Market scorecard
US markets went sideways yesterday. The S&P 500 pulled back from a record high set the previous day while the Nasdaq managed a slight gain, buoyed by strength in semiconductor stocks. Crude oil got crushed because Libya's eastern and western factions agreed to increase output. Haha, what a mess.
In company news, Micron Technology jumped 14.7% in late trading after delivering an unexpectedly strong sales and profit outlook. They say there's rising demand for AI-related memory chips. Elsewhere, "shopping as a service" company Stitch Fix had a major fashion emergency on Wednesday. It reported an earnings miss and its stock price plummeted nearly 40%. Its market value is now down at $277 million, a far cry from its $10 billion peak.
In conclusion, the JSE All-share was up 1.40%, the S&P 500 gave up 0.19%, and our favourite, the Nasdaq was 0.04% higher.
Our 10c worth
One thing, from Paul
Markets are looking good and I'm feeling confident about the future. In my case, that's a permanent affliction. I'm a relentless optimist.
Some people like to be negative. They use all sorts of reasons to justify their bearish tendencies. There is always something to worry about. The meme below made me laugh.
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Byron's beats
Sometimes when you are trying to solve a problem, using less is a much better solution than adding more. I thoroughly enjoyed this article by Ted Lamade on the Collaborative Fund blog titled Take Something Away.
He talks about Ryan McFarland, the inventor of the Strider Bike (pictured below) who was struggling to teach his son how to ride a bike. He bought tricycles, added trainer wheels, and tried a few other tricks but nothing worked. Eventually, he decided to take off the pedals, and it worked like a charm. I for one can vouch for these balance bikes, they are amazing.
Healthcare is another great example. We are always looking at what medication we can take instead of looking for a negative factor which can be removed.
Many of our readers have busy careers and lives that require a lot of problem-solving. Hopefully, this article can help you think about things slightly differently.
Michael's musings
Chinese car brands are taking off fast in South Africa. Last week another one, Jetour, launched two new models. Jetour is owned by Cherry, along with Omoda and Jeacoo. Cherry also owns Jaguar and Land Rover through a 50:50 partnership with India's Tata Motors.
These Chinese cars come equipped with many features that you'll only find in premium vehicles, and they are significantly cheaper than their competition. As a result, they are moving up the popularity lists. Many of these brands have only been in South Africa for a year or two, but if they prove to be reliable with age, their sales will continue to climb.
Last week, the Wall Street Journal ran an interesting article about how Ford is changing tack in China. They are moving from trying to expand their market share in China to just defending their market share in the US.
There were two points that stood out to me in the article. Firstly, China has the production capacity to double the number of cars that it currently makes. Secondly, the move to EVs has made it significantly easier for new brands to launch. With combustion engines, hundreds of suppliers are needed, but with an EV, only a handful of components are needed, making the supply chain much easier to create and manage.
Read the full article here - What scared Ford's CEO in China.
Bright's banter
The US FDA has approved Apple's new sleep apnea detection feature, on the Apple Watch Series 9, Series 10 and Ultra 2.
Sleep apnea, a disorder affecting over 900 million people worldwide, causes breathing interruptions during sleep and can lead to serious health issues if left untreated.
Apple's feature aims to provide a simpler, more affordable alternative to traditional sleep apnea testing. The new feature uses an accelerometer to track breathing disturbances and alerts users if they show signs of moderate or severe sleep apnea.
Experts believe that this could lead to earlier detection and ultimately reduce medical costs. But don't expect medical aid to cover treatments based on Apple Watch data alone, you still need to see a doctor. Apple says the feature was developed using clinical-grade data and validated through a clinical study.
Linkfest, lap it up
Humans can't run at full steam in perpetuity. We all have unproductive days - What to do when you don't feel like doing anything.
Ryan Holiday says he doesn't have goals. This sounds odd for a successful man - The case against setting target outcomes.
Signing off
Asian markets extended their gains today, with benchmarks in China continuing to climb on the back of their recent stimulus measures. The rally, now three days strong, saw India, Japan, and South Korean markets joining in on the momentum.
In local company news, Capital & Regional has received a R3.4 billion buyout offer from NewRiver and Growthpoint, its largest shareholder, with the board planning to vote in favour of the deal. Elsewhere, Investec is establishing a new office in Dubai to provide private banking and wealth management services to affluent expats in the region.
US equity futures are in the green pre-market. The Rand is trading at R17.20 to the US Dollar.
It's a beautiful day in Johannesburg. Have a good one.