Good Morning Everyone!
Remember, in the short-term there's always a reason to sell. But we’re not short-term players.
Price as of 4 pm EST, 10/19/22; % YTD
MARKET UPDATE
10Y yield: hit year-to-date highs
Fed Pivot? Maybe Pause?
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Bullard expects the Fed to end its front loading of hikes by next year
U.K Prime Minister Liz Truss is stepping down as UK Prime Minister
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Shortest-serving leader in British history
Crude 86 +1%
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Crude higher on news the Chinese government debating whether to reduce time people visiting the country have to spend in quarantine
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Investors called Biden’s plan to buy oil at $70 to return to the SPR “Biden Put”
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Energy companies can invest knowing they will get at least $70
Tesla (NASDAQ:TSLA)
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Elon: “demand “a little harder” near term but Tesla not concerned
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Elon talked about recessions in China and Europe (U.S. pretty good)
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Auto gross margins missed
Union Pacific (NYSE:UNP)
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$3.19 vs. street $3.06
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Reducing fiscal year carload growth from 4-5% to 3%
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As Elon said: “demand/volumes a little harder near term”
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CSX reports tonight
Netflix (NASDAQ:NFLX)
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Media speculating the logic of a Netflix-Microsoft combo
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Microsoft could easily afford Netflix, $120 billion vs. Microsoft’s $1.7 trillion market cap
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Netflix’s co-founder, Reed Hastings, is a former member of Microsoft’s board
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Microsoft’s president, Brad Smith, is a Netflix board member
Taiwan Semiconductor (NYSE:TSM)
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Considering building a manufacturing plant in Japan to reduce geopolitical risk
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Yara (fertilizer) +7%
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Nutrient should have a good day today
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Yara reported positive earnings results
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Special Dividend and to consider further cash returns including share buybacks
Hermes
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Luxury consumer doing just fine
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Q3 Revenue rose 24% at constant currency
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Europe sales +12%, Asia sales +32%, America +18%
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All products up double-digit except Perfume, Watches +55%
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That $7,000 Hermes Birkin Bag is heading toward $8,000 in 2023
Earnings
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IBM (NYSE:IBM) +4%
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Crown Castle (NYSE:CCI) in-line
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Lam Research (NASDAQ:LRCX)
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Kinder Morgan (NYSE:KMI)
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Las Vegas Sands (NYSE:LVS)
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PPG Industries (NYSE:PPG) -3%, Q4 EPS guide below the Street
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Danaher (NYSE: DHR +3%, raises fiscal sales guide
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Philip Morris (NYSE:PM)
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Union Pacific (NYSE:UNP)
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AT&T (NYSE:T)
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Blackstone (NYSE:BX)
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Marsh & McLennan (NYSE:MMC)
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Freeport-McMoRan (NYSE:FCX)
CRYPTO UPDATE
FTX (CRYPTO: FTT) recovery plan for Voyager
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Customers could recover ~72% of funds
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FTX would pay $51 million in cash, move customers to its platform
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Voyager bankruptcy payout plan needs approval first (December)
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Voyager attorney: FTX providing “the only viable alternative”
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FTX won bid for Voyager’s assets last month ($1.4 billion)
Plaid launches first web3 product
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“Wallet Onboard”
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Simple integration to +300 Ethereum wallets
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Exploring more product offerings in web3 space, other blockchains
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Replicating existing products in web3 (ex: identity verification)
Bitcoin Fear & Greed
MEME OF THE DAY
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