Earnings Season In Full Swing

Good Morning Everyone!

ChatGPT creator OpenAI has quietly hired hundreds of international contractors to train its AI tech. Paving the way to replace some software engineers.

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Prices as of 4 pm EST, 1/30/23; % YD

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MARKET UPDATE

Last trading day of January

Tomorrow: Fed and OPEC+

Crude 77.40 -0.6%

China

• PMI data better than consensus

  • Manufacturing in-line at 50.1

  • Services 54.4 vs. consensus 52

  • Internal demand strong and external demand weak

• Biden considering cutting off Huawei from its American suppliers

  • Intel and Qualcomm

  • Since the Trump days, sales have been limited needing government approval

  • Biden would fully cut off Huawei

Exxon XOM

• $56 billion profit in 2022

• Quarter: earnings beat, $3.40 vs. consensus $3.30

• Missed on operating metrics

• Adjusted Cash Flow $17.8 vs consensus $18.3

Workday WDAY

• Cutting 3% of workforce

Hootsuite (private)

• Published Digital 2023 Global Overview Report

Meta META owns 4 of the top 10

• Meta cuts pricing of the Quest Pro from $1,500 to $1,100

• Remember, Apple’s product will be priced at $3,000

Earnings

• GM GM +4% EPS $2.12 vs street $1.69,

• NXP Semi NXPI -1% weak Q1 outlook

• Samsung -4% no capex cuts in memory             

• Whirlpool WHR +1% EPS guide $16-18, street $16.33

• Pfizer PFE -3% slight top-line miss, guide light  

• McDonald’s MCD -2% beat boosted by higher menu prices

• UPS UPS +2% quarter and guide in line, raising dividend            

• Caterpillar CAT -2% EPS touch light due to FX, backlog strong, stock near all-time highs

• UBS UBS -2%, investment banking weak           

• Moody’s MCO -1% guide $9.00-$9.50 vs street $9.28

• Spotify SPOT +9% subs 250 million vs. street 202,000, Ad supported revs +14%

• Pentair PNR +1% modest beat, guide above street

CRYPTO UPDATE

Ordinals protocol

• Stores NFT on Bitcoin BTC/USD blockchain

• Bitcoin maxis are not happy

  • Think should only be used for financial purposes

  • Not monkey jpegs

• If protocol takes off, could create congestion on blockchain

  • Increased transaction fees per block

Weekly digital asset fund flows

• +$117 million inflows

• Largest since July 2022

• Almost all Bitcoin ($116 million)

• AUM ($28 billion) 43% over November lows