← The Rundown
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Public.com presents the rundown, your daily market update in under 10 minutes. My name is Zadod Mani and Today is Wednesday, September 10th. In today's episode, we'll tell you the latest numbers showing a weakening labor market and why investors are celebrating. We'll also recap the iPhone event and why Apple stock dropped despite the event being surprisingly good. Then stick around to the end of the show to find out why Oracle stock is popping more than 30% today, which got a great show for you today. Let's go. Stocks hit record highs on Tuesday with both the S&P 500 and Nasdaq jumping 0.3%. This was the 22nd record close this year for both indices. Now, I was kind of surprised to see the markets rally yesterday considering the major jobs revision that we got from the Bureau of Labor Statistics. The BLS reported on Tuesday that it marked down previously reported job gains by 911,000 jobs in the 12 months through March. So what that means is instead of adding the 1.8 million jobs that was previously reported, the US economy actually added less than half of that of just 847,000 jobs. That's the steepest downward revision we've had in decades. And this is just more data that the labor market is weakening and it might have been weakening for over a year. So this pretty much guarantees that we're getting a rate cut at the Fed meeting next week. And I think that might be why the stock market rallied yester because investors are excited about lower interest rates. Now, speaking of the Fed, remember President Trump tried to fire Fed Governor Lisa Cook last month, but now a federal judge is blocking the president from firing her, at least for now. President Trump claimed to be firing Lisa Cook for cause, but the judge said that Cook's removal violated the Fed's independence and that the president can't fire a Fed governor for cause for conduct that happened before they took office. So Lisa Cook will stay on at the Fed for now, but but this case is likely going to be appealed and end up at the Supreme Court. And speaking of the Supreme Court, they agreed to hear Trump's tariff case on a faster than normal timeline. Last week, a lower court ruled that Trump's reciprocal tariffs were illegal. The Trump administration appealed that ruling to the Supreme Court. And now the Supreme Court will decide the fate of these tariffs, with oral arguments set to begin in November. If the Supreme Court ends up striking down Trump's reciprocal tariffs, the US treasury could be on the hook to refund up to a trillion dollars. And we got some breaking News just now. The PPI inflation report dropped this morning and according to this report, wholesale prices fell in August by 0.1% compared to July. That was not expected. Economists were expecting a 0.3% increase in prices. So the fact that prices are falling really opens the door for the Fed to cut rates aggressively. We are going to get a CPI inflation report tomorrow, so that'll tell us even more about how inflation is doing. Make sure you guys catch tomorrow's show. To stay in the loop, let's run through some headlines, starting with Apple. Apple had their iPhone event yesterday and honestly I thought it was pretty good. Apple showed off their iPhone 17 which is a solid upgrade from last year's. It has a better screen, a higher refresh rate. There's also a better chip, better cameras, all with the same price of 799. There was also the iPhone 17 Pro. It got a better camera, a new unibody design, some new colors for one of which is orange and I kind of like it. The price of the iPhone 17 Pro is going up by $100 to 1099, but storage will start at 256 gigabytes. But the big reveal yesterday was the iPhone air, which is the thinnest iPhone ever made. And I'm not going to lie. Leading up to the event, I was pretty skeptical about this phone. I didn't think people would want a super thin phone, but after seeing it, this phone looks really nice. Not only is it an engineering marvel, but it's also going to have a pro chip inside and it's going to be sold for 999. And I also think that the iPhone air sets the table for the foldable phone next year, which will likely just be two iPhone airs combined. So overall I thought the iPhone event was pretty good. Beyond just the iPhone, Apple also showed off some new AirPod Pros, which has better noise canceling and live translation. They also showed off some new Apple watches. So yeah, you know I make fun of Apple all the time, but after this event I. I was presently surprised with all the new stuff, especially the iPhone air. I think the iPhone air could be a huge hit. It might even get some people to upgrade sooner than expected. My wife is already asking me for one, but for some reason the markets didn't love it as much. Apple stock dropped 1.5% yesterday. Now I did notice that Apple spent almost no time talking about AI or any AI features on the iPhone and that could be why Apple stock dropped. Maybe investors were hoping for some AI news. To me, the fact that Apple did talk about AI was a good thing. I think they learned their lesson to not over promise and under deliver. Hopefully they're cooking up a good update for Siri pretty soon. Let's shift gears and talk about Klarna. The Buy Now, Pay later company is officially hitting the stock market today and pricing their IPO at $40 a share. That is above the previous range of $35 to $37 and it would give them a market cap of around $15 billion. It's a sign that the demand for their IPO is expected to be strong. Klarna basically helped bring in Buy Now Pay later into the mainstream. And today Buy Now Pay later makes up almost 9% of all E commerce spending. They're a giant in the space. They have over 111 million active users. They work with nearly 800,000 merchants. They processed over $112 billion in purchases in the past year. The revenues for that period was also up 6.17percent year over year and hit $3 billion. Now, despite the enthusiasm around their IPO, it comes with risk. Just like any other IPO. The buy now Pay later model has been frequently criticized for duping consumers into spending more than they can afford. And research shows that users most likely to fall behind on payments are already financially constrained. So the company could be at risk of further regulation and consumers potentially not paying back their loans. Also, let's not forget that this IPO is happening at a much lower valuation than Klarna's peak of $45 billion back in 2021 when they raised a funding round from SoftBank. But we'll see what the stock does on its first day. It'll begin trading on the New York Stock Exchange under ticker symbol K L A R. Let's talk about some stocks making moves today. Oracle stock made my jaw drop this morning. It's up more than 30% after the company announced that its backlog grew 359 to $455 billion. I mean, that is crazy. The company has nearly half a trillion dollars in backlog now. This is all being driven by Oracle's cloud infrastructure business. There is just so much demand for AI processing on the cloud that Oracle is one of the cloud providers that can meet that demand. They've become a legit competitor to Amazon's aws, Microsoft's Azure, and Google Cloud. On top of that, Oracle has agreed to supply OpenAI with a full 4.5 gigawatts of data center capacity. Company also counts ByteDance and Nvidia as a cloud customer too. So Oracle's cloud business has been a big winner of the AI boom, and that's pushing Oracle stock to the moon. I mean, the Stock was already up 45 this year heading into earnings, and now their market cap is going to jump another $200 billion. Because of this spike. The company is now on the verge of being the latest company to join the trillion dollar club. And don't look now, but Oracle's founder, Larry Ellison is on the verge of being the richest man in the world. So ye why my jaw was on the ground when I saw Oracle's numbers. Now on the flip side, the chip designer synopsis is getting smoked this morning after a weak earnings report. The missing the earnings came from their Design IP division, which is a part of their business that helps design chips for cars, smartphones and Internet of things devices. The unit struggled thanks to US Export restrictions on China and problems with one of their big foundry partners. So that news is sending Synopsys shares down more than 20% this morning. Let's wrap the show with a fun fact. The start of football season has been a big boost for prediction market websites. The prediction market site Kalshi saw more than $441 million in trades during Week 1 of the NFL season. The company's CEO said that was the equivalent to the amount of trades that Kelce sees during a US Election. Prediction markets really took off during the election and and now you can bet on pretty much anything on those platforms, including things like the weather and also sports. These prediction market platforms have found a loophole to allow sports betting. Instead of betting on which team is going to win, they allow the trading of events contracts on the outcome of who's going to win the game. And these contracts can be traded in real time. This essentially looks and feels like a sports bet, but since they're regulated as commodities, they're legal in all 50 states. Even where sports gambling is still banned, these prediction market platforms might start taking a bite out of the legal sports books like FanDuel and DraftKings because they have less regulatory hurdles to jump over. And that's why there's rumors of DraftKings, FanDuel and others looking to launch their own prediction markets. So yeah, at some point, everything might just become an events contract to get around regulatory hurdles. Well, all right guys, that's the rundown for today. Hope you guys enjoyed today's episode. If you, if you did and you have like 7 extra seconds, consider giving us a 5 star rating on Apple, Spotify. Wherever you listen to your podcasts and if you are listening on Spotify, don't forget to vote in today's Spotify poll. Leave us a comment on Spotify. All that engagement really does help us out and it helps other people find the show. Thank you guys so much for listening, watching and commenting. Shout out to Mike and Connor for all the work behind the scenes and we'll see you guys back here tomorrow.