This week really kicked off earnings season with $TSLA reporting solid numbers. Join us as we walk you through the major news stories this week!
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00:00 - Life-changing money was made in the stock market this week.
00:05 If you weren't paying attention, you better start now.
00:08 I'm Gav Blacksburg from Wolf Financial.
00:10 I'm here with Evan from Stock Market News.
00:12 If you haven't already, make sure that you are subscribed to this channel because we're
00:15 going to be getting into the good stuff right now.
00:18 Let's walk through how the stock market performed this past week.
00:20 We have a heat map to start you out with, show you everything, all these vibrant colors.
00:25 What stands out to you off the bat, Evan?
00:27 - Yeah, you hit it right there.
00:29 Vibrant colors, which means a lot of big moves, both up and down, mostly up, a lot of big
00:34 green squares, but there is a lot of red and a lot of really deep red showing.
00:38 Some stocks did move lower this week and move lower largely, but these large cap names led
00:43 by Tesla up 33% on the week, which is crazy.
00:47 Had a very big green week.
00:49 - Yeah, it was an awesome week if you were a bull, especially if you were in some big
00:54 tech calls.
00:56 Some sectors didn't do so great, like healthcare and some healthcare plans and medical devices,
01:01 but for the most part, plenty of green sprinkled around.
01:03 We can take a look at how the largest stocks performed in line with what we just discussed
01:08 there.
01:09 A couple of them standing out, really the ones that lean into AI and tech and clean
01:12 energy.
01:13 This was a big week for all that stuff.
01:14 Anything else sticking out to you from here?
01:16 - AI is the new buzzword of 2023, it feels like.
01:20 But yeah, Tesla up 33%, as I said, Nvidia had a really strong weekend.
01:25 By large is holding Apple up almost 6% on the week, heading into earnings next week.
01:29 So yeah, a lot of good stuff.
01:31 I think we're good to move on though.
01:32 - For sure.
01:33 And then the best performing large cap stocks.
01:35 Lucid came out with a story on Friday that there was potential acquisition.
01:41 It doesn't seem so concrete to me, but it definitely set the stock on fire.
01:46 I saw our friend Vegas call out Lucid, $10 calls at 17 cents.
01:50 They went from 17 cents to $10 a contract on Friday.
01:53 So there were some crazy moves in the market and then backing it up, which was Tesla, which
01:57 was running all week.
01:58 Shop, surprised to see that up here.
02:00 I didn't think shop was going to be number three on this list, but it is.
02:03 And then Rivian kind of tailing there.
02:05 Anything else standing out to you from here?
02:07 - Yeah, we have a story on Shopify that we'll touch on a little bit later as to why, but
02:11 just a lot of names that probably a lot of people watching this video do own are on this
02:16 list.
02:17 We got those EV names, the names like Nvidia on here as well, Cloudflare, just a lot of
02:22 popular names, Airbnb as well.
02:23 So I'm sure some people had a good week.
02:26 - Yeah.
02:27 RIP the shorts.
02:28 Okay.
02:29 The worst performing large cap stocks.
02:31 Not a ton on here that I'm super familiar with this week, which is nice to see.
02:34 I do know Sherman Williams and Enface, sad to see Enface continuing its downward spiral.
02:39 It wasn't able to, what'd you say?
02:42 - Nextera is a quite large, quite of a large company that, you know, IBM on here as well.
02:47 3M also.
02:48 - I've never traded or invested in this.
02:51 So you've heard of IBM though.
02:53 - Yeah.
02:54 Oh yes.
02:55 I, I, IBM.
02:56 I'm not sure.
02:57 - Yeah.
02:58 - We covered live earnings.
02:59 All right.
03:00 - Yes we did.
03:01 All right.
03:02 - Let's cover, speaking of those live earnings that we talked about this past week, what
03:07 stood out to you from the first real wave of major earnings?
03:12 - Yeah, we did have a couple of earnings going before we had banks and we had Netflix and
03:17 a lot of stuff like that.
03:18 But mega cap tech, this Microsoft is the real first one going.
03:22 They reported EPS at $2.32, you know, expectations of $2.30 and then revenue of 52.75 billion,
03:30 missing expectations of 52.93 billion.
03:33 Now my biggest takeaway from the conference call was them saying that next quarter they
03:37 expect Azure, their cloud growth to decelerate by four to 5% from the mid thirties.
03:44 That kind of applies.
03:45 It'll be in the low thirties growth rate.
03:47 Now Azure is probably the most important part of Microsoft.
03:51 It's going to drive stuff, at least drive the stock, at least right now.
03:54 And that was my biggest takeaway from that.
03:56 But one or two quotes I thought were pretty interesting from that conference call was
04:00 Satya Nadella saying that the next platform wave he expects will be AI, which is a very
04:05 large topic that has been going on.
04:07 They obviously invested into open AI, which we'll talk about a little bit later.
04:11 And then one other thing that I thought was pretty funny was that their conference call
04:15 actually had some technical difficulties at the end.
04:18 And basically they were about 55, 56 out of 60 minutes of the way in.
04:23 They just went to a blue screen and they quickly got some type up, like it's like $19.99 saying
04:28 they're experiencing technical difficulties.
04:30 Thank you for the patience.
04:31 But I thought that one was definitely fascinating.
04:34 And then another large earnings that I know pretty much everyone will care about on here
04:39 is Tesla.
04:40 Elon Musk came in with a beat on EPS, missed expectations on revenue, but, ooh, there's
04:47 actually a mistake there on that tweet.
04:48 I believe they did.
04:49 Let me double check this live on the video.
04:52 Yeah, that was, that should say beat expectations.
04:55 So it was a beat on EPS and a beat on revenue.
04:58 A couple headlines from the conference call that I thought were pretty interesting.
05:01 Elon Musk started out by basically addressing the "demand issue" that has been going
05:06 on after they announced price cuts.
05:08 Elon said in January, they had the strongest orders year to date ever in its history.
05:13 And they are currently seeing orders almost at twice the rate of production.
05:17 Another thing that was very focused on was their forward guidance for how many cars they
05:22 expect to produce this year.
05:23 They gave guidance for 1.8 million.
05:25 Wall Street wanted 1.9 million.
05:27 But Elon did say on the conference call that they can get to 2 million, but they just got
05:32 it a little bit lower to give them some breathing room if anything does happen around the world.
05:36 First thing I want to leave you with on this conference call, when I was watching, this
05:41 was what was said when Tesla stock moved higher during the conference call.
05:44 It was that they expect their automotive gross margin to stay above at least 20% and average
05:49 selling prices to say over $47,000.
05:52 Now those numbers were, the reason like they said 20% and 47K, that was numbers given to
05:57 them in a question.
05:58 So I wouldn't take it as like 20 is the bar given by Tesla, but they did say they expect
06:04 to hold over that, which got rid of some concerns apparently, I guess, because the Tesla stock
06:09 did shoot higher after that.
06:11 So that's a lot of my piece.
06:13 I know I came in a lot there on the earnings, but yeah.
06:15 Gob, was there anything else you noticed?
06:17 No, I think you covered everything from earnings for this past week that we wanted to touch
06:23 on.
06:24 I think we should go ahead and jump right into the major news stories of the week, if
06:28 that works for you.
06:29 A hundred percent.
06:30 All right.
06:31 So yeah, in addition, there were some airlines and stuff like that.
06:34 So you can take a look at that.
06:36 This whole newsletter, if you really want to read it in depth, you could just go through.
06:40 It's the Bullish Rippers newsletter written from the @StockMarketNews account on Twitter.
06:46 So scrolling through to some of the major headlines for the week, we can start out with
06:49 Monday.
06:50 You already touched on this story with OpenAI and Satya Nadella talking about it in the
06:54 call.
06:56 What really stood out to you from Monday?
06:58 Yeah, that story was massive, getting a lot of traction.
07:02 We said this once or twice, but it's crazy to me how much of a topic this came.
07:07 I'm not going to touch on it because there's one more time we will.
07:09 AI, AI, AI is just everywhere right now.
07:12 That's what everyone is talking about.
07:15 But moving on past that, I don't want to get too caught up in the keywords.
07:18 They tend to lead you astray in the long term, I will say, but we'll see how this one pans
07:23 out.
07:25 Banks are gearing up for their biggest round of job cuts since the global financial crisis.
07:29 That's according to the Financial Times.
07:31 I'm starting to see a couple stories here and there where Bank of America is slowing
07:36 down hiring and BNY Mellon, I think they announced layoffs as well.
07:40 So I'm keeping an eye on this story and I thought the Elliott management taking a multi-billion
07:45 dollar stake into Salesforce was pretty fascinating as well.
07:48 Wolf, were there any stories from Monday that really stood out to you?
07:51 I think starting to see some of these executives take pay cuts is interesting.
07:54 Obviously, they're still getting paid hefty sums, but they're feeling some of the backlash
07:58 after they saw Apple rather than lay off people, just say 50 million, but not paying it to
08:03 Tim Cook.
08:04 Right.
08:05 And so maybe we'll see that kind of happening throughout the industry, because up until
08:09 now, it's honestly been pretty unheard of.
08:12 All that happens is pay raises for executives.
08:14 They haven't taken pay cuts in a while.
08:16 All right, let's go right into Tuesday.
08:20 We have that Tesla story kicking us off, planning to invest at $3.6 billion to build in their
08:26 first high volume Tesla Semi factory, which is exciting.
08:28 See how far along Tesla Semi has come and as well as that new cell factory in Nevada.
08:33 More bank stuff as well.
08:35 Anything else standing out to you from Tuesday?
08:37 Yeah.
08:38 So a lot of craziness happened when the market opened on Tuesday and a lot of New York Stock
08:43 Exchange listed stocks just were halted.
08:46 So that led to some craziness.
08:48 There was a technical issue.
08:49 I know a lot of people were going crazy.
08:50 There were some trades that happened and might be invalidated.
08:54 So definitely something we have to watch going forward, but led to a crazy open on Tuesday.
09:00 Yeah.
09:01 More than 200 stocks.
09:02 And I also think, yeah.
09:03 And then I also thought this Hindenburg research story, they put out a short report on Gautam
09:10 Adani, India's richest man, saying that he is running the largest corporate fraud in
09:16 history.
09:17 And I know a lot of his stocks are down like 20% over the course of the week or something
09:21 like that.
09:22 So that was definitely a fascinating story.
09:24 Was there anything you thought there?
09:25 Any insights on that one, Will?
09:26 Yeah.
09:27 Like you mentioned, he's lost about 25% of his net worth, I believe, since the story
09:32 came out.
09:33 Hindenburg publicly has disclosed a large short position as well into Gautam Adani's
09:39 companies.
09:40 So something to keep in mind.
09:41 It's still, I think, kind of up for debate, but they seem to put out a pretty comprehensive
09:44 report making several dark accusations against him, encourage people to go ahead and read
09:49 it if they haven't had the chance yet.
09:50 You can check that out through this link as well.
09:53 I think that's pretty much everything, though, for Tuesday for me.
09:57 There was that DOJ case, but still waiting for some development on the antitrust piece
10:00 that they're talking about.
10:01 I think that was around a purchase that they had made from Google.
10:06 Rolling into Wednesday.
10:07 Yeah.
10:08 The only other thing on that day for me is the 3M story at the end, which you can actually
10:11 see there.
10:12 The only thing I want to point out is I'm watching these layoffs as they kind of bleed
10:15 outside of tech companies.
10:17 I'm definitely watching those a little bit more right now when it's a non-tech company.
10:21 So there's 3M here.
10:23 Dow Chemicals did it as well going forward, I believe on Thursday.
10:26 That's definitely something I'm focusing on.
10:28 But moving on into Wednesday, the one story that I want to touch on here, you talked about
10:32 it a little bit earlier, Wolf.
10:34 You didn't expect to see Shopify up that much.
10:36 And this is the story that I believe pushed us higher to that point.
10:39 The fact that they're raising the monthly price of their basic Shopify and advanced
10:43 plans by 33% starting April 23rd.
10:46 Staka did like that this week.
10:49 Yeah.
10:50 Shopify is a sticky product.
10:51 They're not expecting to lose too much business by raising those prices.
10:54 They also recently have been building a partnership with Mr. Beast, which has been working out
10:59 pretty well for them.
11:00 They sponsored a couple of his videos and he publicly tweeted about them this week.
11:04 So that's definitely helping the cause there with driving new business into everything
11:08 that they're doing.
11:10 Also we saw Facebook and Instagram say they're ending the suspension of Trump.
11:12 He has not tweeted yet or put anything out on these platforms.
11:16 There's a lot of competition, obviously, between them and Truth Social.
11:22 So we're yet to see whether he actually starts using these platforms regularly again.
11:26 Thursday, that big GDP story.
11:29 It seems like all the data that came out this week just kind of allowed for us to continue
11:33 our smooth sailing.
11:34 The GDP story coming in, 2.9% above those estimates.
11:38 And then we have the other data, which we'll talk about a little bit later in here that
11:42 came in inline as well, but didn't seem like data was working to slow us down this week.
11:48 I do agree with that.
11:50 For a long time, we were in a good news is bad news because then Powell would keep raising
11:55 rates.
11:56 But it feels like the market is starting to think that we're towards the tail end of it.
12:00 And now good news is good news.
12:02 So we'll see how this continues.
12:04 The start to 2023 has been its own microcosm, reminding me of 2020.
12:10 So we'll see how long it lasts.
12:11 And yeah, I don't know.
12:13 We do have FOMC next week.
12:15 So that might put a big changer into it.
12:18 Hopefully not.
12:19 I'd like to see my portfolio go up, but I do want to buy more.
12:21 Looking on for some of the other big stories from this day, this New York City one, they're
12:25 pending to require Uber and Lyft to go 100% electric by 2030.
12:30 I thought that one is pretty fascinating.
12:31 And there's a lot of companies announcing layoffs and doing this and doing that.
12:36 But Chipotle is one on the complete other side of it.
12:39 They're looking to hire 15,000 new employees for burrito season.
12:43 And Wolf, if you didn't know when burrito season is, it's from March to May, generally
12:46 their busiest time of the year.
12:48 Appreciate the education.
12:49 You're welcome.
12:50 And then the last story on here that definitely has to be looked at.
12:53 I know a lot of people love watching Nancy Pelosi's trades, but if you followed her on
12:57 this one, you would have lost some money.
13:00 She bought 100 Roblox calls a year ago, let them expire worthless for a total loss of
13:05 $303,000.
13:06 Absolutely.
13:07 And then the last story standing out to me from Thursday was the BuzzFeed one.
13:12 They're going to use OpenAI, which is a free artificial intelligence platform to enhance
13:18 their quizzes and personnel and personalize some of their content for their audiences.
13:22 This is bullish for the company as they can now essentially fire their staff.
13:26 And I think this is the stupidest thing ever, the fact that the stock ripped, the fact that
13:31 they are using a free product, you hit it there, that's available to everyone.
13:36 I'm going to start BuzzFeed and just do the same thing.
13:38 We're using the same place.
13:39 What's their competitive advantage?
13:41 That to me this week really got me in this mood of, this market is crazy.
13:47 We're in a 2020 environment.
13:48 That was the story that pushed me over.
13:50 There's one other one that's coming up here.
13:52 But yeah, moving over to Friday.
13:54 Cathie Wood's ARK Innovation ETF is now on pace for its best month ever.
13:59 I'm not sure a lot of people expected us to be saying that again.
14:03 Right in line with Tesla.
14:07 Yeah, Tesla increased by 33% this week, its best weekly performance since May 2013.
14:13 Those are definitely linked.
14:14 It's not our largest holding in that ETF, but I think it's second or third at this point.
14:22 The other major news story from the day with that PCE, everybody was waiting on it, coming
14:26 in in line, slightly, slightly above, but pretty much in line right here.
14:30 That was also helpful for continuing that rally that we really saw on Friday where the
14:34 market just went bonkers.
14:36 100%.
14:37 Last story I want to touch on here, and then I think it's pretty good for me, is the story
14:41 near the end, the Lucid one.
14:43 We talked about it a little bit earlier, but unconfirmed rumors that the Saudi Public Investment
14:48 Fund is considering buying the remaining stake of the company sent it absolutely rocketing.
14:54 It was up like 100%.
14:55 I might've pulled back a little bit to just up 50%.
14:58 But this and that BuzzFeed story really kind of jumping in and really honing in on what
15:03 type of market we are in now.
15:04 But yeah, I think that's pretty good for me.
15:06 Was there anything else that you thought interesting this week, Wolf?
15:09 Exciting week.
15:10 Great to see stocks up several percents.
15:13 Everybody's hoping that this is it.
15:14 We broke through that major trend line on SPY.
15:16 Can we see the continuation that we all want to see?
15:19 Well, make sure that you tune in for the next video we're putting up because we're going
15:21 to cover everything for the week ahead.
15:23 It's a major earnings week.
15:25 It's a week that's going to have a lot of data coming out.
15:28 So make sure that you're subscribed to this channel so that you can go ahead and see that
15:32 next video.
15:33 Make sure you're prepared because we have another week like this.
15:35 You're going to want to have all the knowledge and all the data that you can to arm yourself
15:39 with so you can take advantage of moves like this.
15:41 Is there anything else you want to add on, Evan?
15:45 This week might be the busiest week of the year.
15:48 Everything you just said.
15:49 And we have Jerome Powell on Wednesday coming in, raising rates and doing a press conference.
15:53 So we're about to put out a video going through and helping you get ready for that.
15:57 If you guys enjoy this video, make sure you like, leave a comment down below with anything
16:01 else you want to see, any comments you have on the video or anything you want to throw
16:05 in there.
16:06 We appreciate you and we'll catch you on tomorrow's video.