MidWeek Commentary

HI Market View Commentary 07-17-2023

HI Market View Commentary 07-17-23

– We’ve heard that parks are “struggling to attract people”
– “bleeding money”
– Getting Disney+ up and running cost a lot of money
– At the crossroads of gaining LOTS of subs and paying off
expenses, the market is judging DIS a bit harshly.
– Subs are doing great except on Hotstar for India BECAUSE Disney
turned down rights for broadcasting Cricket.
– WHY? Revenue last year from Cricket was 1.4B. Cost to renew
was 2.6B. So they would’ve lost 1.2B just to keep those rights.
Not worth it in my eyes.
– No they aren’t empty. Disney World had a less busy summer this
year as people came flocking back the 2 prior years.
– Disneyland California has been ridiculously busy still.

We ALWAYS need to check the numbers in actual earnings reports
RATHER than trusting opinion news coverage.
Earnings dates:
AAPL – 8/03 AMC
BA – 7/26 BMO
BAC – 7/18 est
BIDU – 8/28
CVS – 8/02 BMO
DIS – 8/09 AMC
F – 7/25 AMC
GE – 7/25 BMO
GOOGL – 7/24
JPM – 7/14 BMO
KO – 7/26 BMO
LMT – 7/18 BMO
LUV – 7/27
META- 7/26
SQ – 8/08 AMC
UAA – 8/01
V – 7/25 AMC
VZ – 7/27 AMC
MU – 9/27

Where will our markets end this week?
DJIA – Bullish

SPX –Bullish

COMP – Bullish

Where Will the SPX end July 2023?
07-10-2023 -2.0%
07-17-2023 -2.0%

Fri:     AXP, SLB

Econ Reports:
Tue Retail Sales, Industrial production
Wed: MBA, Housing Starts, Oil Inventories
Thur: Initial Claims, Continuing Claims, Existing Home Sales
How am I looking to trade?
Adding protection based on technical analysis on indexes and
earnings seasons starts soon
www.myhurleyinvestment.com = Blogsite
info@hurleyinvestments.com = Email
Ford cuts prices on its
electric F-150 Lightning
pickups by as much as

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 Ford on Monday announced significant price cuts for all versions of its electric F-
150 Lightning pickup.
 The cheapest version of the Lightning will now start at about $50,000, a roughly
$10,000 cut.
 All versions of the EV will get price cuts of at least $6,000 as Ford works to boost
production this fall.
In this article
 F+0.02 (+0.14%)Follow your favorite stocksCREATE FREE ACCOUNT

A Ford F-150 Lightning on display at the New York Auto Show, April 13, 2022.
Scott Mlyn | CNBC
Ford Motor on Monday cut prices for its electric F-150 Lightning pickup,
saying its efforts to boost production and lower costs for battery minerals have
paid off.
Ford said prices for some of the least expensive versions of the Lighting
would fall by nearly $10,000. Prices for all versions, including the top-line
Platinum trim, will drop by at least $6,000 from levels set in March.

Here are the questions we have for Ford and its CEO Jim Farley about
their latest EV price cuts
Paulina Likos
The company had increased the Lightning’s prices several times since its
2021 debut, citing supply constraints and sharply higher prices for the
minerals used in the electric truck’s batteries. Ford has worked to increase
production of the truck in recent months, with factory upgrades that are
expected to triple its output set to be in place by fall.
The Dearborn, Michigan factory that makes the Lightning will be closed for
several weeks while the production upgrades are put in place, Ford said
Increasing production of the Lightning and other Ford EVs has been a key
priority for CEO Jim Farley this year. But the effort to boost production hasn’t
been a smooth one. Ford sold just 4,466 Lightnings in the second
quarter after a fire in a just-completed truck in February led it to shut down
production for five weeks.

At the time of its 2021 debut, the lowest-priced version of the Lightning – the
work-truck Pro trim – was about $40,000. That price
was increased severaltimes, hitting about $60,000 in March; Monday’s cuts
reduce the entry-level truck’s sticker price to about $50,000.
The most expensive version of the Lightning, the extended-range Platinum
trim, will now start at about $92,000, down from just over $98,000.
Ford is scheduled to report its second-quarter earnings after the U.S. markets
close on July 27.

China reports second-
quarter GDP miss,
another record high in
youth unemployment

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 The 6.3% GDP print for the second quarter marked a 0.8% pace of growth from the
first quarter, slower than the 2.2% quarter-on-quarter pace recorded in the first
three months of the year.

 National Bureau of Statistics spokesperson Fu Linghui noted China faces a
complex geopolitical and economic international environment.
 He also said China can still achieve its full-year growth target. Beijing in March set
a goal of around 5% growth for 2023.

China youth unemployment hits another
record high in June
BEIJING — China said Monday that second-quarter gross domestic product
grew by 6.3% from a year ago, missing expectations.
The unemployment rate among young people ages 16 to 24 was 21.3% in
June, a new record.
The 6.3% GDP print for the second quarter marked a 0.8% pace of growth
from the first quarter, slower than the 2.2% quarter-on-quarter pace recorded
in the first three months of the year. Analysts polled by Reuters had predicted
a 7.3% increase in the second quarter GDP.

National Bureau of Statistics spokesperson Fu Linghui noted China faces a
complex geopolitical and economic international environment. He also said
China can still achieve its full-year growth target. Beijing in March set a goal of
around 5% growth for 2023.
Retail sales for June rose by 3.1%, a touch below the 3.2% expected. Within
retail sales, that of catering, sports and entertainment products along with
alcohol and tobacco rose the most. Autos, office products and daily use goods
saw sales decline in June from a year ago. Online sales of physical goods
grew by 6.7% in June from a year ago, slower than in May, according to
CNBC calculations of official data accessed via Wind Information.
Industrial production for June rose by 4.4% from a year ago, better than the
2.7% forecast.
Fixed asset investment for the first half of the year rose by 3.8%, better than
the 3.5% predicted. Within fixed asset investment, that into real estate fell
further on a year-to-date basis in June than in May. Investment in
manufacturing grew at a steady pace, while growth in infrastructure
investment slowed.
The unemployment rate for people in cities was 5.2% in June.
When asked about the outlook for the second half, spokesperson Fu said he
expected real estate investment would remain low for the near future.
He also said youth unemployment might rise further before declining after

China’s weakening economy is in the spotlight
China ended its Covid-19 controls in December. An initial economic rebound
has lost steam. The massive real estate sector has struggled to recover,
while exports have plunged due to falling global demand.
Within China, lackluster consumer demand has led to no change in prices in
June. The People’s Bank of China said last week it expected a dip in July, but
anticipated inflation would pick back up later this year.
Domestic travel has been a bright spot in the recovery. Urban residents more
than doubled their tourism spending in the first half of the year from a year
ago, to 1.98 trillion yuan ($280 billion), according to the Ministry of Culture and
Tourism. However, it said rural residents’ spending on travel only rose by
about 40% during that time.
The combined first-half total of 2.3 trillion yuan was less than the 2.78 trillion
yuan reported for the first six months of 2019, before the pandemic, official
data showed.
Beijing last week said it would extend property support measures. Authorities
have also announced broad support for exports. The country has

also extended tax breaks for electric car purchases, a growing industry the
government is keen to support.
But Beijing has otherwise shown reluctance to embark on greater stimulus,
especially as local government debt has soared. A Politburo meeting
expected later this month could provide more details on economic policy.

These 10 states are
America’s best at
producing the workers
that employers want to

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 Workers are in such short supply that there are nearly twice as many open jobs as
there are workers to fill them.
 Companies are deciding where to locate and expand based largely on the
availability of workers in a given location.

 CNBC’s annual America’s Top States for Business study evaluates every state’s
workforce. It is the most important category in calculating the 2023 rankings.
Where have all the workers gone? The question is plaguing everyone from
business owners to policymakers to consumers.
With many more job openings in the U.S. than there are people available to fill
them, companies are increasingly deciding where to set up shop based on
where the workers are.
“The states that have continued to win with net inward migration are the ones
that companies really are dialed in on,” said Tom Stringer, a principal and
manager of BDO’s site selection and incentive practice.
It is why CNBC’s 2023 America’s Top States for Business study, which scores
all 50 states’ business climates, pays special attention to each state’s
workforce. Under this year’s methodology, the Workforce category carries the
most weight among ten categories of competitiveness.
Josh Wright, an executive vice president with labor market research firm
Lightcast, said this is more than just a temporary phenomenon due to the so-
called “Great Resignation” during the pandemic. Rather, he said, it is a
fundamental shift.
“We’re seeing a mix of increased retirements, and fewer young people coming
up through the ranks,” he said. “So, there is just a confluence of demographic
and labor market factors that are making it difficult to find people.”
To determine the states with America’s top workforces, we consider the overall
availability of workers. We look at net migration of college educated workers,
educational attainment of the workforce, the concentration of science,
technology, engineering and math (STEM) talent, as well as workers with
industry-recognized certificates and the pipeline of students in career
education programs. We evaluate state worker training programs, and we
consider right-to-work laws that protect employees who decline to join a union.
We also consider worker productivity in terms of economic output per job.
In 2023, these ten states are winning the war for workers.

Microbiologists with the AEGIS Sciences Corporation process Covid-19 and Monkeypox tests at its facility in
Nashville, Tennessee, on August 04, 2022.
Nathan Posner | Anadolu Agency | Getty Images
9. (tie) Tennessee

The Volunteer State is doing an outstanding job getting people to step up and
move there. It is also a right-to-work state. Tennessee lags in STEM talent and
overall educational attainment, but its worker training programs perform well.
According to U.S. Department of Labor data, 83% of participants are
employed within six months of completing their training.
2023 Workforce score: 245 out of 400 points (Top States grade: B)
Net Migration Rank: No. 9
Adults with Bachelor’s Degree or higher: 29%
Career Education Credential: 15.1%
STEM Workers: 5.3%
Right to Work State? Yes

Battelle decontamination technicians test one of the new Battelle CCDS Critical Care Decontamination
Systems delivered to Colorado by FEMA and HHS on May 8, 2020 in Brighton, Colorado.
Michael Ciaglo | Getty Images

9. (tie) Colorado

The Centennial State boasts America’s second-best educated workforce (after
Massachusetts), and one of the largest concentrations of tech
talent. Colorado’s worker training programs lag, however. While not technically
a right-to-work state, the Colorado Labor Peace Act offers protections for
employees who decline to join a union and requires a 75% vote to create a
union shop. The state describes it as a hybrid law.
2023 Workforce score: 245 out of 400 points (Top States grade: B)
Net Migration Rank: No. 22
Adults with Bachelor’s Degree or higher: 42.8%
Career Education Credential: 14.8%
STEM Workers: 9.3%
Right to Work State: Hybrid

A worker transports peanuts used for seeds from a shelling facility in Plains, Georgia, on February 20, 2023.
Brendan Smialowski | AFP | Getty Images
8. Georgia

While people have begun returning to the workforce, the Peach State still
faces a labor shortage with unemployment hovering around 3%. But the state
is doing a good job attracting workers, and those workers are
productive.  Georgia is a right-to-work state, with a relatively high concentration
of tech talent.
2023 Workforce score: 250 out of 400 points (Top States grade: B+)
Net Migration Rank: No. 8
Adults with Bachelor’s Degree or higher: 33%
Career Education Credential: 15%
STEM Workers: 6.2%
Right to Work State? Yes

A lab technician freeze packs donated convalescent plasma donated by recovered COVID-19 patients for
shipping to local hospitals at Inova Blood Services on April 22, 2020 in Dulles, Virginia.
Alex Edelman | AFP | Getty Images
7. Virginia

Few states have assembled the caliber of talent that the Old Dominion has,
including the nation’s third highest concentration of STEM workers. Virginia’s
higher education system is world class, though its pipeline of high school
students in career education programs could use a boost. Migration to the
state is also lagging.
2023 Workforce score: 252 out of 400 points (Top States grade: B+)
Net Migration Rank: No. 40
Adults with Bachelor’s Degree or higher: 40.3%
Career Education Credential: 15.2%
STEM Workers: 9.4%
Right to Work State? Yes

Healthcare personnel work in a coronavirus disease (COVID-19) intensive care unit where they are dealing
with a surge in cases of the Delta variant at Intermountain Medical Center in Murray, Utah, in this handout
photo provided July 23, 2021.
Intermountain Health | Reuters
6. Utah

The Beehive State gets its nickname from the industriousness of its people,
and these days they are functioning at a high level, with a large concentration
of tech talent in the state’s growing Silicon Slopes region. Utah is also a
leader in career education. It has the nation’s second-largest concentration of
workers with industry credentials or two-year degrees (after Wyoming), and a
full pipeline of young people learning skilled trades.
2023 Workforce score: 264 out of 400 points (Top States grade: A-)
Net Migration Rank: No. 32
Adults with Bachelor’s Degree or higher: 35.4%
Career Education Credential: 23.6%
STEM Workers: 7.6%
Right to Work State? Yes

Boeing employees walk by a new Boeing 737-900 at Boeing Field in Seattle.
Barry Sweet | Bloomberg | Getty Images
5. Washington

The Evergreen State boasts the nation’s largest concentration of tech talent,
and its workers are the second-most productive in the country, generating
$160,482 in output per non-farm job last year (just behind New York),
according to data from the Labor and Commerce departments. And with
unemployment above the national average in Washington, more of that smart
and productive talent is available to hire.
2023 Workforce score: 273 out of 400 points (Top States grade: A)
Net Migration Rank: No. 5
Adults with Bachelor’s Degree or higher: 37.3%
Career Education Credential: 18.2%
STEM Workers: 10.4%
Right to Work State? No

Serena Kelley Jefferson, co-owner of Serena’s Soulfood, helps a customer in Wilmington, Delaware.
Chris Stein | AFP | Getty Images
4. Delaware

With unemployment above the national average, the First State has a ready
supply of smart and productive workers. The state has a large concentration
of STEM talent, and worker training programs also outperform much of the
country. While Delaware might not get a lot of attention as a destination, it
finishes in the upper half for net migration.
2023 Workforce score: 275 out of 400 points (Top States grade: A)
Net Migration Rank: No. 21
Adults with Bachelor’s Degree or higher: 33.6%
Career Education Credential: 14.5%
STEM Workers: 7.2%
Right to Work State? No

A worker builds a new home at a housing development in Phoenix, Arizona.
Justin Sullivan | Getty Images
3. Arizona

Educated workers are flocking to the Grand Canyon State, and a growing
number of them are highly skilled as the state boosts its tech sector. With
unemployment roughly in line with the national average, worker shortages are
not as severe as they are in some other states. Arizona is a right-to-work state
with a solid career education system, though worker training programs could
use some improvement.
2023 Workforce score: 276 out of 400 points (Top States grade: A)
Net Migration Rank: No. 3
Adults with Bachelor’s Degree or higher: 31.2%
Career Education Credential: 22%
STEM Workers: 6.8%
Right to Work State? Yes

Rear Adm. Jennifer Couture, Commander Naval Service Training Command, left, visits Battleship Texas in its
dry dock and Gulf Copper as part of Navy Week Houston on Thursday, Oct. 27, 2022 in Galveston.
Houston Chronicle/hearst Newspapers Via Getty Images | Hearst Newspapers | Getty Images

2. Texas

Texas is a talent magnet. Workers are pouring into the Lone Star state, many
finding positions in tech fields as the state seeks to diversify its
economy. Texaswas also in the top ten for worker productivity. But Texas
finished in the middle in terms of the educational attainment of its workforce,
and its career education system is lacking. Still, companies that are looking for
large numbers of workers in a vibrant state could do a whole lot worse.
2023 Workforce score: 278 out of 400 points (Top States grade: A)
Net Migration Rank: No. 4
Adults with Bachelor’s Degree or higher: 31.5%
Career Education Credential: 15.4%
STEM Workers: 6.7%
Right to Work State: Yes

Attendees at a career fair at a community college in Bolivia, North Carolina, on Thursday, April 20, 2023.
Allison Joyce | Bloomberg | Getty Images

1. North Carolina

As the Tar Heel State’s economy grows and broadens, it is attracting scores of
talented workers. The state is also doing a solid job of retraining its existing
workforce. More than 89% of participants in state workforce development
programs are employed within six months. That is the third-best rate in the
country. While the state’s career education system could stand some
improvement, there is plenty of talent to be found at all levels in North
Carolina with America’s top workforce, factor that led the state to finish No. 1in
this year’s overall Top States rankings.
2023 Workforce score: 291 out of 400 points (Top States grade: A+)
Net Migration Rank: No. 6
Adults with Bachelor’s Degree of higher: 33%
Career Education Credential: 15.4%
STEM Workers: 6.9%
Right to Work State: Yes

ESPN lays off about 20 on-air
personalities including NBA
analysts Jeff Van Gundy and
Jalen Rose
Alex Sherman@SHERMAN4949
 ESPN is laying off about 20 on-air personalities.
 Cuts include NBA analysts Jeff Van Gundy and Jalen Rose.
 The cost-cutting efforts come as ESPN tries to meet its financial targets for 2023
and beyond.
Disney’s ESPN on Friday is informing about 20 of its on-air personalities that
they will no longer appear on any of the network’s platforms.
Cuts include former National Basketball Association head coach and current
game analyst Jeff Van Gundy and ex-NBA player and studio analyst Jalen
Rose, according to a person familiar with the matter. The network will also lay
off longtime reporter and anchor Suzy Kolber, NFL analyst and former
quarterback Steve Young and host Max Kellerman, the person said.
“Given the current environment, ESPN has determined it necessary to identify
some additional cost savings in the area of public-facing commentator
salaries, and that process has begun,” ESPN said in a statement. “This
exercise will include a small group of job cuts in the short-term and an
ongoing focus on managing costs when we negotiate individual contract
renewals in the months ahead.”

“This is an extremely challenging process, involving individuals who have had
tremendous impact on our company,” the network said. “These difficult
decisions, based more on overall efficiency than merit, will help us meet our
financial targets and ensure future growth.”
The cuts are part of ESPN’s efforts to meet its financial targets for 2023 and
beyond. Targeting on-air employees with large salaries will allow ESPN to
keep more staffers throughout the organization.
Disney, which owns the majority of ESPN, recently concluded its own rounds
of layoffs amounting to 7,000 employees.
Read more: Disney’s new Indiana Jones movie faces shaky box office
The media giant is shedding costs as streaming growth wanes to boost free
cash flow. Disney may need the cash if it chooses to acquire Comcast’s
minority stake in Hulu — a deal with an option trigger at the start of 2024.
More departures to come
ESPN’s cuts are separate from that initiative and related to its own set of
metrics and priorities. Disney reorganized the company earlier this year, giving
ESPN Chairman Jimmy Pitaro his own balance sheet responsibilities.
ESPN also plans not to renew the contracts of more on-air staffers as their
contracts expire in the coming months, said the person, who asked not to be
named because the details are private. That could amount to another 20 or so
departures, a second person said.
Laid-off employees will have the option to work elsewhere but will have to
renegotiate their outstanding contracts with ESPN, one of the people said. If
employees find jobs with a competitor, ESPN may offer a lower severance for
the remainder of the contract than to staffers who find work in other fields, said
the person.
Van Gundy has been with ESPN for 16 years and has gained wide acclaim for
his game commentary and sense of humor. He’s been part of a three-man
broadcasting team for NBA games along with play-by-play announcer Mike
Breen and co-analyst, former NBA player and coach Mark Jackson.

Rose has been a part of ESPN and ABC’s NBA pregame show, “NBA
Countdown,” since 2012. He joined ESPN in 2007. The New York Post first
reported ESPN would lay off Van Gundy and Rose.
Kolber spent more than 25 years at the network and featured prominently in
its “Monday Night Football” coverage. The Hall of Fame quarterback Young
spent more than 20 years as an NFL analyst for ESPN, a job he’s
juggled along with being a partner at HGGC, a Palo Alto, California-based
private equity firm.
Kellerman was also a longtime staple on the network as a host for programs
like “First Take.” Additional layoffs include baseball reporter Joon Lee, college
basketball analyst and former NBA player LaPhonso Ellis, and former NFL
star and ESPN personality Keyshawn Johnson.
ESPN announced last month it hired former NFL punter Pat McAfee, host of
“The Pat McAfee Show.” The New York Post reported ESPN is paying McAfee
around $85 million over five years. Still, ESPN’s McAfee comes with a ready-
made show, which the network believes will be profitable from day one.

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