MARKET RECAP → Stocks closed mixed on Tuesday as the recent rate-fueled rally lost some steam. The Nasdaq (QQQ) managed to eke out a small gain while the S&P 500 (VOO) and Dow Jones (DIA) closed lower. Bitcoin (BTC) continued its momentous rally, reaching the highest level the OG crypto has seen since April 2022.
JOB OPENINGS HIT 2.5-YEAR LOW → ? U.S. job openings took a nosedive to 8.73 million in October, hitting a 2.5-year low and hinting at a cooling labor market, just as the Fed plays tug-of-war with inflation rates. MUSK’S AI STARTUP EYES $1B → ? Elon Musk’s X.AI, aiming to unravel the universe’s mysteries, files for a $1 billion equity offering, stepping into the AI ring with a witty chatbot and a grand vision, backed by a tech titan’s arsenal.
WELLS FARGO BRACES FOR LAYOFFS → ? Wells Fargo (WFC) gears up for a costly round of layoffs, earmarking up to $1 billion for severance as it joins the banking industry’s job-cutting spree amid economic headwinds. |
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| Sean Horgan Head of Investor Relations @ MoneyLion
$shorgan |
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JOB OPENINGS HIT 2.5-YEAR LOW |
? In October, job openings in the U.S. plummeted to their lowest level since March 2021, dropping by 617,000 to a total of 8.73 million. This 6.6% decrease, reported by the Labor Department, was significantly below the Dow Jones estimate of 9.4 million, signaling a potential easing of the tight labor market.
? The ratio of job openings to available workers fell to 1.3 to 1, nearing the pre-pandemic level of 1.2 to 1. While job openings saw a dramatic decline, hires only slightly decreased, and layoffs and separations modestly increased. The quits rate, a measure of worker confidence, remained relatively unchanged at 2.3%, down from its peak during the so-called Great Resignation.
? The Federal Reserve, closely monitoring these figures for signs of labor market slack, has been raising interest rates to cool inflation. The decline in job openings could influence the Fed’s upcoming policy decisions, with markets expecting interest rates to remain unchanged at their next meeting. The JOLTS data arrives just before the Labor Department’s nonfarm payrolls report, which is anticipated to show a rise in job growth for November.
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MUSK’S AI STARTUP EYES $1B |
? Elon Musk’s AI startup, X.AI, filed with the SEC to raise up to $1 billion in an equity offering. The company, which Musk announced in July, has already secured nearly $135 million from four investors and aims to explore the “true nature of the universe.” X.AI’s chatbot Grok, inspired by “The Hitchhiker’s Guide to the Galaxy,” boasts real-time internet knowledge and a humorous, rebellious character.
? X.AI is positioning itself as a direct competitor to established AI players like OpenAI (creator of ChatGPT) (MSFT), Google’s (GOOG) Bard, and Anthropic’s Claude. Musk, who co-founded OpenAI before leaving in 2018, reportedly acquired thousands of Nvidia (NVDA) GPUs to power X.AI’s large language model, signaling serious intent in the AI arena.
? Beyond X.AI, Musk’s portfolio includes several high-profile companies like Tesla (TSLA), SpaceX, Boring Company, and Neuralink. X.AI, while operating independently, plans to collaborate closely with these ventures, leveraging Musk’s extensive network and resources in its ambitious AI endeavors. |
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WELLS FARGO BRACES FOR LAYOFFS |
? Wells Fargo (WFC) CEO Charlie Scharf announced an anticipated severance expense of $750 million to $1 billion in the fourth quarter due to impending layoffs. This cost accrual is a response to lower-than-expected staff turnover and the bank’s need to manage headcount more aggressively. ? The bank, already active in workforce reduction, has cut about 11,300 jobs in 2023, equating to 4.7% of its workforce. This move aligns with the broader trend in the banking industry, where firms are trimming their staff amid rising costs and a slump in Wall Street deals. Wells Fargo’s retreat from the mortgage market has also contributed to these layoffs. ? Despite these cost-cutting measures, Scharf remains optimistic about a potential soft landing for the U.S. economy in the coming year. However, Wells Fargo’s shares dropped more than 1% following this announcement, reflecting investor concerns over the bank’s efficiency and future performance. |
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Biden impeachment inquiry vote expected next week, House Republican leaders say (CNBC) Rising Treasury Yields Pull Stocks Lower (WSJ – paywall)
Airbnb Chief Financial Officer Dave Stephenson moves to new role as company reaches ‘inflection point’ (CNBC)
The world’s largest iceberg is now sailing away from Antarctica (CNBC) Ghost kitchens were supposed to revolutionize restaurants. They’re crashing (CNN)
CVS will change the way it prices prescription drugs (CNN)
IBM, Meta, and more than 50 others launch alliance to challenge dominant AI players (Fortune)
Don’t let your company holiday party turn into a horror story. Here are 7 expert tips to master it (Fortune)
NASA will land daring spacecraft on a world 800 million miles away (Mashable)
A fortnight in Fortnite court: 20 things we learned from the Epic v. Google trial (The Verge) |
And if you want more, be sure to check out the MoneyLion blog for tips, hacks and all things money. (MoneyLife) |
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