💎Equity Market Strong Comeback💎

The S&P 500 had shown remarkable resilience on the backdrop of firm corporate earnings results. Moreover, the recovery is supported by a good breadth of stocks that had rallied since the lows in Sept. This reflects investors are getting more comfortable with the market outlook.

Corporations are still displaying healthy fundamentals, and investors are staying in the risk-on mood for a long. As a result, Pika World continues to be cautiously optimistic on the market, and we maintain our mid-cycle transition composition of stocks.

🎉Bitcoin Soaring Underscores Optimism🎉

The coin had a good recovery in October and hit near high as the community celebrates the first Bitcoin future ETF listing. This is a common trend as traders tend to be on risk-on mode towards the ETF launch.

It is also a significant moment for the community, given that it reflects the broader recognition of cryptocurrency as a form of investment. The excitement in this space is likely to attract more retail investors into the ecosystem.

Pika World continues to have substantial exposure in many miner stocks despite offloading some Mara and Hut in this weekly session.

⌛️Snap: Advertising Woes Hit⏳

Shares plunged as advertising revenue was a disappointing result which is far from estimates. In addition, the company is badly hurt by the change in Apple’s rule on advertising on mobile apps.

The result also had a ripple effect on other social media companies such as Twitter and Facebook, which tumbled upon Snap’s earnings result. Revenue was below the guidance of $1.07 billion. Projection of $1.165 billion is also short of Wall Street’s consensus of $1.36 billion, underscoring the profound impacts of changes in iOS ad tracking on the business.

Pika World will be monitoring other social media earnings and the impact of iOS changes on their advertising revenue.

🥦Chipotle: A Pika World’s Favourite Food Company🥓

The company has consistently improvised and reflects in earnings results. In our past update, Pika World shared their new broccoli rice product, which had initially received doubts but was a successful menu item.

Now, despite the inflation in food costs, the company strong pricing power can pass on some menu price hikes to consumers to offset their costs. As a result, adjusted earnings for the fourth quarter stood at $7.02 per share, well ahead of expectation of $6.32 and revenue blast through $1.95 billion, also north of estimates of $1.94 billion.

Recall in June that the company had hiked menu prices by about 4%. This helped alleviate some of the labour cost as workers wages were increased to $15 per hour. While beef and freight costs have gone up, the menu price hike helps to reduce the impacts of such increased expenditure for the company and protect profit margin.

Pika World maintains a best-in-class rating for Chipotle.

📮What’s on the Menu Today?

At 9.45 pm, we have the Manufacturing PMI for Oct which we expect to remain stable at 60.3.

FOMC member Daly will also speak at 10 am, which remains critical for economic outlook insights with monetary policy inclination.

It is 22 October, Friday, 7.35 am in Singapore and 7.35 pm in New York. It has been a splendid week, and Pika World wishes you a blissful weekend ahead!