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🍋 From Podcasting to the White House

Plus: Number of American millionaires keeps soaring, SpaceX's valuation is also mooning, jumping $100B in less than a month, and Citi promoted 344 managing directors.

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Short Squeez
December 06, 2024

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“I’ve created something like $2.1 trillion in wealth for other people. That should put me pretty high on some kind of list.” — Jeff Bezos

Good Morning and Happy Friday! The number of 401(k) millionaires is soaring, climbing 9.5% to 544,000 in Q3’24. Also mooning is SpaceX’s valuation, jumping ~$100 billion to $350 billion from $255 billion just last month. Meanwhile, health insurer Anthem reversed its anesthesia policy after facing backlash, and Bitcoin dipped below the $100k mark.

Plus, how Trump could kill tough bank rules, Citi promoted 344 managing directors, and the AI darling that's 21 years old.

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SQUEEZ OF THE DAY

From Podcasting to the White House

The All-In pod has officially made it to the White House. President-elect Donald Trump picked David Sacks, a prominent tech investor and co-host of the “All-In” podcast, to be the AI and Cryptocurrency Czar for his administration.

Trump made the announcement on Truth Social, praising Sacks as someone who will shape America’s leadership in artificial intelligence and cryptocurrency.

Before the election, Sacks had Trump on the All-In podcast, an episode that garnered 3.4 million views and widespread attention. As one of the most vocal Trump supporters in Silicon Valley, Sacks has used his platform to champion the Republican cause and raise awareness about emerging tech policy issues.

Sacks, who previously worked alongside Elon Musk at PayPal and now runs Craft Ventures, brings a wealth of experience to the table. His VC firm has backed several AI and crypto startups, and his resume includes angel investments in Facebook, Uber, SpaceX, and Palantir.

Sacks hosted a June fundraiser in San Francisco that raised over $12 million for Trump’s campaign. The event brought together tech leaders who have long sought clear regulations for crypto and fewer restrictions on AI development.

Takeaway: Sacks’ appointment highlights a shift in the tech world’s relationship with government. Traditionally dominated by Democrats, Silicon Valley now has one of its own in a critical policy role under a Republican administration. With Musk’s influence and Sacks’ advocacy, expect significant changes in how AI and cryptocurrency are regulated. Bitcoin to $1 million, anyone?

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HEADLINES

Top Reads

  • Jeff Bezos wants to be judged by how rich he’s made investors (YF)

  • Number of 401(k) ‘millionaires’ just jumped by 9.5% (CNN)

  • SpaceX’s valuation has jumped ~$100 billion in about four weeks (Sherwood)

  • Health insurer reverses course on anesthesia policy after receiving backlash (Fox)

  • Bitcoin falls below $100,000 after reaching the milestone level for the first time (CNBC)

  • MicroStrategy gives up big gain, turns negative despite bitcoin milestone (CNBC)

  • Meta will invest $10B in building a Louisiana data center (YF)

  • Boeing plea deal related to Max crashes rejected by judge (CNN)

  • How Trump could kill tough bank rules (Axios)

  • Citigroup promotes 344 executives to managing directors (YF)

  • Musk questions the value of health care coverage Americans receive (Fox)

  • Judge says two private equity firms enabled "egregious" behavior (Axios)

  • How Powell may have aided bitcoin’s rally to $100,000 (CNBC)

  • The AI darling that's 21 years old (Axios)

  • Lululemon stock rises on profit beat as company boosts guidance (YF)

CAPITAL PULSE

Markets Rundown

Rally Stalls as Focus Turns to Jobs Report

Markets ended the day in the red, with the S&P 500 slipping 0.19% despite hitting an intraday high earlier. Consumer discretionary stocks, led by airlines, showed strength amid signs of robust travel demand, while info tech and crypto-related equities lagged.

Notably, Bitcoin breached the $100,000 mark for the first time, signaling continued investor appetite for high-risk assets. Meanwhile, traders awaited today’s nonfarm payrolls report, expected to show 218,000 job additions.

Airlines Take Off, Retailers Mixed

Airlines soared, with American Airlines jumping nearly 17% after raising its Q4 revenue outlook, while Delta and United Airlines also posted strong gains. On the retail front, Five Below surged over 10% on better-than-expected earnings and raised guidance, buoyed by strong Black Friday results.

In contrast, American Eagle Outfitters plunged more than 14% after missing revenue estimates and cutting its full-year forecast. Tesla gained 3.23% after unveiling plans for its "Cybercab" robotaxi, nearing a pivotal resistance level.

Bitcoin Hits Milestone as Yields Steady

Bitcoin’s surge above $100,000 dominated headlines, though related stocks like Coinbase and MicroStrategy fell amid profit-taking. Treasury yields were mixed, with the 10-year yield holding steady at 4.18%.

Initial jobless claims ticked higher to 224,000, but continuing claims eased slightly, indicating a stable labor market ahead of today’s jobs data. Analysts predict upward revisions to October's weak payrolls, adding intrigue to the upcoming report.

Key Metrics to Watch Today

Today’s jobs report will be scrutinized for signs of labor market cooling, with expectations of 218,000 jobs added and unemployment holding at 4.1%. Analysts are also eyeing wage growth, forecasted at 0.3% month-over-month.

The University of Michigan Consumer Sentiment Index is expected to show a slight uptick to 73.5, with inflation expectations remaining near four-year lows. These readings will likely shape traders' expectations for the Fed’s next move.

Looking Ahead: Fed and Market Sentiment

The market still prices a 70% chance of a December rate cut, though traders remain cautious given Powell’s recent measured tone. Sector breadth has weakened, with only 59% of S&P 500 stocks trading above their 50-day moving averages, down from 75% last month.

As high investor stock exposure and low volatility raise questions about the rally’s sustainability, today’s jobs report could serve as a catalyst for renewed momentum—or a broader market pause.

Movers & Shakers

  • (+) American Airlines ($AAL) +17% after announcing a new credit card partnership with Citi.

  • (+) Five Below ($FIVE) +10% because the retailer appointed a new CEO, raised outlook.

  • (–) American Eagle Outfitters ($AEO) -14% after the company issued weak holiday guidance.

Private Dealmaking

  • Heirloom, an air capture company, raised $150 million

  • Tractian, an AI manufacturing startup, raised $120 million

  • Maze Therapeutics, a human genetics biotech, raised $115 million

  • Cleerly, an early detection for heart problems, raised $106 million

  • Antag Therapeutics, an obesity drugs developer, raised $84 million

  • Soda Health, a benefits matching startup, raised $50 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

NEIGHBORHOOD WATCH

Real Estate Digest

Mortgage rates have dipped to their lowest point in over a month, and even this modest decline has sparked a noticeable uptick in purchase demand. The strong response from prospective homebuyers nationwide to even slight rate changes highlights that affordability challenges remain a significant factor in the market.

Latest News

New Listings

Fill out this form if you're looking to buy, sell, rent or invest.

BOOK OF THE DAY

The Organized Mind

The information age is drowning us with an unprecedented deluge of data. At the same time, we’re expected to make more—and faster—decisions about our lives than ever before. No wonder, then, that the average American reports frequently losing car keys or reading glasses, missing appointments, and feeling worn out by the effort required just to keep up.

But somehow some people become quite accomplished at managing information flow. In The Organized Mind, Daniel J. Levitin, PhD, uses the latest brain science to demonstrate how those people excel—and how readers can use their methods to regain a sense of mastery over the way they organize their homes, workplaces, and time.

With lively, entertaining chapters on everything from the kitchen junk drawer to health care to executive office workflow, Levitin reveals how new research into the cognitive neuroscience of attention and memory can be applied to the challenges of our daily lives. 

This Is Your Brain on Music showed how to better play and appreciate music through an understanding of how the brain works. The Organized Mind shows how to navigate the churning flood of information in the twenty-first century with the same neuroscientific perspective.

“The most fundamental principle of the organized mind, the one most critical to keeping us from forgetting or losing things, is to shift the burden of organizing from our brains to the external world.”

DAILY VISUAL

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DAILY ACUMEN

Productive Errors

Not all "mistakes" are really mistakes—sometimes they’re just proof that you’re moving fast, taking risks, and getting things done.

Re-adding stuff to the backlog you thought was trash? That means you’re keeping things lean.

Pivoting your brand-new strategy? That’s just realizing it needed some tweaks once the rubber hit the road.

Refactoring after a growth spurt? Better than over-engineering from day one.

And letting someone go right after hiring? You’re saving everyone a lot of grief in the long run.

These so-called errors are really just milestones of progress, signs that you’re willing to adapt, take risks, and make hard choices.

So, give yourself some credit—these bumps mean you’re in the game, learning, growing, and making things happen.

Celebrate them, because that’s how real success is born.

ENLIGHTENMENT

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MEME-A-PALOOZA

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