Wednesday Market Update

Good Morning Everyone!

Eggs prices in the U.S. are down 50% since peaking in December 2022.

Prices as of 4 pm EST, 2/7/23; % YTD

MARKET UPDATE

Jay Powell

• Goods inflation coming down with shortages and supply chains easing

• Focus shifting to ‘super-core services inflation’, basically services inflation less housing

• That metric tends to have a high influence from wages

• With the strong employment Report we just saw, this has to be a concern for Powell

Market reaction to Powell

• Stocks down then up, 2% swing

• Bond yields up but back down this morning

Next two Fed meetings

• March 22

• May 3

Crude $78 +1%

• API numbers better than expected

Microsoft MSFT

• Debuted an updated Bing search engine integrated with ChatGPT

Google GOOGL

• Google has 90% of the search market share

• To discuss their own AI products in Search and Maps today at 8:30 a.m.

Apple AAPL

• Continues internal test of its upcoming “buy now, pay later” service
  nearing a public release

Autos

• Used car prices ticked up in January after 7 consecutive months of decline

Earnings

• Vertex VTNR flat Q4 inline revenues

• Chipotle CMG -5% top and bottom line miss, delivery down 15%

• Fortinet FTNT +14% Q4 better than expected, guide also better

• Prudential PRU +1% miss in the qtr, buyback below street

• CVS Health CVS +2% Quarter was fine but focus on the deal with Oak Street Health

• Uber UBER +7% Q4 in-line, guide is better than feared

• Emerson EMR -3% revenues inline, EPS below street

CRYPTO UPDATE

AI-focused crypto

• Avg AI-based token is up 80% over past week

  • AGIX +233%

  • GRT +122%

  • FET +100%

• JPMorgan’s recent e-Trading report

  • AI/machine learning: most influential trend next 3 years

  • Institutional traders shifting focus

    • From blockchain → AI

Death cross

• Bitcoin’s BTC/USD weekly 50MA has never crossed below 200MA (ever)

• Looks unlikely to stay that way

• Bitcoin just saw “golden cross” on daily chart