Headlines 

Teslas China Dream Threatened by Standoff Over Shanghai Factory

Tesla Inc., the biggest-selling electric carmaker in the U.S., is in danger of being relegated to an expensive niche in China because Elon Musk can't clinch a deal to open a factory there. More than seven months after Tesla said it was working with Shanghai's government to explore assembling cars, an agreement hasn't been finalized because the two sides disagree on the ownership structure for a proposed factory, according to people with direct knowledge of the situation. China's central government says the plant must be a joint venture with local…

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Headlines 

Bond-Stock Clash Has Just Begun as Inflation Looms

The tug-of-war between stocks and bonds is at the heart of the shakeout roiling financial markets. This week’s U.S. inflation report could hold the key to the next phase. Seemingly every time 10-year Treasury yields approached a four-year high last week, equities investors panicked, fearing the specter of higher inflation and a more aggressive pace of Federal Reserve rate hikes. Whether you want to say Treasuries are in a bear market or not, the surge in yields to start 2018 has left investors reassessing the value of equities and corporate bonds.…

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Headlines 

U.S. Adds 200,000 Jobs; Wages Rise by Most Since Recession

U.S. hiring picked up in January and wages rose at the fastest annual pace since the recession ended, as the economy’s steady move toward full employment extended into 2018. Nonfarm payrolls rose 200,000 — compared with the median estimate of economists for a 180,000 increase — after an upwardly revised 160,000 advance, Labor Department figures showed Friday. The jobless rate held at 4.1 percent, matching the lowest since 2000, while average hourly earnings rose a more-than-expected 2.9 percent from a year earlier, the most since June 2009. Treasury yields and…

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Headlines 

This Rare Bear Who Called the Crash Warns Housing Is Too Hot Again

When real estate investors get this confident, money manager James Stack gets nervous. U.S. home prices are surging to new records. Homebuilder stocks last year outperformed all other groups. And bears? They’re now an endangered species. Stack, 66, who manages $1.3 billion for people with a high net worth, predicted the housing crash in 2005, just before prices reached their peak. Now, from his perch in Whitefish, Montana, he says his “Housing Bubble Bellwether Barometer” of homebuilder and mortgage company stocks, which jumped 80 percent in the past year, once again…

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Headlines 

Asia Stocks Rise as Earnings Awaited, Won Weakens: Markets Wrap

Asian equities edged higher ahead of the start of the region’s earnings season this week, with investors betting that the outlook for economic growth and profits is strong enough to support record-high stock prices. The Korean won fell. Shares from Sydney to Seoul climbed with markets in Tokyo closed Monday for a holiday. Samsung Electronics Co. and a slew of Japanese retailers and manufacturers are among companies giving profit updates this week. South Korea’s currency reversed gains as authorities said they would take action to stem one-sided moves in the won. Oil…

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Headlines 

Apple Is Ramping Up Work on AR Headset to Succeed iPhone

With the headset at least two years away, Apple wants to make it easier for developers to bring new AR features to the iPhone. To that end, the company plans to release a new version of ARKit software tools as soon as 2018. They could help developers create software that remembers accurately where a digital object was placed in a virtual space, using a technology called persistent tracking; you look away, and the object is still there. The tools will also make it easier to create AR games for multiple…

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Headlines 

Snap Is Looking a Lot Like Twitter After Another Earnings Miss

Snap Inc. went to great disappointing revenue and user growth, in its third-quarter results. Chief Executive Officer Evan Spiegel even highlighted that Snapchat isn’t easy enough for many to use, echoing similar complaints about Twitter. Snap’s surprise disclosure Wednesday morning that Tencent Holdings, China’s biggest instant messaging company, had analysts cut their ratings. Snap has now fallen 25 percent since its March IPO, bringing its market capitalization to within $900 million of Twitter’s. Of course, Snap’s valuation is still richer. Twitter is projected to have about three times the revenue…

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Odds and Ends 

Apples bid to become a $1 trillion company starts this week

While people spend more than $1,000 for the right to eventually get an iPhone X (as well as sell that right to eventually get an iPhone X for more than $1,500), we’re seeing Apple is doing a pretty good job of setting the stage as to whether it can make its case to Wall Street that it can be a $1 trillion company. We’ve noted before that quarterly financial reports from companies are, generally, the moments that consistently swing stock prices for companies. And while Apple is hoarding a ton of cash,…

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Odds and Ends 

Atlassian is on one heck of a run

When Atlassian went public at the end of 2015, it was a bit of an anomaly: a tech IPO whose numbers looked quite good with some profitability. It’s been almost two years since that IPO, and since then, the company’s valuation is at around $9 billion. The company popped 32% on its first day and hit a valuation of $5.8 billion. A lot of that is thanks to an insane run this year so far, where the stock is up more than 65%. And that run continued today after reporting…

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Odds and Ends 

Tesla has fired hundreds of employees after performance reviews

Tesla fired hundreds of employees following what the company said is an annual performance review process, the company told TechCrunch. The news was first reported by The Mercury News. “Like all companies, Tesla conducts an annual performance review during which a manager and employee discuss the results that were achieved, as well as how those results were achieved, during the performance period,” a Tesla spokesperson said. “This includes both constructive feedback and recognition of top performers with additional compensation and equity awards, as well as promotions in many cases. As with any company, especially…

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Odds and Ends 

How Apple could become a $1 trillion company

Apple reported its earnings this week, and with a surprisingly positive report the shares spiked again as Apple signaled a potential huge iPhone release. With that jump, Apples market cap is now over $800 billion. This year alone, shares of Apple are up almost 35%. If Apples promise plays out or exceeds what Wall Street hopes for the September quarter, we may soon be asking ourselves whether or not Apple really will fulfill the promise of a company that could hit a market cap of $1 trillion. The company is…

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Odds and Ends 

These are the three things one Silicon Valley VC wants to hear on Snaps first earnings call tomorrow

Snap, which Goodwaterpublished in early February, shortly before the company went public. (We wrote about it fresh survey data of 3,000 Americans across the country who Goodwater recently polled using a third-party service, firmco-founder Eric Kim who isnt a shareholder says hell be listening for three things on Snaps very first earnings call tomorrow: 1) Snapchats competitive response to Facebooks steady stream of attacks on its core platform. Snapchats storiesplatform has maintained market share over the last six months, but during that same period, Facebook has converted a whole lot…

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Odds and Ends 

Snaps first earnings this week will give a heat check on the new ad ecosystem

When Snap went public earlier this year, it revealed a break-neck level of growth in its nascent advertising business and a dramatic burn rate along with it. But while itll be important for Snap to continue growing that business and get its costs in check, itll be nearly as important to convince Madison Ave. that it can be a mainstay ad buy alongside the big two (Facebook and Google). Snap, like Pinterest and Twitter, faces a steep challenge of convincing advertisers that they should be part of those regular ad…

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Odds and Ends 

Microsoft meets expectations with $23.6B in revenue, Azure revenue up 93%

Microsoft just trending downby almost 2 percent in after-hours trading. Our results this quarter reflect the trust customers are placing in the Microsoft Cloud, said Microsoft CEO Satya Nadella in the earnings announcement. From large multi-nationals to small and medium businesses to non-profits all over the world, organizations are using Microsofts cloud platforms to power their digital transformation. Here are the highlights from todays report: Cloud: Total revenue from Microsofts Intelligent Cloud business hit $6.8 billion this quarter. Microsoft expects its cloud-computing business tohit a $20 billion run rate by…

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