What Moved The Markets This Week 📈
W10 - Silicon Valley Bank Collapses, Powell Says Higher Terminal Rate, Bipartisan Bill To Ban TikTok, USDC Breaks Dollar Peg, Silvergate To Wind Down & Liquidate, and Crowdstrike + MongoDB Earnings
Sunday Morning Markets
Trading Week 10, covering Monday, Mar 6 through Friday, Mar 10. Your weekly financial markets update, in less than 5 minutes.
The Week In Review ⏪
Silicon Valley Bank collapse marks 2nd largest bank failure in U.S. history
Fed Chair Powell says a higher terminal rate is “likely”
Meta & GM both announce new plans for new large-scale layoffs
DoJ sues to block Jetblue’s acquisition of Spirit Airlines
Senate bill opens the door to nationwide TikTok ban
China’s foreign minister warns of conflict unless the U.S. “hits the brakes”
Silvergate Bank to wind down operations and liquidate assets
USDC stablecoin breaks below dollar peg due to SVB contagion fears
Earnings from Crowdstrike, MongoDB, & more — view breakdowns below
US Markets 🇺🇸
Silicon Valley Bank collapses due to insolvency as FDIC takes control over $175B in deposits. Sinking deposits and massive losses on their bond portfolio led to panic, a run on the bank, and the 2nd largest bank failure in U.S. history.
Fed Chair Powell says larger rate hikes are on the table at the coming FOMC meetings, and that the terminal rate is “likely to be higher” than previously anticipated. He added the current trend shows that the Fed still has work to do.
Nonfarm payrolls surged 311K in February, much higher than forecast as the labor market continues to show strength. Wages only rose 0.2% (0.4% exp) during the month as the unemployment rate jumped to 3.6% (3.4% exp).
Meta is planning a new round of layoffs that will affect thousands of workers. Meta had previously let go of 13% of its workforce back in November, in what CEO Mark Zuckerberg calls the “Year of Efficiency” for the company.
GM offers buyouts to a majority of its salaried workers in the US as the company looks to cut over $2 billion in operational costs in the next two years. GM currently has 58K salaried employees.
DoJ sues to block Jetblue’s $3.8B acquisition of Spirit as the Biden administration has taken a hard stance against industry consolidation. Jetblue would become the fifth largest airline in the US if they acquired Spirit.
Rest of World 🌏
Senate introduces bill that clears path for a TikTok ban nationwide as tensions with China heighten. The bill would also limit technology companies based in other adversarial nations such as China, Russia, Iran, North Korea, and others.
China warns of conflict unless the U.S. “hit the brakes” during a briefing with the new foreign minister. He added that relations have left a “rational path” forward, and China would “pursue a sound and stable relationship with the U.S.”
Bank of Canada leaves interest rates unchanged and says they see inflation falling as forecasted. The latest data has shown inflation slowing to 5.9% from a peak of 8.1% but remains remarkably elevated versus their 2% target.
Crypto ⚡
Circle’s USDC stablecoin breaks its dollar peg as the company confirms they have $3.3B stuck at SVB or about 8% of total reserves. Other stablecoins DAI & USDP break below their peg as investors price in contagion risk from SVB failure.
Silvergate winds down operations and liquidates assets as it seemingly becomes the next major victim in a long line of dominoes that have fallen over the last year. SI 0.00%↑ shares fell another 50% this week, down 99% from highs.
Binance.US gets the green light to acquire Voyager from a bankruptcy judge, despite objections from SEC. The deal was supported by 97% of Voyager's creditors as they could recover as much as 73% of their assets.
Earnings Reports 💰
Follow our Twitter account for real-time breakdowns of earnings reports.
MongoDB ($MDB) - Report
Revenue: $361m vs $339m expected and $267m year ago (+36% YoY)
EPS: $0.57 vs $0.07 expected and $0.10 year ago (+470% YoY)
Metrics:
Customers: 40,800 (+24% YoY)
Free Cash Flow: $24m (+42% YoY)
Stock-Based Comp: $102m (+38% YoY and 28% of sales)
Guidance:
Q1 Non-GAAP EPS of $0.17 to $0.20 on sales of $344m to $348m (+21%)
FY Non-GAAP EPS of $0.96 to $1.10 on sales of $1.48B to $1.51B (+16%)
Market Reaction: -8.4%
—
Crowdstrike ($CRWD) - Report
Revenue: $637m vs 625m expected and $431m year ago (+48% YoY)
EPS: $0.47 vs $0.43 expected and $0.30 year ago (+57% YoY)
Metrics:
ARR: $2.56B (+48% YoY)
Subscription Customers: 23.0K (+41% YoY)
Free Cash Flow: $209m (+64% YoY)
Stock-Based Comp: $152m (+64% YoY and 24% of sales)
Guidance:
Q1 Non-GAAP EPS of $0.50 to $0.51 on sales of $675m to $678m
FY Non-GAAP EPS of $2.21 to $2.39 on sales of $2.96B to $3.02B
Market Reaction: +3.2%
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Other Reports
Week Ahead 📅
Monday
Australia - Westpac Consumer Sentiment (MAR)🇦🇺
Earnings Reports: DLocal💰
Tuesday
US - CPI Inflation (FEB)🇺🇸
UK - Employment Report (FEB)🇬🇧
China - Industrial Production (FEB)🇨🇳
Earnings Reports: GitLab, Coupa Software💰
Wednesday
US - PPI Inflation (FEB)🇺🇸
US - Retail Sales (FEB)🇺🇸
Australia - Employment Report (FEB)🇦🇺
Earnings Reports: Five Below, SentinelOne, Smartsheet, William Sonoma💰
Thursday
US - Jobless Claims🇺🇸
US - Building Permits & Housing Starts (FEB)🇺🇸
Europe - ECB Interest Rate Decision🇪🇺
Earnings Reports: Adobe, FedEx, Dollar General💰
Friday
US - UMich Consumer Sentiment (MAR)🇺🇸
Europe - CPI Inflation (FEB)🇪🇺
Earnings Reports: XPeng💰
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