(Sherwood Media/Datawrapper) |
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An uncanny effect of President Trump's tariffs on steel and aluminum may be that fewer actual cans are made, as costs would creep up. That's not worrying Coca-Cola, which said it would just shift to putting more of its beverages in plastic.
A hot inflation report caused a deep knee-jerk sell-off in stocks, but major indexes managed to recover much, if not all, of those losses. The S&P 500 finished down 0.3%, the Nasdaq 100 gained 0.1%, and the Russell 2000 lagged with a 0.9% decline. See our main story for more egg-splanation on the CPI effects. |
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Market got egged in the morning, cleaned itself up by midafternoon |
Stocks stumbled yesterday, with many indexes taking a midmorning plunge before recovering most of their losses over the course of the day. The cause of that? A developing realization that rate cuts ain't coming any time soon. The cause of that? A CPI report that came in with inflation running higher than expected. The cause of that? Eggs, mainly. Not even crypto was immune from the ova reaction, with the price of bitcoin diving sharply after the report dropped. This then revived the hearty debate of whether bitcoin is an inflation hedge, an intellectual exercise that distracted traders and presumably wasted enough time for the price of bitcoin to stabilize anyway, and at pretty much exactly the same price it held just before the report. Either way, the CPI report certainly gave investors pause for a few reasons: |
- The egg shock is big: the price of eggs is up 53% year over year, which is tough to stomach and will have implications for the cost of raw materials across the grocery and food service business.
- Disinflation — a decline in the rate of inflation, which is different from deflation but still very important — had begun in the summer of 2022, only to slow down around the summer of 2023. This inflation pop means that disinflation is pretty much well and truly done.
- Some policies advocated by the White House may have inflationary side effects, so many had been banking on a little wiggle room in the inflation rate to see those policies (like tariffs) through. We may not be so lucky.
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Inflation, which has infuriated consumers for years and served as the bane of elected leaders the world over, has investors spooked. Whether this is a one-off month or just the beginning, if anything it means the Fed's not expected to touch that dial until September at the earliest. |
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The Future of Weather Intel, Trusted by 15M Users |
With 15M+ users, MyRadar will be taking AI to space with a planned 100+ satellite constellation… and major government and enterprise contracts already secured. What sets MyRadar apart? 📡 Next-Gen Satellite Network in Development– real-time wildfire detection & global hazard tracking. 🌪 Patented AI Forecasting – improved predictions of fire & smoke spread before disaster strikes. 🌎 Real-World Impact – positioned in a $317B+ expanding SaaS market (expected to hit $1.2T by 2032). 🏛 Government & Enterprise Backing – U.S. Air Force & Naval Research contracts, plus a major insurance carrier partnership. 📣 Innovation Recognized — MyRadar recently joined Android's Early Access Program, meaning it can be used in cars with built-in Google technology. Now, there's an opportunity to become a MyRadar shareholder and be part of its mission to revolutionize climate intelligence. The future of weather tech starts here — invest now.1 |
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The Future of Weather Intel, Trusted by 15M Users |
With 15M+ users, MyRadar will be taking AI to space with a planned 100+ satellite constellation… and major government and enterprise contracts already secured. What sets MyRadar apart? 📡 Next-Gen Satellite Network in Development– real-time wildfire detection & global hazard tracking. 🌪 Patented AI Forecasting – improved predictions of fire & smoke spread before disaster strikes. 🌎 Real-World Impact – positioned in a $317B+ expanding SaaS market (expected to hit $1.2T by 2032). 🏛 Government & Enterprise Backing – U.S. Air Force & Naval Research contracts, plus a major insurance carrier partnership. 📣 Innovation Recognized — MyRadar recently joined Android's Early Access Program, meaning it can be used in cars with built-in Google technology. Now, there's an opportunity to become a MyRadar shareholder and be part of its mission to revolutionize climate intelligence. The future of weather tech starts here — invest now.1 |
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Much of the discourse around "private burrito taxi" economics, which crops up every six months when people get really bored on X, suggests that the companies bringing us our expensive (but convenient) goods must be making a fortune from our everything-now appetites. In reality, most of these companies have been losing money, and a lot of it — until now. |
- After racking up hundreds of millions in losses since going public in 2020, DoorDash just reported $123 million of net income for 2024. That said, after the restaurants, shops, and drivers took their share of the figure, DoorDash still operated at a $38 million loss through the year. Even in Q4 specifically, when the company did turn an operating profit, it was pretty miniscule, at just over 4% of revenues. All of this begs the question: who, or what, is devouring DoorDash's profits? Here's a handy Sankey diagram showing the answer.
- Meanwhile, Lyft, an early entrant to the rideshare scene, just eked out a $23 million profit, its first full year of profitability ever. Next up is Instacart, which reported three consecutive profitable quarters in 2024 and will report Q4 earnings on February 25. Analysts are betting on the grocery shopping service to bag a good year.
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After years of waiting, the gig economy is finally paying off. The game plan for these companies has essentially been to ride out the pain of high debt and operating costs, sometimes heavily subsidizing operations with discounts, until their platforms become so ubiquitous that the revenue starts to make up for it. Uber, which offers both rides and food delivery, had its first profitable year in 2023. So did short-term home rental platform Airbnb. All told, consumers spent more than $250 billion on Uber, Lyft, and DoorDash in 2024. |
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Shoppers are increasingly just going where they know they'll end up anyway: Amazon. |
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Yesterday's Big Daily Movers |
- CVS crushed earnings, beating Wall Street estimates of earnings per share and revenue. The stock ended the day up 15%.
- Alibaba stock jumped nearly 5% after a report came out that it's partnering with Apple to develop AI features.
- Arista, a California-based computer networking company, was one of the biggest losers of the day, falling over 6%.
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- Five years after Covid, most Americans say the pandemic drove the country apart
- Monty, a giant schnauzer, won Best in Show on Tuesday, but our favorite part of the Westminster Dog Show is all the great photos
- Private school tuition hits all-time high with day schools averaging $50,000 per year
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Trump has ordered the Treasury to stop minting pennies, which cost more to make than they're worth. But how much does it cost to produce and distribute a nickel? |
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- January Producer Price Index
- Earnings expected from Deere, PG&E, Crocs, CBRE Group, DraftKings, Coinbase, Airbnb, Roku, Sony, and Palo Alto Networks
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Advertiser's disclosures:
1 This is a paid advertisement for ACME AtronOmatic, Inc.'s Regulation A+ Offering. You should read the Offering Circular and Risks related to this offering before investing. This Reg A+ offering is made available through StartEngine Primary, LLC, member FINRA/SIPC. In addition, as described in the Offering Circular, the Company retains the right to continue the offering beyond the Termination Date, in its sole discretion. This was a paid for ad. Sherwood Media has been compensated for this ad by the AcmeAtronomatic Reg A+ Campaign hosted on StartEngine. Investing in private company securities is not suitable for all investors because it is highly speculative and involves a high degree of risk. It should only be considered a long-term investment. You must be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid, and there is no guarantee that a market will develop for such securities. |
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Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... See more |
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