Daily News

Is Bad Good?

Good Morning Everyone!

The crypto community could not have asked for a better way to start the new year.


Prices as of 4 pm EST, 1/4/22; % YTD


Is Bad Good?

  • Example: Salesforce (NYSE:CRM)

  • Grew headcount by 25,000 in the past 2 years

  • This does not include headcount added via acquisitions

  • Now they are laying off 10% or 8,000 employees to protect their operating margins

  • Layoffs are not a good sign for future growth, which the Fed likes (slower growth = lower inflation)

  • Expect more companies (like Google (NASDAQ: GOOGL)) that added during the pandemic to cut now as growth slows

8:30 a.m. jobless claims

  • 204,000 in December 31

  • Fell 19,000 last week  

  • Private payrolls increased 235,000 last month, more jobs added than forecast

  • Job gains were concentrated in businesses with less than 500 employees

Yesterday: Federal Reserve December meeting minutes

  • Fed determined to stamp out inflation

  • Warning investors not to underestimate the Central Bank’s determination to hold rates higher to bring down inflation

  • Next meeting in February: a hike of 25 or 50 basis points expected

Fed officials speaking today:

  • 7:30 a.m. Patrick Harker

  • 9:20 a.m. Raphael Bostic

  • 1:20 p.m. James Bullard

Crude 73    

  • Bounce higher today after falling 9% in the past 2 days

  • API inventories were weaker than consensus

  • China continues to be the biggest driver of oil prices


  • December 2022 SAAR weak at 13.6 million as incentives remain at historic lows

  • 2022 sales at 13.9 million

  • Incentives down 26.7% year-over-year


  • Released preliminary Q4 subscriber results

  • 927,000 postpaid phone net adds > street


  • Laying off more than 18,000 employees (5% of workforce)

  • This includes reductions made in November

  • November: 10,000 corporate jobs

  • Now: an additional 8,000

  • This is the biggest reduction in their history

  • Majority of the cuts are in retail not Amazon Web Services (AWS)


  • Aims to substantially reduce the number of “Made in China” components over the coming years

Bed Bath & Beyond (NASDAQ:BBBY)

  • Company said there is substantial doubt it can continue as a going concern

  • Sales down 33% y-o-y ending November 28

  • Vendors cutting them off so reduced inventory available

  • They have 967 stores


  • Constellation Brands (NYSE:STZ)

  • Walgreens (NASDAQ:WBA)

  • Conagra (NYSE:CAG)


Coinbase (NASDAQ:COIN) $100 million settlement

  • Settles with NY regulator over compliance

    • $50 million towards compliance practices + $50 million in settlement

  • Violated anti-money laundering laws (2018 and 2019)

    • Didn’t perform complete background checks on customers opening accounts

  • One of crypto's largest settlements ever

    • Biggest since BlockFi (also $100 million) in February 2021

Animoca Brands slashes fund target

  • Previously seeking $1 billion for metaverse investments (before that, $2 billion)

  • Now trying to raise $500 million

  • Animoca owns stake in +380 crypto firms

  • Plenty of cash

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