A little bad news

MARKETS

• U.S. markets: BIG day all around, with strong earnings and a U-turn from the Fed pushing stocks higher. The Dow closed above 25k for the first time since Dec. 4.
• Polar vortex: It must've been eerie in the Midwest yesterday, with many schools, government offices, and businesses closed down due to record-breaking cold. At least eight deaths were linked to the brutal weather. Fortunately, temps are expected to jump sharply by the weekend.

TECH

Facebook Plays Defense...and Offense

Like Apple, Facebook had big plans this week to taste test wing sauces for its Super Bowl party...but it ended up defending its data practices yet again. At least there was some good news.

First, how much is your data worth?

According to Facebook, about as much as a plain pie from Joe's Pizza.

The scoop: TechCrunch reported that since 2016, Facebook had paid monthly gift cards worth up to $20 to users aged 13-35 in exchange for deep insight into their personal data via an app called Facebook Research.

Seems par for the course at Facebook, where privacy controversies are as commonplace as grey t-shirt/dark jeans combos. But this one's especially buzzy because it involves teens.

• FYI: Facebook said less than 5% of the participants in its data-for-gift-cards barter were teens (and those who were had to get parental consent).
• Rebuttal? "Only way this looks worse is if they had compensated the teens with Juul pods," said SoFi comms VP Jim Prosser to Axios.

Bottom line: Per Vox, "Facebook...can't really afford this particular news story. However, it's possible the company just weighed the risks of public outrage against the benefits of the data and made a deliberate choice."

At least it's #earnings #szn

And this earnings season is a good one for Zuck & Co. After defending its data harvesting practices all of Hump Day, Facebook delivered a strong earnings report that topped expectations for last quarter to ease investor worries and send shares up 11.5% after hours.

It reported $16.91 billion in sales, plus record profit for the fourth quarter (which is usually when advertisers spend the most). And average revenue per user grew 19% annually to $7.37 apiece.

As for user stats...2.3 billion people used Facebook monthly in Q4—topping expectations and growing 8.6% annually. While that's slower growth than Facebook was used to pre-Cambridge Analytica, it is a sign that its various PR nightmares haven't knocked user growth too badly.

ECONOMY

Jerome Powell Plays Words With Friends

The Fed didn't raise interest rates yesterday, meaning the big news of the day was what Fed Chair Jerome Powell signaled about future rate hikes.

And in a change of pace, it looks like those are on hold for now. How do we know? Well, just compare the Fed's statement from December to the one it just released.

• Out: "further gradual
• In: "will be patient"

(Central bank Twitter is .)

So when should we expect further rate increases? Powell believes that data wins arguments.

• "The length of this patient period is going to depend entirely on incoming data and its implications for the outlook."
• But for now, "The case for raising rates has decreased somewhat."

And then there's the balance sheet: The central bank went on a bond buying bender post-financial crisis to juice the economy and was in the process of reducing its holdings. But yesterday it said it would "adjust" strategy if necessary.

Bottom line: New year, new Fed.

EARNINGS

Earn Pluribus Unum

Out of many (earnings reports), one (number you need to know).

Tesla: 2. The automaker notched its second straight profitable quarter, though at $139.48 million, net income came in below analyst estimates. Tesla's (-4.78% after hours) also saying goodbye to longtime CFO Deepak Ahuja, who is retiring from the company. Can we get a comment, Elon?

AT&T: 14%. That's the Q4 drop in subscribers for its (really-should-be-growing) DirecTV Now streaming service. AT&T's (-4.30%) execs chalked it up to expiring price promotions...but it'll need to figure out its strategy AS&P as it gets ready to unleash a video-on-demand service later this year.

Boeing: $101 billion. The world's top planemaker surpassed $100 billion in annual revenue for the first time ever last year. One big question mark is whether Boeing's (+6.25%) going to push forward with a "797" jet, a major project that could be launched in 2020.

Tupperware: 1996. Investors spit out their leftovers when they heard the company cut its dividend and acknowledged lower spending in China. Shares had their biggest intraday drop (down 27.47%) since Tupperware went public over two decades ago.

MANUFACTURING

Step Into a Freezer and Repeatedly Punch Yourself in the Face

That's what it must've felt like to be a resident of Wisconsin yesterday, as the wind chill dipped into the -40s...and Foxconn said it was rethinking its approach to a highly anticipated $10 billion plant in the state.

The huge Taiwanese manufacturer, known for its partnership with Apple, is still committed to creating as many as 13,000 Wisconsin jobs. But there appears to be a change in plans...

• What the facility was supposed to be: A cutting-edge production plant for LCD panels.
• What it may be now: A "technology hub" focused on research facilities and packaging and assembly operations. MIA? Those blue-collar manufacturing

Why the plot twist? The company cited trade tensions and the high cost of manufacturing TV screens in the U.S.

Zoom out: This factory's been a political flashpoint since it was announced in summer 2017. Foxconn was promised about $3 billion in tax breaks from Wisconsin, but there's growing concern it won't fulfill its side of the bargain.

MARKETING

Down, Set, Hike Those Prices

Sorry...had to. With 30-second spots at a premium, snagging Super Bowl ad space is more daunting than trying to bring down Gronk on three Red Bulls.

Let's run the numbers. Thanks to the WSJ, we know that advertisers paid a total of $408 million on in-game Super Bowl commercials last year.

So why buy them? The game's the most-viewed TV broadcast every year, even if we're decently sure we know how it'll end (#WeWantSix or #LATogether?).

• Last year, 104.11 million fans tuned in. The second most-viewed broadcast of 2018? The post-game show.
• There's a reason 30-second spots are going for over $5 million a pop...

Who's doing the buying? Automotive companies claimed about a quarter of last year's spend, but AB InBev has been the biggest spender overall since ‘95.

But Bud may have new competition in Amazon. This year will be its fourth straight running ads during the game, part of a broader $680 million strategy to get its brand in front of you in more places than just the computer screen.

WHAT ELSE IS BREWING

• Microsoft (-4.00% after hours) reported revenue below expectations for last quarter, plus its Azure cloud unit weathered flat growth quarter-over-
• American Airlines (+0.14%) and Apple Music have struck a deal to let subscribers stream tunes in-flight for free beginning tomorrow.
• Amazon (+4.80%) is reportedly using self-driving trucks dreamt up by Embark to haul some cargo along the I-10 interstate highway.
• JPMorgan CEO Jamie Dimon told CNBC he has "no problem paying higher taxes to address some of the fundamental challenges and inequities in our society"...but government spending needs to be efficient.
• Shell (+1.23%) is buying California-based electric vehicle company Greenlots in its latest push into the battery and charging space.

BREAKROOM

Ticket Scalping 101
We went on SeatGeek to check out last-minute Super Bowl tickets at Mercedes-Benz Stadium, and...they are not cheap. So here's our question for you: can you match the seat with the price?

Disclaimer: All extra fees are included, prices were captured at noon yesterday, and don't pay attention to the colors of the circles (that's just SeatGeek's way of showing you what's a good deal).

Seats

• A: Section Club 110, Row
• B: Section 241, Row 2
• C: Section 324, Row
• D: Loge Box 114, Row 7

Prices

• $11,738
• $76,220
• $3,436
• $8,411

(Answer located at bottom of newsletter)

Breakroom Answers