Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Burry In Q1: "Sell", Also Burry In Q1:

Published 16/05/2023, 13:56
Updated 16/05/2023, 15:10
© Reuters.  Burry In Q1: "Sell", Also Burry In Q1:

© Reuters. Burry In Q1: "Sell", Also Burry In Q1:

Benzinga - Institutional investors have been dumping stocks for the last 12 months. You have to ask yourself some serious questions when you see this.

Market

Prices as of 4 pm EST, 5/15/23

Macro According to CME Group’s FedWatch Tool, markets give virtually zero (0.4%) chance that interest will remain at their current level of 5-5.25bps by the end of the year.

  • Yesterday, however, Fed officials pushed back on those odds.

  • Atlanta President Raphael Bostic said he doesn’t predict any rate cuts until “well into 2024”.

  • Minneapolis Fed President Neel Kashkari (who is a voting member this year), meanwhile, said the Fed still has “more work to do…to bring down inflation”.

Total consumer debt has hit a new record at over $17 trillion.

  • The fresh highs come despite the lowest level of mortgage originations since 2014.

  • For the first time in 20 years, consumers failed to pay down their credit card balances in Q1.

  • This suggests households are struggling under the pressure of higher prices.

Manufacturing activity in New York collapsed to its lowest level in 4 months, falling to -31.8 in May.

  • Excluding the pandemic, the 42.6 drop was the largest ever.

  • Relative to expectations, it was the 3rd largest drop on record.

  • The biggest drops were seen in new orders (-53.1), shipments (-40.3), and inventories (-20.5).

  • Was April’s 10.8 reading a headfake?

Zero Hedge

Stocks Mark Kolanovic has reiterated his underweight call for US and EU equities.

  • As the X-date approaches, the top JPMorgan strategist points to the debt ceiling impasse as a catalyst for stock market volatility ahead.

  • He cites 2011’s debt event as a roadmap for investors if the “issue goes down to the wire”, as it appears likely to do so.

Activist investor Nelson Peltz has upped his stake in Walt Disney.

  • After cutting its position by 34% by the end of March, his firm (Trian Partners) has purchased another 500k shares, bringing its total share count to 6.4 million.

  • Peltz had backed off his push for a board seat in February after the company announced a $5.5 billion cost-cutting plan.

Here’s what a couple of Wall Street’s biggest names were buying/selling in Q1:

  • Warren Buffett:

    • New: (NYSE: COF), (NYSE: DEO), (NYSE: VTS)

    • Closed: (NYSE: BK), (NYSE: USB), (NYSE: RH), (NYSE: TSM)

    • Add: (NASDAQ: AAPL), (NYSE: OXY), (NYSE: HPQ), (NASDAQ: PARA), (NYSE: MKL)

    • Trim: (NYSE: CVX), (NASDAQ: ATVI), (NYSE: GM), (NYSE: CE), (NYSE: ALLY), (NYSE: MCK), (NYSE: AON), (NASDAQ: AMZN)

  • Michael Burry:

    • New: (NYSE: SIG), (NYSE: NYCB), (NASDAQ: ZM), (NYSE: COF), (NASDAQ: LILA), (NYSE: CI), (NYSE: WFC), (NYSE: WAL), (NYSE: NOV), (NYSE: DVN), (NASDAQ: PACW), (NASDAQ: HBAN), (OTC: FRCB)

    • Closed: (NYSE: BKI), (NYSE: WWW), (NYSE: MGM), (NASDAQ: QRTEP), (NASDAQ: SKYW)

    • Add: (NASDAQ: JD), (NYSE: BABA)

    • Trim: (NYSE: COHR), (NYSE: GEO)

Energy The US is planning to buy up to 3 million barrels of sour crude oil in August to restock its Strategic Petroleum Reserve (SPR).

  • The government drained the SPR by 2.9 million barrels last week.

  • At ~372 million barrels, reserves are currently at the lowest level since 1983.

Earnings Yesterday’s highlights:

Nu Holdings (NYSE: NU): $0.04 EPS (vs. $0.03 expected), $1.62 billion in sales (vs. $1.39B expected).

  • Net income reached $142 million on revenue which nearly doubled YoY.

  • The company added 4.5 million customers in Q1, bringing its global total to 79.1 million.

Monday.com (NASDAQ: MNDY): $0.14 EPS (vs. -$0.28 expected), $162.3 million in sales (vs. $155.3M expected).

  • The company revealed plans to open its platform to third-party developers to build AI apps.

  • It also posted stronger-than-expected billings and raised its full-year revenue outlook.

What we’re watching today:

  • Home Depot (NYSE: HD)

  • Sea Limited (NYSE: SE)

  • Baidu (NASDAQ: BIDU)

  • Vodafone (NASDAQ: VOD)

  • Keysight Technologies (NYSE: KEYS)

  • Tencent Music (NYSE: TME)

  • On Holding (NYSE: ONON)

  • Doximity (NYSE: DOCS)

Top Headlines

  • Icahn probe: Federal prosecutors in New York are investigating allegations made by Hindenburg Research against Icahn Enterprises.

  • El Niño: The periodic weather phenomenon has the potential to disrupt global commodity markets.

  • Russian oil: Exports of Russian oil hit their highest level since the invasion of Ukraine in April.

  • Survey says: BofA’s latest global fund managers’ survey revealed investors are the most pessimistic they’ve been all year.

  • Fed is done: Billionaire Paul Tudor Jones thinks the Fed is done raising rates and predicts stocks end the year higher from here.

  • Settlement: Wells Fargo will pay $1 billion to settle a lawsuit accusing it of making misleading compliance statements.

  • Super-app moves: Elon Musk’s Twitter made its first acquisition in job-matching tech startup Laskie.

  • Musk subpoena: Elon Musk has been subpoenaed in a lawsuit against JPMorgan over its relationship with Jeffrey Epstein.

Crypto

Prices as of 4 pm EST, 5/15/23

  • Secret deal: The SEC says Jump Trading engaged in a secret deal to prop up stablecoin TerraUSD.

  • Feet dragging: The SEC has rejected Coinbase’s request for regulatory clarity saying it has no requirement to do so.

  • Asset flows: Digital investment products saw their 4th straight week of outflows totaling $54 million.

  • Correlation: The correlation between Bitcoin (CRYPTO: BTC) and Ether (CRYPTO: ETH) has dropped to its weakest since 2021.

  • Active users: Despite rising transactions, the number of active addresses on the Bitcoin network is falling.

Deals

  • Approved: Despite UK and US opposition, the EU has approved Microsoft’s $69 billion takeover of Activision Blizzard.

  • Blocked: The FTC plans to block Amgen’s $27.8 billion acquisition of Horizon Therapeutics.

  • Burger battle: Activist investor Engaged Capital is preparing to launch a proxy fight for 3 board seats at Shake Shack.

  • Credit investing: Private equity group TPG will buy debt and real estate manager Angelo Gordon for $2.7 billion.

  • VW sale: Russia’s government has approved the sale of Volkswagen’s Russian assets to auto dealer Avilon for ~$140 million.

Meme Of The Day

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.