Launched by popular demand, we’re bringing you a quick recap of key moves in the market this week. We’ll break it down by sector because your portfolio likely looks the same. Here’s a guide to the market if you’re shy about your sector knowledge (that’s the whole world, by the way).
Each week, we’ll report key updates to 11 sectors, citing big changes, new IPOs, important company or industry updates.
Here’s this week’s breakdown:
Wednesday marked the formal signing of a US-China trade agreement, which led oil futures to climb on Thursday as investors considered what the impact of the deal could bring. They hope Beijing starts buying more of our shale oil, driving demand.
Psst: Wanna know where top Dems stand on climate change? Here’s a recent read you might like.
Nestle announced it will invest $2 billion in making non-toxic food-grade packaging. Apparently, this material is incredibly expensive, and they want to be at the forefront of finding new ways to package safely and sustainably. However, Greenpeace and other climate groups are urging consumer staples to put an end to their reliance on plastic altogether. We suspect this will be a big topic for markets this year…
Boeing once again takes the week’s headlines here. Southwest, United and American Airlines are the latest airlines to say they’ll remove the 737 Max from flight schedules until June amidst growing concern and uncertainty. Why more delays? Boeing’s announced they’ll temporarily halt production of the planes in an attempt to win back regulators.
In other travel news, Delta’s crushed 4th quarter profits thanks to a seriously busy holiday season and cheaper fuel costs.
Consumer Discretionary (Cons Disc)
The food delivery industry is facing some rough roads ahead. While the industry is projected to grow to $467 billion in the next 5 years, spending on orders is actually showing a decline. One of the biggest issues? There’s virtually no brand loyalty due to very little differentiation across competitors. FYI, Grubhub is the only contender that’s publically traded to date.
The WNBA hit sector news this week, announcing it will give players paid maternity leave plus up to $60,000 towards fertility or adoption fees. Thank you to Natasha Hastings, Alex Morgan, Alysia Montano for speaking out against gender discrimination and bias.
Since we were OOO over the holiday, we should also note that holliday spending was well in line with projections, giving investors strong confidence in consumer spending in 2020.
Consumer Staples (Cons Stpl)
China’s looking to compete with U.S. meat substitutes. China based, Zhenmeat is looking to raise $2 million of funding, while rising U.S. stars like Impossible Foods and Beyond Meat look to make a splash in Asian markets this year.
Look out White Claw, Corona is coming for ya. Constellation Brands (massive spirits company in the US) is looking for a new angle to compete with new popular rivals. Meet Corona hard seltzers. What would you prefer to reach for?
One Medical is going public this year. Haven’t heard of them? Think Urgent Care, but a lot more personalized. It’s a care model in which patients pay an annual fee of $199 to access their primary care physicians and services. If you’re in an urban area and can afford the fee, our team highly suggests checking them out! Stay tuned for how this shakes up your GP’s availability and reach.
It was a VERY BIG week for banks. Where do we even begin? Big banks reporting their Q4 earnings this week, and here’s what we learned.
Big Bank winners: Morgan Stanley posted record annual revenue and profits. JP Morgan Chase & Co. and Citigroup also cleared the fourth-quarter earnings bar. While JP reported the best year for any U.S. bank in history, the money giant is still left apologizing for their customer discrimination allegations.
Big Bank losers: Meanwhile, Goldman Sachs Group Inc. and Wells Fargo & Co. were hit with legal charges that kept profits low.
Plaid’s been bought by Visa is a massive deal of $5.6 billion along with other fintechs. (Psst, Nav.it uses Plaid to safely aggregate your accounts).
Look out San Francisco, London’s coming for ya. Investment in the UK’s tech sector surged 44 percent in 2019, accounting for a third of all Euro funding. Placing them in a strong third place in global venture capital funding.
Apple just bought an edge-based AI startup for $200 million. AI startup, Xnor.ai will be Apple’s latest investment in operating independently of the cloud for things like facial recognition, natural language processing and augmented reality.
T-Mobile and Sprint are bringing heat to the courts to make a decision on their merger. Meanwhile, states combating the deal claiming price hikes will harm consumers.
Real estate is hitting the new decade strong. With mortgage rates remaining low, and a low supply of existing homes for sale, it’s a builder’s market. Mortgage applications saw an annual increase of 39 percent in December 2019, predicting a strong start to the year in 2020.