Jan 3rd, 2024 – On Wednesday, the Nasdaq fell by 1.18% to 14,592.21, marking its fourth consecutive day of losses. The S&P slid by 0.80% to close at 4,704.81, while the Dow Jones decreased by 0.76% to close at 37,430.19.
The Labor Department reported a decrease in worker demand to its lowest level since March 2021, aligning with the expected 8.8 million at 8.79 million. This data is viewed as a positive metric for the realization of the so-called ‘soft landing.’
Xerox (XRX) slid more than 10% after announcing plans to cut 15% of its workforce to change its organizational structure. The reorganizing plan focuses on the company’s core business of printing and increasing efficiency.
SoFi (SOFI) Technologies decreased by almost 14% after Keefe, Bruyette&Woods announced an ‘underperform’ downgrade.
One of our portfolio holdings, Eli Lilly (LLY) (Purchased 0.2 units @ $582.99), increased more than 4% after Bank of America chose Eli Lilly as a top pick for the new year.
Samsung publicly announced the release of their brand-new AI-powered mobile phones (Galaxy S24, S24+, and S24 ULTRA.) on January 17 in San Jose, California.
Charles Schwab decreased by 3% after Goldman Sachs downgraded the stock from ‘buy’ to ‘neutral’. The reason for this downgrade is concern about a lower rate outlook pressuring earnings.
The increase in ocean freight rates due to Iran-backed Houthi militant attacks is causing carriers to halt Red Sea routes. This situation leads to rerouting vessels, delaying deliveries, and negatively affecting global trade. Rates for Asia-to-Europe and Asia-to-North America shipping have more than doubled due to longer voyages and increased costs, already impacting over $200 billion in trade. Escalation of this situation may lead to increased inflation.
Author: Kaan Pinar