Slipping out of the gate…

(Black Salmon)
(Black Salmon)
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Today’s News: Fed minutes concerns the market, Bitcoin falls below $43K, and Nike sues Lululemon…

What’s Trending…

On ROIC: KKR (KKR)

On Twitter: ARK Innovation ETF (ARKK)

On Reddit: Tesla (TSLA)


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Markets & Macro

S&P 5004,697– 0.08%
Nasdaq15,072– 0.18%
U.S. 10-Year1.734% 
FTSE 1007,455– 0.83%
Stoxx 600488– 1.22%
Nikkei28,488– 2.88%
Hang Seng23,073+ 0.72%
Shanghai3,586– 0.25%

Fed Minutes Reflect Growing Unease Over High Inflation

The FOMC minutes were released yesterday sending the markets down. The meeting notes showed that the officials are eying a faster timetable for raising interest rates this year due to more uneasiness around inflation.

Some officials also thought the Fed should start shrinking its $8.76T portfolio of bonds and other assets relatively soon.

JO: This is the main reason why the market sold off aggressively yesterday, even though many expected it. My concern is a rising interest rate environment while supply chain and labor challenges persist. We need to figure out how to entice workers back to jobs and open manufacturing/shipping up to full capacity again. Otherwise, we won’t be addressing the root cause of the inflation.


Private Job Growth Totals 807,000 in December, More Than Doubling Expectations

According to ADP, private job growth totaled 807,000 in December. This more than doubles the Dow Jones expectation of 375,000.

Hiring was broad-based, though leisure and hospitality led with 246,000 new positions.

KR: MacroHenry briefly covered the report on the ROIC portal.


Economy Week Ahead

Monday: PMI Manufacturing Index

Tuesday: ISM Manufacturing Index | Expected to fall slightly in Dec

Wednesday: FOMC meeting minutes released

Thursday: U.S. trade deficit | Estimated to widen to $72.6B (+$5.5B)

Friday: Jobs report | 4.1% unemployment expected


Crypto


Bitcoin Falls Below $43K, Leads to $800M in Crypto Liquidations

Crypto futures worth over $812 million were liquidated as bitcoin fell to $43,000 according to data from Coinglass.

JO: Remember that crypto is essentially “liquid startup” investing, so it’s selling off with other risk assets. I see investors get too tunnel-visioned and tribal in their favorite asset class that they attribute moves to be independent, when in fact it’s connected with the sell-off in stocks.


Crypto Browser Brave Passes 50M Monthly Active Users

Crypto-centric browser Brave announced that it had passed 50 million monthly active users. It has doubled growth on a year-over-year basis for five years in a row.

Brave’s market share is still small. Firefox, by comparison, has ~211 million monthly active users.


Notable Earnings

Monday: No Notable Earnings

Tuesday: MillerKnoll

Wednesday: RPM International

Thursday: Bed Bath & Beyond, Walgreens, Constellation Brands, Conagra, WD-40

Friday: Acuity Brands


Business News

WarnerMedia and ViacomCBS Are Exploring Possible Sale of CW Network

AT&T’s (T) WarnerMedia and ViacomCBS (VIAC) are exploring a sale of the CW Network, which they jointly own. People familiar with the talks say the companies have been exploring a deal for months and an agreement may be reached soon.


Nike Sues Lululemon For Patent Infringement Over At-Home Mirror Gym and Fitness Apps

Nike (NKE) filed a lawsuit accusing Lululemon (LULU) of patent infringement. Nike claims it invented a filed a patent application on a device for determining a runner’s speed, distance traveled, elapsed time, and calories burned.

“The patents in question are overly broad and invalid. We are confident in our position and look forward to defending it in court.” – Lululemon spokesperson


KFC to Launch Meatless Fried Chicken Made With Beyond Meat

KFC restaurants will add Beyond Meat’s (BYND) plant-based chicken starting next week for a limited time. KFC has tested plant-based chicken in various locations since 2019.

The YUM! Brands (YUM) restaurant is counting on customers making healthier choices to fulfill New Year’s resolutions.


Cents Invest Featured

ROIC Dive | A New Homebuilding Products Idea?

(Breadmaker)

ROIC members know about our excitement around the homebuilding boom. A member posted an interesting building products stock on the ROIC portal last week. This morning, we take a closer look.


The Only 3 Ways To 10x Your Net Worth

This will be part of a personal finance series where we strategize how to increase your net worth. There’s a lot more to this stuff, but let’s discuss in bite-sized Youtube videos!

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