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Hey there weekday warriors,
Morgan Stanley’s new CEO is having one hell of a rookie season.
Enjoy the next 4 minutes and 8 seconds of blue-chip news and commentary.
Keep on snapping necks and cashing checks,
PS, isn’t it time you stopped overpaying to the IRS? Get Gelt and get strategic about your taxes.
PPS, book a call right now with Gelt and get 10% off your services.
+ US stocks “popped on Wednesday, rebounding toward record highs, as investors digested a barrage of earnings results highlighted by Morgan Stanley.” (Yahoo! Finance)
+ The 10-year Treasury yield “wavered Wednesday as bond traders digested the latest comments from Federal Reserve officials this week.” (CNBC)
+ Oil “held near a two-week low on Wednesday after dropping about 7% over the prior three days on forecasts for less oil demand growth and reduced concerns that Middle East conflicts will disrupt supply.” (Reuters)
+ Bitcoin “rose on Wednesday, steadying close to a near 3-month high on hopes that the 2024 U.S. elections will yield friendlier regulations, while improving capital inflows also boosted prices.” (Investing)
+ The three most talked about stocks on WallStreetBets in the past 24 hours were: 1) Nvidia +3.1% 2) TSMC +0.1% 3) Trump Media +15.5%
The market moves you need to know about…
+ Wait, what? Expedia shares popped 7.1% after hours, following a report that Uber had considered (is considering?) making a move to acquire the travel booking company.
– Novavax’s new 2-for-1 special is on hold. Shares of the vaccine maker fell 19.4% on news that the FDA had put a combo flu/’rona boi vaccine on ice after it caused nerve damage during a phase 2 trial. Oof.
+ Lithium Americas mooned 23.2% after it inked an investment deal with GM to mine lithium in Nevada. It’s called mineral independence. Look it up.
Teddy Finance
Source: Giphy
“Look at me, I’m the captain now.” - Ted Pick, the (new-ish) CEO of Morgan Stanley
Ted Pick just stuffed his much more tenured peers in a locker (think: one of those really nice lockers they have at Augusta National or some other country club, but a locker nonetheless).
Shares rose nearly 7% after MS (+6.4%) shared rosy results, bringing the gainz during Pick’s tenure to almost 60%. ICYMI, MS, erm, picked Ted to replace Jim Gorman as Chief Exec last October.
How though?
Not unlike its rivals up and down the Street, Morgan Stanley’s investment bank made it rain. IB revenue jumped 56% in the quarter.
But it wasn’t just the former Duke Lacrosse players over in IB putting up huge numbers. Once again, Morgan Stanley flexed its wealth management muscle. Net new assets jumped 76% vs. the same period a year ago. Save some for the rest of us…
Company-wide profit soared 32% and Ted Pick just bought himself a few years of leeway.
I’ll just leave this right here…
+ Your move, Zuck.
First, Microsoft decided to fire up America’s Chernobyl (I know, I know, it’s a different reactor at Three Mile Island…) to help power its AI ambitions. Then, earlier this week, Google said it was trying its hand at nuclear-powered servers (hopefully it goes more smoothly than literally anything else they’ve tried with AI).
Now it’s Amazon’s (-0.4%) turn. Andy Commerce inked a deal with Dominion Energy to “explore” the development of a small nuclear reactor in Virginia. Somebody has commitment issues…
Amazon has reportedly earmarked $500M for nuclear power projects across the country that will fuel AWS’ massive data centers.
+ Tell me it’s over, without telling me…
EV maker Lucid (+0.3% // -12.2% after hours) informed the Shortseller Enrichment Commission that it plans to sell up to 262M new shares from “time to time.” The stock plummeted to below $3 on the news (reverse stock split incoming?).
Turns out its luxury EV business model has made it hard to compete (think: inability to cut prices) and its crippling debt load has made it hard to breathe. Shares are down 21% YTD… which is not as bad as I was expecting.
+ Mattress Firm should really consider casting a McKinsey consultant in their “how do you sleep at night?” campaign…
The consulting firm that gives major Slytherin vibes is nearing a $500M settlement that would make the Federal government forget all about its work with opioid makers. No word on how much BCG billed to consult them on the decision…
McKinsey helped companies that made addictive painkillers sell even more addictive painkillers via marketing and sales advice. The company said, “Our past work for opioid manufacturers, while lawful, fell short of the high standards we set for ourselves.”
Uncle Sam respectfully disagrees… although McKinsey won’t have to admit guilt. Because, of course, they won’t.
+ PepsiCo is canceling “shrinkflation”… for the holiday season at least. The company said in select locations that it will sell “bonus” bags with 20% more chips for the same price. Or as we called it in 2019… ‘a regular bag of chips.’
The company that we should probably cut some slack (I mean, they gave us Flamin’ Hot Cheetos, you guys…) will also add 2 bags to its 18-bag chip variety packs.
+ The Guru Who Says He Can Get Your 11-Year-Old Into Harvard. I would rather have my kids go to JuCo than leave them in a room alone with this guy…
+ Is now the right time to apply for that travel card? There’s never been a better time to make airline miles a huge part of your personality.
+ Starbucks fans want their milk back. We used to be a country… a proper country.
+ Ending Subscriptions Will Get Easier With New ‘Click-to-Cancel’ Rule. This is bad news for Planet Fitness…
🔥 The No. 1 way to get more respect at work: ‘I’ve been teaching it for decades,’ says leadership expert. #2 is sitting in your boss’s office when they’re not around and making your colleagues call you ‘Your Highness’
🔥 How a rare type of mortgage is landing homebuyers a 3% rate. Who needs a mortgage when you can squat?
FYI, TWC might be compensated if you click on the links above. So, what are you waiting for? Start clicking.
⏪ Yesterday we heard from ASML (jk), Abbott, Morgan Stanley, US Bank, and Citizens reported before the open. CSX and Discovery reported after hours.
⏩ Today we’re keeping an eye on…
+ TSMC, Blackstone, Truist, Travelers, M&T, Huntington Banc, Key Bank, and Snap-on drop earnings this AM
+ Netflix reports after the close
+ The European Central Bank is expected to cut interest rates
+ The September retail sales report drops
Yesterday, I asked, “You get paid $1.5M per year, but you have to sleep for 18 hours a day (all 18 hours in one stretch, but you can pick your bedtime). Are you taking the deal?”
62.3% of you are a HARD PASS.
Here’s what some of you guys had to say (and my thoughts in italics)…
Yes: "Wake up, play 18 holes (pound a dozen beers), grab a bite to eat and repeat."
Nah: "Life is meant to lived, maaaaan. (Matthew McConaughey voice)"
Yes: "What's the catch?"
No way: "No, I will not become a cat for $1.5M a year"
Yes: "Just lean into the depression"
Yes: "be up 10pm-4am. f*cking rage daily"
NOPE: "You would spend the money managing your f*cking bed sores." It did not go unnoticed that you self-censored with the asterisk. You’re a gentleman and a scholar.
And here’s today’s questions…
Apparently, some people are being nice to AI chatbots…
Are you nice to AI chatbots (think: 'please' and 'thank you')? |
What did you think about today's newsletter? |
Does this look like the face of a guy you should take financial advice from?
No, it’s the face of an individual who is financially irresponsible/dumb enough to be talked into spending money on a family photo shoot that he could have just done with his iPhone. So, act accordingly...
This is not financial advice. Nothing in this newsletter is an investment recommendation. All content is created for entertainment, educational, or informational purposes only. Do your own research, or do yourself a favor and hire a professional.