Market scorecard
US markets climbed yesterday on optimism about potential rate cuts. Have you heard that one before? Fed Chair Jerome Powell mentioned that inflation is trending downward so the S&P 500 hit its 32nd record high this year, closing above 5 500 for the first time ever. Gains in megacap stocks propelled the Nasdaq 100 to its 22nd record in 2024, closing above 20 000 points.
In company news, Eli Lilly got FDA approval for its early-onset Alzheimer's drug, Donanemab. Elsewhere, Moderna rose 1% after the US government awarded the company $176 million to develop a bird flu (H5N1 avian influenza) vaccine. Finally, Chewy fell yet another 2.2% as fallout from Roaring Kitty's stake in the company continues to rattle investors. If you know what that last sentence means, you are spending too much time online.
In short, the JSE All-share closed down 0.52%, but the S&P 500 rose 0.62%, and the Nasdaq kept going up, rising another 0.84%.
Our 10c worth
One thing, from Paul
I'm a big fan of Apple's retail stores, especially the ones that are in historic buildings. They are spacious, well-lit and usually feature stylish wooden surfaces and lush indoor plants.
The staff at Apple stores are knowledgeable and the products are spectacular. The payment process is flawless. The larger stores are also community centres, offering classes on photography, filmmaking, music, and coding.
The Carnegie Library in Washington D.C. stopped being a library in 1970 and became a city museum from 2003 to 2004. Now it's the Apple Carnegie Library, a beautiful space both inside and out, and a tourist attraction too. Read about it here, on the website of the architect that managed the transition, Foster + Partners.
Michael's musings
Would you like to live longer? Some of us are happy with about 80 years on this planet, but others want considerably more time. If I were still healthy, getting to 100 would be nice.
Bryan Johnson, the 46-year-old who sold Venom to PayPal for $800 million in 2013, is trying every conceivable strategy to slow his ageing process. He only eats between 4:30 and 11:00, goes to bed every night at 20:30, and takes more than 100 pills every day.
Next, he's trying experimental gene therapy. He hopes that editing his DNA will allow his body to break through the theoretical age limit of around 120 years. Receiving untested gene-editing treatments sounds risky, but I suppose someone has to do it.
Johnson estimates that he has been able to slow his ageing process so his body only gets 1 year older every 19 months. That sounds impressive. His conclusion is that we can all live much longer by changing our lifestyles. "Sleep, diet, and exercise remain foundational," he wrote on X.
This man is making a huge effort to live past 120, so I hope he looks left, right, left, right, up and down, before he crosses the road.
Bright's banter
Tesla reported a smaller-than-expected 5% drop in second-quarter vehicle deliveries, thanks to price cuts and sales incentives. They delivered 443 956 vehicles, beating Wall Street's estimate of 438 019. Shares jumped over 10.2%, hitting a five-month high.
Sales dropped by 17% in China and by 36% in Europe. Subsidies were cut and fleet demand waned. Competitors like BYD and Rivian are coming along, with BYD sales up 21% and Rivian sales up 9% in the quarter. Tesla also faces challenges from high interest rates which raise vehicle financing costs. Musk has cut production costs and scaled back plans for a $25 000 model.
So far, Tesla has shown resilience, but the pressure is now on to do more than just 'facelifts' for existing models. "Electroheads" are complaining that the cars are dated.
Despite year-on-year sales declines for two quarters, Musk expects higher deliveries in 2024, shifting focus to self-driving tech with plans to unveil robotaxis in August. We know this is achievable after seeing Waymo's recent success in San Francisco.
Linkfest, lap it up
The Wimbledon tennis tournament started on Monday. The event is known for its great strawberries and cream - How to feed 50 tons of fruit and dairy to half-a-million people.
When you think of wealth what comes to mind? You probably pictured money, houses, and possessions - Here's an alternative list, with five different types of wealth.
Signing off
Asian markets are mostly in the green this morning with the MSCI Asia-Pacific heading for its longest stretch of gains since May. Benchmarks rose in Hong Kong, India, Japan, South Korea and Taiwan, while mainland China slipped after services activity expanded at the slowest pace in eight months adding worries over its economy's outlook.
In local company news, the Competition Commission has blocked the planned merger between Grindrod's United Container Depots and Kings Rest Container Park. The two companies currently dominate reefer services in Johannesburg and have a significant market share in Durban. For the record, a reefer is a refrigerated truck, not a hand-rolled cannabis cigarette. Do we have a few potheads reading this newsletter?
US futures are slightly higher in pre-market trading. The Rand is currently at around R18.59 to the US Dollar.
Tomorrow, US markets will be closed for the 4th of July celebrations.