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Wednesday's Scoop: Float ☀️
Southwest flight attendants strike & Tesla loses speed
Scoops Team
January 24, 2024
Hey friend - I’ve been ranting a lot lately. P&G got me a little steaming.
Here’s what you need to know today…
Big Picture
Business activity picked up in January.
Home buyers are jumping at slightly lower mortgage costs.
China’s trying to stimulate its economy.
The Market: ⬆️ +0.1%
S&P 500: 4,868.55
1Mo: +2% | 1Yr: +21% | 5Yr: +83%
The market drifted to another high score today, fueled by enthusiasm from positive tech industry reports but held back by some disappointing updates in other industries.
Things seem to be improving for the US economy. S&P Global reported a jump in business activity across manufacturing and services sectors in January as its Composite PMI Output Index rose to the highest level since last June. There was also good news for inflation. S&P’s measure of prices companies charge for their products fell to the lowest in 3.5 years.
New home buyers are getting impatient, waiting for things to get more affordable. The Mortgage Bankers Association said applications to purchase a home jumped 8% last week despite the average 30-year fixed-rate mortgage rising to 6.78%. That’s significantly lower than the peak of rates in October but still nearly double what mortgages cost two years ago.
The world’s second-largest economy wants to be growing faster. China’s central bank reduced the required cash banks have to keep in reserve to stimulate more lending and investment and reverse the slump in China’s real estate and stock market. China hinted it would unveil more stimulus policies throughout the year to spark more growth.
How are you feeling about the economy? |
Company Scoops 🗣️🌎💰
💡Practice having an opinion. Build your voice. It accelerates your comprehension and comfort with these topics.
 Southwest | Striking Deals Southwest's 11,000 pilots negotiated a 50% pay raise over five years and better benefits, including a 29% immediate salary bump. Southwest's 21,000 flight attendants just authorized a strike, demanding improved pay and scheduling demands. |
 Boeing | Intense Scrutiny Regulators have dispatched dozens of officials to investigate Boeing's factories after a series of dangerous airplane malfunctions and production issues. Two of Boeing's biggest customers, United and Alaska, expressed anger and plans to switch manufacturers. |
 Plug Power | Cash Lifeline Plug Power has nearly secured a $1.6B government loan and plans to sell another $1B of stock to fund the development of six hydrogen production facilities. The hydrogen energy company warned investors in November that it may go out of business. |
 Chipotle | Extra Work Chipotle aims to recruit 19,000 new employees for its busy spring season, 27% more than last year. The Mexican food chain will offer new benefits to help workers build credit and retirement savings. |
 Tesla | Losing Speed Tesla suffered from weak sales and shrinking profitability last quarter thanks to price cuts and low demand, and it expects sales to slow further in 2024 while it develops a new car. Tesla's solar energy and storage business provided a boost. |
(These links only work for 24 hours while the story is live.)
Inside Scoop 🤓
What do investors look for during earnings season?
One of the most critical components of corporate financial reports is the guidance. Public companies must report on their financial health each quarter, releasing standardized metrics on their sales, expenses, debt, profit, etc. All of that information, though, is backward-looking. Investors buy stock for a share of a company’s future earnings (aka profit).
Companies often issue guidance or provide projections for future sales and earnings. This gives investors a sense of optimism or pessimism from those who know the company the best. Forecasted metrics are not required, so many companies have often avoided making projections over the past few years, given the unprecedented economic events. If they do report, you'll hear that they may have raised or lowered guidance, meaning they expect higher or lower profit/sales/whatever than they projected last time. You might also hear guidance compared to Wall Street analysts' projections or estimates.
Join the conversation