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  • 🦢Black Swan Street Weekly Stock Market Summary (Jan. 22nd - Jan. 26th 2023)

🦢Black Swan Street Weekly Stock Market Summary (Jan. 22nd - Jan. 26th 2023)

Netflix and WWE $5 billion deal, U.S. housing market in trouble, SEC uncovers details on 'X' hack, and Boeing is in even more trouble...

Black Swan Street stock market newsletter stock market summary

Welcome to Black Swan Street!

Welcome back!! It’s @JohnWetter here with another edition of Black Swan Street…

This week was crazy. Lots to talk about, so let’s get straight into it:

  • Netflix Goes All In On Wrestling🤼‍♂️

  • 2023 Home Sales Weren’t Good🏠

  • The Swan’s Picks🦢

  • In Other News🗞

  • Next Week In The Stock Market🔮

Read time: 8 minutes

Netflix Goes All In On Wrestling🤼‍♂️

Netflix WWE Raw Acquisition

What happened? Netflix (NFLX) announced that the streaming platform will air WWE’s flagship program “Raw” starting next year. Raw is a professional wrestling program for the WWE, which is owned and operated by TKO Group Holdings (TKO).

Why is this important? This transition to Netflix marks a historical moment in live sports. Raw is currently the No. 1 show on USA Network and brings in 17.5 million unique visitors over the course of a year.

Not only is Raw leaving linear television for the first time since its inception 31 years ago, but this marks Netflix’s first major move into live sporting events.

What’s the terms? According to a regulatory filing, TKO said the 10-year deal is worth over $5 billion. Plus, Netflix has an option to extend the agreement for another 10 years.

… And Wall Street loves this move:

  • Netflix (NFLX) shares finished the week gaining +18.11%

  • TKO Group Holdings (TKO) shares finished the week gaining +11.59%

Is this the future of live sports?

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2023 Home Sales Weren’t Good🏠

What’s the deal? According to the National Association of Realtors, existing U.S. home sales totaled 4.09 million in 2023. This marks an -18.7% decline from 2022 and the weakest year for home sales since 1995.

NAR 2023 Home Sales Data

Why’s this happening? The main cause behind this is obviously the mortgage rates. The average 30-year fixed mortgage is currently sitting around ~6.6%, up massive from the 2021 lows of ~3%.

Chart of average mortgage rates

Also to note: The median sales price in 2023 hit a historical high of $389,800.

Pair historically high housing prices with high mortgage rates, and you get a stagnant real estate market.

The Swan’s Picks🦢

🇦🇺Australia Says Bye-Bye To “Golden Visa” Policy. The immigration program that allowed wealthy overseas investors the right to live in the country if they invested more than $3.3 million in Australia is now gone. This policy was originally designed to attract foreign business to the country. It was announced that Australia would scrap it and “focus instead on creating more visas for skilled migrants capable of making outsized contributions to Australia.”

👨‍🎨Canva Eyes $1.5 Billion Share Sale. Everyone’s favorite design software, ‘Canva’, is close to completing a share sale that’s set to raise more than $1.5 billion at a $26 billion valuation. Click here to read more about Canva’s insane growth over the past couple years.

📊SEC Uncovers Details On ‘X’ Hack. Two weeks ago, the official Securities and Exchange Commission (SEC) X account was hacked, which led to a tweet that basically said the SEC granted approval for Bitcoin ETFs for listing on all registered national securities exchanges. This led to the price of Bitcoin spiking more than $3,000. If you’re like me and wondering how something like this is even possible, well the details are in. The SEC said a SIM swap attack was to blame for the breach of its official account on X.

🛩️Boeing’s In The Trenches. Two weeks ago in Black Swan Street, we covered the Boeing plane incident that led to a door-sized hole in the side of the plane and an emergency landing. We also mentioned how this incident might lead to long-term trust issues for Boeing and their partnerships. Well, we were right. Alaska Airlines and United CEOs both raised concerns about the aircraft maker this week. Boeing shares have declined -24% over the past month.

🏈The Call Up To The Big Leagues. Former Michigan coach and national champion Jim Harbaugh has decided to leave Michigan and become the new head coach for the Los Angeles Chargers.

In Other News🗞

  • Elon Musks ‘xAI’ secures $500 million in commitments, closer toward $1 billion funding goal - BBG

  • Why is there a new global race to the moon - CNBC

  • Ocean shipping rates surge as Red Sea attacks continue - WSJ

  • Ron DeSantis ends 2024 campaign, endorses Trump over Haley - RT

  • Macy’s rejected a $5.8 billion takeover bid from Arkhouse Management and Brigade Capital Management - YF

  • Spirit Airlines and JetBlue Airways are appealing a federal judge’s decision to block JetBlue’s $3.8 billion acquisition of the ultra-low-cost carrier - CNBC

  • China weighs stock market rescue package backed by $278 billion - BBG

  • U.S. gas station owner ‘Sunoco’ to acquire pipeline and fuel storage company ‘NuStar Energy’ for $7.3 billion in an all-stock deal - RT

  • Apple dials back car’s self driving features, delays launch to 2028 - BBG

  • Johnson & Johnson to settle talc baby powder investigation, will reportedly pay $700 million - CNBC

  • Alibaba gains as Jack Ma, Joe Tsai buy $200 million in stock - BBG

  • SEC imposes new rules on blank-check deals - BBG

  • Tesla projects slower growth in 2024 as EV demand softens - WSJ

  • U.S. GDP grew 3.3% last quarter - BBG

  • Microsoft lays off 1,900 jobs in gaming, including at Activision - BBG

  • Salesforce laying off 700 workers - WSJ

Next Week in the Stock Market🔮

Earnings To Watch:

Earnings to watch

What the Swan is watching:

Monday: SoFi, Royal Philips

Tuesday: Pfizer, General Motors, UPS, JetBlue, AMD, Microsoft, Google, Starbucks

Wednesday: Boeing, Mastercard, Novo Nordisk, Phillips 66, Qualcomm, MetLife, Aflac

Thursday: Altria, Royal Caribbean, Cardinal Health, Peloton, Merck, Amazon, Apple, Meta

Friday: ExxonMobil, Chevron, AbbVie, Cigna, Bristol Myers Squibb

Economic Calendar Next Week:

Economic Calendar

The Wrap-Up🔄

🎊🎉 That’s it for this week 🎉🎊

Quick reminder: Follow my X/Twitter @theJohnWetter, if you want real-time market and economic analysis. I’ll be moving everything from the Black Swan Street Twitter to my personal account going forward.

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