- Bull Street
- Posts
- 📈 Disney Fuels Fubo 251% Gain
📈 Disney Fuels Fubo 251% Gain
Stryker to buy Inari for nearly $5B, Ulta names new CEO, Toyota to mass produce rockets with Interstellar, Phillips 66 to acquire EPIC NGL for $2.2B, Fubo shares soar 251%
Evelio Silvera
January 07, 2025
In partnership with
Good morning.
⚡ The Fast Five → Stryker to buy Inari for nearly $5B, Ulta names new CEO, Toyota to mass produce rockets with Interstellar, Phillips 66 to acquire EPIC NGL for $2.2B, Fubo shares soar 251%
🔎 Market Trends → S&P 500, Nasdaq end higher, driven by tech stocks; US Futures Edge Higher Following Tech-Led Rally
And now…
⏱️ Your 5-minute briefing for Tuesday, January 7, 2024:
MARKET BRIEF
Before the Open
As of market close 01/06/2024.
Pre-Market
| 
|
Fear & Greed
Markets in Review
Tech Surge Lifts Nasdaq and S&P 500 Amid Service Sector Strength
The Nasdaq climbed 1.2% to 19,865, while the S&P 500 gained 0.6% to 5,975.4, driven by strong performance in tech. The Dow slipped 0.1% to 42,706.6. Communication services led sector gains, rising 2.1%, while real estate lagged.
The Big Picture:
Tech stocks powered higher Monday, fueled by bullish momentum in semiconductors and AI-linked sectors. The rally came as the US services sector posted its strongest expansion in nearly three years, a sign of resilient demand heading into 2025.
Fed Governor Lisa Cook urged caution on future rate cuts, citing ongoing disinflation progress but signaling the need to carefully manage monetary policy amid robust growth. Yields saw modest movement, with the 10-year Treasury yield rising to 4.62%.
Oil dipped 0.8% to $73.40/barrel, reflecting stable supply dynamics. Gold edged down 0.3% to $2,647.20/oz, while silver gained 1.4%, settling at $30.49/oz.
Market Movers:
Micron Technology (MU): Jumped +10.5%, leading the S&P 500, as chipmakers rallied on rising demand for advanced memory solutions.
MicroStrategy (MSTR): Surged +11.6%, the Nasdaq’s top performer, as institutional interest in Bitcoin strengthened its outlook.
United States Steel (X): Rose +8.1% after filing a lawsuit with Nippon Steel to challenge the Biden administration’s block on their proposed deal.
FuboTV (FUBO): Skyrocketed +251% on news of its Hulu + Live TV merger, giving Disney a 70% stake in the streaming venture.
What They’re Saying:
"The services sector’s strength positions the economy for a solid start to 2025, but policymakers are understandably cautious given the lingering risks of inflation and over-easing," said S&P Global’s Chris Williamson.
WHAT WE’RE WATCHING
Events
Today: Institute for Supply Management - Non-Manufacturing PMI - 10:00am
Why You Should Care: It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.
Today: Bureau of Labor Statistics - JOLTS Job Openings - 10:00am
Why You Should Care: Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.
Earnings Reports
Today: Cal-Maine Foods, Kura Sushi, RPM International, AAR Corp.
Tomorrow: Albertsons Companies, Jefferies Financial Group, Helen of Troy, Simply Good Foods, Acuity Brands
MARKET BRIEF
Leading News
Streaming Wars Plot Twist: Disney-Fubo Merger Creates New Live TV Powerhouse
Why it matters:
This isn't just another streaming deal — it's a strategic chess move that could reshape how younger viewers consume live sports and entertainment, potentially creating a formidable competitor in the fragmented streaming landscape.
Zoom Out:
The marriage of Disney's Hulu+ Live TV with Fubo's sports-heavy platform creates a 6.2-million-subscriber behemoth that bridges the gap between traditional cable and modern streaming. Disney (DIS) gets a 70% stake in the combined entity, while Fubo shareholders retain 30%.
Think of it as the streaming equivalent of a power couple — Disney's entertainment muscle meets Fubo's sports-streaming prowess. The deal notably excludes Hulu's on-demand service, keeping the focus purely on live TV streaming.
Key Insights:
Show me the money: Fubo's stock moonshot (+250%) signals market confidence, but the real value proposition lies in the company becoming cash flow positive post-merger — a rare feat in the streaming wars.
Sports rights leverage: The combined entity will control a significant portion of sports streaming rights, potentially giving it stronger negotiating power with content providers.
Tech synergy play: Backend integration could lead to improved user experience and reduced customer acquisition costs — crucial metrics for streaming success.
Market Pulse:
"Having two separate platforms today, obviously, it's not ideal," notes Fubo CEO David Gandler. "We believe there are synergies on the backend... But at the moment we really want to provide consumers with choice."
Bull’s Take:
This merger creates a compelling play on the future of live TV streaming, particularly for sports content. Smart investors might view this as an opportunity to gain exposure to both the streaming revolution and the eternally valuable live sports market — two secular trends showing no signs of slowing.
Headlines
CFPB sues Berkshire Hathaway-owned mortgage lender for alleged predatory practices (link)
Ulta Beauty names new CEO, raises outlook for holiday quarter (link)
Shares of Tencent fall 5% in Hong Kong after U.S. designates it as a Chinese military company (link)
Toyota backs Japanese space startup Interstellar to mass-produce rockets (link)
Nippon, US Steel file suit against Biden administration, union, and rival after $15B deal scuttled (link)
Oil refiner Phillips 66 plans to acquire EPIC NGL in $2.2 billion deal (link)
Stryker to buy Inari Medical for nearly $5B (link)
CRYPTO
Fear & Greed
Headlines
DAILY SHARE
On the Socials
*Hat-tip to Ramp Capital
AI's NEXT Magnificent Seven
The Original Magnificent Seven Produced 16,894% Average Returns Over 20 Years. $1,000 in each turned into $1.18 million! But the Man Who Called Nvidia at $1.10 Says "AI's Next Magnificent Seven Could Do It Even Faster." He says $1,000 in these seven stocks could turn into $1 million+ in less than six years. The first company on his list just signed a MAJOR deal with Apple, and its tech is going to be included in the iPhone and iMac until 2040! See his breakdown of the seven stocks you should own.