Down 24% YtD.
Layoffs and Freezes and Downgrades and Upgrades
Apple downgrade: The iPhone maker dropped 4.9% after Bank of America cut its rating to neutral from buy, warning of weaker consumer demand for its popular devices. The selloff erased roughly $120 billion from Apple’s market capitalization.
Nike down 10%. Inventory up 44% QoQ.
Netflix
Netflix up 35% in quarter from $175 to $240.
Federal Reserve
The Fed led by Jerome Powell raised the Fed Funds rate 75 bps to 3.0 - 3.25%. Expectation is now 4.0 - 4.5% by year end. Powell is determined to sink the economy to drive inflation to 2%. Why 2 and not 3%. We have a strong economy, strong underlying demand, low unemployment and the Fed is determined to destroy that.
CathieDWood (@Cathie Wood) Tweeted: The Fed is basing monetary policy decisions on lagging indicators: employment and core inflation. Leading inflation indicators like gold and copper are flagging the risk of deflation
Commodities
Commodities are down.
Housing
Housing: 30 year mortgage rate is up from 3% to 7%. Result: $23k increase in down payment (assuming 20% down) and 100% increase in monthly payment (from $1,345 to $2,694).
Tesla
Tesla Recall. NHTSA FUD. Tesla is recalling more than a million cars because of defects in their automatic windows that could injure passengers, the nation's auto safety regulator said.
FSD Beta. Rolling out to all owners with driving score >80.
Tesla AI Day.
What are Jim and Mary thinking?
Quote: Children are happy because:
