August 3, 2023

📰 News Organizations

• Apple Savings Account Tops $10 Billion in Deposits. Apple Inc. and Goldman Sachs Group Inc. said that their new high-yield savings account has reached $10 billion in US deposits. 97% of users have chosen to get their Apple Daily Cash — a cash-back reward program — deposited into the account, the iPhone maker said.
  

• Diesel Climbs Above $4 for First Time Since May. Industry experts are saying that part of what's pushing up prices at pumps across the country is the Biden administration's refilling of the Strategic Petroleum Reserve after depleting it to a 40-year low.
  

• DoorDash Sees Record Orders, Showing Appetite For Delivery. Sales increased 33% to $2.1 billion in the second quarter driven by a record number of delivery orders, showing consumers’ commitment to takeout despite rising prices.

• Amazon Unveils Biggest Grocery Overhaul Since Buying Whole Foods. Amazon is offering Fresh grocery delivery to non-Prime members in a handful of U.S. cities, as part of Amazon's revamp of its grocery strategy. Previously, the perk was limited to Prime service members.

• Ford's U.S. Sales Rose Nearly 6% In July. The Detroit automaker reported new vehicle sales of 173,639 in the U.S. for the month, up from 163,942 a year ago as it recovers from pandemic-era supply-chain challenges. But sales of the electric Lightning model dropped more than 28%.

• Yum Brands Misses Revenue Estimates. Yum Brands reported mixed quarterly results as Taco Bell’s and Pizza Hut’s same-store sales disappointed while KFC’s same-store sales climbed 13%, fueled by returning demand in China. Yum said that emerging markets are still seeing inflation rise.

• GSK Sues Pfizer Claiming RSV Vaccine Patent Infringement. Pfizer’s RSV vaccine infringes on four of GSK’s patents related to the antigen used in its own shot, Britain-based GSK wrote in a complaint filed in federal court in Delaware. Both vaccines were approved by the U.S. FDA.

🐦 Twitter

• The S&P 500 has now erased $465 billion in market cap since Fitch downgraded the U.S. credit rating. Meanwhile, the ten-year note yield just hit its highest level since November 2022. Source.
  

• The yield on the 10-year Treasury is over 4.1% for the first time since Nov. 2022. But since then the S&P and Nasdaq are up 20% and 25% respectively. Not only do rising bond yields lower stock valuations, but they also lower earnings as maturing debt is refinanced at higher rates. Source.
  

• Only 11% of US household debt has an adjustable interest rate, down from nearly 40% in the late 1980s. The many Americans locked into low fixed mortgage rates have not been impacted by the Fed's 11 rate hikes. Source.
  

• South Africa says there will be an upcoming announcement about the expansion of BRICS at the summit which will mark a massive shift in the global order. Source.
  

• US interest expenses have surged by about 50% in the past year, to nearly $1 trillion on an annualized basis. This is a direct result of higher rates in response to inflation. And the rampant spending binge that started during the pandemic in 2020. Source.
  

• The bond market seems to be betting on the higher-for-longer narrative given speculators’ record short position in the 2-year note. A short squeeze is possible at some point in the future. Source.

📓 Online Publications

• Virgin Galactic Results Failed To Match Expectations. Virgin Galactic reported second-quarter losses that were slightly wider than the year-ago period. The company is being conservative on its early flight missions, which will mean less revenue coming in.

• AMD's New AI Chip To Come Out This Fall. The MI300X chip -- meant to compete directly with Nvidia's H100 -- remains on track for delivery and sale this fall. If AMD's management can deliver on its promise, analysts see AMD's revenue and margins soaring.
  

• US Companies Added 324,000 Jobs in July, ADP Says. Private sector job gains in July totaled 324,000, driven by a 201,000 jump in hotels, restaurants, bars, and affiliated businesses. The services sector was responsible for 303,000 jobs in the month.
  

• Offerpad Scoops Up More Homes In Q2. Having unloaded almost all of its older inventory, the iBuyer ramped up home acquisitions by 131%, to 840 homes, in the second quarter of 2023 and expects positive adjusted earnings by year's end.
  

• X Will Never Be the “Everything App” But Uber Might. Josh Brown says Uber has been adding even more services now that its logistics and payments have been built out and proven. They’re delivering everything from groceries to items from the convenience store, medicine, and a freight business to help companies ship items by truck.

🎧 Podcasts

• Trump Indicted Over Attempt to Overturn 2020 Election. The Department of Justice filed the indictment in federal court. Investigators focused on Trump and his allies in the run-up to the January 6th insurrection of the US Capitol. Source(0:50)

• Uniper Eyes Green Future With Billions-Strong Investment. The German gas importer Uniper laid out an €8 billion green overhaul. CEO Michael Lewis is confident that the green transition away from fossil fuels will make Germany’s takeover of Uniper profitable. Source(9:12)
  

• Molson Coors Achieved Its Highest Revenue Quarter Ever. Sales surged for Miller and Coors Light, outpacing Anheuser-Busch as customers shift their allegiance amid the Dylan Mulvaney controversy. The combined sales of Miller's and Coors Light surpassed Bud Light by 50% in the last quarter. Source(10:45)
  

• There Could Be No Landing At All. Harry Melandri says the latest GDP print is higher than the previous one and the Blue Chip consensus, indicating unexpected growth. While the Fed suggests a base case of no recession, the strong GDP figures suggest a potential soft landing or even no landing at all. Source(15:10)