What Moved The Markets This Week 📈
Consumer Debt Surges Above $5 Trillion, CPI Edges Higher In December, SEC Approves Bitcoin ETFs, Layoffs Pick Up Steam, US & UK Launch Airstrikes Against Houthis, and JPM + BLK + DAL Earnings
Sunday Morning Markets
Trading Week 2, covering Monday, Jan 8 through Friday, Jan 12. Your weekly financial markets update, in less than 5 minutes.
The Week In Review ⏪
Consumer debt surges above $5 trillion
Inflation data mixed; CPI edges higher, PPI falls again
Fed’s BTFP emergency loan program to expire in March
Layoffs from Google, Amazon, Citi, Discord, Unity, and more
Bitcoin ETFs approved, $4.6B trading volume
OpenAI officially launches its GPT Store
Conflict in the Red Sea escalates
Deflation in China persists, CPI & PPI negative
Earnings from JPMorgan, Blackrock, and Delta
US Markets 🇺🇸
Consumer debt surges above $5 trillion for the first time on record, growing nearly $24 billion in November alone. Revolving credit, like credit cards, rose sharply at a 17.7% annual rate, the largest gain since March 2022.
Consumer prices edge higher in December as the CPI rose 0.3% for the month and 3.4% for the year, both above expectations. Shelter costs increased 6.2% for the year which accounted for almost two-thirds of the total inflation.
Wholesale prices unexpectedly fell 0.1% last month and ended 2023 up 1% for the year; a positive signal on inflation. Excluding food and energy, core PPI was flat against the estimate for a 0.2% increase.
Fed will let the emergency bank loan program expire on March 11th. “The program worked as intended” in the wake of the SVB collapse. Banks have $141 billion in loans outstanding from the program that will need to be refinanced.
The FAA grounds dozens of Boeing Max 737-9 planes after a door plug blew out midair during an Alaska Airlines flight. Airlines have canceled hundreds of flights due to the grounding. BA 0.00%↑ shares have plunged 15% YTD.
JetBlue CEO, Robin Hayes, to step down in February, with former COO, Joanna Geraghty, to take the helm. The departure comes as JetBlue is in the process of trying to acquire budget carrier Spirit Airlines.
Hewlett Packard to acquire Juniper Networks for $14 billion, or $40 per share, in an all-cash deal. HPE hopes adding Juniper will bolster margins and accelerate growth. HPE 0.00%↑ shares fell 9% following the news.
Tiger Woods ends his partnership with Nike after 27 years. Nike has been quietly ramping down on golf for years as it wasn’t a large revenue driver. Tiger said on social media, “there will certainly be another chapter.”
Global Markets 🌏
The global economy set for its worst growth in 30 years according to the World Bank. Economic growth over the next five years is projected to be 75 basis points lower per year than the average in the 2010s.
China's economy faces growing deflationary pressures as the December CPI showed prices shed 0.3% from a year earlier, its third straight month of declines. Wholesale prices tumbled 2.7% for the year, worse than expected.
China will make foreign investment easier, the Chinese Vice Premier tells executives. Foreign investors have largely taken a wait-and-see approach to China amid economic uncertainty and ongoing geopolitical issues.
UK economy shows positive growth in November but still teeters on the edge of recession. GDP expanded 0.3% for the month, slightly beating forecasts but total output still shrank 0.2% over the three months ending in November.
Houthi militias launch the biggest attack to date using rockets and drones against merchant vessels in the Red Sea. Four U.S. warships from Operation Prosperity Guardian are engaged in the fighting.
US and UK launch airstrikes against Houthi targets in Yemen in response to Red Sea attacks. According to the U.S. Central Command, the Air Force struck more than 60 targets across 16 Houthi militant locations.
Tesla’s Berlin factory and Volvo suspend production in Europe due to a shortage of components, a sign that the attacks on shipping in the Red Sea are hitting manufacturers. TSLA 0.00%↑ shares fell 7% this week.
Tech ⚡
Bitcoin ETFs see $4.6B in volume in first trading day after gaining historic SEC approval on Wednesday evening. Greyscale’s $GBTC and Blackrock’s $IBIT led the way, representing nearly 80% of the total volume traded.
USDC issuer Circle Financial files to go public just one day after the SEC approved a series of Bitcoin ETFs. USDC is the second-largest stablecoin, with a market cap of about $25 billion.
OpenAI launches GPT store for custom chatbots including GPTs built with Canva, Khan Academy, AllTrails, and more. For now, only ChatGPT Plus, Team, and Enterprise customers can access the store.
Layoffs from Amazon, Google, Twitch, Unity, and Discord this week. Unity cut 18% of its workforce (~25%) as part of a larger restructuring initiative. Amazon’s layoffs mostly affected their Prime Video and MGM Studios divisions.
Twilio Founder and CEO, Jeff Lawson, steps down as the company continues to grapple with two activist investors. Lawson will be replaced by Khozema Shipchandler, a longtime Twilio executive.
ULA’s Vulcan rocket successfully launches, becoming the latest challenger to SpaceX. The payload, Astrobotic’s Peregrine, will look to become the first American spacecraft to land on the moon in more than 50 years.
Apple Vision Pro headset to launch in February, marking the company’s first product category since the Apple Watch in 2015. The headset will cost $3,500 with prescription lens inserts adding an extra $149.
Earnings Reports 💰
See other breakdowns on our Twitter page.
Weekly Poll 🗳️
Week Ahead 📅
Monday
US - Market Closed MLK Jr. Day
EU - Industrial Production (NOV) 🇪🇺
Tuesday
US - NY Empire State Manf. Index (JAN)🇺🇸
CA - CPI Inflation (DEC)🇨🇦
CA - Housing Starts (DEC)🇨🇦
DE - CPI Inflation (DEC)🇩🇪
EU - ZEW Economic Sentiment (JAN)🇪🇺
CN - GDP (Q4)🇨🇳
Earnings Reports: Morgan Stanley, Goldman Sachs, PNC Bank💰
Wednesday
US - Retail Sales (DEC)🇺🇸
UK - CPI Inflation (DEC)🇬🇧
EU - CPI Inflation (DEC)🇪🇺
Earnings Reports: Charles Schwab, US Bancorp, Discover💰
Thursday
US - Jobless Claims 🇺🇸
US - Building Permits (DEC)🇺🇸
US - Housing Starts (DEC)🇺🇸
US - Philly Fed Manf. Index (JAN)🇺🇸
JP - National Core CPI (DEC)🇯🇵
Earnings Reports: Taiwan Semiconductor, Truist, American Airlines, Keybank💰
Friday
US - Existing Home Sales (DEC)🇺🇸
US - UMich Consumer Sentiment (JAN)🇺🇸
CA - Retail Sales (DEC)🇨🇦
UK - Retail Sales (DEC)🇬🇧
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