Wall Street End of the Week: Key Aspects

Posted on December 21, 2024December 21, 2024 by Ignacio Teson

Stocks advanced on Friday as a softer-than-expected inflation reading and dovish comments from Federal Reserve officials eased concerns over interest rates.

The three major Wall Street indices rebounded after two consecutive sessions of losses. The Dow Jones Industrial Average, comprising 30 blue-chip stocks, rose 1.18% to 42,840.26 points. The [[SPX]] 500 gained 1.09% to 5,930.85 points, while the tech-heavy Nasdaq Composite climbed 1.03% to 19,572.60 points.

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The Personal Consumption Expenditures (PCE) price index increased by 0.1% in November, below the 0.2% expected by analysts. The core PCE index, which excludes volatile food and energy prices, also rose 0.1%, compared to the anticipated 0.2%. On an annual basis, the PCE inflation rate stood at 2.4%, slightly lower than the 2.5% forecast.

Following the data release, traders raised their bets on rate cuts for 2025, now anticipating the first cut in March and a second in October. Prior to the data, there was only a 50% probability of a second cut occurring by December 2025, according to the CME FedWatch Tool.

Federal Reserve Policy

Earlier this week, the Federal Reserve implemented its third rate cut of the year but reduced its forecast for 2025 to just two quarter-point cuts, down from the four predicted in September. The adjustment reflects expectations of a resilient economy and persistent inflationary pressures.

The Fed’s announcement on Wednesday triggered a sell-off, which extended into Thursday. Despite Friday’s rally, all three major indices posted weekly losses. The Dow Jones fell 2.25%, the S&P 500 declined 1.99%, and the Nasdaq dropped 1.78%.

UnitedHealthcare CEO Alleged Killer Arrested

Posted on December 10, 2024 by Olumide Adesina

University of Pennsylvania graduate Luigi Mangione was detained by Altoona police Wednesday morning after officers confronted him at a McDonald’s and found a pistol, a silencer and seven 9mm full metal jacket rounds, multiple fake IDs, and a U.S. passport in his backpack, authorities said.

The 26-year-old American identified as a “strong person of interest” in the killing of UnitedHealthcare CEO Brian Thompson in New York was denied bail as he was arraigned Wednesday evening in a Pennsylvania court on gun and forgery charges.

The gun and the silencer had been 3-D printed. “We didn’t even think twice about it,” Altoona Patrolman Tyler Frye said about he and his partner recognizing Mangione at McDonald’s from photos distributed by police in New York showing a person of interest in Thompson’s slaying. “We knew that was our guy.”

Additionally, according to New York police, the firearm is “consistent” with the silencer-equipped pistol that was used by a masked shooter to kill Thompson outside the Hilton Hotel in midtown Manhattan on Wednesday morning.

Thompson, 50, was going to attend an investor meeting hosted by UnitedHealth Group, the parent company of his company, at the hotel. With $281 billion in sales and $16.4 billion in profits in 2023, Thompson’s company was the biggest private payer of health insurance benefits in the world’s largest economy

.Commissioner Jessica Tisch of the New York Police Department told reporters during a news conference in Manhattan on Wednesday afternoon that “[Mangione] is believed to be our person of interest at this time in the brazen targeted murder of Brian Thompson, CEO of United Healthcare.”.

A senior NYPD official stated that Mangione was carrying a handwritten document that implied “he has some ill will toward corporate America.”

Manhattan District Attorney Alvin Bragg will decide what charges to bring against Mangione and whether to charge him with Thompson’s murder. The prosecuting office for Mangione’s gun and forgery charges, Blair County District Attorney Peter Weeks, stated that he anticipates Mangione being charged with homicide “very shortly.”

Super Micro Earns Nasdaq Listing Extension

Posted on December 8, 2024December 8, 2024 by Olumide Adesina

Super Micro Computer announced that it was granted an extension by Nasdaq, allowing it to continue listing on the stock exchange until February. Super Micro has been in danger of being delisted from the Nasdaq due to its late quarterly results and failure to submit audited year-end financials for the most recent fiscal year.

The tech firm has at least until February 25 2025 to obtain its U. S. filings submitted and approved by the Securities and Exchange Commission.

According to a press release from Super Micro, “the Company’s common stock will remain listed on the Nasdaq Global Select Market during the exception period.”. The common stock will continue to be listed as long as the company complies with Nasdaq’s listing regulations, provided that all necessary reports are submitted by February 25, 2025.

Super Micro’s stock has been under threat of delisting in recent months. after it massive rally. The semi conductor firm is one of the leading suppliers of Nvidia-based computer clusters for artificial intelligence, which has led to a spike in sales.

According to Super Micro, sales will increase by about 67% to $25 billion in fiscal 2025. Super Micro appointed BDO as its auditor last month after Ernst and Young resigned as the company’s auditor in October.

Activist investor Hindenburg Research in August, disclosed a short position and charged Super Micro with accounting fraud, further harming the company’s reputation. Super Micro announced on Monday that an internal investigation led by a board member had found no evidence of wrongdoing.

At the time, the company also announced that it had hired a new chief accountant and intended to replace Chief Financial Officer David Weigand.

U.S. Appeals Court Upholds Judgment Selling TikTok Before January 19

Posted on December 7, 2024December 9, 2024 by Olumide Adesina

An American Federal appeals court upheld a law on Friday requiring China-based ByteDance to sell the well-known social media app TikTok next month or risk an effective ban in the US.

The unanimous decision of a three-judge U.S.S. Appeals Court in Washington, D.C dismissed TikTok’s claim that the law is unconstitutional and infringes on the First Amendment rights of the 170 million Americans who use the app. Later on Friday, TikTok announced would appeal to the Supreme Court to reverse the appeals court’s ruling.

Judge Douglas Ginsburg stated, “We reject each of the petitioners’ constitutional claims on the merits.”. The Act’s provisions are rightfully before this court and do not violate the First Amendment of the US Constitution or the Fifth Amendment’s guarantee of equal protection under the law; rather, they constitute an illegal bill of attainder ., as we will clarify. or engage in a Fifth Amendment violation by taking private property without compensation,”

The law would essentially ban TikTok by requiring internet hosting companies and app store companies like Apple and Google to cease supporting the app if ByteDance can’t sell TikTok by January 19.

Attorney General Merrick Garland said in a statement, “Today’s ruling is a critical step in preventing the Chinese government from using TikTok as a weapon to gather private data about millions of Americans, to alter the content shown to American audiences, and to jeopardize our national security.”.

The Act safeguards American national security constitutionally,” Garland stated. President Joe Biden signed the legislation into law in April following concerns expressed by members of Congress of both parties regarding TikTok’s purported ties to the Communist Chinese government, TikTok is “a surveillance tool used by the Chinese Communist Party to spy on Americans and harvest highly personal data,” according to Troy Balderson, R-Ohio, in March. Donald Trump has not stated if he will implement the ban when he assumes office next month.

U.S Treasury Ban Russian Money Linked To USDT

Posted on December 7, 2024December 9, 2024 by Olumide Adesina

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned several individuals and entities involved in a money laundering network that transferred assets for Russian interests using tether (USDT) and other cryptocurrencies.

The news release claims that OFAC collaborated with the United Arab Emirates and the United Kingdom to interfere with this network. OFAC has sanctioned four organizations and five new individuals associated with the TGR Group money laundering network.

The TGR Group, purportedly run by George Rossi, a Ukrainian national, is said to offer services such as a pre-paid card service, cash-for-crypto exchange (and vice versa), and assistance in allowing “Russian nationals to purchase property in the United Kingdom.”.

Rossi “used OFAC-sanctioned Russian cryptocurrency exchange, Garantex OU, to process USDT transactions after its date of designation,”

Processing a range of transactions from the Hydra dark market was one of Garantex’s alleged transgressions.

The purported money laundering network of TGR Group depended on numerous organizations worldwide, including those in Wyoming. Andrejs Bradens allegedly owns more than half of Pullman Global Solutions LLC. In addition to owning Pullman Global, Bradens, a Latvian national, is connected to other TGR Group companies, including TGR Corporate Concierge LTD. an organization with its headquarters in the UK.

Elena Chirkinyan, allegedly “a direct subordinate to Rossi,” is in charge of this organization, which is crucial to the network. In the past, Chirkinyan was accused of transferring money from Russia Today (RT); reportedly, this was done “likely to support the activities of a UK-sanctioned Russian-language media organization in the United Kingdom.”.

Chirkinyan also set up cash handovers, wherein USDT was transferred to a cryptocurrency address and the TGR group received cash in exchange. According to reports, Chirkinyan worked for Russians to buy real estate in the UK.

UnitedHealthcare Leader Brian Thompson killed in New York

Posted on December 4, 2024 by Olumide Adesina

The CEO of UnitedHealth Group’s insurance division, Brian Thompson, was shot and killed Wednesday morning outside the Hilton Hotel in midtown Manhattan in what is thought to have been a targeted assault. The shooting was reported, so UnitedHealth Group canceled its investor day for Wednesday at the Hilton.

UnitedHealthcare, the biggest private health insurer in the United States, was led by Thompson. According to a New York Police Department spokesperson, a man in his 50s was shot Wednesday in front of 1335 Avenue of the Americas in New York. The spokesperson, however, did not verify the man’s identity.

Emergency medical personnel arrived and took the man to Mount Sinai West Hospital in critical condition after he was shot in the chest, according to a departmental report. He was later declared dead. According to the department, an investigation is still underway and no arrests have been made.

The suspect in the shooting is said to have used a gun with a silencer. UnitedHealth Group is the largest healthcare conglomerate in the US With a market valuation of about $563 billion and revenue, over two-thirds of UnitedHealth Group’s 2023 revenue came from UnitedHealthcare, which reported more than $281 billion in revenue last year.

Thompson had been working for United Health for over 20 years. He joined the company in April 2004 after working for PwC for almost seven years. After serving as the head of the insurance unit’s government programs, he was appointed CEO of UnitedHealthcare in April 2021.

Thompson was the University of Iowa’s valedictorian graduate and a native of Maple Grove, Minnesota, a Minneapolis suburb. A request for comment from UnitedHealth Group was not immediately answered. The consequences of a ransomware attack that targeted UnitedHealth Group’s medical claims processing business, Change Healthcare, in February are still being felt. At least 100 million people’s protected health information was jeopardized in the attack.

MARA Plans Boosting Bitcoin Holding With $700 million Debt

Posted on December 2, 2024 by Olumide Adesina

MARA Holdings, a Bitcoin mining company, plans to offer $700 million in senior notes with a zero percent conversion rate due in 2030 to eligible institutional buyers. A further $105 million in notes may be made available to initial purchasers within 13 days of the notes’ issuance.

MARA intends to repurchase a portion of its 2026 convertible notes through private transactions using up to $50 million from the note sale. According to the official press release, the remaining funds will be used for general purposes such as working capital, strategic acquisitions, asset expansion, debt repayment, and the purchase of additional Bitcoin.

The company anticipates that the notes will be issued with no interest and that the principal amount will stay constant except in exceptional circumstances where special interest may be applicable. The notes, have a 2030 maturity date and can be converted into cash, stock, or both.

This strategy aids MARA in strengthening its balance sheet by substituting long-term debt for short-term commitments and keeping up its investment in digital assets. Less than a week has passed since MARA purchased 6,474 Bitcoin at zero percent interest from its $1 billion convertible note offering.

The company further disclosed it had purchased $200 million worth of its 2026 notes and intended to use the remaining $160 million to buy more Bitcoin at better prices when the market declines.

MARA Holdings recently positioned Bitcoin as essential for financial sovereignty and national security, urging US lawmakers to lead the way in mining the cryptocurrency. The mining company compared Bitcoin to gold as a store of value, emphasizing its limited supply, decentralization, and cross-border transferability.

MARA maintained that regulating Bitcoin’s hash rate and block space would guarantee safe transactions and stop “adversarial” countries from manipulating it. The company suggested that the US prioritize renewable energy, build on its Bitcoin mining infrastructure, and lessen its dependency on foreign ASIC chips.

Odoo: Enterprise software firm boosts valuation to $5.3 billion

Posted on November 20, 2024November 20, 2024 by Olumide Adesina

Odoo, a startup that offers enterprise software increased its valuation to $5.3 billion during a secondary share round led by Sequoia Capital and Alphabet’s venture fund. The company is based in Belgium.

Its platform has over 80 applications that give businesses tools for human resources, accounting, e-commerce, and website development. Odoo’s CEO and co-founder, Fabien Pinckaers, stated that his company is “cash profitable” and is increasing its revenue at 50% annually, negating the need to raise any primary capital.

Pinckaers established the company’s first office on a Belgian farm. Odoo established two more offices in Belgium where its technical, support, and research and development teams were housed. Pinckaers and his family currently reside in India. He resided there for a year and worked to increase the company’s visibility thereby hiring more staff, stepping up marketing efforts, and expanding Odoo’s network of partners

, Odoo is expected to surpass 650 million in 2025 with 370 million euros in billings last year. The company hopes to surpass the 1 billion euro billings milestone in three years. The preferred metric used by Odoo to monitor annual revenue performance is billings, which is the total of all invoices for a specific year.

Not Ready For IPO

Pinckaers stated that he is not in a rush to go public, even though Odoo is now at the size of a business prepared for an IPO. Odoo’s decision to remain private has allowed it to maintain its long-term investment focus. Private investors in Odoo are also not eager for the company to go public

Partner Alex Nichols of Alphabet’s CapitalG told CNBC that he isn’t concerned about “IPO timing,” noting that things like the state of the public market are ultimately “out of our control.”. Pinckaers largely used bootstrapping or expanding without obtaining outside funding, to grow the company to its current size.

Odoo has avoided the need to raise primary capital from investors in the last decade by allowing its employees and early investors to sell shares in secondary sales. Odoo last obtained primary funding in a Series B round in 2014, raising $10 million. Investors most recently valued Odoo at 3.2 billion euros before the most recent secondary round.

60 million households watch Jake Paul defeat Mike Tyson fight on Netflix

Posted on November 17, 2024November 17, 2024 by Olumide Adesina

Netflix reported that 60 million households watched Jake Paul defeat Mike Tyson with a peak of 65 million streams. The subscription streaming service also stated Katie Taylor vs. Amanda Serrano was the most-watched professional women’s sporting event in the United States, with 50 million households watching.

While the tech company later claimed that “60 million households” worldwide tuned in, Paul claims that 120 million people watched it live on Netflix worldwide. It stated that it will release additional viewing data early the following week.

Netflix wrote, “The boxing mega-event dominated social media, shattered records, and even had our buffering systems on the ropes.”. Viewers were forced to disconnect or use hashtags like Netflixcrash and CancelNetflix to criticize the fight on social media due to technical issues and slowdowns.

Some viewers complained that the website was having buffering problems, and others said they were unable to access it at all.

Netflix boasts over 283 million paying members in over 190 countries. The fight was a crucial test as the streamer expands into the sports industry and boxing avoids the pay-per-view model.

YouTuber-turned-fighter Paul, 27, defeated former world heavyweight champion MikeTyson, 58, in the fight, which was held at AT&T Stadium in Texas.

There was extensive media coverage of the fight. Tyson is among the world’s most well-known boxers, but Paul attracted a younger crowd.

Hasan Minhaj, Joe Jonas, Ralph Macchio, and Charlize Theron were among the celebrities in the ringside audience.

U.S. dollar on a rampage over high odds on Trump’s presidency

Posted on November 6, 2024 by Olumide Adesina

The U.S. dollar surged higher in Asia on Wednesday as speculators placed wagers that Republican Donald Trump would win the U.S. presidential election, even though it was officially still too close to call.

The first states to report were firmly Republican, giving Trump an early advantage against Kamala Harris. Crucial battleground races in the few states that would decide the election.

As speculators wagered that Donald Trump would defeat Kamala Harris in the fiercely contested US presidential election, the dollar hit its highest level since July.
The dollar, which had dropped to a two-week low against a basket of currencies earlier Tuesday, jumped to more than recover its losses as investors’ concerns about the election’s consequences and market fears spread throughout markets.

Known as a “Trump trade,” Bitcoin soared beyond $75K to hit its highest point ever, based on the belief that, should he be elected, the former president would leniently regulate cryptocurrency.

US stocks ended Tuesday’s trading session with their largest gains in six weeks as anxious investors awaited the election result, which is expected to affect world markets. The S&P 500 closed the day 1.2% higher, its highest level since mid-September, while the tech-heavy Nasdaq Composite increased 1.4%.

Investors are concerned there wouldn’t be much certainty over the election’s outcome before the Federal Reserve and the Bank of England make crucial interest rate-setting decisions on Thursday,

The Vix index, which serves as Wall Street’s “fear gauge,” reached a high of 23.4 late last week before dropping to about 20.5. Tuesday’s robust equity market returns likely contributed to the drop in anticipated short-term volatility.