The Rundown - June Inflation Falls for First Time Since 2020, Pfizer Inches Closer to Weight-Loss Pill

Episode Date: July 11, 2024

Stock market update for July 11, 2024.

Public.com presents the rundown, your daily market update in five minutes. My name is Zademani, and today is Thursday, July 11th. In today's episode, we tell you why the latest CPI report has investors height. Also, we talk about Costco raising membership prices, Apple feeling confident about iPhone sales this year, and Pfizer's plan to enter the weight loss industry. Then stick around to the end of the show to find out how much the Wimbledon champion will make this weekend. It's a lot more than they made 50 years ago.

All right, let's go. The stock market can't stop making record highs. The S&P and NASDAQ were both up more than 1% on Wednesday, closing at record levels again. And the S&P hit the 5,600 mark for the first time ever. The vibes are so good right now that it's even spreading to the Dow Jones, which was up 1% as well on Wednesday, snapping a two-day losing streak. But, you know, nobody cares about the Dow. A couple notable stocks to point out, Apple has been up for seven straight trading sessions.

in a row and it's become the first company to exceed a market cap of $3.5 trillion. And Tesla's hot streak is now 11 days in a row, which is the longest streak it's had since it hit 13 straight last June. So keep an eye out for Tesla. By the way, 300 of you guys voted on yesterday's poll on Spotify, where we asked if Tesla had become a meme stock, and 52% of you guys said yes. Honestly, I was kind of expecting the number to be a little bit higher. And we just got some breaking news this morning. The June CPI report just dropped. And wow, Inflation in June actually fell for the first time since 2020. The month-over-month CPI in June was down 0.1%,

which means the prices for the basket of goods in the CPI were lower in June compared to May. We haven't seen a month-over-month drop in CPI in 4 years. The year-over-year CPI in June was 3%, which is less than 3.1% that was expected. And this is pretty significant because it's another concrete data point that shows that inflation is definitely cooling. So this will likely raise the chance. for a Fed rate cut pretty soon. In fact, the market is now pricing in a Fed rate cut in September to be 85% according to the Fed

watch tool. Man, I can't wait to hear what Jerome Powell has to say about this. The Fed's FOMC meeting is at the end of this month. So I'm gonna be super hype for that one. Let's run through some headlines. Starting with Costco. The internet's favorite wholesale club is raising prices for its membership by $5. So a membership will now start at $65 a year.

and it will impact about 52 million members. New prices will go into effect on September 1st. This was something that analysts were expecting to happen sometime this year, so not super surprising. And honestly, I don't think that a $5 increase in membership prices is going to really result in many people canceling their membership. Now, if Costco ever changes the price of their $1.50 hot dog drink combo,

then that's another story, because that is going to upset some people. By the way, there's a brand new Costco that opened up like five minutes from my house two weeks ago, and I've already gone there way too much. I'm in deep. Let's shift gears and talk about. Apple. Apple has increased their shipment forecast for the upcoming iPhone. The iPhone maker expects to ship 10% more iPhones in 2024 compared to 2023. The Apple thinks that their new AI

features that they announced back in WWDC called Apple Intelligence will be enough to boost sales of the new iPhone 16, which comes out in a couple of months. Apple's expecting the ship around 90 million iPhone 16s in the second half of 2024 compared to the 81 million in the same period last year for the iPhone 15. I think this makes sense. I think people are going to upgrade to the iPhone 16 for the AI features. Like I personally will be upgrading. But what do you guys think? Like, will you guys be buying the new iPhone 16 because of all the new AI features and all the AI hype? That's going to be the poll on Spotify. So if you're listening to this episode on Spotify, tap the episode, vote in today's poll. Maybe hit us for the five-star rating while you're at it.

Had to get in that plug. Oh, Pfizer just made some news this morning. They're a step closer to breaking into the lucrative weight loss drug market. The pharmaceutical giant announced this morning that it'll be moving forward with a once daily weight loss pill, which is now advancing into mid-stage trials this year. So far, Pfizer has lagged behind Eli Lilly and Novo Nortis in the weight loss category, which is estimated to be worth more than $100 billion a year. So Pfizer's hoping to catch up with their weight loss pill. The compound used in Pfizer's pill is similar to that use in the injection made by the two rivals, but it's designed to be a needle-free alternative. Pfizer is projecting that pills will eventually make up a third of the obesity drug market. Right now, it's mostly

injections. So we'll see. Something to keep an eye on. Let's talk about some stocks making moves today. Starting with WD40. Yes, the lubricant spray. It's a publicly traded company and the stock is up this morning. They reported second quarter earnings last night and they beat on both top line and bottom line estimates. Revenues were up 9% to 155 million and they reported a profit of nearly $20 million. As a result, the stock is up more than 11% in the pre-market off this news. So shout out to WD40. I mean, the product has come in clutch for me multiple times. And a quick fun fact about the company, they went public back in 1984 and the stock has been up over 1,800% since. Now, on the flip side, we have a couple notable stocks that are down this morning, starting with Delta Airlines. Their

shares are down this morning after they reported their second quarter earnings this morning. Now, Delta did report record revenues in the second quarter, but they missed on profit. Delta's profits were down 29% to $1.3 billion, and they had an adjusted earnings per share of $2.00 and $3.000. 36 cents, which were slightly below Wall Street estimates. But I think the most disappointing thing was Delta's forecast moving forward. Despite a really busy summer travel season with everyone's IG feed of European cities and Caribbean islands, Delta's business hasn't been doing that great. Delta's costs are rising and they've had to cut airfare due to an excess supply of seats available. So that's great news for people looking for a great deal on flights. I mean, I've found plenty of

them, but it's not great for Delta investors. The stock is down more than 8% in the pre-market and reaction to these earnings. Another big name company that reported earnings this morning was PepsiCo, and their shares are also down as a result. They missed estimates on revenue, but beat on profit. And they also issued as somewhat disappointing forecast for their business. PepsiCo said that it's seeing weakness in North America convenient foods and the effective product recalls at Quaker Foods. As a result, the stock is down nearly 2% in the pre-market. Let's wrap the show with a fun fact. Wimbledon is happening right now. Not sure if you guys are watching the tournament. It's been pretty good. The tournament is going to be ending this weekend, so I thought I'd share some financial history

regarding the oldest tennis tournament in the world. The tournament is held in the town of Wimbledon, which is right outside of London, and the tournament first happened back in the 1870s. And what's crazy is the difference in prize money. So back in 1968, the men's champion received 2,000 pounds as prize money, which is worth about 30,000 pounds today adjusted for inflation. And the women's champion received 750 pounds, which is worth about 11,000 pounds today, adjusted for inflation.

This year, the men's and women's champions, we'll get 2.7 million pounds. So yeah, we've seen a huge increase in prize money over the last 50 plus years. Well, all right, guys, that's the rundown for today. Thank you so much for listening. Don't forget to vote in today's Spotify poll. And if you have a few more seconds, hit us with a five-star rating on Spotify or Apple wherever you're listening to this podcast. We'll be back tomorrow to end this busy week, been a pretty crazy one for me as well. Thank you guys so much for listening. Shout out to Connor and Mike for all the help behind the scenes. And 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. Rundown 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 Zayda Mani, brokerage services for U.S. listed, registered securities are offered by Open to the Public Investing Incorporated, member FINRA and SIPC.