👀 Uber Get's Sued

Good afternoon! Robots hit the pavement—sort of—in Beijing’s first humanoid half marathon, where only 4 of 21 contestants finished within the 4-hour limit. The rest? Faceplants, blown circuits, and one decapitation mid-race. Tiangong Ultra, backed by Xiaomi, came in first at a human-jogger pace of 2 hours and 40 minutes, guided by a man wearing a motion sensor.

The race was part serious tech flex, part comedy show. Some bots needed three battery swaps, others had handlers on leashes, and one even spewed smoke from its head. Despite the mishaps, startups like Noetix Robotics said the race helped draw attention from clients—just don’t expect robo-marathoners to show up at the Olympics anytime soon.

MARKETS

• Stocks got walloped Monday as President Trump amped up his attacks on Fed Chair Jerome Powell, shaking investor confidence in the central bank’s independence. The Dow dropped nearly 1,000 points, and the S&P 500 and Nasdaq both sank more than 2%, as fears about an unchecked tariff war resurfaced.

• Safe havens took the spotlight, with gold touching new highs and Treasury yields climbing above 4%. The dollar weakened sharply, signaling a broader shift away from U.S. assets. Trump’s demand for lower interest rates and his swipe at Powell as a “major loser” only added to the confusion

STOCKS
Winners & Losers

What’s up 📈

• MicroAlgo exploded 74.93% after becoming the latest hot penny stock du jour. ($MLGO)

• Discover Financial Services climbed 3.56% after its merger with Capital One got the greenlight from regulators. ($DFS)

• Anglogold Ashanti climbed 2.13% as gold miners continue to benefit from rising commodity prices. ($AU)

What’s down 📉

• Tesla declined 5.75% after Barclays cut its price target ahead of its earnings report. ($TSLA)

• Hertz Global gave up some gains, dropping 4.98% as profit-taking occurred after Bill Ackman's comments on a potential partnership with Uber. ($HTZ)

• Nvidia fell 4.51% due to a significant charge related to export controls. ($NVDA)

• Salesforce stumbled 4.45% on a downgrade, with analysts criticizing its focus on AI rather than its core business. ($CRM)

• Comerica dropped 4.44% after forecasting lower loans and deposits in 2025. ($CMA)

• Chipotle sank 3.40% following the announcement of plans to open its first restaurant in Mexico. ($CMG)

• Amazon lost 3.06% after a downgrade, amid concerns over tariff exposure. ($AMZN)

• Uber fell 3.08% after being sued by the FTC for billing practices. ($UBER)

TECH
Uber Sued by FTC Over ‘Deceptive’ Subscription Sign-Ups

The Federal Trade Commission just pulled over Uber for what it’s calling a deceptive subscription scheme. The Federal Trade Commission just sued the ride-hailing and delivery giant, accusing it of shady practices tied to its subscription service, Uber One. The agency claims Uber enrolled customers without consent, misled them about potential savings, and made it way too hard to cancel—allegedly requiring users to wade through as many as 23 screens and 32 taps just to hit unsubscribe.

The FTC also says users who signed up for a “free trial” were sometimes charged before the trial ended, and the company allegedly removed the in-app cancellation option if users tried to quit within 48 hours of a billing date. The complaint states that many customers were then forced to contact customer service—only to be met with long wait times or no response until it was too late.

Uber Pushes Back, Stock Slips

Uber denies the allegations, saying it does not charge users without their consent and that its current cancellation process takes “20 seconds or less.” Still, the news wasn’t great for investors—Uber shares fell as much as 5.3% before closing down 4.2% on Monday. The case is the first major tech enforcement move by the FTC under Trump’s second term, signaling more scrutiny could be coming for Silicon Valley.

The Bigger Picture

The lawsuit adds to a broader FTC crackdown on tricky subscription models, with similar actions taken against Amazon and Adobe. Uber One, launched in 2021, boasts about 30 million subscribers who pay $9.99/month for perks like fee-free delivery and discounted rides. But if the courts side with the FTC, the company could face penalties and a forced revamp of its cancellation systems. For now, Uber insists it's playing by the rules,while regulators say it’s playing consumers.

NEWS
Market Movements

• 🌍 Chipotle Expands into Mexico by 2026: Chipotle will launch in Mexico through a partnership with Alsea SAB, marking a new chapter in its international expansion. ($CMG)

• 🔧 Tesla Delays Model Y, Faces Legal Challenges: Tesla is postponing its affordable Model Y, cutting Cybertruck prices by up to $10K, and dealing with a racial discrimination case settlement. ($TSLA)

• 📉 UnitedHealth Shares Plummet Following Earnings Miss: UnitedHealth saw its stock crash 22% after slashing its forecast and missing earnings for the first time in over a decade—its worst single-day drop in 26 years. ($UNH)

• ✈️ Spirit Airlines Appoints New CEO Amid Competitiveness: Spirit named Dave Davis as CEO to steer post-bankruptcy operations as the airline navigates cost pressures and intense pricing competition. ($SAVE)

• 💼 Executives Selling Stocks Before Market Downturn: Meta’s Mark Zuckerberg sold $733M in stock just before a 32% Trump-tariff-linked downturn. Oracle’s Safra Catz and JPMorgan’s Jamie Dimon also offloaded shares. ($META, $ORCL, $JPM)

• 📦 JD.com Intensifies Competition Amid Rival Attacks: JD.com claims rival platforms are pressuring couriers to avoid its new zero-commission JD Takeaway service as it boosts hiring and formal contracts. ($JD)

• 📉 U.S. Dollar Hits Three-Year Low Amid Trump-Fed Division: The dollar dropped to its weakest since 2022 as investors react to growing discord between Trump and the Federal Reserve, pushing the ICE Dollar Index down.

• 📰 Google Faces Antitrust Setback as Judge Rules against Monopoly Practices: A federal judge ruled Google unlawfully monopolized parts of the online ad tech market, jeopardizing its $31 billion business and advancing the DOJ’s call for structural remedies. ($GOOGL)

BANKING
Capital One’s $35 Billion Deal for Discover Gets the Green Light

Swipe Right on Regulation

Capital One’s $35 billion takeover of Discover just got the all-clear from federal regulators, officially creating the nation’s biggest credit card issuer by loan volume. The Federal Reserve and the OCC approved the all-stock merger Friday, with the deal expected to close on May 18. DOJ staff were reportedly split on whether to challenge it—but in the end, the antitrust division gave it a pass.

The merger gives Capital One something it’s never had before: its own payment network. Discover’s infrastructure lets CapOne ditch middlemen like Visa and Mastercard, unlocking an estimated $1.2 billion in annual revenue. The combined company will have over $650 billion in assets, and Capital One plans to keep the Discover brand intact.

Fine Print, Big Fines

Not everything was smooth. Discover will pay $1.5 billion in penalties and restitution for overcharging merchants due to misclassified credit card accounts from 2007 to 2023. The Fed hit it with a $100 million fine, while the FDIC ordered $1.23 billion in paybacks to affected businesses. Capital One now has 120 days post-close to submit a plan to fix the issues.

A Green Light for More M&A?

The deal’s approval could reopen the floodgates for banking M&A, which has been sluggish under the Biden administration’s tighter scrutiny. Analysts see this as a green light for more consolidation under Trump-era regulators. For now, customers won’t notice much—but Wall Street definitely has.

Calendar
On The Horizon

Tomorrow

This week’s economic calendar is as bare as a desert—aside from a few Fed presidents yakking about their ongoing mission to juggle employment and inflation, we’re only getting the Philadelphia Fed’s April non-manufacturing activity report tomorrow.

But hold onto your hats because the earnings lineup is busting at the seams! We’ve got heavyweights like Tesla, 3M, SAP, MSCI, General Electric Aerospace, Verizon, Intuitive Surgical, Baker Hughes, RTX, Danaher, Chubb, Elevance Health, Northrop Grumman, Moody’s, EQT, Equifax, and Enphase Energy ready to unveil their latest financial performances.

Before Market Open:

• Lockheed Martin is set to announce its results alongside its rival Northrop Grumman tomorrow, and both companies seem primed to reap the rewards from rising global tensions. Some investors might see a looming trade war as a gateway to actual conflict, which could spell profitability for defense firms like Lockheed. However, shareholders will be all ears as they await management's strategies to combat challengers like Palantir and SpaceX that are eyeing traditional revenue streams. ($LMT).

NEWS
The Daily Rundown

• 🌿 Home Depot's Gardening Category Thrives with $20 Billion Revenue: Home Depot’s gardening segment has reached an impressive annual value of $20 billion, driven primarily by demand for flowers and customer retention strategies. The retailer operates 25 trial gardens to cultivate popular plant varieties, further supporting its garden center's success.

• 🎬 Ryan Coogler's Groundbreaking Deal for 'Sinners' Shakes Hollywood: Ryan Coogler's agreement with Warner Bros. for his film "Sinners" has sent shockwaves through Hollywood, featuring demands for creative control and a unique ownership structure. The deal, including a lucrative budget and box office agreement, may set a precedent that challenges traditional studio practices.

• 🗣️ Politeness Costs Associated with ChatGPT Usage Revealed: OpenAI's CEO disclosed that user politeness when interacting with ChatGPT incurs substantial operational resources, reflecting the hidden costs associated with maintaining such politeness in AI communications.

• 📅 Upcoming Financial Reports from Major Corporations Amid Market Uncertainty: This week will see earnings reports from key players like Tesla, Alphabet, and Boeing, with analysts anxious about the impact of recent antitrust actions on Google and production challenges for Tesla’s Cybertrucks. The outcome of these reports is critical amid ongoing volatility in the market.

• 🏗️ CEO Survey Reveals Discontent with Tariff Policies: A new survey shows that 67% of CEOs disapprove of President Trump's tariff policies, with a large majority expecting negative impacts on their companies. This sentiment underscores a growing concern among business leaders about economic disruptions caused by tariffs.

• 🏛️ Retail Giants Discuss Tariff Consequences with President Trump: Major retail executives from companies like Walmart and Home Depot met with President Trump to voice their concerns about the effects of new tariffs on supply chains and costs. The meeting highlights ongoing tensions between government policy and business interests.

• 📦 DHL Halts High-Value US Deliveries Amid Increased Tariffs: DHL has announced that it will temporarily cease shipments valued over $800 to the U.S. due to increased customs red tape resulting from tariffs, impacting many customers expecting high-end packages. This restriction will expand in May when shipments under $800 will also be affected.

• 📰 Controversial Draft Document Suggests Major State Department Overhaul: A leaked 16-page document proposes a significant reorganization of the State Department to cut waste and consolidate operations, drawing denials from Secretary of State Marco Rubio, who labeled it "fake news." The draft's suggested changes could merge embassies and eliminate roles focused on critical global issues.

• 📉 S&P 500 Year-End Targets Cut as Economic Concerns Grow: Analysts have lowered their average year-end target for the S&P 500 by 7.5% amid rising economic uncertainties, reflecting the market's unease regarding future performance. This cut surpasses even those observed in the early pandemic period.

• 💰 Economists Warn of Distortion from Preemptive Purchasing Due to Tariffs: Analysts caution that preemptive buying in anticipation of new tariffs could artificially inflate economic indicators, potentially leading to market misconceptions about underlying economic health.

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