XLRE - Wall Street Lunch: Get Ready For Vision Pro

2024-01-08 13:06:00 ET

Summary

• Apple's Vision Pro mixed reality headset will launch in the U.S. on Groundhog Day, with preorders starting on Jan. 19.
• Costco store in Norfolk, Virginia votes in favor of unionization, the first organizing victory at a Costco location in over 20 years.
• Congressional leaders reach a $1.59 trillion funding agreement, reducing the odds of a government shutdown next week.

Listen below or on the go on Apple Podcasts and Spotify

Preorders for the the $3,499 mixed reality headset start Jan. 19. (0:15) First Costco store in 20 years votes to unionize . (2:48) Congressional leaders strike spending deal that could avert shutdown. (3:33)

The following is an abridged transcript:

Our top story today so far

Apple's ( AAPL ) Vision Pro mixed reality headset will launch in the U.S. on Groundhog Day.

CEO Tim Cook says” “The era of spatial computing has arrived. Apple Vision Pro is the most advanced consumer electronics device ever created. Its revolutionary and magical user interface will redefine how we connect, create, and explore.”

The device will be on sale Feb. 2 . Pre-orders for the device, which starts at $3,499 for 256GB worth of storage, will be available on Jan. 19 at 8 a.m. ET.

Readers will be available for $99 in the U.S. and prescription lenses will be available for $149.

The Vision Pro was announced in June and is Apple's biggest product launch in nearly a decade. It will be available at all U.S. Apple Stores as well as th online Apple Store.

The Vision Pro comes with visionOS, which Apple has previously described as "the world’s first spatial operating system." It has an ultra-high-resolution display system that comes with 23 million pixels across two displays, and custom Apple silicon in a unique dual-chip design.

In today’s trading

Stocks are mixed, with growth seeing some strength after a tough week. The Nasdaq ( COMP.IND ) is up +1%, leading the S&P (SP500). The Dow ( DJI ) is lower, though, due to the big point drop in Boeing ( BA ) after its fleet of 737 Max 9s was grounded.

Six of 11 S&P sectors are higher. Info Tech ( XLK ) is the biggest gainer, while Energy ( XLE ) is weakest after oil dropped in the wake of a Saudi price cut.

WTI crude ( CL1:COM ) is slumping more than -4.5%.

On Sunday, Saudi Aramco ( ARMCO ) cut the official selling price by $2 per barrel from January levels to $1.50 per barrel over Oman/Dubai quotes. That’s the lowest in over two years. Prices in northwest Europe and the Mediterranean were reduced $1.50 to $2 barrel vs. the ICE Brent crude benchmark compared to January prices.

In crypto, BlackRock ( BLK ) disclosed that its proposed spot bitcoin (BTC-USD) exchange-traded fund plans to charge a fee of 0.30% of the ETF's net asset value, less than some of its rivals.

Meanwhile, the ARK 21Shares Bitcoin ETF will apply a 0.25% annualized fee rate to the trust's total bitcoin holdings.

Among active stocks

Sharpie-maker Newell Brands ( NWL ) announced a restructuring plan and aims to reduce office roles by about 7%. It is targeting annualized pre-tax savings of $65 million - $90 million, net of reinvestment, with $55 million to $70 million expected in 2024.

Workers at a Costco ( COST ) store in Norfolk, Virginia recently voted by a large majority in favor of joining the Teamsters union . The successful vote was notable as it was the first organizing victory at a Costco location in more than 20 years. Costco has traditionally had a low employee turnover rate and a strong reputation for worker-friendly policies, but labor organizers may have gained an edge at the Norfolk store due to the extra strain on workers since the pandemic.

And American Eagle Outfitters ( AEO ) announced that Q4 revenue through December 30 was up about 8% , with American Eagle tracking up high single digits and Aerie up in the low teens. The company is raising its fourth-quarter outlook for revenue to be up low double digits, which includes a four-point positive contribution from the 53rd week.

In other news of note

Top Congressional leaders have reached a $1.59 trillion bipartisan federal spending deal for the current fiscal year. That significantly reduces the odds of a government shutdown next week.

House Speaker Mike Johnson said the deal would secure $16 billion in additional spending cuts, with the top-line figure including $886 billion for defense and $704 billion for non-defense spending.

But there appears to be some discord on what was agreed on, as Senate Majority Leader Chuck Schumer said non-defense spending would be $772.7 billion.

"The bipartisan funding framework congressional leaders have reached moves us one step closer to preventing a needless government shutdown," President Joe Biden said in a statement.

And in the Wall Street Research Corner

Ned Davis Research highlights the Real Estate sector ( XLRE ) of the S&P as the best performing segment since the benchmark index hit its October low of 4,103 back on October 27.

Since the low, Real Estate has jumped up by about 22%. It was also the top performing sector for December, up a little less than 8%.

Ned Davis still holds a Market Weight rating on the sector, despite the recent upswing.

Energy ( XLE ) was the worst performing sector since the lows, and the only one seeing a decline, off about -0.2%.

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