The Rundown - Apple's Plan to Supercharge iPhones with AI, GM's $6 Billion Share Buyback

Episode Date: June 11, 2024

Stock market update for June 11, 2024.

Public.com presents the rundown, your daily market update in five minutes. My name is Zadadmani, and today is Tuesday, June 11th. In today's episode, we tell you about Apple's AI plans and why investors and Elon Musk were not a big fan. Also, we'll tell you about GM's surprise partner that they think will help them sell more EVs. And then stick around to the end of the show to learn about a shocking stat about home ownership. All right, let's go. Well, guys, stocks were making record highs on months.

Monday, the Dow, S&P and NASDAQ were all up to start the week with the S&P and NASDAQ both closing at record highs. Now that was no thanks to Apple, though, because Apple stock was one of the few losers from yesterday. The stock fell as investors weren't really impressed with Apple's WWDC announcement, but we're going to cover more than that in a bit. Now investors will turn their eye to the May CPI report, which comes out tomorrow morning and the FOMC meeting, which kicks off today and wraps up with a Jerome Powell Press conference on Wednesday afternoon. No rate cuts are expected, but it's always good to hear what Jerome Powell has to say. We're going to be covering the May CPI report on tomorrow's episode and then recap Jerome Powell's

comments on Thursday's show. So make sure you guys are subscribed to the podcast to stay in the loop. Let's run through some headlines. Starting with Apple. Apple kicked off their highly anticipated WWDC conference yesterday, and we finally got to see Apple's AI plans. And they made us wait for it because the first hour of the key. keynote, they talked about everything but AI. In fact, they didn't even say the word AI or artificial intelligence until like 64 minutes into the stream. I watched the whole thing and I was starting

to get pretty impatient. But they finally shut off their AI and they're calling it Apple intelligence. In the keynote, they showed off some demos, how the AI is getting built into the latest iPhones, iPads and Macs. They're also making improvements to Siri, even integrating chat GPT into Siri. And the demos were pretty cool. I do think some of the stuff will be pretty useful. I mean, it might take me some time getting used to actually using Siri after ignoring it for a decade for being terrible. But if it's anything like the demos, I'm looking forward to using it. But you know who's not looking forward to this is Elon Musk. On Twitter yesterday, he expressed some concerns about Apple's partnership with OpenAI and their integration into the iPhone calling it a security violation. I guess

he's concerned about data being sent to OpenAI servers. Now, just to point out here, Elon does have some beef with OpenAI. I think they have an ongoing lawsuit right now. So maybe that has something to do with Elon's concerns, but he seems to be pretty serious about the whole thing. He even went as far to say that he will ban Apple devices at his companies if this partnership goes through. I didn't know that Elon was an Android guy. Now, to give Apple some credit, they did touch on the security aspect of AI, talking about how most of the AI processing will be done locally on the device and not on the cloud, and users have to opt in to use chat GPT and other AI models in the future if they want. So technically, chat GPT, your open AI doesn't have access to your data unless you, the user, give them access to it.

Sure we're going to learn more about the security concerns in the next coming days and weeks as Apple rolls this out. All these new AI features will be coming out on iOS 18, which launches in the fall. Investors also seem to be disappointed with WWDC. The stock was down nearly 2% yesterday following the event. I'm kind of surprised by this because Apple did sneak in a sneaky announcement yesterday where they said these AI features will only be available to the iPhone 15 Pro and any iPad or MacBooks with M1 chips or higher. So if you have anything less than that, you're going to need to upgrade to get these AI features. And I thought that it might push more people to upgrade sooner than they would normally to get these AI features.

But investors weren't as convinced. But we'll see. I'm pretty excited for these features to come out. Let's shift gears and talk about GM. GM's board of directors just approved a new $6 billion stock buyback plan. This move follows a $10 billion share repurchasing program that was announced last year in November and a dividend hike in its common stock just two months ago. So GM is doing what they can to strengthen these support from shareholders as they try to improve profitability. and ramp up sales of its EVs, which have kind of hit a speed bump recently.

GM's EV sales dropped about 20% in the first quarter compared to a year ago, and now the company is turning to an unlikely partner to help that part of the business. Costco. GM says it's leveraging Costco's auto program, which connects shoppers with car dealers, and apparently Costco has facilitated like 500,000 car sales every year over the past five years. That's like 3% of total U.S. car sales. It's pretty impressive numbers right there. I had no idea that Costco was out here selling cars.

GM is hoping that by partnering with Costco, they'll see a boost in their EV business. Now I just need Costco to open up their own hospital and clinics. Let's talk about some stocks making moves today. Starting with Eli Lilly. Shares of the pharma giant were up after the company's experimental Alzheimer drug received support from an independent panel of advisors at the FDA. This increases the likelihood of this Alzheimer's drug getting approval by the FDA. And if it does get final approval, it'll be a new treatment options for people with early stages of

Alzheimer's. So this is a pretty big deal if it ends up getting approved. Investors were happy as well. Eli Lilly's stock is up about 3% in the pre-market. Eli Lilly is one of the best performing stocks of the year of 46% in 2024, likely off the backs. They're very popular weight loss drug, Manjaro and Zetbound. Now, a stock not doing so great this morning is Coinbase. Shares of the crypto company are trading lower after the price of Bitcoin tank this morning dropping below $67,000. Bitcoin had been on a mini-heater recently crossing $71,000 last week, but it looks like it lost a bit of steam today. We really couldn't figure out why Bitcoin all of a sudden tanked this morning. Now, Coinbase stock tends to react to whatever Bitcoin and the overall crypto market is doing.

So when Bitcoin goes down, Coinbase goes down and shares are down more than 3% in the pre-market. All right, let's wrap the show with the fun fact. Homeownership costs in the U.S. have increased by 26% since the pandemic, according to Bloomberg. That's not really a fun fact, but I thought. it was worth sharing. Now this 26% increase does not include the price of the home itself, which we all know have gone up like crazy. I'm just talking about the cost for owning the home after you've bought the house. So things like maintenance, utilities, property insurance, property

taxes, pretty much everything that isn't the mortgage has gone up by 26% in the last four years. According to a study by bank rate, the average cost for owning and maintaining a home is about $1,500 a month now. That's $300 a month more than it was four years ago. So not only are the prices of homes getting unaffordable. Once you have the house, it just gets more and more expensive to maintain and own that house. You know what, sorry to bum you out on a Tuesday, but these facts are so interesting that I think it's worth sharing. So I guess it makes more sense when people say that renting is actually cheaper than owning a home in some places. Well, all right, guys, that's the rundown for today. Hope you guys enjoyed today's episode. If you did, please hit us with that

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We'll see you guys back here tomorrow. This is the rundown, your real-time resource for news events and trends in the markets. All views presented in the show reflect the opinions of the guests. You should not take any mention of a publicly traded security as recommendation to buy, sell, or hold that security. Rounddown guests are not financial advisors and are not affiliated with public holdings or its subsidiaries. You should make your own financial and investment. decisions or consult, respective professionals. Learn more at public.com disclosures. In partnership with Zayidamani, brokerage services for U.S. listed, registered securities

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