?? 24 March 2023 - Apple, Chewy, & Block Inc.

Happy Friday, everyone! ??

Before we wrap up our busy week and spend quality time with the ones we love, let us round off the week with this quick and informative stock market newsletter!?

Stocks rallied on Thursday, reversing losses from the Fed’s quarter-point-hike.The Dow gained 0.2%, the S&P 500 rose 0.3%, and the tech-heavy NASDAQ increased by 1%.?

As investors grappled with conflicting statements from Fed Chair Jerome Powell and Treasury Secretary Janet Yellen, the banking crisis continued to weigh on regional bank stocks. Central banks in Britain, Switzerland, and Norway raised interest rates following the Fed’s move.?

Unemployment filings maintained their ground last week, according to reports released on Thursday – reflecting a resilient labor market despite mounting layoffs. The Treasury yield curve remains inverted, with the 10-year note yield settling at 3.406%. The WTI crude index hovered around the $70 a barrel mark.?

Keep reading to learn more!

Apple prepares to bring movies to the big screen with a $1 billion annual investment

According to reports, Apple (AAPL) is working on a $1 billion yearly investment to make and run movies in theaters. The iPhone maker hopes to bolster its Apple TV+ customer base and make a name for itself in the entertainment industry. Apple is reportedly meeting with Hollywood studios to release films like “Napoleon”. Theater stocks surged on the news. The company’s Apple TV+ branch reeled in $20.77 billion in the first quarter of this year and aims to grow these numbers with its investment in film!

Chewy faces cost pressures in the fourth quarter; shares fall over 7% following earnings report

Pet food and supplies company Chewy (CHWY) reported fourth-quarter financials that topped analyst estimates on most fronts, but investors were not convinced. Revenue stood at $2.71 billion – up 13.4%, with earnings per share at 1 cent. Although both statistics topped expectations, the company predicts a growth slowdown (10-12%) in the face of rising costs. Last month, pet food prices were 15.2% higher than in 2022. Although the company upholds profitability, shares were pulled down by Petco’s (WOOF) disappointing guidance.

Hindenburg Research accuses Block of unlawful behavior; shares drop 22%

Block Inc. (SQ) faced the heat from accusations that the company of tweaking user numbers and exploiting low-income customers. The Hindenburg research made the conclusions after a two-year investigation of its Cash App service. The report claimed that user numbers were faked with duplicate accounts and that the company used predatory loans and fees for profit. The report also claimed that much of the app’s growth during the pandemic was from facilitating suspect payments. Handling inflows of $203 billion in 2022 – the truth is bound to come out!