Not a Great Start

In this buzz: Apple & Tesla 🧨; Salesforce; Mortgage applications; Rep. Kevin McCarthy; interest rates and more …

Apple & Tesla 🧨:
It wasn’t a terrible start to the year for the stock market, but Apple and Tesla sure had rough days. Apple’s market cap dipped below $2 trillion as it dropped more than 3% as concerns about customer demand resurfaced. Tesla tanked 12% on Tuesday as deliveries fell short of analysts’ expectations.

You know who really had a rough day?
Rep. Kevin McCarthy. For the first time in 100 years the majority party in the U.S. House of Representatives was not able to elect a speaker on the first ballot. The Republicans also didn’t elect him on the second or third vote but who’s counting?

In other news:
Salesforce joined the growing list of tech firms to announce layoffs, saying they will cut about 10% of its 73,500 employees and close some offices. This move could lead the company to take up to $2 billion in charges, with approximately $900 million hitting in the fourth quarter of fiscal 2023.

Finally:
Mortgage application plunged over 13% at the end of last week versus two weeks prior as interest rates headed higher.
– The average 30-year fixed rate mortgage increased to 6.58% from 6.34% over the period.
– For reference, 30-year rates averaged 3.33% at the end of 2021. Ouch.