Powell with the 50 Piece

Sponsored By May 5, 2022 Good morning traders, Welcome back to The Daily Setup. Markets were up today even though the Fed raised rates. Here’s what’s on the docket: - Lyft gets a flat tire after disappointing guidance - We unpack the Fed’s rate hike and J Pow’s comments So have a cup of coffee, read through the newsletter, and let’s make today a good one. Nick PS: If you want to see who’s been writing your newsletters every morning, head on over to [TheDailySetup.com]( and check out our writers corner. How'd the markets look? Market Outlook Lyft Inc Biggest Mover [Activision Blizzard, Inc. ]( Lyft could sure use a ride. The rideshare app’s stock [fell 29.91%]( Wednesday after releasing lighter than expected guidance during its earnings call the evening before. Despite reporting better than expected results on both top and bottom lines, the company lightened its guidance, saying it would be spending more on driver incentives as gas prices continue to climb. Powell with the 50 Piece Street Stories J-Poww and the Fed are pulling out all the stops to nip inflation in the bud. If, by nipping it in the bud, you mean “reverse the problem that’s been raging for 6 months…” The Fed concluded their May policy meetings yesterday, and [announced]( a 50 point interest rate increase, the likes of which we haven’t seen since 2000. Remember, that was the year we thought all our computers were going to break at midnight. The Fed’s new target range is 0.75% to 1%, which sounds high, but is nothing compared to the 6.5% back at the turn of the century. The shrinkage of the $9T (with a T) asset portfolio [begins next month](. $30B in Treasuries and $17.5B in mortgage-backed securities will roll off per month, until that picks up to a $60B and $35B respective pace after September. So what did the markets do? They rose higher [than Creed at the Cowboys game]( back in ‘01, thanks to J-Pow’s comment that the Fed ‘[wasn’t actively considering](’ a 75 bps rate hike in the future. Let’s just hope the Fed can land this plane. The good news: the Fed is taking steps to solve the very problem it caused by printing money during the pandemic.The bad news, it’s never successfully solved a [problem like this]( without making everyone lose their jobs. Meeting with the Bobs [other news] Welcome to [Meeting with the Bobs](. Click one of the links below to vote. On Monday we asked ‘What’s your go-to quick meal?’ 36% of you said ‘Everything goes in the air fryer’ (same here), while the rest were almost evenly split between meal kits and eating pizza over the sink like nard dogg. Today’s question: How many more 25 point rate hikes do you expect this year from the Fed? - [One]( - [Two]( - [Three]( - [Four]( - [Five+]( Sponsored By: If you’re like us, your portfolio has been more red this year than an Ohioan vacationing in Florida without sunscreen. Growth stocks, value stocks, heck, even crypto are all down. The problem is a correlation, as no matter what you choose, it still seems to rise (and fall) in tandem. [But… what if you could invest in something that was actually uncorrelated? A true step toward diversifying your portfolio.]( That’s where we come in. [We’re Alts.co, a newsletter that keeps you up to date on alternative investments. Comics, Sports Cards, Sneakers, and Startups, if you can name it, then odds are that we write about it.]( Stefan and Wyatt provide original research and insights across these alternative investments to help you find new assets that fit your portfolio. Join 27,000 others and see what you've been missing. [Subscribe to Alts for FREE!]( *See Disclaimer Below Forget Your Home, We’ll Take Your NFTs Token Talk [Token Talk] Nexo, a crypto-lending platform, was in the news Wednesday after announcing that they had issued [one of the largest NFT-backed loans in crypto history](. According to the company, an unnamed borrower took out a 1,200 Ether loan worth approximately $3.3M. The loan was collateralized with two rare Cryptopunks from the borrower. Hopefully they took out this loan to buy a house in the metaverse. If you’re like me, you’re scratching your head, so here’s a 10,000 foot [overview of how Nexo operates](. They are “a [blockchain](-based lending platform that offers instant cryptocurrency-backed loans to users. Users need to deposit the accepted token, such as Bitcoin (BTC), Ether (ETH), XRP (XRP) etc., as collateral to get the loan in the form of fiat currency or [stablecoin](. The NEXO token is used to grant users discounts on loan interest and receive interest payments on deposits.” In summary, I’ll just stick with Chase bank. I joke, but this type of lending will continue to grow as more competitors enter the fray allowing for loans that financial banks are unable to make. I know there is an interest rate arbitrage in here somewhere, unfortunately I’m too stupid to figure it out. Kimmeridge Be Like… Deals and Rumors [Deals and Rumors] Another day, another unhappy activist firm. Kimmeridge, an activist investment firm that focuses on the gas & oil exploration and production sector, is pushing Chesapeake Energy (ticker: CHK) to make changes. Though they did not specify what changes they wanted made, Kimmeridge feels that CHK is lagging behind their competitors. According to Kimmeridge [Managing Partner Mark Viviano](, “Allowing their [Chesapeake] differentiated low-cost gas inventory to be diluted by disparate oil assets sends mixed signals around the company's capital priorities.” Meanwhile, [Chesapeake reported their Q1 earnings report]( after the bell Wednesday. Their Non-GAAP EPS of $3.09 beat estimates by $0.66. They also increased their adjusted EBITDAX (since when did they add an X?) and adjusted free cash flow to an average of $4.7B and $2.7B respectively. CHK closed the day up [7.21%](. Reading the above, you would think Kimmeridge has a 10%-20% stake in CHK, when in reality, they only have a 1.6% stake (peasants). The stock closed Wednesday’s trading session at $94.98, which has doubled in the past year- making it the 3,267th profitable trading opportunity I’ve missed in the last 2.5 years. Link Roundup Other News + There’s a place in France… - France to grant crypto giant Binance regulatory approval ([link]() + That’s gonna cost you - Elon Musk suggests charging governments and corporations to use Twitter ([link]() + Getting a boos(er) - Moderna blows out first-quarter earnings expectations thanks to ‘vid vaccine sales ([link]() + From the EU with love - EU takes step toward Russian oil ban and new sanctions ([link]() + Want to come over to Netflix and sue? - Netflix shareholders sue over subscription disclosures ([link]() Meme of the day Turns out it’s not that bad, [via @RampCapitalLLC]( [other news] 62 Calef Hwy #233 Lee, New Hampshire 03861 United States Questions or concerns about our products? Email our team here support@thedailysetup.com © Copyright 2022, [RagingBull]( - [Refund Policy]( - [Privacy Policy]( - [Terms & Conditions]( SPONSORED AD PLACEMENT: This email contains an advertisement by a party that is unaffiliated with Raging Bull. 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