Musk to step down as Twitter CEO once he finds a successor (2 min read)
Elon Musk said on Wednesday that he will step down as the CEO of Twitter once he finds a replacement, but will continue to run the software and servers teams. The decision came days after 57.5% voted for him to resign in a poll that he created on Twitter. After the acquisition in October, investors, analysts, and even Tesla bulls have criticized Twitter being a distraction to Elon from running Tesla. Tesla shares have lost about 60% since the offer to acquire Twitter in April.
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Micron announces 10% staff reduction, suspends bonuses (3 min read)
Micron said it would reduce 10% of workers and suspend bonuses in 2023 as a part of their restructuring plan in response to challenging industry conditions. The news came as Micron reported its quarterly results where it missed estimates and forecast a bigger loss than expected in the current quarter. Slowing PC sales have greatly impacted their business and the company expects profitability to remain challenged through the end of 2023.
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Consumer confidence rises to highest since April (3 min read)
US consumer confidence in December reversed the consecutive declines in October and November and bounced back to the highest level since April this year. Inflation expectations also fell to the lowest since late 2021 as gas prices continue to drop. Consumers’ view on business conditions and income rose as well. Consumer confidence is looking up as the Fed suggested soft landing is still possible and recent data showed inflation has peaked.
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US stocks lifted by strong earnings and consumer confidence data (1 min read)
Major US indexes closed higher for the second day on Wednesday that was driven partly by the strong earnings from bellwethers like Nike and FedEx. The better than expected consumer confidence data in December also boosted investor sentiment. However, as 2022 is coming to an end, all three major US indexes are on pace to post their worst year since 2008. This year the Dow, S&P 500, and Nasdaq were down 8.15%, 18.63%, and 31.55% respectively.
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Fund closure trends starkly different in Canada, U.S. (2 min read)
According to Morningstar’s data, the US had a much higher fund closure rate than Canada in the past 10 years. In the US, 50.6% of the mutual funds launched during that period were closed while in Canada the equivalent closure rate was only 17.9%. Although ETFs rose steadily in the last decade, 27.8% of the launches in the US and 15.6% in Canada were closed. Thematic funds in particular were shown to have the highest risk of closure over long periods.
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What Is the Tesla ETF (TSLQ)? (3 min read)
The AXS TSLA Bear Daily ETF (TSLQ) is an inverse ETF that allows you to bet against the price of Tesla stock without having to buy derivatives like options or futures yourself. It is essentially a single-stock ETF and this article explains how it works in detail and the risks involved. It also discusses other Tesla single-stock ETFs available on the market and the differences in their ways of generating returns from Tesla stock.
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That's it for today! You can reply to this email if you have any comments or feedback.
Thanks,
Thomas
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