Three Things (7/12)

1) Elon bails on Twitter: Elon Musk backed out of his agreement to buy the social media company and take it private. The Tesla owner claims that Twitter mischaracterized its user data and that spam bots make up a much larger number than initially disclosed. Shares have plummeted far below the $54.20-per-share-offer the billionaire made in April. Twitter said that they intended to sue.

Titan's Takeaway: If Twitter wins the pending case and Musk is forced to buy the social media company, is that really a win? A struggling company with an owner who doesn't want it seems like a recipe for disaster.

2) Housing cancellations rise: Almost 60,000 home sales fell through in June as higher mortgage rates forced some buyers to abandon home purchases. The cancellation volume was nearly 15% of total contracted transactions in June and the highest percentage since April 2020. At the height of the housing boom in June 2021, canceled transactions were roughly 11% of contracts.

Titan's Takeaway: The once-unstoppable housing market is finally showing some cracks as it weathers high inflation and a rising rate environment. In our eyes, until the labor and housing market cool significantly, the Fed will continue its tightening monetary policy.

3) Thor jolts box office: Thor: Love and Thunder brought in a whopping $143 million in its domestic opening over the weekend. Over 10 million people watched the new Marvel film this weekend, spearheading a stellar weekend for theatres with Top Gun: Maverick and Elvis still churning. The weekend could bring in $250 million in total domestic box office sales.

Titan's Takeaway: With Top Gun surpassing $1 billion in global box office receipts and Thor's robust opening weekend, the movies appear to be back. While theaters will always have to compete with streaming, it's clear that lucrative IP and content can still drive people to the big screen.