In partnership with | | The Week Ahead Of Us 🔍 | Welcome back! | It's been an ugly stretch in the market as solid jobs numbers further drove the shift in the market's base case from "a couple rate cuts" to "no rate cuts" to "is it possible we see rates rise?" We generally thought the Fed had successfully executed a soft landing and could normalize the federal funds rate, but the path forward in 2025 is now a lot less clear due to sticky inflation and solid growth & employment. The S&P 500 was -1.5% and Nasdaq was -1.6% on Friday, with the 10-year treasury jumping up from 4.62% to 4.76% over the past week. S&P and Nasdaq futures are down slightly to start the week. | Some of the earnings we expected got pushed back to this week, so here's an updated look at this week's kickoff of earnings season. | Monday: KB Home Wednesday: JP Morgan, Wells Fargo, BlackRock, Citigroup, Charles Schwab, Kinder Morgan Thursday: Taiwan Semi, UnitedHealthcare, Bank of America, Morgan Stanley, PNC, M&T Friday: Truist, Schlumberger, Fastenal, State Street, Regions Financial, Citizen Financial
| Here's a look at economic data this week. | Tuesday: Dec. PPI (0.3%), Core PPI Wednesday: Dec CPI (0.3%), CPI y/y (2.9%), Dec Core CPI (0.2%), Core CPI y/y (3.3%) Thursday: Initial Jobless Claims (210k), Dec. U.S. Retail Sales (0.4%) Friday: Dec. Housing Starts (1.32mm), Dec. Building Permits (1.46mm)
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| All powered by automation. All under one roof. | Offer your portfolio finance leaders 20x higher lines of credit, customizable spend controls, and streamlined workflows to make their lives, and your lives easier. | | | Earnings Corner 📜 | Trending Up 📈 | Delta Airlines reported 4Q earnings of $1.85 per share, a 44.5% increase y/y, surpassing expectations of $1.75. Revenue rose 9% to $15.56 billion, exceeding the anticipated $14.2 billion. CEO Ed Bastian attributed the success to strong demand and a favorable industry environment. International passenger revenue increased by 6%, led by trans-Atlantic flights. For 2025, Delta anticipates earnings above $7.35 per share, indicating over 10% EPS growth. The airline forecasts FCF above $4 billion, expecting to average between $3 billion to $5 billion annually over the next three to five years. Following the announcement, Delta's stock surged 9%. | | Today's Headlines 🍿 | Jobs of 265k beat expectations of 165k, while unemployment of 4.1% fell from 4.2%. On Friday, stocks plunged on the good news (Dow down 697 points, S&P down by 1.5%, and Nasdaq by 1.6%) as expectations of further rate cuts weakened TikTok is likely to shut down on Jan 19th. On Friday, SCOTUS heard arguments pitting free speech vs national security. Chief Justice John Roberts and the rest of the Court were concerned that TikTok's Chinese owners would be required to cooperate with intelligence operations coordinated out of Beijing. However, Trump will be inaugurated in office on January 20th, and may have a change of heart The California wildfires caused $135-150B in damage. The natural disaster in LA, which has killed at least 16 people and destroyed thousands of buildings, could be the costliest in U.S. history. The situation is ongoing and you can get live updates here Banking bonuses are on the rise: For Bank of America traders and bankers, bonuses will rise on average by 10%, while MS and JP Morgan bonuses for traders will too. Bankers at JPM will see their bonuses up 15%, and Goldman traders are expected to see even bigger bumps Bank of America says the Fed is done cutting rates and there is rate hike risk ahead. Alongside Citigroup and Goldman Sachs paring back their forecasts, BofA economists shared that "After a very strong December jobs report, we think the cutting cycle is over" Warren Buffett is preparing his middle-child, Howie, to succeed him as nonexecutive chairman of Berkshire Hathaway NAV Loans are facing a pullback. PE is starting to use NAV loans less, primarily due to pushback from LPs. Criticism of NAV loans centers around use of proceeds and the increase in leverage, with many LPs preferring to get their money back given the challenging environment The IMF is planning to do a deep-dive on PIK financing. PIK, aka Payment-in-kind-financing has been growing in use given the higher interest rate environment, and is drawing regulatory scrutiny due to the higher debt load it creates Venu Sports has been cancelled: The potential sports JV between ESPN, Fox, and Warner Bros. Discovery has been called off. This follows the merger of Disney's Hulu w/ Live-TV and Fubo, but comes as DirecTV and Dish had outstanding litigation on the Sports JV The UFC is reportedly seeking a $1B sports rights deal, more than double what ESPN currently pays. The MMA league's contract with ESPN expires at the end of 2025 Blue Origin's newest flagship rocket is set to debut as soon as Monday. Originally scheduled for launch in 2020, the flight will mark a major milestone in Bezos' attempts to compete with SpaceX which has achieved far greater advancement in launch capabilities Joann, an arts & crafts retailer, is evaluating bankruptcy for the 2nd time in a year. Lenders took control of the company last year, but a weak consumer environment and high costs have drained cash Golub is marketing an evergreen credit fund, with key LPs such as the Chicago Teacher's Fund and Cincinnati Retirement System looking to invest in evergreen private credit funds KKR is weighing a $8.5B sale of U.K. recycling firm Viridor. The news comes amidst a wave of activity in the waste management space. Apollo and BC Partners agreed this past week to acquire a stake in GFL Environment Inc.'s environmental services unit, while Macquarie has begun pursuing a ~$800mm acquisition of WM operator Renewi Plc Chick-fil-A's lemon-squeezing robots are saving the company 10,000 hours of tedious work a day, a promising sign of what automation can do for restaurant chains Zuckerberg went on Joe Rogan, slamming Apple for its lack of innovation and the Biden Admin for pushing Orwell-esque censorship. The same week he ended Meta's DEI programs, Zuck declared "It's like Steve Jobs invented the iPhone, and now they're kind of sitting on it 20 years later" The first criminal conviction of a U.S. President: Trump was sentenced without penalty in the New York hush money case. Judge Juan Merchan ruled that Trump would not face jail time or fines but declined to erase the jury verdict
| | A Message from Wall Street Prep | Master Buffett-Inspired Investing Techniques to Build Long-Term Wealth | The 8-week online Applied Value Investing Certificate Program from Wharton Online and Wall Street Prep teaches proven frameworks for identifying undervalued stocks using strategies employed by top hedge funds and institutional investors. Enroll by January 13th and save $200! | Learn More | | M&A Transactions💭 | Calpine, provider of electricity generation services, has reached a definitive agreement to be acquired for $30.0B by Constellation Energy (NAS: CEG). | The Renewable Energy Business of Algonquin Power & Utilities was acquired by LS Power Group for $2.5B. J.P. Morgan advised on the sale. | Syclef, provider of installation and maintenance of industrial and commercial refrigeration systems, was rolled into the continuation fund Ardian Continuation Fund from Ardian Expansion Fund V through a $552.04M deal. Lazard advised on the deal. | Poseida Therapeutics (NAS: PSTX), a clinical-stage biopharmaceutical company, was acquired for $1.5B by Roche (SWX: ROG). EV/Revenue was 9.94x. Centerview Partners advised on the sale. | Bauer Media Group reached a definitive agreement to acquire The European-North Segment of Clear Channel Outdoor (NYS: CCO) for $625.0M. EV/Revenue was 6.44x. Deutsche Bank and Moelis & Company advised on the sale. | CCM Hockey, manufacturer of hockey equipment, was acquired for $415.02M by Altor Equity Partners, Northleaf Capital Partners, and its management. EV/EBITDA was 5.53x. Robert W. Baird & Co advised on the sale. | ESSA Bank & Trust (NAS: ESSA), a holding company, engaged in accepting deposits from the general public and investing those deposits, has reached a definitive agreement to be acquired for $214.263M by CNB Bank (CCNE). EV/Net Income was 12.61x and EV/Revenue was 3.22x. PNC Capital Markets advised on the sale. | Alliance Pharma (LON: APH), a player in the healthcare market, has entered into a definitive agreement to be acquired for $438.79M by DouglasBay Capital. Evercore Group advised on the sale. | Private Placement Transactions💭 | Whatnot, developer of live stream platform, raised $265.0M of Series E venture funding led by DST Global, Greycroft, and Avra at a pre-money valuation of $4.74B. | Tenvie, developer of a biotechnology platform, raised $200.0M of venture funding led by ARCH Venture Partners. | LetsGetChecked, developer of a medical health testing platform, raised $165.0M of venture funding from undisclosed investors. | Infinite Reality, developer of an innovation company, raised $3.0B of venture funding from undisclosed investors at a pre-money valuation of $9.25B. | Geneoscopy, developer of a diagnostics technology, raised $105.0M of Series C venture funding led by BioRad Laboratories. | Aspect Biosystems, developer of a full-stack therapeutics platform, raised $115.0M of Series B venture funding led by Dimension. | XOCEAN, provider of ocean data services, raised $119.78M of venture funding led by CC Industries, Climate Investment, and S2G Ventures. | Verdiva Bio, operator of a cardiometabolic health company, raised $410.0M of Series A venture funding led by General Atlantic and Forbion. | Numab, operator of a biopharmaceutical company, raised $200.24M of Series C venture funding led by Novo Holdings, Cormorant Asset Management, and HBM Partners. | Innovaccer, developer of a healthcare data technology platform, raised $275.0M through a combination of Series F-1 and Series F-2 venture funding led by Kaiser Permanente at a pre-money valuation of $3.18B. | Hippocratic AI, developer of a healthcare platform, raised $141.0M of Series B venture funding led by Kleiner Perkins at a pre-money valuation of $1.5B. | Windward Bio, operator of a drug development company, raised $200.0M of Series A venture funding led by Novo Holdings, OrbiMed, and Blue Owl Capital. | Timberlyne Therapeutics, operator of a biopharmaceutical company, raised $180.0M of Series A venture funding led by Bain Capital Life Sciences, Venrock, and Abingworth. | Ouro Medicines, developer of a therapeutics platform, raised $120.0M of Series A venture funding led by TPG Life Sciences Innovations, Nea, and Norwest Venture Partners. | | Odds of the Day 🍒 | Prompt | Kalshi traders are expecting a 2.9% y/y increase in CPI inflation: | | New Traders on Kalshi receive a $20 bonus of trading credit when depositing $100+ with the code "HYH". | | Noteworthy Chart 🧭 | A look at the valuation of companies who could potentially IPO later this year: | | | | Meme Cleanser 😆 | |  | The Klendathu Cap @KlendathuCap |  |
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|  | High Yield Harry @HighyieldHarry | |
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"Yeah my mortgage is 7.5% but I can just refinance later." | |  | | | 2:05 PM • Jan 10, 2025 | | | | | | 6.65K Likes 281 Retweets | 155 Replies |
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