- Moby
- Posts
- Interactive Brokers | May 30th, 2024
Interactive Brokers | May 30th, 2024
 |  |
Today’s insights are courtesy of Interactive Brokers. React immediately to market-moving news and trade over 10,000 US Stocks and ETFs, plus US Equity Index options and Treasury bonds, when it’s convenient for you.
| Market | Day | Month | Year |
|---|---|---|---|
| Dow | ▼1.06% | ▲1.49% | ▲17.37% |
| S&P | ▼0.74% | ▲3.75% | ▲25.54% |
| Nasdaq | ▼0.58% | ▲6.33% | ▲29.83% |
| Bitcoin | ▼1.51% | ▲7.01% | ▲146.65% |
| 10-Year | ▼0.49% | ▲0.72% | ▼5.00% |
GOOD MORNING
Here's everything you need to know today: Consolidations and acquisitions are the week's narrative, with ConocoPhillips announcing a landmark $17 billion all-stock acquisition of Marathon Oil. This transformative deal will add 2 billion barrels of resources to ConocoPhillips' portfolio, bolstering its position as a leading independent producer.
Verizon has invested $100 million in AST SpaceMobile, a company developing satellite-direct technology to provide cellular connectivity in underserved areas. This move follows a similar investment by competitor AT&T, indicating a potential shift in how telecommunication giants plan to expand their coverage.
The International Monetary Fund (IMF) has upgraded its forecast for China's GDP growth to 5% for 2024, citing a stronger-than-expected first quarter and new policy measures. However, the IMF warns that long-term growth may slow due to demographic challenges and a prolonged property sector crisis.
Let’s dive into more detail below.
ENERGY
ConocoPhillips' $17 Billion Acquisition of Marathon Oil to Add 2 Billion Barrels to Portfolio
This deal is set to expand ConocoPhillips’ market cap above $150 billion, surpassing BP but still behind Shell
BREAKING NEWS
Consolidations and acquisitions are the week's narrative, with ConocoPhillips announcing a landmark $17 billion all-stock acquisition of Marathon Oil.
This transformative deal will add 2 billion barrels of resources to ConocoPhillips' portfolio, bolstering its position as a leading independent producer.
WHAT HAPPENED
ConocoPhillips' acquisition of Marathon Oil marks a significant acceleration in the ongoing consolidation of the oil and gas industry. The $17 billion all-stock deal substantially enhances ConocoPhillips' shale footprint in Texas, New Mexico, and North Dakota. The move consolidates ConocoPhillips' position as one of the largest asset holders in the Bakken shale play in North Dakota and the Eagle Ford play in Texas, adding 2 billion barrels of resources to its portfolio. This transaction will also elevate ConocoPhillips' market capitalization above $150 billion, surpassing BP and approaching the scale of Shell.
Analysts predict the acquisition will significantly boost ConocoPhillips' production capabilities. In the Eagle Ford, output is projected to reach nearly 400,000 barrels per day, while production in the Bakken is expected to double to over 200,000 barrels per day. ConocoPhillips will also gain substantial production locations in the Permian Basin and expand its liquid natural gas capacity by 2 million metric tons annually in Equatorial Guinea.
 | React Immediately to Market-Moving News And Trade When It’s Convenient For You |
At Interactive Brokers, you don’t have to wait for the markets to open. With around-the-clock trading, you can trade over ten thousand US-listed stocks and ETFs, US equity index options, and US Treasury bonds.
Around-the-clock trading helps you stay ahead by allowing you to react instantly to market-moving news and capture more market opportunities. This flexibility allows you to trade on your timetable and invest during local market hours or whenever it’s convenient for you.
Interactive Brokers is rated a top online broker, winning multiple awards from Barron’s, Investopedia, Stockbrokers.com, and many others. Open an Interactive Brokers account today and discover more trading opportunities around the clock. The best-informed investors choose Interactive Brokers.
Member SIPC
TELECOMM
Verizon Invests $100 Million in AST SpaceMobile to Expand Satellite Cellular Connectivity in Remote Areas
The telecom industry watches as Verizon and AT&T invest in AST SpaceMobile's innovative satellite technology for wider coverage
BREAKING NEWS
Verizon has invested $100 million in AST SpaceMobile, a company developing satellite-direct technology to provide cellular connectivity in underserved areas. This move follows a similar investment by competitor AT&T, indicating a potential shift in how telecommunication giants plan to expand their coverage. The industry is closely watching to see if this investment in satellite technology will effectively eliminate cellular dead zones or prove to be a risky bet on unproven technology.
WHAT HAPPENED
Verizon's $100 million investment in AST SpaceMobile includes $65 million in prepayments for future services and a $35 million convertible debt offering. The partnership aims to utilize AST SpaceMobile's planned satellite network to provide cellular coverage in remote areas of the US where traditional infrastructure has been insufficient. This announcement coincides with AST SpaceMobile's preparations to launch its first more powerful BlueBird satellites later this year to achieve partial US coverage by 2026.
Verizon's investment in AST SpaceMobile proves a possible trend in the telecommunications industry, where traditional telecom companies are increasingly collaborating with space-based ventures to extend their service coverage and explore new revenue opportunities.
ECONOMY
China's Economy to Grow 5% in 2024 but IMF Warns of Long-Term Risks and Property Sector Challenges
Despite the IMF's bullish outlook, investors and market speculators should watch for potential regulatory shifts in China’s property market affecting real estate and construction industries
BREAKING NEWS
The International Monetary Fund (IMF) has upgraded its forecast for China's GDP growth to 5% for 2024, citing a stronger-than-expected first quarter and new policy measures.
However, the IMF warns that long-term growth may slow due to demographic challenges and a prolonged property sector crisis.
WHAT HAPPENED
The IMF revised China's 2024 GDP growth forecast from 4.6% to 5%, acknowledging a robust first quarter and recent policy initiatives to shoo up the economy. The IMF's First Deputy Managing Director, Gita Gopinath, highlighted the positive impact of these measures during a press conference in Beijing. The IMF adjusted its 2025 growth forecast to 4.5% but predicted a slowdown to 3.3% by 2029 due to an aging population and sluggish productivity growth. Despite these optimistic short-term projections, China faces ongoing challenges, including deflationary pressures and a persistent property market crisis. The IMF emphasized the need for a comprehensive policy package to address these issues and called for central government intervention to assist buyers of pre-sold, unfinished homes, facilitating the exit of insolvent developers and restoring market balance.
Looking at our chart, the IMF provided growth forecasts for several other countries for 2024, highlighting a mixed global economic outlook. Russia is expected to grow by 3.2%, Turkey and Poland by 3.1%, and Hungary by 2.2%. Greece is projected to grow by 2%, while Spain, Ireland, and Norway are forecasted to see growth rates of 1.9%, 1.5%, and 1.5%, respectively. Western European economies like Switzerland, France, Italy, and Germany are expected to experience slower growth, with forecasts of 1.3%, 0.7%, 0.7%, and 0.2%, respectively. This varied growth landscape underscores the uneven recovery and the diverse economic challenges countries worldwide face.
YESTERDAY | Here’s what you missed |
1. Nelson Peltz sells entire Disney stake weeks after losing proxy battle
Nelson Peltz, founder of Trian Fund Management, has sold his entire stake in Disney just weeks after losing a proxy battle where Disney shareholders reelected the company's full slate of board nominees. The sale marks a significant shift in Peltz's investment strategy following the defeat.
2. Jeep is launching a $25,000 EV in the US 'very soon' to revamp the rugged SUV brand
Jeep, under the leadership of Stellantis CEO Carlos Tavares, plans to launch a $25,000 electric vehicle in the US market soon. This move aims to rejuvenate the brand's rugged SUV image while tapping into the growing demand for affordable electric vehicles.
3. Salesforce shares plunge on revenue miss, weak forecast
Salesforce's stock experienced a significant drop after the company released its quarterly earnings report, which revealed a revenue miss and a weaker-than-expected forecast. Investors reacted negatively to the news, reflecting concerns over the company's future growth prospects.
4. McDonald's exec says average menu item costs 40% more than 2019
The president of McDonald's USA stated that the average cost of menu items has risen by 40% since 2019. This clarification comes in response to claims by House Republicans that McDonald's prices have doubled, highlighting the impact of inflation on consumer prices.
5. Verizon and AST SpaceMobile have a $100 million deal for satellite cellular service
Verizon has entered into a $100 million agreement with AST SpaceMobile to develop satellite-based cellular services. This partnership aims to enhance Verizon's coverage, particularly in remote areas, by integrating satellite technology into its network.
6. Cava rebounds after earnings beat, but traffic declines
Cava's stock rose after the company reported better-than-expected earnings for Q1 and improved its outlook on key metrics. However, the restaurant chain also noted a decline in customer traffic, indicating challenges in maintaining growth momentum.
7. Samsung's largest union calls its first-ever strike
Samsung's largest workers' organization has announced plans for its first-ever strike, seeking fair compensation. This walkout, if it proceeds, will mark a significant event in the company's history, potentially impacting its operations and employee relations.
8. Biden-Harris Administration announces new steps to bolster domestic nuclear industry and advance America’s clean energy future
The Biden-Harris Administration has unveiled new initiatives to strengthen the domestic nuclear industry and promote clean energy. Nuclear power, which accounted for 19% of the U.S. energy output last year, remains a key focus in the nation's clean energy strategy. The initiatives aim to create jobs and support thousands of workers while ensuring a sustainable energy future.
9. Bitcoin drops to $67,000 level, and Gemini returns more than $2 billion to users
Bitcoin's value has dropped to $67,000 amidst fluctuating market conditions. Meanwhile, cryptocurrency exchange Gemini has returned over $2 billion to its users. These developments reflect ongoing volatility and significant movements within the digital currency market.
10. Trump weighs White House advisory role for Elon Musk
Former President Donald Trump is reportedly considering offering an advisory role to billionaire entrepreneur Elon Musk if he wins the upcoming presidential election. This potential collaboration could influence policy directions in technology and innovation sectors.
|  |
React immediately to market-moving news and trade over 10,000 US Stocks and ETFs, plus US Equity Index options and Treasury bonds, when it’s convenient for you. The best-informed investors choose Interactive Brokers.
Friends of Moby
Please support our partners who help make this daily report possible
Choose your own learning adventure. Set goals, see your progress, and level up with courses in math, data, programming, and technology. Or feed your curiosity by exploring thousands of lessons on topics from AI to black holes to going viral on Twitter.
Join 10 million people around the world and start your 30-day free trial today. Plus, Moby readers get a special 20% off a premium annual subscription! ➔
A Gold IRA can diversify your portfolio and safeguard your retirement.
Safeguarding your retirement with a Gold IRA can help you shield your wealth from market shifts, economic uncertainty, and inflation. And with gold’s value projected to increase in 2024, now is a good time to invest. Planning for retirement involves more than saving, so fortify your portfolio with gold today and plan for a better tomorrow.
Where Diversification Meets 12.1% Cash Returns 📈
Our friends at Webstreet are launching their eighth fund. WebStreet buys and operates cash-flowing websites and SaaS businesses for accredited investors to invest in. So far WebsStreet has delivered 12.1% cash returns and is on track for 20%+ IRR.