Bitcoin dives

Bitcoin takes a 9% dive, Walmart sales are surging, the inflation reduction act spurs $500 billion in investments, China’s dangers erupt with shadow bank crisis, and Goldmann plans a hiring spree…

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Market Briefing
August 18, 2023

☕️ Good Morning, and happy Friday.

Bitcoin takes a 9% dive, Walmart sales are surging, the inflation reduction act spurs $500 billion in investments, China’s dangers erupt with shadow bank crisis, and Goldman plans a hiring spree…

Here’s your market briefing for Friday:

BEFORE THE OPEN BEFORE

As of market close 8/17/2023.

MARKETS:

  • S&P 500 futures stable after 3-day declines.

  • Dow Jones futures up 11 points (0.03%); S&P 500 and Nasdaq 100 futures slightly down.

  • Applied Materials gains 2% after beating revenue and earnings expectations.

  • Ross Stores rises 5% in extended trading after surpassing Q2 forecasts.

  • Dow closes below 50-day moving average; Dow drops 0.84%, S&P 500 down 0.77%, Nasdaq falls 1.17%.

  • 10-year U.S. Treasury yield at October 2022 high after Fed hints at rate hikes due to inflation concerns.

  • Dow on track for worst week since March (-2.29%); S&P 500 and Nasdaq set for third straight weekly losses.

  • Dow Transports and Russell 2000 also on pace for worst weeks since March.

  • Palo Alto Networks to report earnings after Friday's close.

EARNINGS

What we’re watching:

  • Today: Palo Alto Networks (PANW)

  • Full earnings calendar here

NEWS BRIEFING

The flagship virtual currency fell sharply around 6 p.m. ET. Bitcoin was trading around $26,400 just before 7 p.m. The action came a few hours after WSJ reported that documents show SpaceX wrote down the value of its bitcoin holdings by $373 million last year and in 2021.

Morgan Stanley equity strategists Edward Stanley and Matias Øvrum have run the numbers for the past 20 years of crossover investing and found that the average VC fund doesn’t reliably outperform the average stock.

  • Fed, economists make course correction on US recession predictions (more)

  • Bond yield hits highest since 2008, adding pressure to borrowing costs (more)

  • US Dollar eases as markets digest hawkish Fed minutes (more)

  • US housing affordability hits worst point in nearly four decades (more)

  • China’s hidden financial dangers erupt with shadow bank crisis (more)

    • China’s Xi calls for patience as Communist Party tries to reverse economic slump (more)

    • China's state banks seen selling dollars for yuan in London and New York hours (more)

  • U.S. Steel takeover would threaten Pittsburgh's identity, historians say (more)

  • Walmart’s sales are surging (more)

  • Goldman plans hiring spree to fix lapses after increased Fed scrutiny (more)

  • Blue Shield of California taps Amazon, Mark Cuban’s Cost Plus Drugs for its pharmacy network (more)

  • Deerfield Academy is raising $89 million to build a dining hall (more)

  • Global smartphone market to hit decade low in 2023 (more)

  • Tyson Foods plans to sell China poultry business (more)

  • Peloton looks to jump-start growth by becoming a workplace perk (more)

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DEALFLOW

  • Aldi to acquire Winn-Dixie and Harveys Supermarket stores in Southern expansion (more)

  • BAE snaps up Ball's aerospace arm for $5.6B in its biggest deal ever (more)

  • Paramount drops plans to sell BET Media stake (more)

  • Intel terminates plan to buy Tower Semiconductor (more)

  • Seven US state officials oppose Kroger's proposed Albertsons acquisition (more)

  • ArcelorMittal weighs possible bid for US Steel (more)

  • Param, a Turkish FinTech company, acquired Czech BNPL provider Twisto (more)

  • Emerson, a technology and software company providing innovative solutions for the world’s essential industries, acquired FLEXIM Flexible Industriemeßtechnik GmbH, a company specializing in clamp-on ultrasonic flow measurement for liquids, gases and steam (more)

  • Kumospace, a provider of virtual office software for teams, acquired Kosy, a provider of innovative collaboration and communication software (more)

  • Tremec, a subsidiary of KUO, acquired Electric GT, Inc., a provider of plug-and-play EV conversion systems (more)

  • Emerson (NYSE: EMR), a technology and software company providing industrial solutions, acquired Afag Holding, a company specializing in electric linear motion, feeding and handling automation solutions (more)

  • Thomson Reuters Corporation (NYSE / TSX: TRI) announced today that it has closed on its previously announced acquisition of Casetext, Inc., a provider of technology for legal professionals, for a purchase price of $650M in cash (more)

  • Orbita, a provider of smart virtual assistants and workflow automation for healthcare, acquired Wellbe, a digital health company providing patient navigation for specialty care (more)

  • TradePending, a provider of a sales enablement and consumer experience software platform for car dealerships, acquired Snapcell, a SaaS automotive video marketing platform that helps car dealerships build trust and improve customer engagement through personalized video solutions (more)

  • DataTribe, a global cyber foundry that invests in and co-builds next-generation cybersecurity and data science companies, opened its call for applications for the 2023 Cybersecurity Startup Challenge (more)

  • Visana Health, a virtual-first comprehensive women’s health clinic, raised $10.1M in Seed funding (more)

  • ThirdLove, a women’s lifestyle brand that offers essentials including bras, underwear and activewear, received a $12M revolving credit facility (more)

  • Jinx, a dog food company, raised $17.85M in funding (more)

  • Highlight, an in-home product testing platform provider, raised $18M in Series A funding (more)

  • SportsVisio, an AI-powered software company bringing image-based and deep learning to the sports analytics space, raised $3M in Seed funding (more)

  • D’Amelio Brands, a new venture and cross-platform company, received a $5M strategic investment from Fifth Growth Fund (more)

  • Forever Feed Technologies, a developer of sustainable and enterprise scale automated indoor-growing feed mills, received a multimillion-dollar investment (more)

  • ProjectDiscovery, an open source security company, raised $25M in Series A funding (more)

  • Yard Stick, a soil carbon measurement technology company, raised $10.6M in Series A funding (more)

  • Micronotes, a financial technology company that leverages big data, artificial intelligence, and consumer engagement technologies, raised a $2M extension to its Series C funding (more)

  • Examinetics, a provider of occupational health compliance testing services, received an investment from Coalesce Capital and Freedom 3 Capital (more)

  • env0, a provider of Infrastructure as Code (IaC) workflow automation and management software, raised an additional $18.1M of funding to conclude its Series A investment round with a total of $35.1M (more)

  • WEVE Acceleration and Unfold.VC have announced a call for applications for the upcoming fall 2023 cohort of WEVE’s soft landing acceleration program (more)

  • Phospholutions, a developer of sustainable fertilizer technology, raised $10.15M in funding (more)

  • Demex, a provider of reinsurance solutions that address the accumulating losses caused by secondary perils, raised $5M in funding (more)

  • FantasyLife, a fantasy sports and sports betting media company, raised $2M in Friends and Family funding (more)

  • Caden, a data intelligence company, raised $15M in Series A funding (more)

  • Beamer, a provider of no-code product engagement tools, raised $20M in Equity funding (more)

  • ZetaChain, a developer of a public EVM-compatible L1 blockchain, raised $27M in funding (more)

  • HBC Immunology LLC, a majority owned subsidiary of Hofseth BioCare ASA, completed a seed capital financing of approx. $900K at a valuation of $20M (more)

  • AK Masonry, a local masonry and concrete contractor specializing in municipal and commercial building projects, received a multi-million-dollar investment from Maddix Capital, a growth-stage private equity firm (more)

CRYPTO

  • Cryptocurrencies tainted by SEC lawsuits are seeing an increase in trading (more)

  • Circle criticizes crypto rirms that ‘counterfeit US dollars’ (more)

  • Bitcoin bulls risk trading range loss as BTC price nears 2-month lows (more)

  • Crypto long trades account for 90% of total liquidations as Bitcoin, Ether slump (more)

BULLISH BITES

👷🏼‍♂️ How U.S. Steel Became an Acquisition Target…
U.S. Steel Corp (X.N) attracted acquisition interest after short-term challenges, including upgrading furnaces and potential car production shutdowns, weighed on its valuation, according to people familiar with the deliberations of its suitors. Here's how it all unfolded...

🌭 Sam’s Club’s War Against Costco Started with $1.38 Hot Dog Combo…
In November, Sam’s Club took aim at one of the most iconic prices in US retail. No longer would the membership warehouse chain match Costco Wholesale Corp.’s $1.50 hot-dog-and-soda combo. Instead, Sam’s Club said, it would charge just $1.38. The price cut tapped the rival’s playbook of targeting upscale shoppers to expand its business again.... (continue reading)

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