🐭 Disney wins, market loses

Together with Ryse

Good morning investors! The market is still giving mixed signals.

Fun fact: Nigeria is Africa’s largest crypto market with over 27 million crypto users. In comparison, the US has over 50 million.

Today we cover:

• Fed wants to wait?

• Disney wins.

• Stocks fall.

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📊 Economy and News 

Fed in no hurry to cut rates

Federal Reserve Chairman Jerome Powell stated on Wednesday that policymakers will need some time to assess the current state of inflation, which leaves the timing of potential interest rate cuts uncertain.

“On inflation, it is too soon to say whether the recent readings represent more than just a bump,” Powell said in remarks ahead of a question-and-answer session at Stanford University.

This is the same tone the Fed has been using for a while. Traders see a nearly 99% likelihood that rates remain unchanged at the Fed’s May policy meeting, according to the CME FedWatch Tool as of Wednesday afternoon. Fed funds futures trading data suggests a 62.3% probability of a cut at the June gathering, a significant decline from the 70.1% figure seen a week ago.

it must be mentioned that the Fed’s preferred inflation measure, the personal consumption expenditures price index, showed a 12-month rate of 2.5% for February, or 2.8% for the pivotal core measure that excludes food and energy. Virtually all other inflation gauges show rates in excess of 3%.

Global hits:

• Malaysia emerges as a hotspot for semiconductor firms amid U.S.-China chip tensions.

• China’s real estate troubles are likely far from over and industry problems need to be addressed quickly for GDP growth to rise significantly, according to KKR.

• Singapore’s economic losses due to heat stress could nearly double to over $1.5 billion in 2035.

Reminder: Tesla could “go bust” while its stock could fall to $14, Per Lekander, a hedge fund manager who has been shorting Elon Musk’s electric car maker since 2020.

📈 Stocks

S&P 500 5,211.49 (+0.11%)
DJIA 39,127.14 (-0.11%)
NASDAQ 18,160.19 (+0.21%)
BRENT CRUDE 89.52 (+0.19%)
* Prices as of Apr 4th, 12:20 AM UTC

Disney beats activist investor Nelson Peltz, but the market took a turn

Preliminary results indicate that Disney shareholders reaffirmed the media conglomerate's entire board on Wednesday, dealing a significant blow to activist investors Nelson Peltz and former Marvel CEO Ike Perlmutter.

The widely anticipated win concludes a contentious process that spanned several months and validates the board's decisions, including the reinstatement of CEO Bob Iger and his efforts to revitalize the $223 billion media giant.

Trian Partners, led by Peltz, sought to remove two directors, Maria Elena Lagomasino and Michael Froman, citing prolonged share underperformance, a flawed succession process, and misdirected investments totaling billions.

According to a source familiar with the matter, Peltz was defeated by Lagomasino by a 2-to-1 margin. Retail investors overwhelmingly supported Disney, the source added, contributing to Iger receiving 94% of the overall vote.

Jay Rasulo, Disney's former Chief Financial Officer, who was also nominated by Trian, lost to Lagomasino by an even greater margin of 5-1. The source described it as Peltz's most significant defeat to date.

This news helped Disney hit its 52-week high today before falling and closing down -3.13% as the broader market slipped. This was the third day in a row that major indexes fell.

Intel fell -8% after posting operating losses in its semiconductor manufacturing business, taking DOW down. Nvidia too dipped after staying higher for much of the day. Moreover, Ulta had a bad day falling over -15% after CEO warned beauty demand is slowing.

The market took a turn due to outside factors, including higher rates and ADP data that showed private payrolls grew more than expected in March. Plus, Fed’s comments regarding rates also had an impact.

Also check: Amazon cuts hundreds of jobs in cloud computing unit while its cashless operation fails.

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💵 Personal Finance

Struggling to save money?

Here’s a list of ways to make it easier:

• Set savings goals. What are you saving for? A down payment on a house? A new car? Retirement? Having a specific goal in mind will help you stay motivated to save.

• Create a budget. Track your income and expenses so you can see where your money is going. This will help you identify areas where you can cut back.

• Automate your savings. Set up a direct deposit from your paycheck into your savings account. This way, you won't even see the money and you'll be less likely to spend it.

• Cut back on unnecessary expenses. Do you really need that expensive cable package? Could you cook more meals at home instead of eating out? There are probably a few things you can cut back on without sacrificing your quality of life.

• Look for discounts and coupons. There are many ways to save money on everyday purchases. Check for coupons online or in the Sunday paper. You can also sign up for loyalty programs to earn rewards.

• Shop around for the best deals. Don't just assume that the first place you see something is the cheapest. Do some research to find the best price.

• Buy used items. There are many great deals to be found on used items. You can find used clothes, furniture, appliances, and more.

• Get creative with gifts. Instead of buying expensive gifts, give homemade gifts or experiences. This could be anything from a batch of cookies to tickets to a concert.

• Pay off debt. If you have high-interest debt, focus on paying it off as quickly as possible. This will free up more money in your budget so you can save more.

• Use a budgeting app. There are many great budgeting apps available that can help you track your income and expenses. This can be a helpful way to stay on track with your savings goals.

• Find a savings buddy. Having someone to work with on your savings goals can be helpful. You can motivate each other and stay on track.

Need more? Watch my video “20 ways to save $20,000.”

💰 Be a Better Investor

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

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