, Twilio, Yahoo, DocuSign, and others make cuts. According to layoffs.fyi, 380 tech companies have laid off 108K workers so far in 2023
A major chemical spill from an Ohio train derailment forced hundreds of citizens to evacuate their homes. The EPA said on Sunday it had not detected any "levels of concern" for hazardous substances in the area. Pictures here
YouTube CEO Susan Wojcicki is stepping down as Neal Mohan, the current chief product officer, will take the lead as the senior vice president and new head of YouTube
Microsoft’s Bing AI is producing creepy conversations with beta testers. It threatened some, provided weird and unhelpful advice to others, insisted it was right when it was wrong, and even declared love for its users
Rest of World 🌏
UK inflation dips for a third straight month to 10.1% after hitting a 41-year high in October. When excluding food, energy, alcohol, and tobacco, the core CPI fell to 5.3% from 5.8% in the month prior.
Japan nominates Kazuo Ueda as next BoJ governor which will likely lead to a shift in monetary policy. Bank of America expects a gradual policy normalization under the central bank’s new leadership instead of an abrupt change.
Ford partners with a Chinese supplier on a new $3.5 billion battery plant for electric vehicles in Michigan, despite ongoing geopolitical issues between the US and China. The plant is expected to open in 2026.
Russian bombers intercepted near Alaska by NORAD. The aircraft did not enter U.S. or Canadian airspace and did not pose a threat, the joint U.S.-Canadian center said.
Crypto ⚡
Terraform’s Do Kwon charged with fraud in connection to the collapse of the Terra ecosystem. The SEC alleges that Kwon marketed assets as profit-bearing securities, “repeatedly claiming” the tokens would increase in value.
SEC proposes new crypto custody rules that would require exchanges to hold special charters, qualify as a registered broker-dealer, futures commission merchant, or be a certain kind of trust or foreign financial institution
Crypto firm Paxos to face SEC charges and ordered to stop minting the Binance stablecoin, BUSD. The move is the latest in an escalating regulatory effort to rein in the once free-wheeling crypto industry.
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Earnings Reports 💰
Follow our Twitter account for real-time breakdowns of earnings reports.
Airbnb ($ABNB) - Report
Revenue: $1.90B vs $1.86B expected and $1.53B year ago (+24% YoY)
EPS: $0.48 vs $0.25 expected and $0.08 year ago (+500% YoY)
Gross Booking Value: $13.5B vs $11.3B year ago (+19% YoY)
Nights & Exp Booked: 88.2m vs 73.4m year ago (+20% YoY)
Guidance: Q1 revenue $1.75 - 1.82B (vs $1.68B est)
Market Reaction: +13.4%
—
Shopify ($SHOP) - Report
Revenue: $1.74B vs $1.65B expected and $1.38B year ago (+26% YoY)
EPS: $0.07 vs ($0.01) expected and $0.14 year ago (-50% YoY)
Segment Breakdown:
Merchant Solutions: $1.34B (+30% YoY)
Subscriptions: $0.4B (+14% YoY)
Guidance for Q1: Revenue growth in high teens. Operating expense growth in low single digits.
Market Reaction: -15.9%
—
Doordash ($DASH) - Report
Revenue: $1.82B vs $1.77B expected and $1.30B year ago (+40% YoY)
EPS: ($1.65) vs ($0.67) expected and ($0.45) year ago (-267% YoY)
Key Metrics:
Total Orders: 467m (+27% YoY)
Marketplace GMV: $14.4B (+29% YoY)
MAUs: 32m (+28% YoY)
Dashpass Subs: 15m (+50% YoY)
Note: Q1 GMV of $15.1B to $15.5B with adjusted EBITDA of $120m - $170m. FY23 GMV of $60.0B to $63.0B with adjusted EBITDA $500m - $800m
Market Reaction: -7.6%
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Other Reports
Week Ahead 📅
Monday
US - Market Holiday 🇺🇸
Germany - PPI Inflation (JAN) 🇩🇪
Tuesday
US - Manufacturing PMI (JAN) 🇺🇸
US - Existing Home Sales (JAN) 🇺🇸
Canada - CPI Inflation (JAN) 🇨🇦
Canada - Retail Sales (JAN) 🇨🇦
Germany - ZEW Economic Sentiment (FEB) 🇩🇪
New Zealand - RBNZ Interest Rate Decision 🇳🇿
Earnings Reports: Walmart, Home Depot, Palo Alto Network, Coinbase, MercardoLibre 💰
Wednesday
Germany - Ifo Business Climate (FEB) 🇩🇪
Germany - CPI Inflation (JAN) 🇩🇪
Earnings Reports: Nvidia, Ebay, Etsy, NetApp, Lucid 💰
Thursday
US - GDP (Q4) 🇺🇸
Eurozone - CPI Inflation (JAN) 🇪🇺
Japan - CPI Inflation (JAN) 🇯🇵
Earnings Reports: Alibaba, Intuit, Booking, Block, Wayfair 💰
Friday
US - PCE Inflation (JAN) 🇺🇸
US - New Home Sales (JAN) 🇺🇸
US - UMich Consumer Sentiment (FEB) 🇺🇸
Germany - GDP (Q4) 🇩🇪
Earnings Reports: Dell 💰
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