China says Blink in AI language.

Here’s a quote from good old Epictetus to ease you into the day: “Don't seek for everything to happen as you wish it would, but rather wish that everything happens as it actually will—then your life will flow well.“ I’m flowing like melting butter on a pan already.

China is flexing it’s AI tech while PC supply is slowing down. Looks like a gloomy quarter is upon the S&P500 companies, but there is some solace to in the automotive sector. Let’s do a scan.

The Big Picture

First quarter projected profits for the S&P500 companies are expected to drop by 6.8%. This is amidst interest rates between 4.75-5.1% and inflation at 5.5%. JP Morgan Chase led the rescue of First Republic Bank while UBS agreed to acquire Credit Suisse post the bank run of Silicon Valley and Signature Bank. Quarterly reports of JP Morgan, Citibank and Wells Fargo are expected to give investors an indication whether inflation is easing. Federal Reserve Chairman Jerome Powell said that the central bank is committed to bring inflation down to target of 2%. So its not all doom and gloom, but we will have to wait and see.

Sector Sweep

Tech

• There is a slump expected in PC shipments as worldwide numbers show a decline of 29%. A record slump since the 1990s. It will be interesting to look out for Apple’s quarterly earnings in May.

• Tonal, the home workout company’s CEO Aly Orady is stepping down as the home gym market appears to be cooling off post-covid.

• AliBaba unveiled its generative AI model Tongqi Qianwen, as it’s expected to integrate with DingTalk which will summarize meeting notes, write emails and draft business proposals.

• Ex-Twitter boss Parag Agarwal and other execs are suing Twitter for unpaid legal fees.

Space

• Richard Branson’s Virgin Orbit has filed for bankruptcy. It’s reported that the downward spiral has been kicked off from a failed launch in January.

• Elon Musk is reportedly estimating a Starship orbital launch in the 3rd week of April

Automotive

• GM and Hyundai are seeing some stock gains as dealership report increased inventory. This is due to some ease in supply-chain constraints.

Real Estate

• Rental apartment sales are falling sharply for the first time since ‘08 at a record 73%

Aaaaand that’s a wrap for today. Do keep a lookout for our weekly email about stock deep dive and personal finance tips this Saturday. Until then Adios Muchachos.

Before we leave, I gotta talk to you about brand consciousness

Priorities be trippin’