Good Morning Everyone!

Hope you're ready for another short squeeze. Bed Bath & Beyond stock is up 20% pre-market after the company said it was heading for bankruptcy last week.

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Prices as of 4 pm EST. 1/6/23; % YTD

MARKET UPDATE

Today:

• Positive headlines out of China

• Offset by

• 2023 earnings estimates at risk as Q4 results begin this week

This week:

• Thursday CPI

• Friday U.S. bank earnings

Q4 earnings kick off on Friday

Today: RBC Canadian Bank CEO Conference

Today: Management group seeking to take Canaccord Genuity private

Today: Goldman Sachs (NYSE:GS) to eliminate 3,200 jobs (largest cut ever)

Issues going into the bank Q4 quarter:

• Higher credit provisions

• Higher expenses/comp inflation

• Higher deposit funding

• Mild recession (see chart below)

• Focus: management forward guidance during Q4 results

2-10 curve is extremely inverted

• Getting to 1980 levels

• Most investors calling for a mild recession later this year

What’s the U.S. dollar doing?

Crude    76           +3%

• Oil up on news:

  • China re-opened air, land and sea borders on Sunday

  • China increased crude oil import quotas for China’s refiners

Apple (NASDAQ:AAPL)

• Expects to be exporting more than $2.5 billion iPhones from India from April to December

• Nearly twice the previous year

• Trend: accelerating shift from China with geopolitical tensions on the rise

Earnings None

CRYPTO UPDATE

Digital asset fund flows

SBF thinks he should retain the $450 million of (NASDAQ:HOOD) he purchased with customer funds

• Says his ability to pay for lawyers is more important than debtors’ ability to recover losses

MEME OF THE DAY