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May 7, 2024

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The Five Most Important Things That Happened Today

(and what to do about them)

TikTok Sues the US Government,

claiming its first amendment rights have been violated in a ban imposed on Congress. They will probably win. The national security threat posed by millions of dancing teenagers has never been shown. It’s just another talking point for technology-ignorant politicians egged on by Facebook (META) and other competitors. No one ever said the people in Silicon Valley were nice.

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Social Security Trust Fund to Go Broke by 2035,

according to US Treasury estimates. I knew they wouldn’t pay me after 55 years of contributions. Medicare is in less bad shape, not running out until 2036, a five-year extension. Retirees, the baby boomers, and exceeding new contributors, the Gen Xers. Expect your taxes to go up to fill the gap.

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Disney Dives on Earnings Bust,

although streaming broke even versus an expected loss. ESPN is still a big drag, as it has for years. The theme parks are running at full throttle. Disney’s total segment operating income jumped 17% as the company’s entertainment streaming applications — Disney+ and Hulu — turned a profit in the quarter for the first time. When combined with ESPN+, the streaming businesses lost $18 million in the quarter, much narrower than the $659 million loss the division reported a year earlier. Avoid the mouse house (DIS) for now.

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Airbus Scores on Boeing Debacle,

with sales up 13% in Q1. Who is one of the newest customers? Boeing itself, is borrowing planes from the European conglomerate Airbus to fill in on failed deliveries to United Airlines (UAL) and Alaska Airlines (ALK). Avoid (BA) like a new case of Covid.

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Apple Announces New AI Chip,

in the soon-to-be-launched iPad Pro. It will come with an M4 chip with a larger "neural engine," part of the chip specifically designed for the kind of computing required by AI features such as generating text or images. Debuting its latest chip in a tablet rather than its Mac laptops is unusual for Apple, and suggests it is eager to give app makers a head start creating AI-related software ahead of its annual software developer conference next month, analysts said. They’re clearly after the short sellers, like me.

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Published today in the Mad Hedge Global Trading Dispatch, the Mad Hedge Technology Letter, the Mad Hedge Biotech and Health Care Letter, the Mad Hedge AI Letter, and Jacquie’s Post:

Global Trading Dispatch

(A NOTE ON OPTIONS CALLED AWAY),

(GLD), (SLV), (NVDA), (AAPL), (MSFT)


Mad Hedge Technology Letter

(BUFFETT CHIMES IN ON AI)

(BRK/A), (SMCI), (AI), ($UST10Y)


Mad Hedge Biotech & Health Care Letter

(PACKING A HEAVIER PUNCH)

(AMGN), (NVO), (LLY), (REGN)

 

Mad Hedge Jacque's Post

(“WOODSTOCK FOR CAPITALISTS” SHOWED BUFFETT IS STILL IN GOOD FORM)

Mad Hedge AI
(THE ORACLE’S AI SHOPPING LIST)

(AAPL), (AMZN), (MSFT), (AVGO), (NXPI), (QCOM), (IBM), (GOOGL)

 

Futures trading involves a high degree of risk and may not be suitable for everyone.

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