This week every major company hopped onto the AI craze with Microsoft, Google, Alibaba, Salesforce, and many others throwing their hat in the ring. Outside of that, Energy stocks made a comeback and Coinbase dumped + much more. Tune in as @stockmktnewz and I break it all down!
Category
🗞
NewsTranscript
00:00 Welcome back everybody to another weekly recap of what happened in the stock market.
00:06 My name is Scott Blacksburg, aka Wolf Financial.
00:09 I'm here with Evan from StockMKT News on Twitter.
00:13 As always, if you're enjoying these videos that we put out, make sure that you do give
00:17 a subscribe to this channel and like the video.
00:19 We appreciate it coming at you with free content week after week after week.
00:23 Let's waste no time.
00:24 Get right into the thick of it.
00:26 Right here we do have a heat map of the market that you can see.
00:28 I think the main things that stick out is just tech having, most of tech at least, having
00:33 a down week, a pullback after an incredible historic January, and then energy starting
00:39 to see a rebound as people kind of left it for dead as crude made its way down to $80
00:45 per barrel.
00:46 So let's look at some of these large stock performers and other pieces.
00:50 Anything standing out to you, Evan?
00:53 You hit it pretty well in that last one.
00:55 This was the NASDAQ 100 QQQ, so basically tech.
00:58 This was its first red week of 2023, showing how green it was, showing how good of a year
01:03 it has been so far, and you can see that little bit of a pullback here.
01:06 So that's really what's standing out for me.
01:08 You can see some of the best performers.
01:10 Truthfully, not too many names that I think a lot of people who are watching this video
01:13 trade actively or invest in.
01:16 I see that Warren Buffett Occidental towards the bottom and some energy names, as you just
01:20 pointed out, but a little bit interesting there.
01:22 And then when you look over at those worst performers, a couple more names I think a
01:27 lot of people watching this video on my own are in here.
01:29 So we got the Coinbase, which in the last couple of these videos, we've seen Coinbase
01:33 has been the best performer on the year.
01:35 And then we got names like Lucid, Block, Palantir, which has earnings on Monday and a lot of
01:39 other good stuff like that.
01:41 Is there anything else in here that stood out to you?
01:42 Oh, I also missed Google on there as well.
01:44 But yeah.
01:45 Yeah, Google down here.
01:46 Yeah, the main thing was just that we saw a lot of energy names showing up back in here
01:50 up several percent.
01:52 And then over here, Coinbase headlining the downside.
01:54 This was a combination of the technicals just showing that it needed a pullback, as well
01:58 as a lot of different news stories coming out that pounded Coinbase.
02:02 There was Brian Armstrong, the CEO, talking about how the U.S. is looking into banning
02:06 staking.
02:07 There was Kraken getting investigated.
02:10 There's a lot of things that have been happening within that interface.
02:13 So that I think that's what caused it to be down almost 24 percent on the week.
02:18 Rolling right through into the biggest earnings from the week, we had stuff like Chipotle,
02:21 Enphase and Uber.
02:22 We're going to focus on two of the bigger ones here, which are going to be, I believe,
02:26 Disney and PayPal, right?
02:28 Yeah.
02:29 So Disney is definitely the one I'm going to focus the most in on here.
02:32 Beat EPS, beat revenue.
02:34 But all eyes were on that conference call when Bob Iger came in.
02:37 First, he announced that they are going to be reorganizing the company.
02:42 It's going to be moved into structures, ESPN, Disney Entertainment and then Disney Parks.
02:47 So we're going to have the Disney Parks in one area.
02:49 We're going to have the streaming stuff in another area, ESPN, over on its own.
02:53 And as a part of that, they're going to be looking to save over $5 billion in costs by
02:57 laying off about 7000 employees.
03:00 So that was going on with a theme that's been in this market recently.
03:03 We'll touch on it more.
03:05 But Disney laying off 7000 employees.
03:08 Disney also, their subscribers for Disney Plus came in below expectations, not just
03:12 a small miss, more than 2 million subscribers below expectations.
03:16 So definitely a big focus when Netflix did something like that, the stock got hammered.
03:21 When Disney does something like that, they have enough other news coming out there to
03:25 make them go higher.
03:26 But definitely watch those Disney Plus subscribers.
03:27 And then one other thing I want to note on here is that Iger, the Disney CEO, said he
03:33 wants to bring back Disney's dividend by the end of the year.
03:37 So originally, it will be kind of small and then it should get back to the pre-COVID levels.
03:43 But that is definitely on Disney's mind.
03:45 And then over to PayPal, you can see they had a beat on EPS, a miss on revenue.
03:50 But the thing that I want to focus the most here with their CEO, Dan Shulman, announcing
03:54 his plans to retire from the company.
03:56 PayPal is starting a search for his successor, but all eyes will be on that for me going
04:01 forward.
04:02 Anything else that I missed here?
04:03 I think you hit it all.
04:05 It was a smaller week of earnings than we've had in the past, but still some significant
04:08 moves.
04:09 One other thing that I'd point to was Lyft, which dropped nearly 35% the day after earnings.
04:16 Really, we saw strong earnings from Uber, weak earnings from Lyft.
04:19 It was a combination of both of those, just showing Uber continuing to establish dominance
04:23 in the rideshare market.
04:26 Moving into major headlines, boy, did we have a doozy of a Monday.
04:30 We had names like Google, Apple, and others giving out some big information about things
04:35 that they are working on and problems that they are having.
04:38 You want to talk about a couple of these?
04:39 Yeah.
04:40 So the first one on here, Google confirming that it's working on the chat, GBT competitor
04:45 named Bard.
04:46 Bard is an interesting name that is getting a lot of criticism.
04:49 And we'll see how this does going forward.
04:51 There's a little bit more news on Google as well as they tried to show off everything
04:55 that Bard can do and that Bard will bring to search.
04:58 So some eyes there, but the market is not impressed with what Google announced.
05:02 We'll talk a little bit more about that when we go through their event from the week.
05:06 But Apple selling their latest iPhones at a discount in China is also a very big deal.
05:11 This is not something that happens often.
05:13 And as an Apple shareholder, it's my largest holding.
05:17 This is something that is a little bit concerning in there.
05:19 So we'll see.
05:20 I don't think it's the biggest thing for the long term, but discounting the newest iPhones
05:25 is not something Apple does typically and may indicate some supply problems, but some
05:31 demand problems.
05:32 Sorry, we'll see on that one.
05:34 But I also thought Boeing, they announced plans to lay off around 2000 white collar
05:39 jobs in finance and HR.
05:41 This kind of bucks the trend that we've been hearing for Boeing and talking about hiring
05:44 and hiring and hiring and hiring 10,000 people this year.
05:46 But they're letting some of those white collar workers go.
05:50 Any of you have that in them?
05:53 Yeah.
05:54 And I think people like to say, oh, the people that are getting laid off are just complete
05:57 excess.
05:58 But right.
05:59 These are different jobs that were in finance, some in HR.
06:02 So hard to tell exactly, you know, who's crucial nowadays to these companies.
06:06 Outside of that, zero crypto ads in the Super Bowl.
06:08 That's probably about 50 million dollars of marketing ads that will not happen.
06:13 And then we also noted that Janet Yellen came out saying you don't have a recession when
06:16 you have the lowest unemployment rate in 53 years.
06:19 You know, this would be pretty crazy if we ended up, you know, getting this.
06:23 If S&P continues to keep going here and we don't see a new low, this would be the fastest
06:27 recovery ever, I believe, from a what is it, a technical bear market, I suppose, within
06:35 the S&P 500.
06:36 So definitely some interesting pieces.
06:38 And there were some other news.
06:39 There were some tick tock stuff.
06:40 We talked about this, the New York Stock Exchange, you know, paying in full 60 percent of the
06:44 claims submitted after the recent glitch we covered a couple of weeks back.
06:47 I think we hit on most of the news, except I know you wanted to just touch on this story
06:51 for a second, which was parent companies of Fogo, Panera and Kava aiming to go public
06:56 through IPOs.
06:57 Are IPOs back?
06:58 Who knows?
06:59 We're going to see how they perform.
07:01 Listen, I like those food prices.
07:04 Most of the people watching this video, I feel like won't know Kava Group.
07:06 It might be in New York City, it might be in New York only thing.
07:08 I could be totally wrong saying that.
07:10 There's Kava in Baltimore.
07:12 Wow, look at that.
07:13 I am a big fan of Kava.
07:14 Fogo de Chava is obviously fantastic.
07:16 And then Panera Bread is really good as well.
07:18 You know, restaurants don't get the most love on public markets, but I'm excited to watch
07:24 those for sure.
07:25 And then the last story on here, all those AMC apes.
07:27 AMC is changing the way they are ticketing or charging for tickets.
07:32 So instead of just being a base price to get into the theater, now, if you are in a really
07:36 good seat, it's going to be more expensive.
07:37 If you're in a shitty seat behind a pole, you're probably going to pay a lot less.
07:41 So changing the way they price, a little bit interesting there.
07:43 Yeah, hopefully you're not sitting behind too many poles at AMC.
07:46 That's more of a sports game thing.
07:50 If I'm there for 50 cents, I'll sit behind a pole.
07:53 Sounds good.
07:54 All right, let's roll into Tuesday.
07:55 We're really taking off with this AI theme.
07:57 AI has obviously been a huge theme for weeks now.
07:59 We didn't do a video last week, but if we had, I would tell you that we would talk about
08:03 how all the A9 names and all the AI sympathy names were up hundreds of percent and running.
08:09 And of course, Microsoft is the one that's kind of with the biggest name of them all
08:12 there with chat GPT, working that into Bing, trying to make this a thing, except I will
08:17 never say go Bing that.
08:20 I don't think that's ever going to happen.
08:22 But we'll see what they're able to make do.
08:24 Chat GPT did go ahead and actually introduce their chat GPT Pro.
08:27 Now you can purchase that on the website as well.
08:30 I saw that for the first time today, but it's probably been out for a little bit at this
08:34 point.
08:36 And then there was a story from Fed Powell, if you want to cover that.
08:40 Yeah.
08:41 So he was speaking at the Economic Club of Washington, DC.
08:44 Anytime Jerome Powell speaks, everyone in the market is going to go and listen, at least
08:48 while he is Fed Chair.
08:49 So he didn't really say too, too much.
08:51 I was out of what we had heard previously, kind of reiterating on the stuff that we probably
08:56 have a couple more rate hikes than the need to hold.
08:59 He did reiterate the point that the US has started a deflationary process or disinflationary
09:03 process, whatever the actual word is.
09:06 But we're just at the beginning of that.
09:08 So a little bit to watch more there.
09:10 And then I thought, look, this isn't going to move markets, but I thought it was a little
09:13 bit fascinating.
09:14 We found out how much Jerome Powell makes.
09:16 He's making about 190K per year.
09:18 He thinks it's a fair salary for the job.
09:21 He definitely will make like 70 times that when he's doing lectures and everything like
09:24 that outside of Fed Chairman.
09:26 But 190K per year for Jerome Powell to be Fed Chair.
09:30 Yeah, he'll make millions and millions of dollars from speaking afterwards if he's not
09:35 already doing that outside of his salary.
09:38 So there's a lot to cover there.
09:40 And the market definitely moved.
09:42 One more story in there, though.
09:43 One more story on Tuesday, that Facebook one, which is near the top of your screen.
09:47 I think this is a fascinating one and one to keep an eye on.
09:49 First of all, more layoffs might be coming at Meta.
09:52 That's what they're kind of talking about here.
09:54 And they're going through a process right now that they're calling flattening.
09:58 Basically they're trying to get rid of managers and managers and managers and managers and
10:01 make it just a manager.
10:02 So basically those three other people, they're telling them, go actually do stuff and do
10:08 it or leave the company.
10:10 So we'll see more layoffs there around Meta.
10:12 And I think this is a theme we might see going on, trying to get rid of those managers and
10:17 managers.
10:18 Got it.
10:19 Condensing the organization.
10:20 Wednesday, this is where the Google story really kicked in.
10:23 They did an unveil of their new AI search product, BARD.
10:27 When it was asked the question, it did give an incorrect answer on the screen.
10:30 It was a minor incorrect answer.
10:31 It was about...
10:32 You know what, though?
10:33 I think it was more the expectations given from Microsoft, the Microsoft event the day
10:38 before.
10:39 It had a lot more.
10:40 It had, hey, we're coming on this date where Google was only able to say, we're coming
10:44 soon with a little bit less of it.
10:47 So I think that's overall what people were gravitating to.
10:52 That AI is everything right now and Google's event just wasn't as good as Microsoft's.
10:57 For sure.
10:58 And it proceeded to sell off about 10% in two days following that.
11:01 So if you like Google stock, maybe it's trading at a discount at the moment.
11:06 All right.
11:07 Outside of that, there was...
11:09 Look at the first four headlines on here, though.
11:12 This tells you what type of market we're in right now.
11:14 Alibaba doing chat GBT, Salesforce announcing Einstein GBT, Google going into AI, Microsoft
11:21 10X Bing searches.
11:23 It's madness right now.
11:24 And I feel like every single time that this happens, whether it's blockchain, whether
11:28 it's weed, whether it's whatever, it's a great technology, but markets like to get ahead
11:33 of itself.
11:34 So I agree with what you said earlier.
11:36 You're not going to catch me using Bing anytime soon.
11:39 And we'll see if they can do anything to change that.
11:41 But nothing's making me lean that way yet.
11:44 Yeah.
11:45 AI is coming for our jobs.
11:47 Also saw a firm laying off people.
11:49 I think we're going to see that continuing to happen throughout some of those tech names
11:53 that really seem out of place at the moment.
11:56 All right.
11:57 Thursday, CPI for China.
11:59 Take this one with a grain of salt.
12:01 They're stating that it came in at 2.1% in line with expectations.
12:05 Didn't really move markets or anything around those lines.
12:07 And then you also wanted to hit on this Lucid story.
12:10 Yeah.
12:11 So right now, if you are an EV company selling a car at under a certain price, you get a
12:17 tax credit from the US government.
12:19 Now Lucid did not apply for any of those or did not fulfill any of those.
12:24 So now they are literally just creating their own tax credit out of their own pockets.
12:27 They're paying back 7,500 to everyone who buys it.
12:30 It's the same thing as just lowering the price by 7,500.
12:33 That is not the best of headlines I would want to see from my company.
12:36 But I think it also kind of shows you those Tesla price cuts, the reverberation that the
12:41 market has had.
12:42 You know, I also should know, say, a big word in there.
12:45 Hashtag desperation.
12:46 Yeah.
12:47 Yeah.
12:48 And there's a couple of those type of moves in there as well.
12:50 But it'd be interesting to watch how the EV sector really shakes up over the next year
12:54 or so.
12:55 For sure.
12:56 And then consolidation incoming.
12:59 We already hit on this story that was coming right here.
13:01 So I think those are the main stories from the week besides the one big one that came
13:06 out on Friday.
13:07 We're not going to cover too much more chat GPT stuff.
13:09 I do actually want to say that I'm excited for it to be inside of Word, PowerPoint and
13:12 Outlook.
13:13 That's going to be much more exciting to me than inside of Bing.
13:15 So I'd rather have it in Word.
13:16 I'm looking forward to that.
13:17 And I hope that Google does introduce something similar to Google Word or whatever they...
13:22 I agree.
13:23 But you know, just one thing quickly.
13:25 That search market share, a Microsoft executive, I believe the CFO said it, one point of gain
13:31 in market share is worth $2 billion of annual revenue.
13:34 So that's kind of why they're attacking it first.
13:36 It is a massive pie to go after.
13:38 But I don't want to dig too much into that.
13:40 This other story on Friday, the SEC is investigating the Mormon Church.
13:45 I wasn't expecting to see that one.
13:46 But basically, the SEC wants to see if the Mormon Church was keeping their portfolio
13:52 a secret.
13:53 Apparently in 2019, a former employee revealed that they had a $100 billion portfolio, which
13:59 obviously, you know, we track all this stuff.
14:01 You have to do certain notifications and filings and everything like that.
14:04 And it looks like the Mormon Church might have or allegedly might have been going around
14:09 it.
14:10 So that's some interesting stuff to watch there.
14:12 I don't know if you had any thoughts on that, Wolf.
14:15 Yeah, we'll see how it plays out.
14:17 There's also that Bed Bath & Beyond news.
14:19 I think it was earlier in the week as well.
14:21 We didn't cover it.
14:22 They offered that offering.
14:24 And it's so hard to tell how stocks react nowadays to bankruptcies, offerings, firings,
14:29 they go all different types of ways.
14:30 Zoom went up when they announced they were firing part of their workforce.
14:33 Very difficult stock market to have a good understanding of in the short term, although
14:38 most of these things tend to even out over the course of a few months to a year and make
14:43 a lot more sense.
14:44 But the one other thing I did think was interesting was Apple growing their workforce by 20% in
14:51 those years compared to the 100% increase at these, which is allowing Apple to not fire
14:54 as many people now, which is overall, I think, a little bit of a better look for them.
14:58 They didn't escalate everything so much.
15:01 So I think that we covered all the major news stories from the week really, really well.
15:05 Big theme for this week was clearly AI.
15:08 What's happening next with AI?
15:09 Yet to see.
15:10 Will we have an AI creating these videos in five years from now?
15:14 Who knows?
15:15 I'm excited for it.
15:16 If you enjoyed this video, do make sure that you are, again, please subscribe to the channel
15:20 that you're seeing this on.
15:21 We're going to be putting these out regularly.
15:22 We're also going to put out a second video, which you should come back to the channel
15:25 to watch, which is going to be a look at the week ahead.
15:28 Evan, anything else you want to add on to this one?
15:30 Nope.
15:31 Appreciate the video.
15:32 Make sure you like and subscribe to both our channels.
15:35 We're doing more stuff just like this, and we'll see you next time.