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  • 🏦 Viral Chase Bank Glitch

🏦 Viral Chase Bank Glitch

+ Dollar Tree Earnings Disappointment

September 04, 2024

Good afternoon! Feeling the sting of 40s or dreading the big 6-0? You might not be imagining it. New research out of Stanford suggests that aging isn’t the smooth, gradual process we once thought—it comes in waves. The study reveals that significant biomolecular shifts hit us like clockwork around 44 and 60, potentially explaining why your metabolism seems to hit a wall or why that glass of wine now feels like a two-day affair.

The researchers tracked over 100,000 molecules in 108 healthy individuals and found that these age waves bring about noticeable changes in everything from alcohol metabolism to muscle aging. So, if you’ve suddenly found yourself battling an extra few pounds or struggling to keep up with your old caffeine habits, blame it on the crest of aging. But don’t panic—experts suggest that adopting healthier habits before these waves hit might help you ride them out a little smoother.

MARKETS

*Stock data as of market close*

  • Worries about a cooling labor market had the S&P 500 and Nasdaq Composite hitting the snooze button for the second day in a row, slipping 0.16% and 0.3%, respectively. The Dow, on the other hand, decided to buck the trend, adding a modest 38 points, or 0.09%. This mixed bag comes as traders nervously eye the upcoming jobs report, with fresh data showing U.S. job openings fell to 7.7 million in July — the lowest since 2021 and worse than expected.

  • As if the markets needed more jitters, manufacturing weakness and declining job openings are rekindling recession fears. Investors are now playing the guessing game on whether the Federal Reserve will step in with rate cuts sooner rather than later. Treasury yields dropped faster than your favorite meme stock, as traders doubled down on bets for a bigger-than-expected rate cut in 2024. All eyes are now on Friday’s payrolls report, which could either calm nerves or send the markets spiraling again.

STOCKS
Winners & Losers

What’s up 📈

  • Frontier Communications ($FYBR) skyrocketed 37.95% as Verizon Communications (VZ) is reportedly in advanced talks to acquire the company in an all-cash deal that could be finalized as soon as Thursday.

  • GitLab ($GTLB) jumped 21.64% thanks to a strong third-quarter earnings outlook. The company is forecasting earnings per share between 15 to 16 cents, well above the 11 cents analysts had predicted.

  • AST SpaceMobile ($ASTS) climbed 12.48% after announcing plans to launch its first five commercial satellites, named BlueBird, on or after September 12 from Cape Canaveral, Florida. These satellites will be deployed in low Earth orbit to provide cellular broadband service to billions worldwide.

  • Tesla ($TSLA) gained 4.18%

  • Mondelez International ($MDLZ) rose 4.18%

  • CVS Health ($CVS) went up 3.35%

What’s down 📉

  • Dollar Tree ($DLTR) plummeted 22.16% after the discount retailer slashed its full-year outlook for net sales and adjusted earnings per share, citing increased pressures on middle- and higher-income customers.

  • Zscaler ($ZS) tumbled 18.67% as its fiscal first-quarter earnings outlook came in weaker than expected, disappointing investors.

  • United States Steel ($X) fell 17.47% following reports that the White House is preparing to block the company's planned sale to Japan’s Nippon Steel.

  • Celsius Holdings ($CELH) dropped 11.60% after management revealed at Barclays' 17th Annual Global Consumer Staples Conference that current quarter sales to its primary distribution partner, PepsiCo, are down $100 million to $120 million compared to last year.

  • Asana ($ASAN) declined 5.12% on weaker-than-expected third-quarter and full-year forecasts

  • Super Micro Computer ($SMCI) fell 4.14% after Barclays downgraded the AI server company.

  • ASML Holding ($ASML) also dropped 4.01% following a downgrade from UBS to neutral, citing a "plateau in litho intensity" and demand normalization.

  • Dick’s Sporting Goods ($DKS) dropped 4.89% following a disappointing full-year guidance.

  • Coinbase ($COIN) decreased 3.49%.

  • Icahn Enterprises ($IEP) slid 6.58%.

FINANCE
Chase A Check… Or Maybe 3 Years In Prison

Hold onto your debit cards, folks! Chase Bank has come forward to debunk a viral trend that’s been circulating on TikTok and X (formerly known as Twitter). The so-called "glitch" that supposedly lets users deposit fake checks and withdraw real money? Yeah, not a glitch. It’s fraud.

Over the weekend, videos flooded social media with users claiming they could deposit phony checks at Chase ATMs and withdraw the funds before the bank caught on. Spoiler alert: it’s a crime. Chase quickly addressed the situation, reminding customers that this is fraud, "plain and simple." The bank's message was clear—no matter what TikTok tells you, check fraud is still very much illegal.

Check Out the Reality Check

Despite what the hype might suggest, this isn't some revolutionary new money hack. The tactic of depositing fake checks and withdrawing cash before they bounce is as old as checks themselves. Fraudsters usually pull this off by opening accounts under fake names, but this time around, people tried it with their own accounts—making it super easy for Chase to identify and slam the door shut.

In a statement, a Chase spokesperson said, "We are aware of this incident, and it has been addressed." Translation: We caught on fast, and we're not amused.

TikTok’ers Learn the Hard Way

The internet had a field day with this one. What started as videos of users showing off stacks of cash quickly turned into clips of them facing massive negative balances and holds on their accounts. One user summed it up perfectly: “Chase Bank glitch? No, that’s called fraud. You went to the bank and took $50,000 that didn’t belong to you. That’s not a life hack; that’s called robbery.”

So, here’s the takeaway: If it sounds too good to be true, it probably is. Stick to real jobs or legit side hustles, and leave the check fraud to the scammers. They’re not going to win any awards, but at least they know what they’re signing up for.

NEWS
Market Movements

EARNINGS
Dollar Tree Earnings Disappoint — Stock Falls Sharply

By the Numbers:

  • Stock Drop: -22%

  • Q2 Revenue: $7.38 billion (vs. $7.49 billion expected)

  • Q2 Adjusted EPS: $0.97 (vs. $1.04 expected)

  • Revised Full-Year Revenue Forecast: $30.6 billion to $30.9 billion (down from $31 billion to $32 billion)

  • Revised Full-Year Adjusted EPS: $5.20 to $5.60 (down from $6.50 to $7.00)

  • Same-Store Sales Growth: +0.7% overall; +1.3% at Dollar Tree stores; -0.1% at Family Dollar stores

Not everything is priced at a dollar, including Dollar Tree’s ($DLTR) stock, which plunged over 22% on Wednesday after the company slashed its full-year outlook. The discount retailer blamed rising pressures on middle- and higher-income customers who are feeling the pinch and spending less on non-essentials.

What Went Wrong?

Dollar Tree had to face some harsh realities this quarter. The company now expects its full-year net sales to come in between $30.6 billion and $30.9 billion, a drop from the previously anticipated $31 billion to $32 billion. Adjusted earnings per share were also revised down to a range of $5.20 to $5.60, from a higher $6.50 to $7. Not exactly the kind of news investors were hoping for.

So, what’s causing all this trouble? According to CFO Jeff Davis, the company is dealing with softer sales, especially on the discretionary side—basically, anything that isn't an absolute necessity. They’ve also had to pay more in costs related to customer accidents at their stores and expenses from converting 99 Cents Only stores. Not the most fun way to spend your cash.

Dollar Stores Aren’t Feeling So Discounted

Dollar Tree isn’t the only one feeling the burn. Last week, Dollar General also cut its full-year forecast, noting that its core customers are feeling financially squeezed. Meanwhile, big names like Walmart and even online newcomers like Temu are capturing the attention of budget-conscious shoppers.

For Dollar Tree, same-store sales in the latest quarter inched up by just 0.7%, with the Dollar Tree stores themselves seeing a 1.3% rise and Family Dollar stores dipping slightly by 0.1%. The modest gains are a clear sign that customers are tightening their belts and making fewer trips for non-essentials.

Facing Headwinds and Hard Choices

Beyond consumer belt-tightening, Dollar Tree is grappling with some company-specific challenges. It’s shutting down about 1,000 underperforming Family Dollar stores and might even sell off the Family Dollar brand. This move comes after struggling to integrate the grocery-focused chain, which it bought for nearly $9 billion in 2015.

On top of that, the company’s dealing with a slew of liability claims from customer accidents, which are proving to be more costly and unpredictable than expected. These added expenses aren’t doing any favors for their bottom line.

Dollar Tree is hoping that the back-to-school season and upcoming holidays might give them a boost, but with consumers being extra cautious with their spending, it might take more than just a sale on party supplies to turn things around. Until then, it’s clear that not even Dollar Tree can escape the effects of a tough economic climate.

Calendar
On The Horizon

Tomorrow

Tomorrow's lineup has the labor market taking center stage with two big headliners: the ADP Employment Report and initial jobless claims, both dropping bright and early.

First up, the ADP Employment Report—our monthly pulse check on private sector hiring. Last time around, the report showed 122,000 new jobs, paired with a 4.8% bump in annual pay. Decent stats, but they didn’t exactly get economists popping champagne. For July, the forecast is a bit more festive, with predictions of 140,000 new jobs.

On the flip side, initial jobless claims will tell us how many folks filed for unemployment benefits last week. The latest count was 231,000, a slight dip of 2,000 from the week before. The experts are crossing their fingers for a further drop to 225,000 in tomorrow's report.

Before Market Open:

  • Nio ($NIO) has been on a rough road this year, heading mostly downhill. The Chinese electric vehicle maker is facing fierce competition at home, struggling to turn a profit, and consistently falling short on delivery targets. With so many strikes against it, Nio isn’t exactly inspiring confidence among investors. Unless you’re feeling particularly adventurous, this might be one to watch from the sidelines for now. The consensus is a loss of $0.31 per share on $2.44 billion in revenue.

After Market Close:

  • Broadcom ($AVGO) has lagged behind its AI-driven peers this year, despite delivering robust earnings. Investors have been cautious due to the company’s aggressive acquisition strategy, which has significantly increased its debt load. However, management is confident that these moves will drive substantial sales growth and strengthen the balance sheet in the future. Wall Street seems optimistic, with 22 out of 23 analysts rating the stock a buy and setting an average price target 27% above its current level. The consensus calls for earnings of $1.09 per share on $11.71 billion in revenue.

NEWS
The Daily Rundown

RESOURCES
The Federal Reserve Resource

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