📈 Moody's blues

☕️ Good Morning.

The Fast Five → Moody’s turns negative on US credit rating, military talks will be a priority at Biden-Xi summit, Johnson delivers stopgap plan to lower risk of US shutdown, Main Street prepares for new state minimum wage hikes in 2024, and Chamath says the job of VC won’t exist in a world of AI-powered two-person startups…

Your 5-minute briefing for Monday:

BEFORE THE OPEN

MARKETS:

• Stocks rally, recovering from previous session losses as Treasury yields stabilize.

• Dow gains 1.15%, S&P 500 climbs 1.56%, Nasdaq up 2.05%.

• Tech sector leads with a 2.6% rise, Microsoft hits all-time highs, Apple, Meta, Tesla, Netflix, and Alphabet see gains.

• Second consecutive week of gains, S&P 500 up 1.3%, Dow up 0.7%, Nasdaq up 2.4%.

• Rebound linked to steady 10-year Treasury yield after last Thursday's spike.

• Fed Chair Powell's comments on inflation and poor bond auction led to Thursday's sell-off.

• Resilient economy supports equities despite Fed rate policy uncertainty, per UBS.

EARNINGS

Here’s what we’re watching this week:

• Today: Monday.com (MNDY), Tyson Foods (TSM)

• Tuesday: Home Depot (HD) - earnings expected: $3.58 per share (-15.6% YoY) on $35.7 billion revenue (-8.2% YoY)

• Wednesday: Target (TGT)

  • Cisco Systems (CSCO) - earnings expected: 97 cents per share (+12.8% YoY) on $13.8 billion revenue (+3.6% YoY)

• Thursday: Alibaba (BABA)

  • Walmart (WMT) - earnings expected: $1.41 per share (-6.0% YoY) on $149.8 billion revenue (-2.0% YoY)

• Full earnings calendar here

NEWS BRIEFING

Moody's Turns Negative on US Credit Rating, Draws Washington Ire

US Sets Military Talks With China as Priority at Biden-Xi Summit

• Johnson delivers stopgap plan, lowering risk of US shutdown (More)

• Xi Jinping’s ‘old friends’ from Iowa get a dinner invitation (More)

• Hedge funds short US financial stocks at near record levels, Goldman Sachs says (More)

• Fed’s Barkin, Bostic say full impact of rate hikes to come (More)

• Individual investors pull most cash from US stocks in two years (More)

• Oil prices ease on worries of waning demand in US and China (More)

• Excitement and worry as stock options trading booms in India (More)

• Japan's wholesale inflation slows sharply in sign of waning cost pressures (More)

• For America’s business owners, time to prepare for new minimum wage hikes in 2024 (More)

• Commercial property values may fall more as workers spend at least 20% less time in office (More)

• Chamath says there’s a ‘reasonable case to make’ that the job of VC ‘doesn’t exist’ in a world of AI-powered two-person startups (More)

DEALFLOW

• Heimstaden’s billionaire owner weighs stake sale to cut debt (More)

• Google in talks to invest in AI startup Character.AI (More)

• Lombard reportedly weighs stake sale in $600M flower business (More)

• Databricks, a data and AI company, raised an undisclosed amount in Series I funding (More)

• Lightspeed Faction, a blockchain-focused venture capital firm, launched its inaugural $285M fund (More)

• Vida Health, a provider of virtual cardiometabolic care services, closed a $28.5M financing round (More)

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CRYPTO

• FTX sued crypto exchange Bybit Fintech to recover cash and digital assets valued at ~$953M (More)

• Michael Saylor’s massive bitcoin bet crossed $1B in unrealized profit (More)

BULLISH BITES

🤖 Create your own GPT. We found a simple video that shows you how (no code)

🎙 Q&A with Humane AI President Imran Chaudhri

🛒 Building an e-commerce sales success story is getting more complex and costly

🥂 The best New York, Chicago and DC restaurants, according to Michelin

DAILY SHARES

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