The Rundown - Tesla Reveals New Model Y Design for China, Delta Soars on Earnings Outlook

Episode Date: January 10, 2025

Stock market update for January 10, 2025. Follow us on Instagram! @therundowndaily

Public.com presents the rundown. Your daily market update in five minutes. My name is Zad Admani, and today is Friday, January 10th. In today's episode, we recap the blowout jobs report and tell you why the markets didn't love it. We also discussed another major shakeup happening in the streaming world and Tesla's new Model Y. Then stick around to the end of the show to find out why energy stocks are rallying, insurance stocks are dumping, and how much homeowner's insurance has gone up over the last year. All right, let's go.

Well, the stock market just continues to have a choppy week. On Wednesday's stock spent most of the day in the red before rallying around lunchtime. In fact, the S&P squeezed out a 0.1% gain while the NASDAQ finished flat. Now, the markets were closed yesterday for former president Jimmy Carter's funeral. But things are back to normal today, and I've been hyping up Friday's episode all week, and I don't think you're going to be disappointed because we already have some big news to report. The December jobs report just dropped this morning and oh my God, we have blowout numbers. The U.S. economy added 256,000 jobs last month, way more than the 155,000 that was estimated.

On top of that, the unemployment rate dropped to 4.1%. And what's interesting about this report is that the stock market is dropping on this news. I'm recording this show before the market opens and I'm looking at the pre-market number. it is red across the board. And I think it's because a strong labor market means that the Fed is less likely to keep cutting interest rates. And stock market investors obviously don't like that.

They want more rate cuts. So this is one of those situations where good news is bad news for stocks. On the flip side, more people have jobs, which I think is a fantastic thing. So yeah, I wonder what the vibe is going to be like going forward. You add in the fact that earnings season is about to kick into gear,

the next few weeks should be very interesting. Depending on how earning season goes, it could set the tone for the markets for the rest of the year. So if you're a new listener to the podcast and you haven't subscribed already, it's a great time to do it because we're going to have a lot to talk about over the next few weeks. And longtime listeners know I get so hyped around earnings season. Let's run through some headlines. We have another shakeup in the streaming wars.

Disney Fox and Warner Brothers are ditching plans to launch their collab streaming platform called Venue Sports. These three companies first announced that they were working together on a streaming platform about a year ago. All right. So this has been in the works for a while now. But in a joint statement this morning, they're saying that they are not moving forward with this joint venture and instead focusing on their existing products and distribution channels.

The reason this is pretty shocking is that Disney just made a deal earlier this week to buy 70% of another streaming platform called Fubo. And they were planning to merge Hulu Live with Fubo. But the main reason for buying Fubo was so Fubo would drop their legal dispute against Disney. And the other venue. partners. I'm not going to rehash the whole thing here. We talked more about it on Monday's episode, so go check that out if you missed it. But as part of that merger, that legal dispute

was going to be dropped, and everyone thought that this was going to clear the way for Disney, Fox, and Warner Brothers to launch this venue sports streaming service. It's a good time to do it, too, because you've got the NFL playoffs happening. The Super Bowl is right around the corner, but I guess they're not moving forward. So why did Disney make a deal with Fubo in the first place? I don't know. Pretty confusing. Maybe this is just one chess move out of multiple moves that Bob Eiger is planning to make, but right now things look pretty confusing. Just taking a look at the market reaction, Warner Brothers stock is down more than 4% while Fubo's stock is up more than 8% on this news.

So maybe the markets think that Disney will integrate more with Fubo now moving forward. I don't know, something to keep an eye on. Let's shift gears and talk about Tesla. They just revealed a new design for the Model Y in China. The Model Y is one of the most sold cars in the world, and now the design is being refreshed to stand out a bit. I'm looking at this redesign right now. It looks pretty futuristic.

I'm not going to lie. The headlights and tail lights kind of give me cyber truck vibes. It's got a chrome finish as well. On top of that, it's got new features. Like the second row seats will be power folding. It's going to have a bigger center display. It's also going to have a rear display. So I think it's a pretty good refresh.

You know, I bought a Model Y last year, and I kind of wish I waited for the refresh before buying one. According to Tesla, the Model Y will be able to reach more than 62 miles per hour in 4.3 seconds. It's going to have a longer battery life as well. and the new model will start deliveries in March and China only. No word on when this new version is going to come to the U.S. This new model comes at a time where Tesla reported their first annual sales decline in over a decade. So I'm sure Tesla is hoping that this new version will help boost sales.

Let's talk about some stocks making moves today. Shares of Delta Airlines are rising after the company reported their Q4 earnings this morning, beating expectations and providing a strong Q1 outlook. The airline expects strong travel demand in 2025. In fact, the CEO said that 2025 could be Delta's best year in the company's history. And that had investors pretty excited. Delta shares are up more than 6% this morning on this news. Delta's stock quietly has been on a nice run recently.

The stock was up 45% in the last year. And they've been doing pretty well betting on premium travel demand, which seems to be working out pretty well. You know, compare that to low-cost carriers like Spirit Airlines and Southwest Airlines, which have been struggling recently. Southwest stock is down 40% in the past five years, and Spirit Airlines had to declare bankruptcy back in November. Another stock having a big morning is Constellation Energy. The largest nuclear power plant operator in the U.S. announced that they are acquiring Calpine for $16.4 billion.

Calpine is one of the country's biggest power generators operating a vast fleet of natural gas plants, many of which are in Texas and California. This energy and utility sector is getting a lot of buzz recently. The demand for energy is increasing, especially as big tech companies like Microsoft and Amazon, are looking to power their AI data centers, which take up a lot of energy. And Constellation has been a beneficiary of that demand, as nuclear has become a top choice for these big tech players. And it shows in the stock price. Last year, Constellation Energy stock more than doubled, and it's up another 20% this morning

on the news of this acquisition. Now, on the flip side, shares of insurance providers are falling as wildfires in L.A. continue to burn through parts of the city. J.P. Morgan estimates that it will be the most expensive fire in history, costing insurance companies north of $20 billion. Shares of travelers, Allstate, and Chubb are down between 3 to 5% this morning. Let's wrap the show with the fun fact. Now, this isn't really a fun fact, but I think it's worth bringing up right now.

The price of home insurance went up 23% between 2023 and 24, according to bank, And in some states, it's gone up more than that. Like, where I live in Texas, prices are up more than 25%. And that's making the cost of home ownership even more expensive. In fact, on average, 32% of a mortgage payment now goes towards home insurance and property taxes, according to the Wall Street Journal. And in some parts of the country, it's way more. Like, I'm just looking at my personal home in the Houston area.

Insurance and property taxes make up about 40% of my mortgage. So, yeah, home insurance continues to get more pricey. And it looks like mortgage rates aren't coming down either. the cost of home ownership just continues to go up. I'm sure we're going to be hearing and discussing more about the cost of home insurance over the next few weeks as it's become a hot topic because of the fires in L.A. Well, all right, guys, that's the rundown for today. That's the rundown for this week.

Hope you guys enjoyed today's episode. We are going to have a deep dive episode come out this weekend, so keep an eye on your podcast feed for that. And like I said, the next few weeks should be very interesting with earnings season kicking off. We have a Fed meeting coming up in a couple weeks. Trump is taking over the White House in a handful of days. The TikTok ban might be happening any day now. So we'll have a lot to talk about.

Remember, new episodes drop every day the stock market is open. And we got bonus episodes on the weekend. So if you guys enjoy the show, consider giving us a five-star rating on Apple, on Spotify. Vote in today's Spotify poll. Leave us a comment on Spotify. Share this episode with a friend. Follow our Instagram account for bonus content and clips of this podcast. All that engagement really does help us out.

And it helps other people find the show. Thank you guys so much for listening. Shout out to Mike and Connor for all the help behind the scenes. And we'll see you guys. back here on Monday.