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S&P Finally Up... Don’t Scare It Away

🙏The S&P posted its first gain in a while, with tech stocks leading the way.

March 13, 2025

Silver banana goes to…


In this issue of the peel:

  • 💰February's surprise CPI report showing cooling inflation brings a sigh of relief to the market.

  • 🏦 In a major narrative shift, bond traders are now pricing in 3 Fed rate cuts this year.

  • 🙏The S&P posted its first gain in a while, with tech stocks leading the way.

Market Snapshot

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🔥 FINANCE MADNESS IS HERE – GET YOUR PICKS IN BEFORE MARCH 16! 🔥

Move over, March Madness—Wall Street’s biggest showdown is about to begin. Finance Madness kicks off on March 16, where the biggest names, firms, and strategies will go head-to-head in a battle for supremacy. 💰️🏆️

But before the matchups begin, YOU get to call the shots.

📈 Who’s making a deep run, and who’s getting knocked out early?

 💭 Think we nailed the rankings, or did we totally fumble the seedings?

 🏦 Is there a Cinderella story in the making?

🚨 FINAL CALL: Brackets close March 16—once the battles start, your chance to predict is gone!

Macro Monkey Says

Inflation backs down…. For now

Alright, folks—inflation is finally chilling out, and Wall Street is treating it like it just got an extension on a final paper. 

February’s CPI rose 0.2%, way softer than expected, allowing investors to breathe a sigh of relief (and maybe even splurge on that extra guac).

But before you start popping bottles, let’s not forget that inflation is still around—just like that one friend who says they’re leaving the party but somehow sticks around until 3 AM. 

Core CPI (which strips out food and energy) also rose 0.2%, meaning price pressures haven’t vanished—they’re just taking a nap, if you will.

Meanwhile, Trump is stirring up trade drama with Canada, slapping tariffs on steel and aluminum. 

Canada clapped back with its own tariffs, making economists wonder if we’re about to see higher prices on everything from beer cans to cars. Because, ya know, nothing says economic recovery like a good ol’ fashioned trade war.

The bond market is feeling meh about it all—the 10-year Treasury yield is hanging around 4.3%, signaling cautious optimism. Translation: The Fed might be more chill on rate hikes, but don’t expect them to relax fully just yet.

Moral of the story? Inflation is cooling, but let’s not jinx it. And if trade wars heat up, you might wanna start stockpiling Tim Hortons coffee before the price spikes.

Career Corner

Question

I had a networking call last week with two vice presidents at a bank where I brought up a program I've applied for.

During our discussions, they said they would push my application. I want to follow up and inquire if they had the chance to push my resume through. What is an appropriate message to follow up and ask if they have pushed me through?

Answer

I would email each of them individually (this way, they will see it as them being responsible) but give a few days between each.

You can simply say,

"Hi [name], thanks again for the call last week. I really appreciated the insight you gave me on the X program, and I'm excited about continuing the process.

Do you have any knowledge of the timing for the next steps?

Best Regards,

[name]"

Head Mentor, WSO Academy

What's Ripe

Sprinklr (CXM) 16.6%

  • Sprinklr recently reported robust quarterly earnings, surpassing analyst expectations with a significant increase in revenue and profitability.

  • The company's continued investment in artificial intelligence has enhanced its customer experience management platform, attracting new clients and retaining existing ones.

  • Sprinklr's strategic expansion into emerging markets has opened new revenue streams, contributing to its impressive stock performance.

Trump Media & Technology Group (DJTWW) 11.8%

  • Trump’s social media company didn’t really do anything significant; it’s more of an innocent bystander of the Feb CPI report.

  • The report signaled lower inflation than the market expected, which somehow equates to a higher stock price for the media/technology company, according to investor logic.

  • Whether it makes sense or not, the stock has now become a bellwether for economic conditions in the US.

What's Rotten

ABM Industries (ABM) 8.7%

  • Despite reporting a revenue increase of 2.2% to $2.1 billion and an adjusted EPS of $0.87, surpassing analyst expectations of $0.76, ABM's stock took a hit.

  • Trading at a P/E of 39x, significantly above industry averages, investors expressed concerns over potential overvaluation, leading to a stock price decline.

  • The transition to a new cloud-based ERP system resulted in temporary delays in cash flow, with net cash used in operating activities amounting to $106.2 million, raising investor apprehension.

Bilibili Inc. (BILI) 6.5%

  • Bilibili continues to face challenges in achieving profitability, with a negative net margin of 5.01% and a negative return on equity of 8.23%, causing investor unease.

  • The stock has experienced significant fluctuations, with a 52-week range between $10.37 and $31.77, reflecting instability that has contributed to recent declines.

  • Intense competition in China's online entertainment sector has made it challenging for Bilibili to capture market share, further dampening investor confidence.

Thought Banana

Intel teams up with TSMC for a group project 

Intel just called for backup. After years of getting dunked on by Nvidia and AMD, they’re teaming up with Taiwan Semi to get back in the game. It’s like LeBron recruiting Steph Curry—a powerhouse duo that could shake up the industry.

Why? Intel has been struggling to keep up with cutting-edge chip manufacturing, while TSMC is the GOAT of making tiny, powerful chips. By joining forces, Intel gets access to TSMC’s elite chip-making skills, and TSMC gets… well, a slightly desperate but powerful ally.

But let’s be real: this could be awkward. Intel has spent years throwing shade at companies that outsource manufacturing (cough like TSMC cough), and now they’re pulling a full “If you can’t beat ‘em, join ‘em” move. Will they play nice, or will this be the tech version of a group project disaster?

Investors seem hyped—Intel’s stock jumped on the news. But execution is everything. If Intel and TSMC can work together without stepping on each other’s toes, this could be a game-changer. If not? Well… there’s always a pivot to AI.

For now, the semiconductor wars just got a lot more interesting. Buckle up.

The Big Question: Is this a game-changing alliance or just a desperate Hail Mary from Intel?

Banana Brain Teaser

Previous

The present ratio of students to teachers at a certain school is 30:1. If the student enrollment were to increase by 50 students and the number of teachers were to increase by 5, the ratio of students to teachers would be 25:1. What is the present number of teachers?

Answer: 15

Today

60% of the members of a study group are women, and 45% of those women are lawyers. If one member of the study group is to be selected at random, what is the probability that the member selected is a woman lawyer?

Send your guesses to [email protected]

❝

The stock market is a device for transferring money from the impatient to the patient.

Warren Buffett

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Happy Investing,
Chris, Vyom, Ankit & Patrick