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Personal finance + economics + markets

Good morning, investors! The earnings season is about to end with almost all major companies already having announced earnings.

Fun fact: For Q3 2023, 82% of S&P 500 companies have reported a positive EPS surprise and 62% of S&P 500 companies have reported a positive revenue surprise.

Today we cover:

• Disney reports positive earnings.

• Bitcoin is preparing to hit the $45K mark.

• These tricks can help you get rid of credit card debt.

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📊 Economy and News 

Consumers helped the economy but now they’re in debt

Americans’ sheer will to spend helped the US economy recover after the pandemic but now most are in debt with no money to pay their bills.

The numbers: Americans now collectively owe $1.08 trillion on their credit cards—the highest amount ever documented. Credit card balances HAVE increased by 4.7% or $48 billion in the previous quarter.

Paying more: Consumers paid a record high of $130 billion in interest and fees in 2022. Moreover, the average minimum payment has also risen to $100 a month.

No money to pay: Consumers have no money and most are digging into their savings to pay bills. The personal saving rate is down to 3.4% in September from an all-time high of 32% in April 2020.

Longview Economics founder Chris Watling warned U.S. consumers were “walking toward a cliff,” while former Walmart U.S. CEO Bill Simon recently warned that Americans had reason to take their foot off the spending pedal “for the first time in a long time.”

The challenge: Relying too much on credit card can result in trouble, especially when the money isn’t paid back. Unfortunately, this has been happening for the last few years.

The US market has remained resilient due to increased consumer spending a strong labor market, despite spiraling living costs and a hawkish monetary policy, but some experts see things worsening now that the situation is getting out of hand. In fact, some see a recession in 2024.

Global hits:

• Israeli bonds worth $1 billion have been purchased in the United States since Hamas’ attack.

• FDA approves Eli Lilly’s tirzepatide for weight loss.

• Tentative deal reached to avert walkouts at half of Vegas casinos set to strike.

📈 Stocks

S&P 500 4,382.78 (+0.10%)
DJIA 34,112.27 (-0.12%)
NASDAQ 15,313.24 (+0.11%)
BRENT CRUDE 80.01 (+0.58%)
* Prices as of Nov 9th, 12:20 AM UTC

Disney surprises with better-than-expected profit

Disney earnings topped expectations mainly due to theme parks and ESPN+, but a decline in ad revenue cannot be neglected. 💃 

• EPS: 82 cents per share adjusted vs. 70 cents per share expected, according to LSEG, formerly known as Refinitiv

• Revenue: $21.24 billion vs. $21.33 billion expected, according to LSEG

Why the decline? The decrease in ad revenue was primarily from Disney’s ABC Network and other owned TV stations, which saw lower political advertising revenue during the quarter. The company is appearing to be planning a sale of some of its TV assets.

What about streaming? The company added 7 million new core Disney+ subscribers from the previous quarter, bringing its total number of users to 150.2 million, including Hotstar. This is higher than the expected figure of 148.15 million subs.

In other positive news, streaming losses appear to be narrowing. However, the company expects to make a profit in the fiscal fourth quarter of 2024. The stock is up +3.56% pre-market.

🔐 Crypto

Bitcoin $36,780 (+3.21%)
Ethereum $1,910 (+1.78%)
Total market cap $1.37T (-%) (+2.56%)
* Prices as of Nov 9th, 12:20 AM UTC

Bitcoin to $45K?

After first setting its 2023 year-end BTC price target at $45,000 in early 2023, Matrixport has reiterated its bold Bitcoin prediction. According to the company, Bitcoin is fighting resistance at $36,000 and is gearing up to hit the $45,000 mark.

The trading firm, founded by Bitmain co-founder Wu Jihan, is very high on the world's first cryptocurrency.

"A break above $36,000 could propel BTC toward our next technical resistance level at $40,000, potentially reaching $45,000 by the end of 2023," said the group.

Bitcoin is increasingly coiled below $36,000, supported by consistent buying activity during U.S. hours,” it added. (update: it’s now above $36,000) 😁 

More about support: In a. Nov. 8 X post, on-chain monitoring resource Material Indicators highlighted support liquidity heading lower — from $34,500 to $34,000. The BTC/USDT order book on Binance also confirmed $36,000 receiving additional sell liquidity after declining during the prior day’s tap of $35,900. $40,000 remained the crunch psychological barrier.

Summarizing the spot and perp status quo, fellow trader Skew concluded that spot bidders were needed to give the market a chance of further upside.

💵 Personal Finance

Do this to get out of credit card debt

About 183 million Americans have credit cards and it's not a good thing. Americans lean heavily on credit to make ends meet, which pushes them into debt.

With increasing inflation, consumers are forced to consider options such as credit cards, hence it doesn’t come as a surprise that the average consumer credit card balance has risen to $7,951, the highest in 10 years.

If you have a credit card and you find it harder to control spending or get rid of debt, then check these tips below:

• Create a debt payment strategy that works for you. Some popular options include the snowball method and the debt avalanche method.

• Consider paying more than the minimum and, if possible, automate the process. This will not only help you avoid late fees but also allow you to get rid of debt quickly.

• Consider debt consolidation, i.e.: consolidating your payments into a single account so it's easier to manage. However, be careful and try to benefit from affordable personal loans and 0% balance transfer credit cards.

• Get in touch with your creditors and work out a plan that works for you. Some creditors have hardship programs that offer relief in circumstances such as illness and unemployment.

• Look at available debt relief plans such as bankruptcy, debt settlement, and debt management. Though not always effective, some of these options may give you a new lease of life.

In addition, it might be a good idea to change your lifestyle and follow these tips:

• Get rid of credit cards, instead consider debit cards. Some come with exciting features, including the ability to earn money on your deposits.

• Set a budget and stick to it. You might have some difficulty in the beginning but you’ll eventually get used to it.

• Create an emergency fund and turn to it only when you need it.

We understand it can be hard to live without a credit card. If you’re struggling then check this video for some motivation:

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👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.