📈 The U.S. Debt Hits $34T

1) Apple’s Global Dominance, 2) Nvidia Reaches A New All-Time High, 3) U.S. Debt Sprints Past $34T, and more!

Author

Carbon Finance
January 09, 2024

Happy Tuesday.

While the market has been off to a mixed start, Boeing has had a challenging start to the year, with its shares falling by 8% yesterday.

This decline was triggered by the FAA's decision to ground 737 Max 9s for inspections.

The grounding came after a door plug blowout occurred mid-flight on an Alaska Airlines aircraft.

Some key data bites you should know: 

  • A consumer advocacy group is accusing Starbucks $SBUX of accruing nearly $900M in unspent funds from deceptive practices with its app and gift cards.

  • South Korean Ecopro became the best performing EV stock in the world in 2023, returning 571%.

  • Hedge fund manager David Tepper faced a $300,000 NFL fine for misconduct as the Carolina Panthers owner.

  • Johnson & Johnson $JNJ is set to acquire cancer treatment developer Ambrx in a $2B cash deal.

In today’s newsletter:

  • 🍎 Apple’s Global Dominance

  • 🦾 Nvidia Reaches A New All-Time High

  • 📈 U.S. Debt Sprints Past $34T

Let’s dive right in!

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🍎 Apple’s Global Dominance

The global premium smartphone market is projected to grow 6% in 2023 and hit a new record, according to new data from Counterpoint Research.

Apple continues to dominate the premium smartphone market, with a 71% market share, followed by Samsung in second at 17%, and Huawei in third at 5%.

However, Apple’s dominance is starting to show some cracks, with its market share dropping 4% from 75% in 2022.

Samsung expanded their market share slightly, from 16% to 17%, and Huawei grew from 3% to 5%.

Collectively, the majority of growth in the premium smartphone market stems from China, Western Europe, India, and the Middle East and Africa regions.

🦾 Nvidia Reaches A New All-Time High

On Monday, Nvidia announced three new graphics cards, the RTX 4060 Super, 4070 Ti Super, and 4080 Super.

These cards, tailored for consumers, enable users to run local AI on their computers at home or at an office.

Priced between $599 and $999, the cards are designed for gaming but also excel in AI applications, with significant performance improvements over previous models.

Nvidia believes these new cards will help fuel the rise of new, more powerful AI applications.

Following the news, Nvidia climbed over 6% yesterday, reaching new all time highs and closing at $522.53.

A $10,000 investment in Nvidia back in January 2010 would now equate to over $1.3M in January 2024.

📚 Recommended Reading

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It’s definitely worth a read! Click the button below to automatically subscribe!

📈 U.S. Debt Sprints Past $34T

The U.S. public debt has hit a record $34T, with Congress facing imminent deadlines in the next few weeks on spending and emergency aid decisions for Ukraine and Israel.

To put things into perspective, the U.S. now has roughly the same amount of debt as China, Japan, the United Kingdom, India, and Brazil combined.

JPMorgan strategists warn that the U.S. debt is a 'boiling frog' scenario, growing unsustainable due to high deficits and debt servicing costs.

They predict market pressure will force changes in taxing and entitlement programs, though significant cuts in discretionary spending are unlikely.

👵🏻 Yellen Claims Victory. Janet Yellen has declared that the U.S. has achieved an economic soft landing - BB

💊 Lilly Direct. Eli Lilly $LLY plans to sell weight-loss and other drugs directly to consumers through their new telehealth platform - AX

❌ Pepsi Block. Global supermarket chain Carrefour halted sales of PepsiCo products in Europe over significant price hikes - AP

🚴‍♀️ Peloton X TikTok. Peloton $PTON has partnered with TikTok to diversify its image and reach more customers - CNBC

Notable Companies Reporting Earnings This Week:

  • Monday:

    • Jefferies Financial Group $JEF

  • Tuesday:

    • Albertsons Companies $ACI, WD-40 Company $WDFC

  • Wednesday:

    • KB Home $KBH

  • Thursday:

    • Infosys Limited $INFY

  • Friday:

    • JPMorgan Chase $JPM, UnitedHealth Group $UNH, Bank of America $BAC, Wells Fargo $WFC, BlackRock $BLK, Citigroup $C, Delta Air Lines $DAL

All of the companies that are reporting earnings this week can be viewed here.

Major Trades Published Since 1/2. Trades may be those of family members. Buys and sells may be options trades. [Source: 2iQ, Quiver Quant]

Buys:

  • Tom Carper (D)

    • Company: Columbia EM Core Ex-China ETF ($XCEM)

      • Amount Purchased: $16K - $65K

    • Company: Clearbridge Small Cap Growth Fund ($SBPYX)

      • Amount Purchased: $15K - $50K

  • John Boozman (R)

    • Company: Pfizer ($PFE)

      • Amount Purchased: $1K - $15K

    • Company: abrdn Platinum ETF Trust ($PPLT)

      • Amount Purchased: $1K - $15K

Sells:

  • Tom Carper (D)

    • Company: Ranger Equity Bear ETF

      • Amount Sold: $17K - $80K

  • John Boozman (R)

    • Company: Lam Research ($LRCX)

      • Amount Sold: $1K - $15K

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