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- 👉 The Investing Week Ahead: In-Car Ads via Uber
👉 The Investing Week Ahead: In-Car Ads via Uber
Consumer credit surpasses $5T...
Welcome to your new week.
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Key Earnings Announcements:
Uber, PayPal, and Disney are under our spotlight.
Monday (2/5): Allegiant Air, Caterpillar, Chegg, Estēe Lauder, McDonald’s, NXP Semiconductors, ON Semiconductor, Palantir, Symbiotic, Tyson
Tuesday (2/6): Amgen, BP, Chipotle Mexican Grill, ELF Beauty, Eli Lilly, Enphase, Fiserv, Ford, Fortinet, Gilead, Hertz, Spotify, Toyota
Wednesday (2/7): Alibaba, CVS Health, Disney, Mattel, PayPal, Roblox, Uber, Wynn Resorts
Thursday (2/8): Affirm, Bill.com, Cameco, Cloudflare, ConocoPhillips, Dexcom, Expedia, Hershey, Philip Morris, Pinterest, S&P Global, Spirit Airlines,
Friday (2/9): Canopy Growth, Enbridge, Pepsi
What We’re Watching:
Uber’s most recent earnings report highlighted a deeper integration with the taxi ecosystem, the global advancement of Uber One, and an emphasis on in-car advertisements (we love a good mid-Uber trivia). Revenue is expected to gain +13.2% YoY — which is critical to keeping this newly-profitable company on track in the eyes of analysts.
PayPal’s CEO announced that the company would “shock the world” ahead of their Innovation Day in January. After talking through a faster online checkout experience, AI-enabled recommendations from businesses to online shoppers, and new features for business profiles on Venmo — analysts didn’t feel shocked.
Investors will be looking at the long-term guidance of PayPal like a hawk this week.
Earnings report speculators are curious if Disney will be announcing any sort of partnership with Apple this week. During Apple’s Worldwide Developers Conference (WWDC) — Disney CEO Bob Iger made a video appearance vouching for the Apple Vision Pro.
This isn’t necessarily the main thing to watch… that would be earnings per share. However, if there’s any sort of official Apple partnership in the works — it could be deemed valuable by Wall Street.
Investor Events / Global Affairs:
China’s small cap stocks are tanking, and a massive defense conference is in Saudi Arabia this week.
China’s Small Caps are in SHAMBLES
While you were asleep… nearly 30% of the stocks in China’s CSI 1000 (similar to our Russell 2000) were halted as the entire index rapidly dropped -8%. At the same time, the CSI 100 and Hong Kong 50 Indices (their big boys) were in the green.
This comes at a time when China has tried to use numerous forms of stimulus — including even banning short selling.
According to Bloomberg — at one point 990 of the 1000 companies in the CSI 1000 Index were in the red.
The World Defense Show
In Saudi Arabia this week — the second World Defense Show will be hosted by the Crown Prince Mohammed bin Salman. With the state of wars around the world at a recent high — there will be eyes on this event that will be heavily attended by American companies.
Participants include…
Major Economic Events:
Consumer Credit and ISM Services are in focus.
Monday (2/5): ISM Services, S&P Services PMI (final), Speech by Atlanta Fed President Bostic
Tuesday (2/6): Speeches by Boston Fed President Collins, Cleveland Fed President Mester, Minneapolis Fed President Kashkari, and Philadelphia Fed President Harker
Wednesday (2/7): Consumer Credit, Trade Deficit
Thursday (2/8): Speech by Richmond Fed President Barkin, Wholesale Inventories
Friday (2/9): CPI Seasonal Factor Revisions, Speech by Dallas Fed President Logan
What We’re Watching:
Total consumer credit in the U.S. recently surpassed 5 TRILLION DOLLARS.
“During the pandemic, there has been substantial transfers from the government into households and, therefore, consumers. If you look at saving rates, it has been really peaking, but now is pointing south quite remarkably… Because of this and the excess savings actually depleting, we don’t think that the U.S. consumer will be able to stand and to maintain the same levels it had over the last two years.”
— Monica Defend, Head of the Amundi Investment Institute
The services industry in the United States has held up much better than the manufacturing industry over the last few years. The key number with PMI reports is 50 — and we’ll see if the ISM Services has stayed above it.
If you’re starting your investing journey or are interested in buying T-bills yielding 5% or more, consider visiting Public.com.
Disclaimer: This is not financial advice or recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
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