February 5, 2023

The Weekend Rip: February 05, 2023

It was another eventful week on Wall Street as the Fed, European Central Bank, and Bank of England all raised rates. 😫

Let’s recap and prep you for the week ahead. 📝

What Happened?

💚 The stock market continued its rally this week, led by the tech-heavy Nasdaq. After a strong January, several charts from Ken Fisher and Ryan Detrick suggest that 2023 could be better than most expect.

🤩 This week’s Stocktwits Top 25 report showed outperformance relative to the indexes.

📝 The U.S. Federal Reserve increased rates by 25 bps and signaled that “ongoing rate increases will be appropriate.” Meanwhile, Friday’s red-hot jobs data has some investors worried about the risk that inflation reaccelerates.

🥾 Internationally, the European Central Bank (ECB) and Bank of England (BOE) raised interest rates by 50 bps. The ECB kept its hawkish tone, saying it will raise 50 bps again in March, while the BOE said smaller increases and a pause might be ahead.

🤖 More big tech companies reported this week. Meta crushed results, while Amazon, Apple, and Alphabet (Google) had a tougher time. It was another weak quarter for Snapchat, but Spotify beat expectations.

🧑‍💼 Activist investor Ryan Cohen ignited another meme stock move on news that he’s taken a sizeable stake in department store retailer Nordstrom.

📰 There were many other earnings reports this week, including SoFi, semiconductors, Peloton, and much more.

😱 And finally, one biotech company’s shareholders were “twisting and shouting” after its disappointing earnings report.

🔥 Several names were on the Stocktwits trending tab for a good portion of the week, including $GNS, $HLBZ, $MULN, $MSGM, $GMBL, and $EBET.

Here are the closing prices:

S&P 500	4,136	+1.62%
Nasdaq	12,007	+3.31%
Russell 2000	1,986	+3.88%
Dow Jones	33,926	-0.15%

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Bullets

Bullets From The Weekend

❌ Disney World union members reject $1/year minimum raise. The 32,000 employees, which belong to six different unions, were urged by union leadership to vote no to an offer that would’ve given them at least a $1 an hour raise each year over the five-year contract life. Over 14,000 votes were cast, with 96% voting no. Union negotiators are demanding an immediate $3 per hour raise, which would be a 20% pay hike for the 75% of workers earning $15 an hour. CNN Business has more.

⚖️ Elon Musk and Tesla were found not liable in their securities fraud trial. The class-action lawsuit resulted from 2018 tweets in which Musk said he was considering taking Tesla private. Tesla shareholders sued for the series of tweets that included the infamous ‘funding secured’ message, which implied that he would take the automaker private for $420 per share and that he had confirmed investor support of the idea. Jurors deliberated for less than two hours before unanimously finding Elon Musk and Tesla not liable. More from CNBC.

🤑 Businesses will soon pay $1,000 monthly to keep their gold checkmarks. The speculation around Twitter’s business decisions remains rampant as new rumors fly daily. This week the social media site announced it would roll out a program to share ad revenue with content creators on the platform, but first, they have to subscribe to “Twitter Blue.” Now, it’s reported that businesses who want to keep their gold, verified checkmarks will need to pay $1,000 per month. The Verge has more.

The Brief

Need a concise summary of what’s going on this week? Look no further. Here’s an overview of important earnings and economic data for the trading week ahead.

Economic Calendar

It’s a quieter week on the economic data front, though several central banks are making interest rate decisions and Fed members are speaking publicly. In addition to the above, check out this week’s complete list of economic releases.

Earnings This Week

Earnings season continues to ramp up, with 357 companies reporting this week. Some tickers you may recognize are $HOOD, $DIS, $UBER, $PYPL, $LYFT, $CMG, $ATVI, $PINS, $TTWO, and a lot more.