The Rundown - Dow Hits 38K for First Time Ever

Episode Date: January 22, 2024

Stock market update for January 22, 2024. Macy’s Rejects $5.8 Billion Takeover Offer From Investors (Bloomberg) Arena Group’s stock plummets over 30% after losing rights to Sports Illustrated, laying off staff (MarketWatch) Spirit Airlines shares extend rebound after it appeals ruling blocking JetBlue merger (CNBC) Archer Daniels Stock Sinks as It Places CFO on Leave During Accounting Probe (Barron's) Americans Are Suddenly a Lot More Upbeat About the Economy (WSJ) The content of the podcast 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 Zadmani, and today is Monday, January 22nd. In today's show, we talk about Macy's rejecting a buyout offer, Sports Illustrated getting shut down, and the latest update on the Spirit Airlines JetBlue Deal. We also end this show with a positive fun fact about the economy. It's a great way to start the week. All right, let's get started.

By the way, if you're hearing raindrops in the background, that is now a sound effect. Right now it is pouring hard here in Houston, and I think my mic might be picking up some of that noise. But, you know, I think it sounds kind of nice. It adds a little bit of ambiance to the show. Let's start the show by recapping what happened in the markets last week, because last week was one for the record books.

The S&P 500 and Dow Jones both finished at all-time highs. The last time the S&P 500 made all-time highs was back in January of 2022. So it's been 512 days. The rally in the markets really started at the end of last year, and that momentum has continued to this year. Much of the rally has been in big tech stocks. And companies like Nvidia, and AMD are making all-time highs as well. The positive momentum from last week is now carrying

over into this week as all three major indices are in the green at the time of this recording, around 1 p.m. Eastern. This week, we're also going to get into the thick of earnings season. We'll be getting earnings from a lot of big-time companies. We're talking Netflix, which is reporting on Tuesday after the close. Tesla, which is reporting on Wednesday after the close, and Intel, which is reporting on Thursday after the close, just to name a few. So make sure you tune into the rundown every day this week to stay in the loop. All right, let's run through some headlines. Macy's is rejecting a $5.8 billion takeover offer. A quick refresher on this story.

In early December, Macy's received a $5.8 billion takeover offer from Arquehouse Management and Brigade Capital to take the company private. Well, Macy's, after thinking about it over the holidays, decided to reject that offer saying that it lacks compelling value. It's hard to say what the next steps are. It's possible that the Arkhouse and brigade go back and add more money to the offer to make it more lucrative. It's possible they go directly to shareholders. The story is likely not over. As for Macy's business, it has been struggling. In fact, last week they announced that they're going to be closing five stores and laying off 2,000 employees, mostly in the corporate staff.

Speaking of layoffs, we also have some more sad news to report regarding Sports Illustrated, because it looks like Sports Illustrated is shutting down and laying off all their staff. Now, this whole story is kind of wild, so I'm going to try to do my best to recap it. See, Sports Illustrated, the brand is owned by this company called Authentic Brands. But a media company called Arena Group Holdings was licensing the Sports Illustrated name to publish under. And as part of this deal, Arena Group had to pay Authentic Brands a quarterly licensing fee. Well, Arena Group decided not to pay the $3.75 million payment to authentic brands. And this is where things kind of get weird. By not paying the $3.75 million payment, that immediately triggered a $45 million fee that was due immediately from Arena Group to authentic brands, which Arena Group obviously did not pay.

They laid off all their staff and is possibly shutting down Sports Illustrated. Arena Group is a publicly held company and their stock has been down more than 85% since last year. All right, let's talk about some stocks that are making moves today. Spirit Airline investors are having a great start to the week because the stock is up more than 10% at the time of this recording around 1 p.m. Eastern. It's a nice bounce back from last week because their stock was down more than 50% last week after a federal judge blocked the JetBlue takeover for $3.8 billion. We have another update in that deal because to some people surprise, JetBlue and Spirit have decided to appeal the judge's decision. There are some analysts out there saying that JetBlue was kind of relieved that the takeover wasn't happening. well, it looks like they're going to move forward with an appeal,

which is giving some optimism to Spirit Airlines investors that this deal might go through at some point. I know we've been talking about this story a lot on this show, and it looks like it's not over yet. We'll keep you updated on what happens next. A big loser for today is Archer Daniels Midland, which is a food processing company. The stock is down more than 20% at the time of this recording ever. They announced today that they're placing their CFO on administrative leave

and investigating accounting practices. Kind of a big deal. The company said they were cooperating with the SEC on this investigation. if the company was doing some shady accounting practices, it would be hard for investors to have confidence in the numbers that were published. As part of this announcement, the company said they would be delaying Q4 earnings release as well, and they're withdrawing any previous forecast about their business. All right, guys, let's wrap up the show with a fun finance fact of the day,

where I share something that I thought was kind of interesting. And today's fun fact, some pretty good news. Consumers are feeling better about the economy, at least according to one survey. The University of Michigan Consumer Sentiment Survey came out on Friday, and according to that survey, consumers haven't felt this good about, the economy since August of 2021. Now, the positive shifts in the economy could be because of cooling inflation, gas prices staying low, stock markets hitting all-time highs, or the survey responders' favorite football team just won a playoff game or something. I'm partially kidding, but, you know,

someone should really do a regional breakdown, see how a football team's success changes the consumer sentiment in that region, because I'm sure losing probably hurts a lot. I can't imagine that Buffalo's feeling so great right now. Sorry, Bill's fans. All right, guys, that's all I got for you guys today. Thank you guys so much for listening. I'll see you guys back here tomorrow. 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.