🏬 Retail sales disappoint

Together with Mode Mobile

Good morning investors! The market bounced back yesterday with indexes closing higher.

Today we cover:

• Retail sales data

• A look at the stock market

• Klarna’s coming

📊 Economy and News 

US Retail Sales Disappoint, Raising Economic Concerns

Retail sales in the US grew by just 0.2% in February, falling short of the 0.7% increase economists had expected. This weak performance follows a revised 1.2% decline in January, signaling potential strain on consumer spending. With retail sales accounting for about a third of total US spending, the figures have fueled concerns about a slowing economy and possible recession risks.

Spending declines were sharpest at department stores (-1.7%), restaurants and bars (-1.5%), and gas stations (-1%). However, online sales and health store purchases saw gains of 2.4% and 1.7%, respectively. Excluding volatile categories like gas stations and car dealerships, the core measure of retail sales rose 1% in February, recovering from January’s decline and exceeding expectations.

Retail executives have warned that consumers are feeling financial pressure, with some struggling to afford essentials. Businesses also face uncertainty from tariffs, which could push prices higher. Walmart expects slower sales growth, and Best Buy has highlighted the broad impact of trade policies on the industry.

The Federal Reserve now faces a challenging economic landscape, balancing weak consumer sentiment with inflation risks from tariffs. While officials suggest economic growth remains stable, the combination of trade uncertainty and sluggish spending presents a growing challenge.

Global hits:

• Germany’s Ifo Institute cuts 2025 economic growth forecast to 0.2%.

• China retail sales pick up as Beijing turns to consumers to ease US trade pressure.

• Trump trade war to sap Canadian, Mexican and US growth.

Worrisome: Deutsche Bank says the market sell-off has another 6% to go as consumer and corporate confidence dives.

Sponsored by Mode Mobile

Pulling an Uber in the $500 Billion Smartphone Industry

Imagine turning down Uber at a valuation of $10 million only to watch them go public at over $80 billion.

That’s exactly what happened to Mark Cuban… a 823,900% return, gone.

And by the time we hear about industry-changing disruptions like this, it's usually too late… but right now there’s a tech-startup making waves behind the scenes. Like Uber turned vehicles into income-generating assets, they’re turning smartphones into the easiest passive income source imaginable.

They were named the #1 fastest growing software company by Deloitte in 2023 and have already earned over +$325M for their customers.

This tech startup is Mode Mobile, and unlike Uber you have a chance to invest in their company at just $0.26/share before they go public.

📈 Stocks

S&P 500 5,675.12 (+0.64%)
DJIA 41,841.63 (+0.85%)
NASDAQ 17,808.66 (+0.31%)
BRENT CRUDE 71.01 (-0.10%)
* Prices as of Mar 18th, 12:20 AM UTC

Klarna Files for NYSE IPO and Strikes Exclusive Walmart Deal

Swedish fintech giant Klarna is expected to debut with a valuation of around $15 billion, aligning it with competitor Affirm’s current market cap.

In a strategic move to strengthen its U.S. presence, Klarna revealed today that it has partnered with consumer finance app OnePay to become the exclusive provider of installment loans for purchases at Walmart locations across the country. This deal enhances Klarna’s market position ahead of its IPO and is likely to attract investor interest.

The partnership is a major setback for U.S.-based competitor Affirm Holdings, which has provided financing options at Walmart stores since 2019. Following the news, Affirm’s stock dropped as much as 16% in pre-market trading before recovering to close down about 4%. The new Klarna deal effectively pushes Affirm out of its existing arrangement with Walmart, shaking up the buy-now-pay-later (BNPL) landscape.

Exciting: Trump signals that he may allow US Steel to make a deal with Nippon after Biden blocked it. Also, PepsiCo is buying prebiotic soda brand Poppi for $1.95 billion, which includes $300 million of anticipated cash tax benefits. Lastly, Harvard will offer free tuition for families earning $200,000 or less a year.

Reminder: MoffettNathanson initiated fresh coverage on Netflix today, upgrading its rating from neutral to buy. Lead analyst Robert Fishman also increased the firm's one-year price target for the stock from $850 to $1,100 per share. The announcement pushed Netflix shares up 3.85%. Also, AMD shares rose Monday as the chipmaker reportedly said it gained market share in Japan.

💵 Personal Finance

Personal Finance Lessons from Historical Figures - Part I

History is full of fascinating personalities whose relationships with money offer timeless lessons. While we often hear about the financial wisdom of figures like Benjamin Franklin, let’s explore some lesser-known historical figures and the unique personal finance insights their lives reveal.

From reckless spending to shrewd resourcefulness, their stories provide practical takeaways for today.

1. Nikola Tesla: Don’t Let Genius Outpace Financial Sense

Nikola Tesla, the brilliant inventor behind alternating current (AC) electricity, died penniless despite his groundbreaking contributions. Tesla’s downfall wasn’t a lack of income—he earned significant sums from patents and contracts—but rather his inability to manage it. He spent lavishly on experiments, lived in expensive hotels, and often worked without securing payment upfront (e.g., his fallout with Edison). By 1916, he was bankrupt, overwhelmed by debts he couldn’t repay.

Lesson: Talent and innovation don’t guarantee financial stability. Budgeting, prioritizing income streams, and negotiating fair compensation are as critical as the work itself. Even geniuses need a savings plan.

We’ll come with another lesson tomorrow as this week, the personal finance section will be dedicated to these heroes.

Want more lessons? Check this video:

💰 Be a Better Investor

Resources:

• Calculators

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• Investing 101 videos

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

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Disclosures

1 Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.

2 The rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.

3 A minimum investment of $1,950 is required to receive bonus shares. 100% bonus shares are offered on investments of $9,950+.