Hey there weekday warriors,
There’s petty. Then there’s Elon removing the Disney+ app from Tesla’s in-car operating system.
Elon and Disney CEO Bob Iger are currently beefing. DIS pulled its ad dollars from X, which prompted Elon to call out Bob very publicly at a recent event.
Here’s what else we’re getting into…
Tensions in the Red Sea could cause supply chain issues
Affirm seals another deal with Walmart
FedEx does not deliver
Enjoy the next 4 minutes and 5 seconds of blue-chip news and commentary.
Keep on snapping necks and cashing checks,
+ US stocks “were higher after the close on Tuesday, as gains in the Basic Materials, Oil & Gas and Consumer Goods sectors led shares higher." (Investing.com)
+ The 10-year Treasury yield “edged lower on Tuesday but held above last week's multi-month lows as investors continued to digest comments from Federal Reserve officials for indications on when the U.S. central bank is likely to begin cutting interest rates." (Reuters)
+ Oil "settled at two-week highs Tuesday, as a rise in vessel attacks along a key Red Sea shipping route has stoked concerns of supply disruptions at a time and eased concerns somewhat of supply outstripping demand." (Reuters)
+ Bitcoin hovered around $42k for most of the day.
+ The three most talked about stocks on WallStreetBets in the past 24 hours were: 1) Nvidia -0.94% 2) Tesla +2.04% 3) Marathon +1.10%.
Yacht rockets
(Source: Giphy)
Wake up, babe… new global supply chain disaster just dropped…
That’s right, international shippers and proprietors of all shapes and sizes may have just found the latest geopolitical clusterf*ck to blame for their own shortcomings…
Shipping companies are avoiding the Red Sea. In fact, they’ve diverted $35B in cargo over the past few days alone.
For everyone who failed geography, I’ll save you the visit to Google Maps: it’s the narrow sea between Saudi Arabia and North Africa that connects the Indian Ocean in the south to the Mediterranean (via the Suez Canal). Still with me?
Why?
Because Iran-backed Houthi Rebels from Yemen are firing “projectiles” (let’s be honest, they’re probably glorified fireworks) at ships in the area. Apparently, they don’t know how that movie ‘Captain Phillips’ ends.
This is a big f*cking deal considering ~30% of container trade passes through the Suez Canal, which includes a jaunt through the Red Sea.
Major shippers including Maersk and Hapag-Lloyd have begun rerouting ships. And BP said it paused all traffic in the body of water once reportedly parted by Moses.
But have no fear…
Team America World Police is on the case. The US has enlisted its pals including the United Kingdom, Bahrain, Canada, France, Italy, the Netherlands, Norway, Seychelles and Spain to protect this house.
+ Middle-class Americans want to know more about how the wealthy make money. Here’s the answer (Read)
+ Inflation gives millions new access to investments for the wealthy, says SEC (Read)
+ ICYMI yesterday... Should You Buy the 3 Highest-Paying Dividend Stocks in the Dow Jones? (Read)
+ Do you have little to no money? And do you also think paying for things is a “tomorrow problem”?
Well, you’re in luck. Walmart and Affirm have expanded their partnership and will allow consumers to buy now, and pay later at 4.5k US stores’ self-checkout kiosks. Affirm and Walmart had already collabed on BNPL offerings online and in-store but, self-checkout was the final frontier.
Affirm jumped more than 15% on the news. (Read)
+ Back in my day, data breaches used to mean something. Does Ashley Madison mean nothing to you people? Now, when there’s a massive data breach, shares keep calm and carry on. Investors barely batted an eye when Comcast reported that 35M+ users’ data was stolen back in October. It included names, passwords, and security questions. Shares remained flat on the day. (Read)
+ Let’s take a second to remember that it wasn’t too long ago (2019) that FedEx founder Fred Smith said this about competition from Amazon logistics: "The prospects that this company is going to be 'disrupted'... is fantastical.”
FedEx’s shares went the way of Tom Hanks’ plane in ‘Castaway’ (for the record, that’s the second Tom Hanks reference in this newsletter) following a brutal earnings report. Shares fell almost 10% in the extended session after the company missed on the top and bottom lines… and lowered its revenue guidance for the year.
Sales are expected to fall for the full fiscal year thanks to muted demand caused by macro headwinds. (Read)
+ The good news is that Southwest Airlines appears to have avoided a work stoppage. The bad news? The holiday travel season is upon us and if last year is any indication, the preferred airline of people with no self-respect will make it an absolute nightmare (friendly reminder: on Monday the airline got hit with a $140M fine related to last year’s historic delays and cancellations).
Yesterday, the airline reached a 5-year, $12B deal with its pilots’ union. The negotiations between Southwest and the pilots have dragged on for years. Shares of Southwest were up about 2% on the day. (Read)
Here's what I'm keeping an eye on today...
+ General Mills, Micron, Toro, Winnebago, and Blackberry report
Yesterday, I asked What are your thoughts on leaving your kids money?
For the most part, you guys were all for leaving your kids whatever you could, unless, of course, they are sh*theads.
Here’s today’s question…
According to a study, BMW drivers are the most likely to drive under the influence. Got me thinking…
What’s the douchiest car someone can drive?
Reply directly to this email. I’ll share the best answers tomorrow.
Oh, and one more thing…
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 a God-fearing family man with sh*t-for-brains. 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.