Today in the Market (1/30/2024)

Good Morning! On Tuesday, U.S. equities were mixed just before major tech earnings were released after the bell. The S&P 500 almost came back but finished down 0.06%, while the Dow Jones had a steady climb, increasing 0.35%. The NASDAQ stayed in the red all day, down 0.76%.

PEDAL TO THE METAL

General Motors (GM) reported that it exceeded expectations in terms of both revenue and net income for the fourth quarter. Additionally, GM’s positive profit announcement comes as the firm aims to overcome the impact of the UAW strike and readjust its electric car launch, which has caused “some uncertainty,” according to the company.

  • Revenue: $42.98 Billion vs. $39.53 Billion Expected
  • Earnings Per Share: $1.24 vs. $1.16 Expected

There were some issues, though… Regarding EV sales, GM encountered setbacks in 2023 with its previously ambitious launch strategy, and a decrease in sales is anticipated this year. According to a corporate representative, GM will set aside $1.7 billion in reserves during the fourth quarter to cover losses associated with its current electric vehicle inventory. With that, GM, which previously abandoned its target of manufacturing 400,000 EVs by mid-2024, has now revised its plan and intends to sell a minimum of 250,000 EVs in 2024, based on customer demand.

Going forward! GM has projected that the overall sales of the US auto sector will reach 16 million cars in 2024. This would signify a significant recovery from the impact of the pandemic. In contrast, the industry saw a decline in sales, with just 13.4 million vehicles sold in 2022, marking the lowest sales in ten years.

NOT MEANT TO BE

Amazon (AMZN) and iRobot dropped their $1.4 billion agreement to collaborate after the announcement by European Union antitrust officials that they would reject Amazon’s intended purchase of iRobot, the manufacturer of Roomba.

So what now? According to Ars Technica, Amazon is now obligated to pay iRobot a termination fee of $94 million. The majority of this amount will be used towards repaying the $200 million loan that iRobot obtained to maintain its financial stability in 2022. On top of that, iRobot further declared its intention to lay off 350 individuals, which accounts for 31% of its workforce, and choose a new CEO to replace the current one, who has been in the position for more than 25 years.

Will this be a new trend going into 2024? According to Bloomberg, as regulatory authorities in the US and Europe intensify their efforts to restrict the consolidation of big technology businesses, experts caution that giant corporations will encounter significant challenges in successfully executing significant mergers and acquisitions.

 

Scroll to Top

Where Are You On Your Investment Journey?

Rise

Run

Relax

All investors are unique.  The above characteristics are examples, but may not reflect your particular investor demographics or situation.  An advisor with Edgar Investment Management, LLC will assist you with finding the best type of account for you. 

Investment advisory services are offered through Edgar Investment Management, LLC, an investment advisor registered with the State of Texas. Edgar Investment Management, LLC only offers investment advisory services where it is appropriately registered or exempt from registration and only after clients have entered into an investment advisory agreement confirming the terms of engagement and have been provided a copy of the firm’s ADV Part 2A brochure document.

The content found on this website is developed from sources we believe provide accurate information and is for educational purposes only. The information on this website is not intended as tax or legal advice. Everyone’s tax and legal situation is different, so please consult trusted and knowledgeable legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided on this website are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Material and information found on this website is not intended as an offer or solicitation for the sale or purchase of any specific security, mutual fund, ETF, bond, or investment strategy.  

Investing is risky!  No guarantee as to performance of any investment is implied by this website.  Make sure you have evaluated your options and spoken with trained professionals before you implement any investment strategy.  Past performance is not indicative of future results.  

Please be advised that Edgar Investment Management, LLC is a financial advisory firm specializing in investment management and financial planning services. We do not offer or provide any CPA-related services, including tax preparation, tax planning, or other accounting services. If you require assistance with tax-related matters, we recommend consulting a qualified CPA or tax professional who can provide specialized advice tailored to your individual needs.

Edgar Investment Management, LLC is not a Public Accounting firm.

 

Contact Us

Name
Best time(s) to contact you?
Best method(s) to contact you?

Contact Us

Name
Best time(s) to contact you?
Best method(s) to contact you?

We would love to hear from you! Please fill out this form and we will get in touch with you shortly.

  • About You

    Tell us a little about yourself. Don't be shy. Let's be friends.
  • How Can We Reach You?

    We would love to chat with you. How can we get in touch with you?
  • What's on your mind?

How much do you want to invest?