Good Morning Everyone!

It was a tough year for car makers. The best performing auto stock was Ferrari (NYSE:RACE), which declined by "only" 18%.

Prices as of 4 pm EST, 12/27/22; % YTD

MARKET UPDATE

Rough year

• 141 down days vs 107 up days

US home prices continue decline

• -0.8% in October

  • Fourth straight monthly decline for 20-city composite

• Prices +8.6% YoY (+8.2% expected)

  • Smallest annual gain since October 2020

  • Sixth straight decline on YoY basis

• Sellers are swapping sale listings for rentals

  • Due to rising mortgage rates, unaffordability

Pending Home Sales at 10 am – expected to decline

• Have fallen for 5 straight months

Manufacturing contraction continues

• Dallas regional index – 8th consecutive monthly contraction

• Dropped to -18.8 from -14.4

• Company and uncertainty outlooks remain negative

• CapEx, finished goods inventories, new orders, general business expectations

  • All negative

Tesla (NASDAQ:TSLA)

• 7 straight days of losses

• Down over 40% MTD

• Heavy selloff:

• Reduced production at Shanghai factory

• Last week – offered discounts on 2 highest volume models

• Poor Elon has lost a lot of money this year:

Apple (NASDAQ:AAPL)

• Weakness on production halts at major iPhone plant (China)

• Concerns over iPhone supply

• Shares lowest since June 2021

International Business Machines (NYSE:IBM)

• Surprise tech stock of the year?

• +6% YTD

• Has outperformed every large-cap tech stock

Earnings

• None

CRYPTO UPDATE

Argo Blockchain (NASDAQ:ARBK)

• Suspended trading of shares yesterday in anticipation of announcement

• Restructuring operations, trying to avoid going Core Scientific route (bankruptcy)

• Announcement: to sell Helios mining facility to Galaxy Digital for $65 million

• Galaxy will also provide $35 million loan

Bitcoin (CRYPTO: BTC) – daily spot trading volume falls below $10 billion

• First time since December 2020