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Kicking off 2019 like
 

The Best Damn Week In Review Anywhere
January 7, 2019

Last Week
Dow Jones: 23,433 (+1.61%)
S&P 500: 2,532 (+1.85%)
Nasdaq: 6,739 (+2.34%)
Bitcoin: $3,819 (-1.39%)
10-Year Treasury: 2.668%

New job posting: King of Malaysia (vacant as of Sunday).

Everyone else is getting their paychecks in the US -- The latest monthly jobs report helped the first week of 2019 end on an aggressively positive note.

1. Stock market winners...

Buy a home, a car, or a parka... $1,000 jacket designer Canada Goose surged 10% last week after opening its first store in China. The lines were reportedly longer than anyone expected, since showing off a Canada Goose jacket keeps people warmer than the down feathers do.

Fritos in your desk feel distant?... Pepsi's got ya covered. It just became the "first major food and beverage company" to develop a delivery robot. "Snackbot" is already testing on campuses in California because dorm hallway vending machines are sooooo farrrr away from dorm rooms at 2am.

What happens in Vegas... doesn't matter. Macau does. That's Earth's new gambling capital, and it's in China. Gambling revenues popped 17% there from last year, boosting Wynn Resorts and Las Vegas Sands (they both have a place you can crash in Macau).

White blood cells are pumped... Drug giant Bristol-Myers is dropping $74B for smaller Celgene to create cancer's worst enemy ever. Seriously. Its one goal is crush cancer. And the move should evolve BM up to become one of the 6 biggest pharmaceutical companies in the world.
 

2. ...And stock market losers

Elon should tweet-blame Santa... 63,150 Model 3 Teslas were delivered last quarter -- That's just under the 65,000 analysts were expecting. And investors also didn't like Tesla cutting the price of its cars by $2,000 each (since a federal tax credit just expired), but it does start selling its Model 3 cars abroad next month.

Blame Apple... Markets globally fell since it decided to "warn" that iPhone sales over the holidays were probably worse than they first expected. Apple blamed slowing demand in China and cheap $30 battery replacements that are blocking upgrades. Your mom's at fault too.

We kinda don't feel sorry about this one... Delta announced it wasn't able to charge as much as it hoped to for flights booked last minute (when they typically like to jack up the price to $1,500 for a middle seat for your Cabo winter getaway). That dropped the stock to a 15-month low, and grounded other airlines with it.

See above... Berkshire Hathaway is Warren Buffett's legendary investment fund. And its shares dropped because it's a major owner of those 2 stocks above ⬆️⬆️. Apple and Delta's performances gave Berkshire its biggest weekly loss in almost a year.
 

3. Markets forgot about the Trade War and Shutdown for 1 day


TGIF... The first Friday of 2019 earned itself the weekend. You can thank 2 surprises:
  • Jobs Report: 312K new jobs showed up in December stockings -- The most since last February. Worries that companies would quit hiring as markets lost their mojo looked like just that. Worries.
  • Fed Chairman Speech: Jerome Powell said the central bank is "prepared to adjust policy quickly and flexibly." Sounds ambiguous. But the market's translation: Jerry's a reasonable guy and won't over-zealously raise interest rates to slow the fast-growing economy a tad.


The Takeaway: Best of both worlds... Jacked econ data is usually an easy excuse for the Fed to raise interest rates to prevent economic over-heating. And higher borrowing rates hurt stock prices. This buff jobs report though paired nicely with the Fed's comforting words. That OJ and Prosecco combo is why the S&P 500 surged over 3% pre-weekend. 
 

4. Why you should know about Herb Kelleher

Upgrade this guy... Herb Kelleher founded the world's biggest budget airline from a cocktail napkin drawing in 1966. But while the 87-year-old Southwest Airlines icon passed away last week, you should know both the man and his business model. Here's the formula for the cost-saving cheap flight concept he created:

  1. Secondary Cities, Short Flights: Dallas' airport was too big. So he flew out of a cheaper one further outside the city. And only flew to other nearby cheap airports.
  2. No Meals: Just peanuts. Roasted peanuts (lots). That's all Southwest would serve.
  3. Same Planes: All Boeing 737 for the entire fleet. So you only had to train pilots to fly 1 plane.
  4. Economy Forever: No business class. Keepin' it simple with coach-for-all.

More importantly, he was crazy... Herb's cost discipline didn't just make Southwest get profitable quick -- The 5-pack-a-day, chain-smoking, Wild Turkey crushing CEO also motivated employees by doing insane things, because, he was:
  • Filmed/starred in a live arm-wrestling match (while smoking) to settle a legal dispute
  • Cut 3 nuts from each peanut bag to save $300K a year
  • As CEO, he'd jump in and help baggage handlers toss checked bags on the plane
  • Frequently dressed up as Elvis
  • Didn't stop smoking after his prostate cancer prognosis -- because "I don't smoke with my prostate"


The Takeaway: Culture matters. Herb sweated it (hard)... Most Herbiness wasn't known to fliers. But it was adored by Southwest employees -- He gave them the first profit-sharing program a year after Southwest's launch. Herb believed "a company bound by love is stronger" (Southwest stock's ticker symbol is LUV), and all airlines could remember that.
 


What else we're 'Snacking

  • Work: You find out your coworker makes more than you. Do this
  • Life: 50 top travel ideas for 2019
  • Money: What to do with your 401k during a market downturn
  • Venture: The new "Twinning" app (pro tip: you won't like the first face they match you with)
  • Crypto: Bitcoin's 10th birthday


Hustles we like

Jobs:

Internships:

'SnackFact of the Day
The most expensive blue fin tuna ever just sold at auction in Tokyo: $3.1M for 612 pounds

Submitted by Richard M. (Cambridge, MA)
Send Us One


This Week

  • Monday: Partial government shutdown continues
  • Tuesday: 3-day Consumer Electronics Show (CES) starts in Vegas, US negotiators head to Beijing for Trade War talks
  • Wednesday: Earnings from Bed Bath & BeyondConstellation Brands
  • Thursday: Fed Chairman Jerry Powell speaks
  • Friday: Consumer Price Index update

Cancel the gym membership.

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