The Rundown - Hot Job Data, Google’s Possible Buyout Bid for HubSpot

Episode Date: April 5, 2024

Stock market update for April 5, 2024. Get started with Public: ⁠⁠⁠⁠⁠⁠⁠⁠Click here⁠⁠⁠⁠⁠⁠⁠⁠ 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.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.

Public.com presents the rundown, your daily market update in five minutes. My name is Zaid Admani, and today is Friday, April 5th. In today's episode, we talk about the latest comments from members of the Federal Reserve and why it's making some investors kind of nervous. We also got some new jobs data this morning, and it is hot. Also, Google might be out here trying to spend billions of dollars trying to compete with Salesforce. We'll tell you the latest rumors coming out of Silicon Valley.

Then we wrap the show highlighting some stocks making moves today and hit you with some fun facts, about the billions of dollars being spent on the solar eclipse. The solar eclipse might be bigger than the Super Bowl. Stick around to the end of the show to find out more. All right, let's get into it. So yesterday was kind of a weird day for the stock market. Day started off pretty good. Stocks were in the green.

But then 2 p.m. hit and stock market starts tanking. The Dow, S&P, and NASDAQ all finished the day down more than 1%. I mean, it was brutal. In fact, the Dow had its worst day in over a year. So what happened? I think maybe the Federal Reserve deserves some blame pie. for this one. A couple of Fed officials were giving some speeches on Thursday. Seems like the markets didn't really like what they had to say. Like Minneapolis Fed chair, Neil Kishkari, questioned whether

the Fed needs to do rate cuts at all. And then Richmond Fed President Tom Barkin said it is smart for the Fed to take our time when it comes to rate cuts. So those back-to-back statements not received well by the stock market. And stocks ended up dipping hard on Thursday afternoon. I mean, I told you guys yesterday, the vibe that I'm getting right now is that we might not get rate cuts at all this year. So don't be surprised. Also, also, the fact that the markets are still so reactionary to everything that Fed officials say. I mean, this wasn't even comments by Jerome Powell, you know, the main guy. These comments were made from the supporting cast.

And still, the markets reacted the way they did. Got a better breaking news this morning. We got the latest jobs data this morning. The U.S. economy added 303,000 jobs in March. That number is way higher than the 200,000 jobs that was expected. And the unemployment rate dropped to 3.8%. The health care sector led the job growth again with 72,000. thousand jobs at it. It's a good time to be a doctor or a nurse. But overall, it's another

strong report showing that despite all the chatter in the economy about inflation potentially coming back up again, that the job market continues to stay hot. And I think that probably means that the Fed will likely hold off on cutting rates as well. Because the job market continues to be strong, there's no point for them to cut rates. All right, let's run through some headlines. Well, it seems like Apple's going to be laying off over 600 employees in California. This is according to a new state filing. This would be Apple's first significant round of job cuts since the pandemic. The jobs impacted by this cut include hardware engineers, product design engineers, and more. And it looks like the jobs impacted were located at offices working on the Apple Car

project, which if you guys remember, was canceled earlier this year. So unfortunately, even Apple was having to go through layoffs now. Google made some news yesterday. There are reports that Google is discussing the possibility of buying HubSpot, which is a customer relationship management software company. Right now HubSpot's market cap is trading north of $33 billion, So Google would obviously have to pay more than that. And if Google does end up buying them out, it would be Google's largest acquisition in history by a mile. A lot of people don't remember this,

but Google's largest acquisition was Motorola, which they bought for $12.5 billion in 2012. The intent of the purchase was to gain Motorola's patent portfolio and help build out Android. Well, that acquisition didn't really work out for Google that well because they ended up selling Motorola mobility later on to Lenovo for much less money. So why is Google even trying to buy HubSpot here? Because, you know,

It seems like a kind of a weird fit. Some people think it's because they're trying to compete with enterprise software players like Salesforce and Microsoft. Maybe. I mean, I don't know. But an official offer hasn't been made yet. And even if an official offer is made and an acquisition is announced, anti-trust regulators might not be cool with it. So something to keep an eye on.

All right, let's talk about some stocks making moves today. Crispy Cream stock continues to climb. The shares are up more than 5% this morning after investment bank, Piper Sandler, upgraded the stock with a new price target of $20 per share. The upgrade comes after Krispy Cream agreed to a partnership with McDonald's a couple weeks ago. That's going to put Krispy Kreme donuts in all of McDonald's fast food locations by the end of 2026. Piper Sandler said the deal could be transformative for Kriskream's business. Right now, the stock is currently trading around $15 at the time of this recording.

Now, typically on this show, we also highlight a stock not doing so well, but surprisingly, there's not anything that sticks out. So let's skip that part for today. So let's wrap up the show with a fun fact. Today's fun fact is a good one. It's about the solar eclipse. That's happening on Monday, and it is big business. According to a lot of estimates from economists, the total solar eclipse is going to generate billions of dollars for local economies that are on the path of totality.

That's the spot where the moon covers up the entire part of the sun and it gets really dark. I've seen YouTube videos, it looks pretty cool. And according to estimates, between 3.7 to 4 million people are expected that travel to the areas of totality. And obviously, spend billions of dollars in the process. That includes things like hotels, Airbnbs, car rentals. I mean, everything in the path of totality is sold out. One estimate is that about $2 billion will be spent because of the solar eclipse.

Now, this is a really hot topic here in Texas where I'm from, because major cities like Dallas, Waco, and Austin are going to be in the path of totality. I'm in Houston, so I won't see totality, but I've thought about even making the drive to Austin or San Antonio to see it. But then I saw the madness that's going to be happening, and I think I'm going to sit it out. Traffic's going to be wild. But if any of you guys are going to witness the eclipse on Monday, let me know how it goes.

We'll make that the Spotify poll today. Are you going to see the solar eclipse on Monday? Vote in today's poll to let us know. I mean, some people are calling this bigger than the Super Bowl. Well, that's all I got for you guys today. If you guys enjoyed that episode, please consider giving us five stars on Apple and Spotify. We are almost at 1,000 5 star ratings on Spotify.

That is amazing. Thank you guys so much for all the support. And shout out to Mike and Connor for help behind the scenes. Hope you guys have a great weekend, and we'll see you guys back here on Monday. This is the rundown, 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. Run-down 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.

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