🦢Black Swan Street Weekly Stock Market Summary (Nov. 13th - Nov. 17th 2023)

Welcome to Black Swan Street!

Welcome to Black Swan Street, the newsletter that simplifies the financial markets!

This week was a doozy… so let’s get straight into it

• Michael Burry is Back🤬

• Economic Data📊

• Earnings Summary💰

• Headline Roundup🗞

• Next Week In The Stock Market🔮

Read time: 7 minutes

Michael Burry is Back🤬 

Michael Burry, the man who famously shorted subprime mortgages during the 2008 financial crisis, and then got the movie ‘The Big Short’ made after him, was just wrong in a big way.

Back in August, we covered Burry’s $1.6 billion short position on the S&P 500 and the Nasdaq 100.

Well, he was wrong. Very wrong.

This week, Burry closed this short position for an estimated loss of 40%. Oof.

Well, guess what? He hasn’t learned his lesson.

This time, he’s shorting semiconductors.

Burry’s fund, Scion Capital, newest position:

• Shorting 100,000 shares of BlackRock’s semiconductor ETF

These 100,000 shares have a notional value of $47.4 million and it’s betting against iShares Semiconductor ETF (SOXX).

Other Semiconductor companies:

• Nvidia (NVDA) shares have gained +241.05% YTD

• Advanced Micro Devices (AMD) shares have gained +85.65% YTD

• Intel (INTC) shares have gained +50.58% YTD

• Taiwan Semiconductor (TSM) shares have gained +33.11% YTD

Economic Data📊 

Consumer Price Index (CPI)

What is the Consumer Price Index (CPI)?

• U.S. Consumer Price Index (CPI) YoY: 3.2%, from previous 3.7%, and below 3.3% forecast

• U.S. Consumer Price Index (CPI) MoM: 0.0%, from previous 0.4%, and below 0.1% forecast

Japan Gross Domestic Product (GDP)

• Japan Gross Domestic Product (GDP) QoQ: -0.5%, from previous 1.1%, and below -0.1% forecast

• Japan Gross Domestic Product (GDP) YoY: -2.1%, from previous 4.5%, and below -0.6% forecast

U.S. Retail Sales

• U.S. Retail Sales MoM: -0.1%, from previous 0.9%, and above -0.3% forecast

• U.S. Retail Sales YoY: 2.48% from previous 4.05%

U.S. Producer Price Index (PPI)

• U.S. Producer Price Index (PPI) YoY: 1.3%, from previous 2.2%, and below 1.9% forecast

• U.S. Producer Price Index (PPI) MoM: -0.5%, from previous 0.4%, and below 0.1% forecast

• U.S. Core Producer Price Index (PPI) YoY: 2.4%, from previous 2.7%, and below 2.7% forecast

• U.S. Core Producer Price Index (PPI) MoM: 0.0%, from previous 0.2%, and below 0.3% forecast

U.S. Initial Jobless Claims

• U.S. Initial Jobless Claims: 231k, from previous 218k, and above 220k forecast

U.S. Housing Starts

• U.S. Housing Starts: 1.372M, from previous 1.346M, and above 1.345M forecast

U.S. Building Permits

• U.S. Building Permits: 1.487M, from previous 1.471M, and above 1.450M forecast

Earnings Summary💰

In-Depth Earnings Dive:

Headline Roundup🗞

• Apple gets 36% of revenue generated from Safari search result advertising after search deal with Google - AI

• Amazon cuts more than 180 jobs in gaming division - CNBC

• The UAE’s ‘Emirates’ places $52 billion order for 95 Boeing aircrafts - FB

• Stellantis offering buyouts to about half its U.S. salaried employees - RT

• Hyundai broke ground on a new $1.53 billion EV plant in South Korea. The plant is set to open in 2026 and will produce 200k vehicles a year - HN

• Thermo Fisher sets new $4 billion stock buyback program - SA

• U.S. Consumer Price Index (CPI) YoY: 3.2%, from previous 3.7%, and below 3.3% forecast - What is the CPI?

• U.S. Consumer Price Index (CPI) MoM: 0.0%, from previous 0.4%, and below 0.1% forecast - What is the CPI?

• TransUnion to layoff 1,300 employees in cost-reduction plan - FB

• Trump’s ‘Truth Social’ has lost $73 million since its launch and now faces potential shutdown - CNBC

• Microsoft introduces its own chips for AI - RT

• SpaceX is discussing an IPO for its fast-growing Starlink satellite business as soon as late 2024 - BBG

• Amazon will allow auto dealers to sell cars on its site, starting with Hyundai - CNBC

Next Week in the Stock Market🔮

Earnings Calendar Next Week:

What the swan is watching:

Monday: Zoom

Tuesday: Medtronic, Kohl’s, Lowe’s, Dick’s Sporting Goods, Best Buy, Baidu, Nvidia, HP Inc, Nordstrom

Wednesday: John Deere

Economic Calendar Next Week:

The Swan’s Picks🦢

🎬Disney’s “The Marvels” is a huge disappointment: The 33rd film in the Marvel Cinematic Universe, “The Marvels”, reportedly cost $220 million to produce and another $100 million to market, but it didn’t live up to the hype. The film brought in $47 million at the domestic box office in its weekend debut, marking the worst domestic weekend debut in Marvel franchise history.

❓The weirdest partnership of 2023: McDonald’s and Crocs are partnering to release a line of $75 shoes inspired by Grimace and the Hamburglar. Yes, you read that right. McDonald’s is entering the footwear game with Grimace themed shoes.

🎵TikTok owner reports Q2 revenue of $29 billion: The Chinese owner of TikTok, ByteDance, saw revenue surge more than 40% from a year earlier to $29 billion in the second quarter. When compared to companies like Meta, whose revenue rose 11% in the same period.

The Wrap-Up🔄

That’s all we got this week!

Thanks for tuning in for another edition of Black Swan Street, let us know what you thought about this weeks ⬇

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