🎁 Amazon Now Sells Cars?!

Good afternoon! Fortnite players are cashing in. The FTC is refunding $72 million to over 629,000 Epic Games customers duped into unwanted purchases. The payouts, averaging $114, are part of a $245 million settlement after Epic was accused of using sneaky “dark patterns” like confusing buttons and deceptive interfaces to rake in charges. Refunds started rolling out Monday via PayPal and checks.

The allegations? Players, including kids, were tricked into purchases by shady design choices—like accidentally buying items with the press of a button. FTC Chair Lina Khan didn’t hold back, calling the practices a major privacy violation and promising to crack down on these tactics. Gamers, at least this time, are getting the last laugh.

MARKETS

• The Nasdaq broke 20,000 for the first time, jumping 1.77% as Big Tech soared. Alphabet surged over 5% to a record high, while Tesla, Meta, Amazon, and Apple also hit fresh peaks. Investors welcomed an inflation report that aligned with expectations, boosting odds of a Fed rate cut next week.

• The S&P 500 climbed 0.82%, riding the tech rally, while the Dow slipped 0.22%, weighed down by consumer staples. With inflation cooling and AI hype fueling gains, tech stocks remain the market’s MVPs.

STOCKS
Winners & Losers

What’s up 📈

• Stitch Fix soared 44.35% after raising its fiscal second-quarter revenue outlook and improving its full-year guidance. ($SFIX)

• Patterson rocketed 35.87% on news that Patient Square Capital will acquire the dental and animal health company for $31.35 per share. ($PDCO)

• Figs climbed 21.64% following reports that private equity firm Story3 Capital Partners offered to acquire the company for over $1 billion. ($FIGS)

• GameStop popped 7.54% after the video game retailer surprised investors with a profit in the latest quarter. ($GME)

• JetBlue advanced 11.06% after announcing plans to add domestic first-class seating to its fleet starting in 2026. ($JBLU)

• Alphabet gained 5.52% after launching its latest Gemini AI update, which investors see as a significant step forward. ($GOOGL)

• Wolverine World Wide rose 6.73% after Stifel upgraded the stock to “buy,” citing promising earnings growth potential. ($WWW)

What’s down 📉

• Dave & Buster’s plunged 20.08% after posting a bigger-than-expected loss and announcing the resignation of its CEO. ($PLAY)

• Bausch + Lomb dropped 12.06% following a downgrade by Citi analysts, who cited rising competition as a concern. ($BLCO)

• Pharmacy Benefit Managers like CVS Health, UnitedHealth, and Cigna fell around 5% each after lawmakers introduced a Senate bill requiring these companies to divest from pharmacy businesses. ($CVS, $UNH, $CI)

• Match Group slid 4.75% after the dating app company forecast lower revenue for the upcoming quarter. ($MTCH)

• Hershey fell 5.44% as Mondelez’s $9 billion share buyback diminished hopes for a potential acquisition. ($HSY)

RETAIL
Amazon Adds 'Car Shopping' to Its Cart

Amazon is taking your online shopping spree to a whole new level—cars.

The retail behemoth just launched Amazon Autos, letting you shop for a Hyundai like you would for an air fryer. Except instead of a Prime box at your door, you’ll pick it up at a dealership.

The Details: Click, Scroll, Drive

Amazon Autos is debuting in 48 U.S. cities with Hyundai as its exclusive partner. Buyers can browse new models, customize trims and colors, estimate trade-in values, secure financing, and e-sign paperwork—all on Amazon’s platform. What you won’t get? Free two-day delivery. You’ll still have to visit the dealership to drive off in your new ride.

To sweeten the deal, Amazon is throwing in a $2,300 gift card for purchases made before January 10. Think of it as gas money, or, knowing Amazon, a chance to stock up on Alexa devices for your car.

Why It Matters: Bye-Bye, Dealership Drama?

Car buying is infamous for its soul-draining haggling. Amazon promises to take that headache out of the equation by showing transparent, haggle-free pricing at checkout—taxes and fees included. Unlike Tesla’s direct-to-consumer model, Amazon keeps dealerships in the mix, playing the ultimate middleman. Hyundai dealers sell the cars; Amazon makes the process easier (or so they claim).

Here’s the fine print: Amazon Autos is only offering new Hyundai vehicles—no used cars, no other brands (yet). Leasing and more expansive financing options are expected to roll out next year. Still, Amazon is clearly testing the waters, setting itself up as the one-click king of car buying.

Bigger Picture: A New Gear for E-Commerce

This move isn’t just about Hyundai. It’s a clear sign Amazon is eyeing the future of car shopping, where the experience is more app-friendly than awkward-salesperson-at-a-dealership. Rivals like Carvana and CarMax should take note.

If Amazon pulls this off, imagine adding a car to your cart alongside your groceries.

NEWS
Market Movements

• 🤖 Apple integrates ChatGPT into Siri: Apple launched a ChatGPT-powered Siri update in its latest iOS release, elevating its AI capabilities. The integration underscores Apple's push into AI and is expected to drive demand for iPhone upgrades. ($AAPL)

• 📉 Health insurers face investor backlash: Stocks for UnitedHealth, CVS, and Cigna dropped over 6% following public outrage tied to UnitedHealthcare CEO Brian Thompson’s killing. The declines reflect concerns over criticism of health insurers' practices, but analysts predict a short-lived impact. ($UNH, $CVS, $CI)

• 🛍️ Macy’s revises earnings outlook after expense mishap: Macy’s uncovered a $151 million delivery expense oversight but found no personal misconduct involved. Despite slightly raising its sales outlook, the company cut its FY earnings forecast, leading to a 10% drop in premarket trading but ending the day down 0.78%. ($M)

• ✈️ JetBlue reshapes its business model: JetBlue is overhauling operations to focus on East Coast leisure travel, axing 50+ unprofitable routes and adding first-class seating. The airline hopes to boost profits by $800 million–$900 million over three years, but analysts worry about balancing costs. ($JBLU)

• 🌍 Airline industry set for record revenue in 2025: Global airlines are projected to generate over $1 trillion in revenue next year, driven by robust demand and lower jet fuel prices. However, plane delivery delays from Boeing and Airbus may constrain growth despite record passenger numbers. ($BA, EPA:AIR)

• ⚖️ Tesla faces lawsuit over Autopilot claims: The family of a driver who died in a 2023 crash is suing Tesla, accusing the company of misrepresenting its Autopilot system’s safety. The case adds to over 15 lawsuits surrounding Tesla’s automated driving technology. ($TSLA)

• 🚸 Child labor claims shake HelloFresh: The Labor Department is investigating allegations that migrant children worked night shifts at a HelloFresh factory in Illinois. HelloFresh has since severed ties with staffing agency Midway Staffing over the controversy.

• 🛑 GM halts Cruise self-driving venture: General Motors is discontinuing its $10 billion robotaxi project, Cruise, to integrate its technology into core operations. The decision aims to save $1 billion annually and follows challenges in scaling autonomous vehicles and a $5 billion restructuring effort in China. ($GM)

AI
Apple’s AI Ambitions Take Shape with Broadcom Partnership

Apple is stepping up its game in artificial intelligence, teaming up with Broadcom to create its first AI-focused server chip, code-named Baltra. Slated for mass production by 2026, this custom silicon marks Apple’s latest move to reduce its reliance on Nvidia’s chips while carving out a space in the lucrative AI hardware race.

Broadcom’s Boost

Broadcom shares climbed 5% on the news, reflecting the market’s enthusiasm for this partnership. Apple and Broadcom are reportedly prioritizing the chip's networking technology—a critical piece for handling the high demands of AI processing in the cloud. Apple is expected to use Taiwan Semiconductor Manufacturing Co.’s (TSMC) cutting-edge N3P process for Baltra.

This isn’t Apple’s first foray into chip design. The tech giant has successfully replaced Intel in its MacBooks with its in-house M-series processors, and now it’s channeling that expertise into server hardware to support AI applications.

Catching Up in AI

While Apple has been slow to roll out generative AI compared to its Big Tech rivals, it’s starting to show signs of catching up. Recent Apple Intelligence features, including integrations for Siri and Maps, aim to leverage AI directly on devices. But for more compute-heavy tasks, Apple’s cloud infrastructure needs a serious upgrade—which is where Baltracomes in.

Broadcom’s Winning Streak

Broadcom has become a top beneficiary of the generative AI boom, with shares up 54% this year following a massive rally in 2023. The company’s role in Apple’s AI chip ambitions further solidifies its standing in a market that could grow to $45 billion by 2028.

While Apple’s efforts won’t dethrone Nvidia anytime soon, the company’s pivot toward in-house AI hardware signals a strategic move to future-proof its ecosystem—and ensure Siri doesn’t get left in the dust.

Calendar
On The Horizon

Tomorrow

The Producer Price Index (PPI) steps into the inflation spotlight next, offering a look at how prices are trending for the companies behind the goods and services we consume. While the CPI tracks costs for consumers, PPI is a wholesale measure of inflation that provides critical insights into the broader economic picture, even if it doesn’t get as much buzz.

In October, PPI remained flat month-over-month and rose 1.8% year-over-year. Core PPI, which excludes volatile food and energy prices, jumped 2.8%. Economists are watching closely for November’s reading, expecting a slight moderation to 2.5% annually. Meanwhile, the Fed’s other priority—employment—gets a check-in tomorrow with jobless claims data. Last week’s claims rose by 9,000 to 224,000, slightly above expectations but still below historical averages, and forecasts call for 221,000 new claims this week.

After Market Close:

• Broadcom is doubling down on AI, and it’s paying off. While the chipmaker stumbled earlier this year with VMware tech, its last earnings report showed strong top- and bottom-line growth, putting those issues firmly in the rearview. Wall Street is bullish—12 of 14 analysts rate it a “buy,” with a price target 16% above current levels. Consensus: $1.39 EPS, $14.09 billion in revenue. ($AVGO)

• Costco isn’t just about bulk deals—it’s become a lifestyle choice, especially as inflation drives up grocery bills. The company has thrived in this environment, but with shares at all-time highs, valuation concerns are creeping in. Even with its rock-solid business model, investors are questioning how much higher it can go. Consensus: $3.86 EPS, $62.16 billion in revenue. ($COST)

NEWS
The Daily Rundown

• 🛍 Merch for UHC Shooting Floods the Internet: Merchandise featuring "Deny, Defend, Depose"—words found on shell casings at the UnitedHealthcare CEO shooting scene—has exploded across platforms like Etsy and Amazon. With over 800 listings as of yesterday, sellers have turned the tragedy into a fast-moving trend. Some items, including references to suspect Luigi Mangione, were scrubbed by Amazon and Etsy, though enforcement remains uneven. Drop shippers are behind most products, pivoting quickly from MAGA shirts to Pride merch to this controversial content. Public support for Mangione on social media highlights growing outrage toward corporate America.

• 🔥 Malibu Wildfire Forces Evacuations: A wildfire burned through 2,600 acres in Malibu, CA, threatening Pepperdine University and nearby landmarks. Heavy winds hampered firefighting efforts, with thousands evacuated. Officials have not identified the cause of the fire, but dry conditions have worsened the region’s wildfire risk.

• 📺 Murdoch Succession Drama Continues: Rupert Murdoch lost a legal bid to amend the family trust, which would have given his son Lachlan full control of News Corp and Fox News. A Nevada commissioner ruled the attempt was made in "bad faith." The fallout echoes Successionplotlines, as the Murdoch family strategizes for a post-Rupert future.

• 📚 Americans’ Literacy and Math Skills Decline: A 2023 study of U.S. adults showed rising struggles with literacy and numeracy, with over a quarter scoring at the lowest level in reading and a third performing poorly in math. Researchers attribute the decline to less reading, more scrolling, and potential demographic shifts. Finland topped the global rankings in both categories.

• 🛠 Micron Secures $6.2 Billion in CHIPS Act Funding: Micron Technology has been awarded $6.2 billion under the U.S. CHIPS and Science Act to boost semiconductor manufacturing in New York and Idaho. This funding is expected to create tens of thousands of jobs and strengthen domestic chip production critical for AI and other tech industries.

• 🇧🇷 Lula Recovering After Emergency Surgery: Brazilian President Luiz Inácio Lula da Silva is recuperating after undergoing emergency surgery to treat a brain hemorrhage caused by a recent fall. Doctors report the procedure was successful, and Lula is expected to resume duties within days.

• ✈️ Israel Conducts Major Airstrikes in Syria: Israel launched extensive airstrikes targeting strategic weapon stockpiles in Syria following the country’s government collapse. Prime Minister Netanyahu stated these actions aim to secure Israel's borders amid rising regional instability.

• 🍕 Totino's Pizza Rolls Enter Super Bowl Spotlight: Totino’s will air its first-ever Super Bowl ad next year, spotlighting the brand as a must-have game-day snack. The move marks General Mills’ return to Super Bowl advertising after more than a decade.

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