🦢Black Swan Street Weekly Stock Market Summary (Jan. 1st - Jan. 5th 2023)

Welcome to Black Swan Street!

Peloton & TikTok partnership, Fed Minutes provides insights on future of interest rates, President Gay gone, NCAA and ESPN teamup, Pop-Tart takeover, Trump fights ban, U.S. bankruptcies rose 18%, Zuckerberg sells half a billion in stock...

Let’s get straight into it:

• Peloton and TikTok Partnership🚲

• Fed Minutes Provide Insights on Rates📉

• Earnings Summary💰

• Headline Roundup🗞

• Next Week In The Stock Market🔮

Read time: 6 minutes

Peloton and TikTok Partnership🚲

Partnership? Peloton partners with TikTok as part of its strategy to change its public perception and attract a broader array of customers.

The partnership will create a new fitness hub on TikTok dubbed “#TikTokFitness Powered by Peloton”. It will feature short-form fitness videos, longer live classes, content from Peloton’s instructors and collaborations with TikTok creators.

Why? Peloton is struggling.

• For the fiscal year ended June 30th, 2023: Revenue was $2.8 billion

• For the fiscal year ended June 30th, 2022 (the year prior): Revenue was $3.6 billion

• For the fiscal year ended June 30th, 2021 (2 years prior): Revenue was $4.02 billion

Revenues have been steadily decreasing. Not good.

And their stock price reflects it:

Fed Minutes Provides Insight on Rates📉 

What is the Fed Minutes? The minutes of the Federal Open Market Committee (FOMC) meetings, are released three weeks after each meeting, and provide a timely summary of the discussion during the meeting and the decisions taken at the meeting.

Summary of the Fed Minutes from this Week:

• Fed views rates likely “at or near their peak”

• Fed maintains 2% inflation target

• “Clear progress” has been made on inflation

• Officials acknowledge rate cuts by end of 2024

At the meeting, the FOMC agreed to hold its benchmark rate steady in the 5.25%-5.5% range.

Earnings Summary💰

In-Depth Earnings Dive:

Headline Roundup🗞

• Jane Street emerges as broker of choice for Bitcoin-ETF issuers - BBG

• Big tech braces for wave of antitrust rulings in 2024 - WSJ

• Fidelity believes that Elon Musk’s ‘X’ is worth 71.5% less than at the time of purchase - AXS

• Tesla, Nissan, and GM vehicles lose U.S. tax credits - RT

• Donald Trump asks Maine court to reverse state’s ballot ban - WSJ

• Donald Trump asks U.S. supreme court to reverse Colorado ballot ban - BBG

• KKR-backed ‘BrightSpring Health Services’, a home and community-based healthcare services provider, filed for an IPO and is seeking to raise a rumored $1 billion - BBG

• What to know about the unsealed Jeffrey Epstein documents - AXS

• U.S. bankruptcies rose 18% in 2023 and seen rising again in 2024 - RT

• Zuckerberg sold nearly half a billion dollars of Meta stock in last two months - BBG

• Xerox to cut 15% of workforce and overhaul operating model- WSJ

• Amazon’s video ad push expected to generate an extra $5 billion in revenue - BBG

• Insurance company ‘Health Care Service Corp’ is in exclusive talks to acquire health insurer ‘Cigna Group’ Medicare Advantage business for $3-$4 billion - RT

Next Week in the Stock Market🔮

Earnings Calendar Next Week:

What the Swan is watching:

Monday: Jefferies Financial Group

Tuesday: Albertsons, TD Synnex

Wednesday: KB Home

Thursday: Infosys

Friday: JPMorgan Chase & Co, Wells Fargo, Bank of America, BlackRock, UnitedHealth Group, Delta Airlines, Bank of New York Mellon, Wipro

Economic Calendar Next Week:

The Swan’s Picks🦢

⛳️PGA Tour and Liv Golf look to extend merger deadline into 2024: The original deadline for this merger was set at Dec. 31st, but that didn’t work. The delay is caused by negotiations between the PGA Tour and Saudi Public Investment Fund. PGA Tour and Liv are expected to make a formal decision on the combination ahead of the Masters tournament in April.

🏰Mickey and Minnie Mouse left exposed: The original versions of Mickey and Minnie Mouse entered the public domain this week. This comes 95 yeas after first being introduced by Walt Disney in “Steamboat Willie”.

👩🏾‍🏫President Gay gone: Last week, we covered the drama happening at Harvard with their president, President Gay. Well, she’s officially resigned. This comes after her response to antisemitism on campus and allegations of plagiarism.

🏈Pop-Tarts or Football: Kansas State was set to play the NC State Wolfpack in the Pop-Tarts Bowl in Orlando Florida, but the real winner wasn’t either team. The hilarious looking, Pop-Tart mascot, stole the show. The mascot is going viral across social media and for just reasons… Just watch this.

🏀NCAA and ESPN teamup: The NCAA and ESPN have agreed to an eight-year $920 million agreement that will give the network exclusive rights to 40 championships, including the D1 women’s basketball tournament.

The Wrap-Up🔄

That’s it! It was a bit of a relaxed week. Typically the period after Christmas up to New Years is slower. This upcoming week should be exciting (especially Friday with the big banks reporting earnings).

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