Hey Snackers,
If youâre in the Austin, Texas, area and hail an Uber, it might not have a driver. Starting yesterday, Uber is offering the public the ability to opt in for rides in Waymoâs driverless Jaguars in the city. That means Uber and Waymo have beaten Tesla, which is headquartered in Austin, to be the first to offer driverless rides in the city.
Yesterday was a very volatile day for the US stock market. Tariff Tuesday saw markets open deep in the red before rebounding through most of the afternoon, led by beaten-down AI and momentum stocks as well as massive short covering.
Financials performed terribly, with the sector posting its worst daily drop since the collapse of Silicon Valley Bank in 2023, but banks were far from the only group brutalized by tariffs â no mode of transportation was spared.
Which stocks are most, and least, sensitive to a market crash?
Thereâs no way around it: the stock market is incredibly, remarkably volatile right now, with bets on stock market volatility going up, down, or sideways via options tied to the VIX Index, known as the marketâs âfear gauge,â skyrocketing to levels not seen since August.
If youâre worried weâre in for a broader market meltdown, itâs natural to wonder which stocks would be most likely to get dragged down with the S&P 500 and which might be spared from a sea of red.
With that in mind, based on a three-year look back, data from FactSet reveals which stocks have the highest and lowest beta to the S&P 500. Note: beta is a measure of how sensitive a stock has historically been to the overall market. Higher numbers suggest the stock is more volatile than the market, while a lower beta indicates the opposite.Â
At the top of the list is cruise company Carnival, which, with a beta of 2.8, is even more correlated to the swings of the market than volatile AI leader Nvidia (2.4). Tesla, which has now shed almost all its postelection gains, is 17th out of the ~500 names in the index, with a beta of 1.8.
On the opposite side of the risk ladder are consumer staple stocks like General Mills, Campbellâs, and Kraft Heinz, companies that tend to sell foodstuffs sought after by folks with nuclear bunkers who are preparing for the end of the world.Â
The Takeaway
Itâs normal to want to react when the markets go sideways, but remember that correlations are just that: theyâre correlations. They can tell us what has happened coincidentally in the past, but they donât tell us why, and they arenât always as useful as weâd like them to be in predicting the future.Â
See charts of the 20 stocks most and least sensitive to the market.
Top homebuilder invests in industry disruptor
You must be doing something right if the biggest names in your industry take an interest.
Thatâs the story with BOXABL. The company has gained the attention of investors like D.R. Horton with a business model that brings assembly lines to new home construction.Â
Where traditional homes take over 7 months to build, BOXABL factories can mass produce their signature Casita home in nearly four hours â plumbing, electrical, HVAC, and all. No wonder 190,000+ potential buyers already reserved one1. And theyâre just getting started.
Now, everyday investors can join them too. When BOXABL last opened a Reg A investment opportunity, they maxed out the $75M regulatory limit. Become an investor for just $0.80/share.2
What do tariffs on Canadian goods have to do with me?
Canada is the USâs second-biggest trading partner. It was the largest importer of American goods in 2022, making up 17% of all US exports, and the US imported $437 billion worth of goods from Canada in 2022.
Letâs take a look at all the things you might encounter during a typical day that are likely to have been imported from Canada. Theyâre about to get more expensive.Â
You sit down at your kitchen table with a cup of coffee and your morning newspaper and start reading about these new, steep tariffs. The paper in your hands was almost certainly printed on Canadian newsprint.Â
đïž 99% of the newsprint imported to the US comes from Canada.Â
You pour some sweet maple syrup on top of your pancakes. Donât use too much!Â
đ Almost 100% of imported maple syrup comes from our northern neighbors.Â
Whatâs that delicious smell? Mmmm⊠bacon. Canadian bacon, actually.
đ„ 98% of the âBellies (streaky) and cuts thereof of swine, salted, in brine, dried or smokedâ that we import comes from Canada.Â
Weâre not done yet. Continue reading a day in the life with tariffs.
THE BEST THING WE READ TODAY
Trump Media may be the worst Trump trade
Amid the market rout, we checked in on some of the stocks and assets that posted notable bounces following President Trumpâs victory in last yearâs election to see how they did.Â
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Yesterdayâs Big Daily Movers
Taco Bell was the dayâs tariff hedge, as Mexican food that no one in their right mind thinks comes from Mexico drove parent company Yum! Brands to a record high
SoundHound couldnât get its 10-K in on time and investors didnât like the sound of that one bit, sending the stock on a rollercoaster ride
Airline stocks hit turbulence, with Boeing, Delta, JetBlue, and United all losing about 6%
What Else We're Snackin'
The worldâs largest iceberg has run aground into a remote British island
Meanwhile, the Iditarod is short on snow, so the dogs will run a new 1,128-mile course
US traders are buying $250 digital residency cards from the tropical island nation of Palau to circumvent US crypto restrictions
Snack Fact of the Day
Tesla shipments in China fell nearly 50% in February.
Events
February ISM Services PMI, January factory orders
Earnings expected from Rigetti, Abercrombie & Fitch, Victoriaâs Secret, and Foot Locker
1 Reservations do not require purchase of a Casita and there is no assurance of how many will result in actual purchases.
2 The minimum investment is $1,000. This is a paid advertisement for the Boxabl Inc. Regulation A offering. Please read the offering circular and related risks at www.boxabl.com/invest#circular.
Investing in private company securities is not suitable for all investors because it is highly speculative and involves a high degree of risk. It should only be considered a long-term investment. You must be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid, and there is no guarantee that a market will develop for such securities.
DealMaker Securities LLC, a registered broker-dealer, and member of FINRA | SIPC, located at 105 Maxess Road, Suite 124, Melville, NY 11747, is the Intermediary for this offering and is not an affiliate of or connected with the Issuer. Please check our background on FINRA's BrokerCheck.