DHUnplugged #695: Fresh Frenzy

Fed in Focus - FOMC Rate Decision Wednesday. Reddit IPO Frenzy! Inflation - definitely not going away. Announcing - A New Closest to The Pin PLUS we are now on Spotify and Amazon Music/Podcasts! Click HERE for Show Notes and Links DHUnplugged is now streaming live - with listener chat. Click on link on the right sidebar. Love the Show? Then how about a Donation? Follow John C. Dvorak on Twitter Follow Andrew Horowitz on Twitter Warm Up - A New CTP Announced - No Show Next week - business meetings out of town - A not so surprising result in the Russian Elections - An important change to stock trade settlements is coming Market Update - Fed in Focus - FOMC Rate Decision Wednesday - Reddit IPO Frenzy - Inflation - definitely not going away - AI Frenzy - Culd Call This DHAI Unplugged - so much AI news to discuss - Yield Frenzy PPI Release - After  a HOT CPI, PPI Comes in Hotter - 0.6% on the core - but only 1.6% YoY - The Producer Price Index for final demand rose 0.6 percent in February. - Prices for final demand goods advanced 1.2 percent, and the index for final demand services moved up 0.3 percent. - Prices for final demand advanced 1.6 percent for the 12 months ended in February. - Markets didn't know what to do with this on Friday. PPI MoM Company Stats - Recession? - According to FactSet: During Dec-March earnings calls, 47 cited the term “recession” during their earnings calls for the fourth quarter. -- This number is below the 5-year average of 85 and below the 10-year average of 61. - This quarter will mark the lowest number of S&P 500 companies citing “recession” on earnings calls for a quarter since Q4 2021 Companies Citing Recession % of Companies Reddit - IPO slated to be live sometime this week (March 21) - 5X Oversubscribed - Reddit began sending invitations to users to participate in the IPO based on one of two measurements of engagement on the site: either the number of actions they’ve taken as a moderator of a forum on the platform (also known as a “subreddit”) or their “karma” score, a figure that indicates a user’s contributions and reputation among other users on the site. - Reddit plans to list 22 million shares at a price between $31 and $34, according to the latest version of the IPO prospectus it filed Monday with the Securities and Exchange Commission. The company stands to take in between $473.6 million and $519.4 million from the sale of roughly 15.3 million shares. - Valuation > $6 billion - Question???? Is Reddit profitable? NO -  However, the company has been substantially growing revenue in the past few years. ---- Reddit's total revenue in 2023 was $804 million, up 21% from $666 million in 2022. ----- Reddit's net loss for 2023 narrowed to $90.8 million. Yields - 10 YR - Highest level of 2024 - technically breaking out - if Fed moves a bot more hawkish - 4.50% is next test Yields Japan Yields - The Bank of Japan is set to raise its key interest rate for the first time in 17 years on Tuesday following its two-day monetary policy meeting, Kyodo reported. - The BOJ will raise the short-term rate to the 0%-0.1% range, the report said. The development reflects growing confidence among policymakers that a virtuous cycle of wage growth and price hikes is in motion following this year’s labor-management pay negotiations - RAISING TO ZERO! Global Rates - Who Will CUT First? First Mover? ELON - Increasing prices on Model Y by $1,000 --- Stock moves up by 6% - Goldman Downgrades - Perhaps this is why stock moved up - another bug downgrade - stock in the toilet - nowhere else to go --- SpaceX is building a network of hundreds of spy satellites under a classified contract with a U.S. intelligence agency, five sources familiar with the program said, demonstrating deepening ties between billionaire entrepreneur Elon Musk's space company and national security agencies. Elon - Ketamine