The Rundown - Bank Earnings Kick Off, Airline Stocks Skid

Episode Date: January 12, 2024

Stock market update for Friday January 12, 2024. Bank earnings begin (Barron's) Google Cuts Hundreds of Jobs in Engineering and Other Divisions (NYT) A comprehensive list of 2023 & 2024 tech layoffs Airline stocks tumble after Delta trims profit forecast (CNBC) The content of the video is for general and informational purposes only. All views presented in this show reflect the opinions of the guest and the host. You should not take a mention of any asset, be it cryptocurrency or a publicly traded security as a recommendation to buy, sell or hold that cryptocurrency or security. Guests and hosts are not affiliated with or endorsed by Public Holdings or its subsidiaries. You should make your own financial and investment decisions or consult respective professionals. Full disclosures are in the channel description. Learn more at Public.com/disclosures. Past performance is not a guarantee of future results. There is a possibility of loss with any investment. Historical or hypothetical performance results, if mentioned, are presented for illustrative purposes only. Do not infer or assume that any securities, sectors or markets described in the videos were or will be profitable. Any statements of future expectations and other forward-looking statements are strictly based on the current views, opinion, or assumptions of the person presenting them, and should not be taken as an indicator of performance nor should be relied upon as an investment advice.

Welcome to the rundown, your daily market update in under five minutes. My name is Admani, and today is Friday, January 12th. Thursday was an action-pack day. The December CPI report came out. Bitcoin ETF started trading Microsoft dethroned Apple as the most valuable company in the world for a few minutes. And at the end of the day, stocks were pretty flat. The Dow, S&P, and NASDAQ all changed less than 0.1% on Thursday. Actually, stocks were in the red for most of the day on Thursday, but then recovered with a nice afternoon rally.

And stocks are off to a mixed start on Friday as well. Stocks were in the green at the market open but have turned negative. All three major indices are flashing red at the time that's recording around noon Eastern. Man, I really wanted to see the S&P make all-time highs today. But maybe we'll have to wait till next week or maybe we'll get a nice afternoon rally like we did yesterday. So fingers crossed.

Earning season kicked off today with a ton of big banks reporting earnings on Friday morning. And the overall vibe? Kind of a mixed bag from banks. J.B. Morgan's earnings beat estimates, but their stock is trading lower. at the time of this recording. Bank of America and Wells Fargo both missed on earnings and both their stocks are trading lower. And the biggest shock might have been Citigroup.

The bank reported a net loss for Q4, which was not expected. And they also announced that they're cutting 10% of their workforce. City stock is also down today at the time of this recording. And unfortunately, Citigroup is not the only company downsizing. More tech companies announced layoffs this week. Google is cutting hundreds of jobs in their engineering and hardware division. Amazon is cutting jobs in Prime Video in the MGM Studios department. And Discord also announced they were,

laying off 17% of staff. The tech industry saw a ton of layoffs last year as they were trying to cut costs. And it looks like despite the market turnaround, more layoffs are still happening in the tech industry. You know, it's always tough talking about people losing their jobs, wishing everyone going through these layoffs the very best and hoping everybody lands on their feet very soon. All right, let's talk about some stocks making moves. Usually we talk about winners and losers.

Not going to lie, not a lot of great winners to talk about. So we're going to talk about the losers today because it's a little bit more interesting. We already talk about bank stocks being losers. they're down across the board. Airline stocks are also big losers today. United Airlines, American Airlines, and Delta are all the three worst performing stocks in the S&P 500 today, all down around 8% at the time of this recording, around noon Eastern. This is all following Delta releasing their Q4 earnings this morning.

Delta actually reported solid Q4 profits and record revenues for 2023. But that's not all what investors care about. They want to know how you're going to be doing moving forward. And Delta projected lower than expected earnings for 2024. And that was enough to spook investors and sell off airline stock across the board. Delta did point to some challenges, specifically when it comes to aerospace supply chains for parts and repairs. One of the executives mentioned that it's taking longer to fix planes and is taking longer to put them back into service. Another loser today? I have to say it's Bitcoin.

There was a lot of excitement around Bitcoin this week, with a spot ETF being approved by the SEC in trading as of yesterday. But Bitcoin's price hasn't really taken off as a result. In fact, Bitcoin is now trading below $44,000. at the time of this recording around noon Eastern, which is what it started at on Monday of this week. What's that old saying again? Buy the rumor, sell the news. That might apply to the Bitcoin ETF approval this week.

All right, let's wrap up the show with the fun fact of the day where I share something that I found to be interesting. Today's fun fact, over the last 10 years, only three companies have held the title for the most valuable company in the U.S. And you've heard of all these three companies. Apple, which is probably not a surprise, Microsoft and Amazon. Now, Apple has held this crown for most of the time.

Microsoft has overtaken Apple a few times over the years like they did yesterday for a few minutes. But surprisingly, Amazon held the crown for 13 trading days in 2019. Today, Apple and Microsoft are firmly in the top two, each worth about $2.9 trillion as of today. By the way, Google is third at $1.8 trillion and Amazon is at $1.6 trillion. So Apple and Microsoft have about a trillion dollar gap between the third and fourth largest company in the U.S. And I feel like Apple and Microsoft are going to be going back and forth as the top dollar. over the next few months. All right, that's all I got for you guys today.

Another week in the books. Thank you guys so much for listening. Remember, Monday is MLK Day and the markets will be closed. So we'll see you guys back here on Tuesday. This is Public Live, your real-time resource for news events and trends in the markets. All views presented in this 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. Public live hosts 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 slash disclosures. In paid partnership with Zaid Admani, brokerage services for U.S. listed, registered securities are offered by Open to the Public Investing Incorporated, member FINRA and SIPC.