Good Morning Everyone!
Busy week with midterms on Tuesday, an inflation report Thursday and earnings from Disney, AMC, Palantir, Beyond Meat (NASDAQ:BYND).
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Prices as of 4 pm EST, 11/4/22; % YTD
MARKET UPDATE 38 trading days left in 2022 and we get 2 major events this week
- Midterms
- CPI
Higher rates have been death for long duration assets (technology and growth stocks)
- (NASDAQ: QQQ) did hold the October lows
- (ARCA: SPY (NYSE:SPY)) slightly above October lows
$3 trillion of market cap has been lost over the past 12 months (Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Google (NASDAQ:GOOGL), Meta).
- Microsoft (NASDAQ: MSFT) -33%
- Amazon (NASDAQ: AMZN) -48%
- Apple (NASDAQ: AAPL) -8%
- Google (NASDAQ: GOOGL) -42%
- Meta (NASDAQ: META) -73%
- This group’s market cap has shrunk from $9 trillion 12 months ago to just $6 trillion
- Where did this go? Fixed Income? Cash? Energy (only S&P 500 sector up over 1 year)?
Crude 92.45 flat
- China’s trade data for October disappointed with both imports and exports missing consensus
Berkshire Hathaway (NYSE:BRKa)
- Bought $1.05 billion of stock during the quarter
- Bought back $1 billion in Q2 and $3.2 billion in Q1
- Berkshire is trading at 1.4 times Q3 book value
- Auto insurance weak. GEICO loss ratio was 97% vs. last quarter of 88.4%
- Railroad BNSF below expectations on lower freight volumes and higher fuel and labour
- Q3 pretax loss from Hurricane Ian was $3.4 billion
Meta (NASDAQ: META) +4%
- WSJ reports on rumours that layoffs are coming this week
- Zuck says Meta will likely be smaller in 2023 than 2022
- Goal may be to cut at least $3-4 billion in operating expenses
- Barry Diller on CNBC this morning thinks: TikTok will eventually be banned in the U.S.
Apple (NASDAQ: AAPL) -2%
- Plans to produce at least 3 million fewer iPhone 14
- Aim to make 87 million devices vs. 90 million
- Softer demand and supply problems at Zhengzhou due to Covid-19 lockdowns
Microsoft (NASDAQ: MSFT)
- News out that MSFT’s $69 billion purchase of Activision Blizzard (NASDAQ:ATVI) is facing scrutiny from regulators
- $3 billion break-fee
Earnings
- BioNTech (NASDAQ: BNTX)
- Palantir (NYSE: PLTR)
CRYPTO UPDATE
Binance to liquidate FTX token holdings- Binance to sell $529 million of FTT (CRYPTO: FTT) (FTX’s token) due to “recent revelations”
- FTX experiencing high volume of withdrawals based on on-chain flows
-
FTX offered to buy tokens from Binance at $22
- Current price = $22.30
Digital asset flows
- Digital asset investment products saw minor outflows of $15.6 million last week
- Bitcoin snaps 7-week inflows streak…outflows of $13 million
- Short-Bitcoin 3-weeks consecutive outflows totaling $28 million
- Flows remain relatively muted (past ~2 months)
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