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Disney (DIS) dumps $1B Florida project set to bring in 2,000 jobs (01:32). Coinbase (COIN) takes subscription service out of beta testing (05:19). Four Corners Property Trust (FCPT) acquires 2 Fast Pace Health properties for $4.9M (03:54). Learn more about these stocks with Seeking Alpha Premium.
This is an abridged transcript of the podcast.
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A deal on the debt ceiling could be reached as soon as this weekend. That sentiment coming from both sides of the aisle.
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Disney’s $1B Florida project has been scrapped. This includes plans to bring 2,000 jobs to the state.
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Coinbase launches a new subscription service. The zero-fee trading service will cost you 30 bucks a month.
You can find links to all the stories we talk about on the show in show notes and our daily Seeking Alpha Wall Street Breakfast articles.
OUR TOP STORIES
House Speaker Kevin McCarthy said Thursday that negotiators could come to an agreement in principle to raise or suspend the debt ceiling as soon as this weekend.
This would allow the House to vote on a bill next week.
McCarthy told reporters at the Capitol, “I can see now where a deal can come together.”
That sentiment was echoed by the chair of the House Appropriations Committee and a Democratic representative from Maryland.
The debate over the debt ceiling went nowhere for months as Republicans wanted broad spending cuts and regulatory changes to accompany an increase. Democrats, meanwhile, wanted a “clean” increase.
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Walt Disney (NYSE:DIS) is scrapping plans for a nearly $1B office campus in Florida.
The same is true for plans to relocate some 2,000 of its California workers to the offices.
Disney cited “changing business conditions” as the reason for this.
The planned Lake Nona Town Center was set to bring more than 2,000 jobs to the Orlando region, at an average salary of $120,000.
Many of those employees would have come from a Southern California department known as Imagineering, which works with Disney’s movie makers to develop theme park attractions.
Disney is now looking at moving some 200 employees that already relocated back to California.
This all comes amid a feud between Disney and Florida Governor Ron Desantis.
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Leading Indicators slip as expected in April, signaling recession by mid-2023.
The Conference Board said Thursday that the April Leading Indicator Index fell 0.6% to 107.5, again as expected following a 1.2% decline in March. The Index has dropped 4.4% in the six months from October 2022 to April 2023.
This is a steeper rate of decline than the 3.8% contraction in the previous six months.
The Conference Board forecasts a contraction of economic activity starting in Q2 leading to a mild recession by mid-2023.
This article made me think about an interview I listened to with Chaim Siegel. He’s the investing group leader for Fed Trader on Seeking Alpha.
(03:09)
That was from the Investing Experts podcast. You can find it wherever you get your podcasts. In that episode he talks about a number of other topics including AI, Micron and Tesla.
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Four Corners Property Trust (NYSE:FCPT) said on Thursday that it has acquired two Fast Pace Health properties for $4.9M.
Fast Pace Health is an urgent care provider.
The properties are newly constructed, and are located in Indiana and Louisiana.
The most recent article on FCPT is by Gen Alpha. It’s entitled “Buy the dip on this restaurant REIT.”
Gen Alpha says Four Corners Property is executing well with both top and bottom line growth.
You can check out the article with a Seeking Alpha premium account. If you don’t have one, it’s less than five bucks for the first month.
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Academy Asset Management, LLC intends to launch the Academy Veteran Impact ETF.
The new fund would offer investors exposure to a fixed income ETF that is backed by pools of loans that were made to U.S. service members, military veterans, their survivors, or veteran-owned businesses.
The ETF filing did not list specific holdings, a ticker symbol, or an expense ratio.
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Sony (NYSE:SONY) is considering partially spinning off its financial services unit, Sony Financial Group, as a separately traded entity, while retaining a roughly 20% stake.
Sony disclosed on Thursday that the spinout could occur within the next two or three years. They would seek a listing for the unit on a Japanese exchange.
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Coinbase Global (NASDAQ:COIN) is officially launching its zero-fee trading subscription service Coinbase One.
The company was said to have started beta testing Coinbase One in November 2021 whereby customers in the test group were able to trade and convert crypto on Coinbase’s (COIN) platform without having to pay a trading fee.
But does that mean the service is free? No.
The service costs $29.99 a month not just for the benefit of zero trading fees but also higher staking rewards.
COIN slipped 1.3% on Thursday.
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NOW MORE ON THE MARKET
Wall Street’s major averages extended their gains to a second straight session on Thursday..
The Nasdaq (COMP.IND) gained 1.5%. This was helped by a more than 9% jump in Netflix (NFLX). The streaming giant’s first upfronts presentation received a positive response.
The S&P 500 (SP500) ended up 0.9% and the Dow (DJI) rose 0.3%.
Of the 11 S&P sectors, seven ended in the green, led by a 2% rise in Tech. Real Estate and Consumer Staples topped the losers.
Now for some analysis…
BN Capital’s Leo Nelissen told Seeking Alpha that “Growth stocks are gaining relative momentum versus value stocks, which is quite unusual in this situation.”
He said, “The market is, once again, betting on a smooth decline in inflation to 2%. The problem is that new data isn’t supporting this, which caused Fed Funds expectations to rise again.”
Nelissen said, “The odds are high that this rally is quickly running into resistance.”
Speaking of rate expectations, Dallas Fed President Lorie Logan on Thursday said that she remained concerned about whether inflation was falling quickly enough and that she may not yet be on board for a rate pause at the central bank’s monetary policy meeting in June.
Turning to the fixed income markets. The 10-year yield (US10Y) was up 9 basis points to 3.65% while the 2-year yield (US2Y) was up 11 basis points to 4.27%.
On the economic front, weekly jobless claims came in at 242K, which was lower than the anticipated 254K figure. However, there are big concerns about the reliability of the numbers given a large amount of local fraud.
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Now let’s take a look at the markets as of 6:20 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in the green. The Dow is up a tiny fraction. The S&P 500 is up 0.2% and the Nasdaq is up 0.2%. Crude oil is up 1% at more than $72 a barrel. Bitcoin is down 1.8% at less than $27,000.
In the world markets, the FTSE 100 is up 0.5% and the DAX is also up 0.5%.
On today’s economic calendar, at 11:00 a.m. Federal Reserve Chairman Jerome Powell and former chair Ben Bernanke will speak in Washington on monetary policy.
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