The Rundown - Rivian Reveals New EV Models, Jobs Report Comes in Hot

Episode Date: March 8, 2024

Stock market update for March 8, 2024. Rivian shares surge as company reveals new EV models, $2.25 billion in cost savings (CNBC) US Jobless Rate Hits Two-Year High Even as Hiring Stays Strong (Bloomberg) Netflix and Most Valuable Promotions Partner on Jake Paul vs. Mike Tyson (Netflix) Gap shares pop as company’s holiday earnings blow past estimates, Old Navy returns to growth (CNBC) Why Costco Stock Is Down After Earnings Beat Expectations (Barron's) Novo Nordisk market cap surpasses Tesla on new obesity pill trial data (CNBC) 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 Hayd-Damani, and today is Friday, March 8th. In today's episode, we go over the latest jobs data. Spoiler alert, the hiring boom has not slowed down. Then we discussed Rivian's new EV models. Netflix putting on a boxing match between Jake Paul and Mike Tyson. Yeah.

And then we end the show highlighting some stocks making moves. Like Costco, that had a rare earnings miss. All right, let's get into it. Well, guys, stocks hit all-time highs again on Thursday. Stocks had a rough start of the week, but the S&P and NASDAQ boat jumped more than 1% on Thursday and finished at record highs. And I think Jerome Powell deserves an assist for this one. Jay Powell was testifying in front of the Senate on Thursday, and he said that inflation was

not far from where it needs to be for the Fed to start cutting rates. And that was music to the stock market ears. Now, there is one really important economic data that just came out. And how investors react to this data will determine if stocks have another winning week. I'm talking about the jobs report. So let's dive into the jobs report. According to the report, the U.S. economy added 275,000 jobs in February. That was way more than the 200,000 jobs that economists were estimating and more than the 229,000 jobs that were added in January.

So the hiring boom continues to exceed estimates, and the unemployment rate is hovering around 3.9%. I think this data will give investors some confidence that the economy can. continues to grow. The job market continues to stay strong. And I'm recording this pre-market, but stock market futures are pointing to a green open. Stocks might end this week breaking more records. Let's shift gears and talk about EVs, specifically Rivian. Now look, it's been a pretty tough year for EVs as a whole. I just feel like the hype around the EV space has just fizzled out a bit. And stocks for EV companies like Tesla, Rivian, Lucid, have tanked this year. In fact, on yesterday's episode of The Rundown, we put out a poll on Spotify where we asked if the audience

was bullish on the EV trend. And 58% of you responded saying that you were not bullish. Well, Rivian might have changed your mind. They had an event yesterday where they showed off not one, not two, but three new EV models. The first one was the R2 SUV. This one wasn't really a surprise. They've been kind of teasing it for the past couple months. It's going to be an SUV that sells for $45,000 with pretty solid performance specs,

like 0 to 16 under 3 seconds, 300 miles of charge. But then they pulled an apple and hit us with a one more thing and showed off there are It's a smaller and more crossover-style vehicle, and it's going to sell for less than the R2, so for less than $45,000. And then finally, they showed off the R3X, which is like more of a performance vehicle. Now, the R2 is supposed to come out the first half of 26, if Rivian can survive until then. I'm just kidding. And there's no release date or pricing on the R3.

The only thing we know is that the R3 is going to sell for less than the R2. So solid presentation by Rivian, and investors were definitely hyped after this showcase because Rivian's stock jumped more than 12%. Those of you guys that voted in the poll yesterday, does this change your mind at all? Because it kind of changed my mind. Like, I really want an R2 now. Let's talk about Netflix. They're getting into the boxing game.

They're going to be live streaming a boxing match between Mike Tyson and Jake Paul on July 20th. Now, Mike Tyson is 58 years old, and Jake Paul is 28. So I guess you can call that boxing. But this just shows that Netflix is doubling down on live streaming events. They put on multiple live events at this point. They hosted a live golf tournament last year. And just this past weekend, they put on a tennis match in Las Vegas between tennis legend Rafa Nadal and one of the biggest young stars, Carlos Alcores.

I'm a big tennis fan, so I actually watched that match. It was great. And don't forget the $5 billion deal that Netflix signed with WWE for their streaming rights. Now, Jake Paul fans might get mad at me for saying this, but I kind of wish Netflix got real boxers and not like Jake Paul and a retired legend like Mike Tyson, who's 58 years old and needs a crane to walk. But I'm just kind of being a hater, you know, because I'm sure this event's going to do huge numbers.

Like, I'm probably going to watch it. Actually, let's put up a poll on Spotify. We're going to put up a poll on this episode. Tell us if you plan to watch the Mike Tyson, Jake Paul, fight on July 20th. All right, let's talk about some stocks making moves today. Starting with Gap. The iconic clothing company reported earnings yesterday,

and their stock is up more than 8% as a result. In those earnings, they beat Wall Street estimates on top line and bottom line. And if you dive a little deeper, most of the growth from Gap came from Old Navy. See, Gap owns multiple brands. brands like they owned a Gap brand, Banana Republic, Athleta, and Old Navy. And the biggest winner out of all those was Old Navy. It's the company's largest brand, and it had an increase in sales for the first time in over a year.

Sales grew by 6%. I mean, those Old Navy jeans are pretty awesome. If you look at the other brands that Gap owns, it wasn't as good of a story. The main Gap brand was down 5%. Banana Republic sales were down 2%. And Athleto was down 4%. So Old Navy is kind of carrying the whole company on its back right now. Speaking of an iconic company, Costco reported earnings, and their stock dropped more than 4%.

Costco's revenues were up 5% to $58 billion. Their net income was up to $1.7 billion, yet the stock still dropped more than 4% because Wall Street was expecting more. Costco's stock over the last six months has gone up more than 40%. And because of that, investors have a higher expectation for Costco. But if you look at the overall numbers for Costco, they saw increase in store traffic, they saw increase in sales, increase in profits. their e-commerce sales grew by 18%.

So, you know, things are going pretty well, but not good enough for Wall Street, I guess. All right, let's wrap the show with a quick fun fact. Today's fun fact is about Mike Tyson. According to estimates, Mike Tyson made more than $400 million in career earnings from his fights. And if you adjust that for inflation, that's more than $700 million.

But regardless of making all that money, unfortunately, Mike Tyson admitted that he blew most of it. So kind of a sad thing, but shout out to Iron Mike. Now, I never really saw Mike Tyson fight in his prime, but that's one of the athletes that the older generations can't stop talking about. You know what? I think I'm definitely going to be watching this fight on Netflix in July.

Because, I mean, how cool would it be if he knocked out Jake Paul? All right, guys, we did it. Another great show. Another great week. Thank you guys so much for listening. The show has seen a lot of growth over the last couple weeks. We appreciate everyone that's listened. We appreciate everyone that's rated us five stars on Spotify and Apple Podcast.

I mean, it really means a lot. Remember, we put out shows every weekday. Have a good weekend, everybody, and we'll be. Back here on Monday breaking down the financial news. 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. 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 Zayid Admani, brokerage services for U.S. listed, registered securities are offered by Open to the Public Investing Incorporated, member FINRA and SIPC.