the bird is freed | The Daily Peel | 10/31/22

Oct 31, 2022 | Peel #327

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Market Snapshot

Here we go. Elona Musk began his run at the helm of Twitter guns a-blazin’, canning several execs and promising to further clean house.

In the markets, the Dow had a helluva Friday and is nearing its best-ever October performance.

Apple led the charge and is the only Big Tech name left unscathed after awful months from Amazon, Meta, Microsoft, and Alphabet.

Banana Bits

Investors are kicking down the door of the Treasury to lock in I Bonds at 9.62%
The good times keep rollin’ for Big Oil after Q3 earnings showed a 4th straight quarter of giant profits
A crazy dude with a hammer broke into the Pelosi home, shouted, “Where is Nancy?” and proceeded to assault her husband Paul
Wages were up sharply in Q3, which is good for workers but bad for overall inflation

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Macro Monkey Says

Big Tech’s Index Stranglehold Loosens

Plenty of people that buy cap-weighted passive index funds don’t realize that they’re basically just buying a ton of Apple along with tiny slices of hundreds of other companies.

Big Tech earnings used to drive index performance almost by themselves, but that era could be ending.

The S&P was up over 3% this week, while Amazon and Meta lost over 15%
Higher rates and slower ad spending are denting Big Tech profits more than other industries
The comeback of value stocks has been overhyped in the past, but the Russell 1000 is gaining momentum

Meme of the day

Source

What's Ripe

GameStop ($GME) ↑ 8.64% ↑

See you on the moon, b*tches! Short interest has been building in $GME in recent weeks, and the squeeze is well underway
The apes are at it again, and hedgies haven’t learned their lesson

Intel ($INTC) ↑ 10.66% ↑

There’s nothing investors love more than costs cuts in a down market
Despite posting 85% lower EPS than last year, a promise of $10 billion in tax cuts had shareholders giddy

What's Rotten

Amazon ($AMZN) ↓ 6.80% ↓

It took a while for Big Tech to get walloped like the rest of the market, but the collapse is in full force now
A strong dollar didn’t help $AMZN in Q3, but projections of a weak holiday szn ahead really cratered the stock

DaVita ($DVA) ↓ 27.09% ↓

The kidney dialysis company’s profits plummeted in Q3, and prospects for Q4 aren’t much better
Labor market and pandemic headwinds were the cited reasons for the drop, but investors are over those excuses at this point

Data Peel

Source

Thought Banana

Life in Plastic, It’s Fantastic

The only way to keep Americans from racking up credit card debt might just be locking them inside.

Soon after lockdowns took effect, credit card debt began to plunge as people spent their time dancing on TikTok rather than slamming $20 espresso martinis.

The sum total of U.S. credit card debt stood at $916 billion in September, a jump of nearly $200 billion since April 2021
Stimmies that weren’t dumped into Robinhood helped people pay down debt and pad savings
Since then, real wages haven’t kept pace with inflation, which has forced people to resort to credit to maintain their lifestyle

The big question: Could a recession, along with higher rates, blow up consumer balance sheets and lead to a painful downturn?

Banana Brain Teaser

Friday — Dead on the field lie ten soldiers in white, Felled by three eyes, black as night. What happened?

Bowling.

Today — It’s 50 bananas off the DCF Modeling Course. LFG!

A man builds a house with all 4 sides facing south. A bear walks past the house. What color is the bear?

Shoot us your guesses at [email protected] with the subject line “Banana Brain Teaser” or simply click here to reply!

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