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  • 🦢Black Swan Street Weekly Stock Market Summary (Jan. 15th - Jan. 19th 2023)

🦢Black Swan Street Weekly Stock Market Summary (Jan. 15th - Jan. 19th 2023)

United States debt hits scary levels, the airline industry in trouble again, Reddit plans IPO, Ozempic prices are rising...

Black Swan Street stock market newsletter stock market summary

Welcome to Black Swan Street!

stock market performance

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

All 3 major market indices are in all-time high territory, it’s getting crazy. So, let’s get into it:

  • Tragedy Continues In The Airline Industry🛩️

  • United States Debt Reaches Scary Levels💸

  • The Swan’s Picks🦢

  • In Other News🗞

  • Next Week In The Stock Market🔮

Read time: 6 minutes

Tragedy Continues In The Airline Industry🛩️

The Budget Airline Monopoly? Back in July 2022, JetBlue Airways reached a deal to buy Spirit Airlines in a deal that would create the nation’s fifth-largest airline - controlling a market share of more than 10 percent.

Present Day. The U.S. District Court said h*ll no. A federal judge blocked JetBlue’s planned $3.8 billion acquisition of Spirit Airlines due to “competition concerns and harm to consumers."

This brings trouble for Spirit, as their last profitable year was back in 2019. Airline analyst, Helane Becker, said the airline carrier could look for another buyer, “but a more likely scenario is a Chapter 11 filing” - aka bankruptcy.

What Now? Airlines are a low-margin, capital intensive industry that provide many challenges for companies looking to restructure. This acquisition attempt from JetBlue might’ve been Spirit’s last chance at survival. Only time will tell.

  • Spirit Airlines (SAVE) shares finished the week declining -56.02%

  • JetBlue Airways (JBLUE) shares finished the week declining -3.67%

United States Debt Reaches Alarming Levels💸

Current Debt Situation. The United States’ public debt just surpassed $34 trillion for the first time ever. This is a ~50% jump in U.S. debt since the pandemic.

In fact, the United States has already added another $200 billion in Federal debt over the last 3 weeks. Also to note: In the third quarter alone, the U.S. deficit totaled $622 billion.

Interest Expense. The United States is now on track to hit $1.05 trillion in annual interest expense. Keep in mind: Annual interest expense was less than $500 billion just two years ago.

Do you think the United States debt situation is a big deal?

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The Swan’s Picks🦢

⚡️Elon Musk Is Power Hungry: “I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control” is what the Tesla CEO was quoted saying this week. Currently, Musk owns about ~13% of Tesla. Note: Musk sold tens of billions of dollars worth of Tesla in 2022 to finance the leveraged buyout of Twitter.

🚘Uber’s Failed Acquisition: Three years ago, Uber acquired alcohol delivery service ‘Drizly’ for $1.1 billion. This week, Uber announced the decision to shut Drizly down. This decision comes after a massive data breach that led to the FTC stepping in - Read the full story here.

💊Middle-Aged, Upper-Middle-Class Women Panic: Pharmaceutical companies are hiking prices for more than 700 medications, including the popular weight-loss drugs ‘Ozempic’ and ‘Mounjaro’. Ozempic and Mounjaro are two drugs that belong to a class of medications called ‘GLP-1 agnoists’ that have been gaining increasing popularity among people, which have led to shortages.

💰Reddit Chases The Bag: Reddit is seeking to launch an IPO this March. The social media company was last valued at ~$10 billion back in 2021. This would mark the first IPO of a major social media company since Pinterest’s debut in 2019.

In Other News🗞

  • Trump wins the Iowa Caucus - WSJ

  • Deflation worries deepen in China - WSJ

  • BlackRock to acquire infrastructure investor ‘Global Infrastructure Partners’, which has $106 billion in AUM, in a $12.5 billion cash-and-stock deal - CNBC

  • Chinese fashion retailer ‘Shein’ is seeking China’s permission for a U.S. IPO; the company was valued at $66 billion in a fundraising in May - RT

  • JPMorgan to pay $18 million for whistleblower protection violations - WSJ

  • Apple again banned from selling watches in U.S. with blood oxygen sensor - CNBC

  • Knicks owner ‘James Dolan’ accused of sexual assault - WSJ

  • Wall Street banks sell $23 billion of bonds after earnings - BBG

  • Tesla to showcase Cybertruck on China tour - RT

  • Macy’s to cut abou 2,350 jobs, close five stores - WSJ

  • Senate passes bill keeping government funded into March - WSJ

Next Week in the Stock Market🔮

Earnings Calendar Next Week:

Earnings Calendar

What the Swan is watching:

Everything. As you can see, this upcoming week is a big one for earnings.

Economic Events Next Week:

Economic Events

The Wrap-Up🔄

🎊🎉 That’s it for this week 🎉🎊

Quick reminder: Follow my 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.

Black Swan Street Review of the Week🖤

Black Swan Street review

This was a review from last week’s newsletter. And as you saw from this week, we brought back the earnings calendar. We cater to what you want. So, let us know what you think by answering the poll below.

Very important: Let our team know what you thought about this week’s edition of Black Swan Street 

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