The Rundown - Tesla Hit with Downgrade, Boeing Drama Weighs on Airlines

Episode Date: March 13, 2024

Stock market update for March 13, 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 Zadmani, and today is Wednesday, March 13th. In today's episode, we talk about the stock market continuing to make all-time highs, even though it doesn't really make any sense right now. We also catch up on airline drama. These airline CEOs are really upset with Boeing right now. And finally, we wrap the show highlighting some stocks that are making moves today and end the show with a shocking fact about options trading.

This one truly blew my mind. All right, let's get into it. Well, stocks were back to making records on Tuesday. The S&P and NASDAQ both added more than 1%. And the S&P closed at record highs. That's pretty impressive, especially if you consider the fact that the CPI report that came out yesterday was hotter than expected.

And typically, you would think that a hotter inflation report would spook investors and cause a sell-off. But no, we're actually back to making record highs. It just seems like the market momentum is too strong right now that even a hot CPI report isn't enough to solve. slow things down. And look, I'm not complaining, all right? I like seeing the green arrow every time I open up the public app. Speaking to green arrows, NVIDIA was back to melting faces yesterday. The stock jumped more than 7% in a single day. It's just crazy whenever a company that size makes moves that

big. Invita is closing in on Apple as the second most valuable company in the world. Invita is less than $400 billion away in market cap from overtaking Apple. And at this point, it just seems inevitable. Nvidia seems to have all the momentum, and Apple has been in a slump all year. We're going to make that the Spotify poll today. Will Nvidia overtake Apple in market cap this year? So if you're listening to this episode on Spotify, just tap the episode and vote in the poll. I got a feeling that maybe 80% of the people are going to vote yes. Maybe even more.

All right, let's fly through some headlines, starting with Boeing. We all know the bad start that Boeing's had to the year. Their planes keep having problems. Doors flying off mid-flight, wheels falling off during takeoff, random emergency. emergency landings, engine failures. I mean, it's been all over the news. And things keep getting worse for Boeing. Like an FAA audit found that Boeing has failed to comply with quality control requirements. And now the DOJ has started a criminal investigation into Boeing regarding the door flying off the Alaskan Airlines flight earlier this year. And to add another twist to this

whole Boeing story, a Boeing whistleblower was found dead on Saturday. I mean, what is going on here? And all these problems at Boeing are starting to impact businesses of major airlines, especially airlines whose fleet is heavily made up of Boeing like Southwest, Alaskan and United Airlines. These airlines are now having to revise their business forecast for the year because Boeing keeps delaying the delivery of their planes. And Southwest seems to have it the worst. Their entire fleet is Boeing. And this year they were supposed to get 58 new planes. Well, Boeing said they're only going to be able to deliver 46 of them, which means that's less seats for Southwest to sell and less revenue that they can bring in. So now Southwest has to revise their entire business forecast

for the year and their stock dropped 14% on Tuesday as a result. And these airline CEOs are taking shots at Boeing every chance they get. Like the CEO of Southwest Airlines this week said that Boeing needs to become a better company and then deliveries will follow. And United Airlines CEO has asked Boeing to just stop making the max 10 planes and just at least deliver the max 9 planes. They're like lowering the expectations for Boeing. Like it is bad right now.

You know who's got to be loving this though? Airbus. They got to be sitting back and just collecting orders. orders right now. We also got a quick update on the TikTok ban story. CEO of TikTok went on Capitol on Tuesday to lobby against the bill that would force TikTok's Chinese parent company to sell TikTok to a U.S. company, Oregon banned. I think the vote on the bill in the House of Representatives is scheduled for today. So we'll know if this bill is going to move on or not today. And it looks to me that TikTok executives were kind of caught off by all of this. I think they thought that once President

Biden joined TikTok a few weeks ago, that there was no threat of a U.S. ban happening anymore. But no, these lawmakers have surprised them, and this bill is moving incredibly fast. I'm sure there's going to be litigation if this bill even passes. So this story is far from over. We'll keep you guys updated. All right, let's highlight some stocks making moves today. Starting with Petco. The stock for this pet retailer is up more than 8% at the time of this recording after reporting better than expected Q4 earnings.

These earnings, they said that sales were up 6% to $1.7 billion. It was higher than what Wall Street was expecting. You know what? I'm happy for Petco investors because there really hasn't been much. to smile about recently. The stock has dropped more than 70% over the last 12 months. So this, this bounce back today is nice to see for them. On the other end, we have a retailer not doing so great today. Dollar Tree. Dollar Tree stock is down more than 13% today after reporting disappointing Q4 earnings and disappointing Q1 guidance. The main takeaway for earnings was that shoppers are

spending less at the stores. And as a result, Dollar Tree is looking to close over 600 family dollar locations in the first half of this year and another 300 locations over the next several years. Another stock having a down date today is Tesla. The stock is down more than 2% following a downgrade by Wells Fargo securities. Wells Fargo turned bearish on Tesla, dropping its rating and slashing its price target to $125 a share. Before this, their price target was $200 a share. So that is a big cut in their price target. Analysts are warning that price cuts on Tesla vehicles are having a diminishing effect on vehicle sales and they think that disappointing deliveries and more price cuts are going to lead to negative earnings moving forward. It's been a tough year for Tesla investors. All right, guys,

let's wrap up the show with a fun fact. Today's fun fact is about options trading and this one just truly blew my mind. 80% of stock options trades in the world happen in India. Indian investors are just obsessed with options trading right now. And the stats around options trading in India are just mind-blowing. Like, for example, options activity has grown by 10x in India since 2021. That's a huge jump. Also, 95% of options traded in India are weekly contracts. That's very short duration. Now, look, options trading can be a tool used as part of a balanced portfolio. And in fact, if you want to dip your toes into options trading, you can do that on public.com now. Public.com has no commission fees, no contract fees. And in fact, if you sign up by March 31st, public will give you a rebate for

every contract that is traded. I bought some options this week as an earnings play. Super simple to do. Now, that trade didn't really work out for me, but it was really easy to pull off on public.com and in their public app. All right, guys, that's all I got for you guys today. Another fantastic show.

Remember, if you're listening to this on Spotify, don't forget to vote in the poll on today's episode. And while you're there, maybe drop a five-star rating as well. This podcast is now number 13 on the Spotify top business charts. So this could not be possible without you guys. We really appreciate all the love.

Thank you guys again for listening. 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 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.

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