未 Jobless claims go up

and earnings again

Good morning investors! This year is turning out to be quite a surprise with tech falling behind sectors like utilities and energy.

Today we cover:

  • Rising jobless claims.

  • More earnings.

  • Boeings troubles.

Economy and News

Jobless claims go up

Jobless claims totaled a seasonally adjusted 231,000 for the week ending on May 4, up 22,000 from the week before.

It was the highest claims number since late August 2023.

Continuing claims, which run a week behind, increased to 1.78 million, up 17,000 from the previous week.

However, experts say that these numbers are not a sign of concern.

Global hits:

Interesting: 30-year mortgage rates have dipped to 7.09% from 7.22%, breaking a trend of five consecutive weekly increases.

Stocks

S&P 5005,214.08 (+0.51%)
DJIA39,387.76 (+0.85%)
NASDAQ18,113.46 (+0.16%)
BRENT CRUDE 84.21 (+0.46%)
* Prices as of Mar 3rd, 12:20 AM UTC

More earnings are here

  • Warner Bros. Discovery reported first-quarter results before the bell on Thursday that missed on the top and bottom lines. Earlier this week, the company said it would offer a streaming bundle with Disney. On Thursday the company said it repaid $1.1 billion in debt during the quarter, and also announced a $1.75 billion cash tender aimed at further reducing its debt.

  • SNDL reported a first-quarter revenue of $197.8 million, up 4% from last year, thanks to improvements in its Cannabis and Liquor Retail segments. Operating losses decreased significantly, and the company achieved an impressive 25% gross margin, showing successful cost-cutting and operational improvements.

  • Plug Power saw a substantial increase in first-quarter losses, totaling $295.8 million or 46 cents per share, missing analyst expectations of a 33-cent loss per share. Revenue also fell sharply to $120.3 million from $210.3 million last year, below the expected $156.7 million due to seasonal factors and timing in electrolyzer deployments.

  • Marathon Digital had a remarkable first quarter in 2024, with a 142% increase in energized hash rate and a 28% rise in BTC production compared to the previous year. Revenue soared by 223% to $165.2 million, and net income nearly tripled to $337.2 million, driven by gains in crypto assets and increased adjusted EBITDA by 266%.

  • Papa Johns experienced its largest revenue decline in over five years, with a 2.5% drop to $513.9 million, missing the expected $544.5 million. Interim CEO Ravi Thanawala pointed to intense competition and cautious consumer spending. Despite the challenges, adjusted earnings exceeded expectations at 67 cents per share, with a 2.2% improvement in restaurant margins. However, shares fell 7.4% in afternoon trading due to negative market response.

  • CleanSpark had a historic second quarter in FY2024, achieving record revenue of $111.8 million, a 163% increase year-over-year, and a net income of $126.7 million. Successful expansion in operational capacity and strategic acquisitions in new facilities contributed to this growth, along with gains in Bitcoin. With almost $700 million in cash and BTC and minimal debt, CleanSpark is well-prepared for future industry shifts and opportunities.

  • Roblox reduced its annual bookings forecast, causing a 23% drop in sharesthe steepest decline in over two years. The company adjusted its full-year bookings projection to between $4 billion and $4.10 billion, down from previous estimates, reflecting reduced consumer engagement affecting other major players in the video game industry, like Electronic Arts.

Boo Boeing: An investigation is underway after a FedEx Airlines Boeing 767 cargo plane was forced to make an emergency landing without its front landing gear at Istanbul Airport. The plane managed to stay on the runway, and there were no casualties

Personal Finance

Protect yourself with insurance Part III

After health and life, comes auto insurance, which is mandatory in most countries. Its purpose is to protect the owner in the event of an accident or theft.

Most people in first world countries have car insurance but the rate is very low in developing countries such as India where less than 50% of vehicles are insured despite it being mandatory.

Cost is one of the major reasons why people don't buy vehicle insurance. The average in the US is about $2,150 per year. However, it is worth the money since accidents are common and vehicle insurance is the only way to protect against financial losses in the event of an accident or if you get sued.

There are several other types of insurance as well, including umbrella insurance, renters insurance, and travel insurance. However, they may not be necessary.

Travel insurance, for example, is only needed if you travel. Similarly, renters insurance is only needed when youre renting. You should, however, consider homeowners insurance, if you own a home, disability insurance, which protects people if an accident or illness renders them incapable of working and receiving regular income, and long-term care insurance, which covers nursing-home care or home-health care for seniors.

Note: Consider some additional options if you are self-employed or running a business.

Check this video for more:

Be a Better Investor

While it might seem that anyone can be a value investor, the essential characteristics of this type of investor-patience, discipline, and risk aversion-may well be genetically determined.

Seth Klarman

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