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

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