Every major U.S. index fell with the Nasdaq digging the deepest, losing 1.04% [The Daily Peel... ]() September 13, 2023 | Peel #541 In this issue of the Peel: - Apple's fall launch for this year, taglined âWonderlust,â focused generally on products dropping in the next year or so
- Casey's General Stores and the Energy sector had a ripe day, while Oracle and Advance Auto Parts suffered some losses
- The NFIB Small Business Optimism Index has been reigning in signs of negativity, sitting below its 49-year average for the past 20 months Market Snapshot Happy Wednesday, apes. An apple day keeps the doctor away (allegedly), but what happens when the day itself is Apple? Well, thatâs essentially what happened on Wall Street yesterday, so letâs find out below. For starters, we can say that an Apple a day does not keep the losses away. The company making up ~7% of the S&P 500 dragged down the rest of the market with it despite blowing minds, hearts, and wallets at yesterdayâs WWDC. Every major U.S. index fell with the Nasdaq digging the deepest, losing 1.04%. Energyâs 2.4% up day was one of the few bright spots in equities yesterday, which is almost never a good sign for everything else. Amid the usual chaos of equity markets, the âmatureâ traders among us in the fixed-income world didnât have much to say. Yields didnât see much of a change by close despite the 2-year moving higher towards 5.05% while the 10-year mostly bounced between 4.275% and 4.30%. Currency movements were quiet too, with the Dollar following in the footsteps of the two aforementioned and mostly vibing for the day. Letâs get into it. The Ultimate Program for Aspiring Investment Bankers [image]() Landing an investment banking offer is tough coming from any school â from non-target all the way to the Ivy League. But 6-figures right out of school isnât supposed to be easy. Luckily, with over 17 years of experience, 900,000+ members, and an insane network, WSO has cracked the code (itâs why we have directly helped over 1,000 students from all backgrounds break into these careers). Weâre excited to announce that we just reopened the waitlist for WSO Academy⦠WSO Academy is a 12-week program (with many lifetime benefits) that takes everything weâve learned and puts it on a silver platter for you. It will dramatically improve your odds at landing a high finance offer. [>>Get on the waitlist<<]() Here are some of the perks you'll get if youâre accepted: - A guaranteed job in high finance (yes, you read that right)
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- Apple Watch Ultra 2 with the companyâs âmost powerfulâ chip yet
- Updated AirPods fit with USB-C charging
- Satellite roadside assistance, meaning you can call for help even without a signal
- Oh yeah, almost forgot to mention, but all those iPhone 15 models now have USB-C charging I couldnât believe it either. From forcing us to buy dongles from them (lol) in order to listen to music on their own f*cking product, Apple has gone full simp and bent knee to the mighty USB-C charging standard. I mean, they kind of had to. The European Council passed legislation set to take effect on December 28, 2024 that requires electronic devices to have USB-C eligibility. Clearly, theyâre just getting ahead of the curve here, or feel free to take the companyâs own explanation that âUSB-C has become a universally accepted standard, so weâre bringing it to iPhone.â Suuure. Regardless, the switch to USB-C could very well over the coming years become a boon to Apple's device sales. "... the switch to USB-C could very well, over the coming years, become a boon to Apple's device sales." They stopped reporting units sold for iPhones a few years back as this was garnering almost all of investor attention, given the iPhoneâs centricity in the Apple money-hoarding ecosystem along with hitting the alleged âpeak iPhoneâ or most ever sales in a single period. Now, USB-C could over the next few years basically force every charger in the world to be USB-C compatible, leading customers to seek more devices that are too⦠like the new iPhone. Plus, more charger sales, so LFG. But with the focus of most analysts both internal and external shifting towards Appleâs recurring-revenue services business, the predicted uptick might not even make a dent. Regardless, at 7% of the S&P 500âs weighting, as Apple goes, so goes the market. Hence, the stockâs dip yesterday on the back of all these announcements dragged down the rest of the marketâs vibe, too. Cheer up, Apple. Youâll get back to $3tn someday⦠maybe. What's Ripe Casey's General Stores (CASY) â 11.16% â - I know, I know; what the hell is this company, right? If youâre in the mid-Atlantic, you have Wawa and Sheetz while the Northeast suffers with Cumberland Farms and the South and Southwest boast the absolute GOAT Buc-eeâs. In the Midwest and Southeast, thereâs Casey's.
- That might be a gross oversimplification of the convenience store war debates raging across college campuses, but nonetheless, Casey's danced in the competition yesterday. Shares surged thanks to this retailer actually retaining its ability to deliver this quarter. Target, Dickâs, and the rest could learn something.
- Casey's reported EPS of $4.52/sh, up 11% annually, while sales still took a fat 13% hit and fell to $3.87bn, roughly in line with estimates. Strong pizza sales were largely responsible, but thereâs no word yet on how Dave Portnoy rates the chainâs slice.
- While most retailers are worried about shrinking, Casey's is only growing with plans to add 150 locations in the next year. Hopefully, that goes better than Casey when he was [at the Bat](=). Energy Stocks (XLE) â 2.36% â - Like that nerd in high school who always reminded the teacher to assign homework, Energy stocks feel their best when everyone else is miserable.
- It was no different yesterday. Oil prices spiked early in the day, largely in response to an agreement from Saudi Arabia, Russia, and other OPEC+ haters of cheap gas to extend supply cuts.
- At the same time, signs that the Chinese economy might not crumble to pieces along with continued strength out of nowhere from the U.S. contributed to the IEAâs prediction that 2023 will boast the largest annual oil demand figures on record. Supply down, demand up, price go boom. Is macro really that hard? What's Rotten Oracle (ORCL) â 13.50% â - We all have bad days once in a while (not me, obviously), but Oracleâs day yesterday was way more than bad. It was the worst in more than two decades.
- Thatâs longer than a lot of you apes have been alive, so it had to be earnings. Despite the beat on the bottom line reported by the most boring tech company around, sales missed and guidance was weaker than SpongeBob when he tried to get into the Salty Spitoon.
- Oracle raked in $1.19/sh on $12.45bn vs. estimates for $1.15/sh on $12.47bn. Cost-cutting is clearly going well, but the whole âselling thingsâ that businesses generally like to do must not have been the companyâs vibe last quarter. But obviously, they had to shout out AI, saying that should basically save the firmâs cloud business.
- As a result, Founder and CTO Larry Ellison saw his net worth fall ~$18bn on the day. The guy was already only the 4th-richest person in the world with his measly little $140bn, but now, we just hope heâs able to find something to eat tonight. Advance Auto Parts (AAP) â 8.12% â - Failing to advance on the day, shares in this auto parts stock suffered mightily thanks to their decision to apparently follow in Oracleâs footsteps.
- The company that, before right this second, I was convinced was called âAdvancedâ Auto Parts delivered disgusting earnings that made traders sick and Ford cry. Wall Street wanted a nice $1.69/sh with $156mn in operating income on $2.7bn. AAP said, âThe best I can do is $1.43 with $134mn⦠but weâll get your $2.7bn.â
- Basically, the takeaway here is that, apparently, consumers do not have infinite money to constantly waste on car upgrades. If that means fewer engine-revving douchebags trying to be the most obnoxious person in a 10-mile radius, weâre here for it.
- But not if weâre auto shareholders. The company cut guidance as well, citing weaker demand for discretionary purchases as a bad omen to car makers like Ford, GM, and whatever the hell the other non-Tesla ones are. Thought Banana Stay Negative For an index built on optimism, there wasnât a whole lot of it to go around last month, at least for small businesses. As that fast-talking, whatâs-his-name that always pops up on YouTube Shorts says, facts donât care about your feelings. But today, weâre going to talk about the feelings of small businesses. The NFIB Small Business Optimism Index is a monthly indicator seeking to measure the optimism (or lack thereof) of small businesses across the country through a survey inquiring on 10 seasonally adjusted components including: [image] [Source]() "... onlookers were somewhat taken aback by the magnitude, falling to 91.3 from 91.9." Last month, optimism fell for the first time since the spring and below economists' expectations. While itâs no surprise that economists got something wrong, given that this was the first drop since March, onlookers were somewhat taken aback by the magnitude, falling to 91.3 from 91.9. Now, for the past 20 months, the index has sat below the 49-year average reading of 98. Inflation continues to be the biggest problem for these troopers, but at the same time, apparently, weâre not qualified enough for them. Small businesses, as measured by size, independence, ownership, geographic focus, and entrepreneurial nature (whatever that means) employ roughly 50% of the U.S. workforce. Becoming an even larger problem for them is finding qualified employees. Better start working on those forklift certifications, apes. While survey-based, this is one of those rare surveys that might actually have some value. Economic outcomes are often dependent on plans made weeks, months, and years before. "In August, clearly, the optimism was lacking. Negativity reigned as we got our last little bit of summer travel and other pandemic-delayed demand out of the way ..." Plans are made based on expectations, so asking businesses, the ones actually making those future investments, how they expect that future will be might give us a bit more of a glimpse into the future that weâre used to from surveys. In August, clearly, the optimism was lacking. Negativity reigned as we got our last little bit of summer travel and other pandemic-delayed demand out of the way, so going forward, expectations arenât great. Ironic what a pandemic can do to you, huh? The big question: Will small businesses slow their hiring and help JPow actually win this war against inflation? Banana Brain Teaser Yesterday â If you flip 5 coins and they all come up heads, what is the probability that the 6th coin will be heads? Answer 1/2. The other flips have nothing to do with the 6th coin flip. Today â 14,500 people are sitting in a stadium. One of them is picked out. What are the chances that that person's birthday is on a Sunday? Shoot us your guesses at vyomesh@wallstreetoasis.com. Wise Investor Says âThe desire for constant action, regardless of underlying conditions, is responsible for many losses in Wall Street.â â Jesse Livermore How would you rate todayâs Peel? [All the bananas]() [Decent]() [Rotten AF](=) Happy Investing, Patrick & The Daily Peel Team Was this email forwarded to you? [Be smart like your friend](=). [ADVERTISE]( // [WSO ALPHA]() // [COURSES]( // [LEGAL](=) Don't want The Daily Peel? [Unsubscribe here](. Click to [Unsubscribe]( from ALL WSO content IB Oasis Corp. (aka "Wall Street Oasis")
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