S&P500 +0.25% Rather muted session with not much news.
Jobless claims 316K vs. 330K est.
Durable goods ex-transportation –0.1% vs. 0.4% est., prior –0.1% revised to 0.2%
Chicago PMI 63 vs. 60.5 est./65.9 prior. New orders 68.8/74.3. Employment 60.9/57.7
University of Michigan 75.1 vs. 73.3 est./72.0 prior
The Wall Street Journal reports the wait time to buy an iPhone 5S has “shortened significantly” due to Hon Hai adding more production lines to their factories. Apple is now shipping the iPhone 5S in 3-5 days vs. 2-3 weeks a month ago.
Hon Hai, also known as Foxconn, has more than 1 million workers in China with 100 production lines active “around the clock.” It has 300,000 workers in Zhengzhou focused just on the iPhone 5S.
“We are churning out about 500,000 iPhone 5Ss everyday, the highest daily output ever” said a Hon Hai executive. Hon Hai gets 40% of its revenue from Apple.
Digitimes reports that Apple has increased orders in November to nearly 4 million units and has already surpassed orders for the first generation iPad mini. It also says the supply chain bottlenecks for making components of the iPad Mini with Retina have been removed.
“I’m in constant discussion with all of our share-holders”
“we were in market..bought back 4.2M shares and this opportunity came up (Icahn)” $270M in total
“through operations..beginning to have a good deal of cash”
“bought in the open market at a price $17.38 on average..purchased the Icahn block for $16.93..opportunity for the company to move in a big block without moving the market”
“we have the capital to be a consolidator..we have the intellectual property..more importantly the creative teams”
“we are at the beginning of the next generation of consoles..one of the unanswered questions..how will that go? the answer is really well..moreover how are our games doing? Extraordinarily well. NBA is one of the high-rated games of the new generation of consoles. We have more than 10 titles in development”
“if history is any guide, organic growth is our story. In 2007 excluding non-core division we had $700M in revenue, last time we didn’t launch GTA we had $1.2 billion in revenue, this period we’re projecting $2.2-2.3 billion”
“deal (Icahn) we did yesterday is meaningful accretive to shareholders”
“when we look at M&A..immediate accretion”
“(Anchor: GTA V is a home-run for sure) is..is..still on-going”
“we have a history of launching sequels to our franchises while every year launching at least one new great intellectual property..both of our labels focused on doing both of those things”
S&P500 0.01% The market rallied for most of the day then sold off to flat in the last 15 minutes before the close probably due to month end re-balancing.
Case-Shiller housing prices 13.3% vs. 13%
Richmond Fed 13 vs. 4 est., 1 prior
Consumer confidence 70.4 vs. 72.9 est./71.2 prior. 1 year inflation expectations 5.2/5.5
Noted bear Tom McClellan capitulates Link
Hugh Hendry capitulated 3 days ago too Link
The Wall Street Journal Moneybeat blog reports a study from MKM Partners chief market technician, Jonathan Krinksy. Jonathan stated the 3 week return starting after the first Friday before Thanksgiving averaged a 3.22% positive return since 2003 without any down year.
S&P500 –0.13% After gap up off the U.S. / Iran nuclear weapons deal, the market sold off during the day probably due to month end re-balancing (stocks up MTD/bonds down MTD).
Dallas Fed 1.9 vs. 5.0 est./3.6 prior
Pending home sales –0.6% vs. 1.1% est./prior –5.6% revised to –4.6%
LGF Catching Fire opening weekend $161.1M vs. $152.5M for the first Hunger Games. International box office $146.6M, up 96% vs. last time
The New York Times cited some startup valuation data-points today:
-8 months ago Snapchat was valued at $70 million, today it is $4 billion
-6 months ago Pinterest was valued at $2.5 billion, today it is $3.8 billion
-1 year ago Dropbox was valued at $4 billion, today it is $8 billion
WSJ had a interesting article on Twitch, the streaming video company for video-games. It talked about a 33 year old host named Jasyon Love who expects to make over $100,000 next year from ad revenue and subscribers paying $5/month for his stream.
Twitch is 2 years old and has 600,000 broadcasters streaming to 45 million gamers with about 10,000 peak concurrent streams. These numbers are likely to go up as the Sony PS4 just launched with built-in Twitch streaming and Xbox One will add Twitch capability in the coming months.
Video-game streaming is becoming as big or larger than television lately. The World Championship of League of Legends were streamed live to 32 million viewers.