The Rundown - TSMC Gets $6.6B from Biden, Spotify Rolls Out 'AI Playlist' Tool

Episode Date: April 8, 2024

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Public.com presents the rundown, your daily market update in five minutes. My name is Zadmani, and today is Monday, April 8th. In today's episode, we get you ready for another action-pack week on Wall Street. We got inflation data coming out this week. We got big banks reporting earnings this week. Also, DSMC just landed $11 billion from the U.S. government. And Spotify has a new AI feature that might justify its price increase. Then we wrap the show highlighting some stocks making moves today,

and a fun fact about gold. All right, let's get into it. Well, guys, last week, not a great one for Wall Street. The Dow, S&P, and NASDAQ all finished lower last week after multiple Fed officials hinted at the possibility of no rate cuts anytime soon. And markets did not like that. Now, thankfully, the markets did end the week on a positive note on Friday after a strong jobs report showed that the U.S. economy added 303,000 jobs in March,

much higher than expected. So the job market continues to stay pretty hot. And that news was so great that we had a literal earthquake on Wall Street on Friday morning. So let's hope that stocks can build off that momentum this week. But hopefully no more earthquakes. There is a lot happening this week. We got the solar eclipse happening today. We got the March CPI report coming out on Wednesday morning.

That's going to be a pretty big one because we've had back-to-back months of hotter than expected inflation. So I think investors are really hoping for some signs that inflation is back to cooling off. We're going to find out on Wednesday morning. So make sure you guys are tuning into the rundown because we'll cover it. Oh, and we have earnings season kicking off this week. Many big banks will be reporting their Q1 earnings on Friday. And over the next few weeks, we're going to get a look under the hood of how companies did in Q1. Speaking of Big Banks, Jamie Diamond, the CEO of J.P. Morgan Chase, the biggest bank in the world,

released his annual shareholder letter. And in that letter, he said that the biggest issue facing the bank was AI. He went on to say that AI will be as impactful to humanity as the printing press, electricity, and computers. So it looks like Jamie Diamond is fully going in on the AI hype. Jamie Diamond famously not big into crypto, but I guess AI, he's fully embraced. I guess it's just a matter of time before bank tellers get replaced with automated machines that can deposit your checks or dispense cash. We're probably not too far away from that future. Let's run through some headlines.

Taiwan Semiconductor, also known as TSM, the world's largest chip manufacturer, will get up to $11 billion from the U.S. government. The funding is part of the U.S. chip stack. which is going to support TSM's more than $65 billion investment to build three cutting-edge manufacturing plants in Arizona. The deal includes up to $6.6 billion in grant funding and as much as $5 billion loan to help build an American chip factory in Arizona. This is a pretty big deal because TSM makes chips for some of the biggest companies in the world, like Apple and Nvidia.

And most of their factories are in Taiwan. Well, TSMC plans to build three factories in Arizona with the first expected to begin production in 2025. Now, as a refresher, the chip sack, which was passed back in August of 2022, is this 50-plus billion-dollar package aimed at building up the U.S. domestic chip industry. Because right now, most chips are manufactured overseas, especially Taiwan. And for purposes of national security, the U.S. wants to increase more production state-side. According to the projections from the Commerce Department,

the U.S. is untracted to make about 20% of cutting-edge chips globally by 2030. In 2020, the U.S. had about a 12% share, which is down from 37% in 1990. This is according to the Wall Street Journal. And DSMC is not the only winner as part of this Chips Act initiative. The U.S. Commerce Department is issuing out $39 billion in grants. And it's already announced a couple weeks ago that $8.5 billion of that is going to Intel. And the rumor is that the Commerce Department will announce a multi-billion dollar package for Micron in the next few weeks. Switching gears a bit, Spotify made some news this morning.

They announced a new feature that will allow you. users to create AI playlist. It will allow users to create new playlist based on text instructions. Think of it like chat GPT, but to make playlists. You can ask it to make playlist for you to hype you up at the gym or go on a date or whatever. Right now, this feature is only available in the UK and Australia. We don't know when it's going to be released in the U.S., but Spotify said it will be working on the product in the next coming months. If you're listening in the UK or Australia, let us know how it is. Seems like a pretty cool feature to me. I can't wait to try it out. Now, this isn't Spotify's first move into AI.

Spotify previously released an AI DJ in February of last year. The AI DJ is kind of like a radio station that plays songs based on what you've previously listened to. It's kind of like the AI version of Pandora, if you guys remember that from like 10, 15 years ago. I've used the AI DJ. It's pretty good. Let's talk about some stocks making moves today. Tesla stock is up more than 3% this morning after CEO Elon Musk announced plans to

reveal the company's Robotaxy on August 8th. Tesla's Robotaxy service has been long awaited by Tesla fans and stockholders. I think Elon first talked about it back in like 2019. I mean, back then he said that Robotaxis would be operational by 2020. Obviously, that didn't happen. But maybe 2024 is the year. We'll keep you guys in the loop. Stock not doing so hot this morning is Southwest Airlines and Boeing.

They're both down more than 1% this morning. After a Southwest operated Boeing 737 plane had some problems over the weekend, the removable engine cover flew off the plane mid-flight and hit the aircraft's wing. The flight was going from Denver to Houston. Now, the airplane did return safely back to Denver, and passengers were put on a different aircraft for their flight to Houston. But the FAA has opened an investigation into the event. Oh, Boeing.

All right, let's wrap up the show with a fun fact. Today's fun fact is about gold. Gold continues to make all-time highs. The price of gold crossed 2,300. in ounce over the weekend. In fact, gold has been on such a heater this year that it's actually been a better investment than the S&P 500.

The price of gold is up more than 13% this year while the S&P 500 is up about 10%. That's not bad for a shiny rock. I know gold is a very controversial topic. Some investors love it. Some investors don't. I've personally never been that big of a gold guy.

But I want to know what you guys think. Would you guys consider adding gold to your portfolio? We're going to make that the Spotify poll of the day. So if you're listening to the show on Spotify, tap today's episode and vote today's poll to let us know. I cannot wait to see these responses. All right, guys, well, that's all I got for you guys today. Hope you guys enjoyed that episode. We have an action-packed week this week, so make sure you guys are tuning in every day. And if you guys really

enjoyed today's episode, consider giving us a five-star rating on Apple and Spotify. We're getting really close to hidden 1,000 five-star ratings on Spotify. So thank you to everyone that's already given us those five stars. And shout out to Mike and Connor for all to help behind the scenes. Thank you guys again for listening 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 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 Zaid Admani. Brokridge services for U.S. listed, registered securities are offered by Open to the Public Investing Incorporated, member FINRA and SIPC.