Anti-Clickbait News Summaries for November 16, 2024
Earnings from Walmart and Target highlight key week for investors as Bitcoin cools to $90,000
Hi, it’s Jack with your daily news summaries 😇
I want to preface by saying that I’m trying to be unbiased here. I analyze over 30,000 articles using AI daily to find the most trending and significant ones.
Then, I’m down to 200, and I manually choose 20-30, which are, in my opinion, the most important.
I don't believe it’s my fault or intention that so many impactful articles criticizing Trump and Musk are trending.
I’m just delivering the news, not judging them here.
The Markets:
Futures Market
Crude Oil: $66.95 ▼ $1.65 (-2.41%)
Natural Gas: $2.8370 ▲ $0.0520 (+1.87%)
Gold: $2567.40 ▼ $5.50 (-0.21%)
Dow: 43,586.00 ▼ 315.00 (-0.72%)
S&P 500: 5,900.00 ▼ 78.25 (-1.31%)
Nasdaq 100: 20,503.25 ▼ 508.50 (-2.42%)
Russell 2000: 2,316.70 ▼ 32.90 (-1.40%)
Summary: Futures are predominantly bearish, with sharp declines in the Nasdaq and Crude Oil leading the charge. Natural Gas defied the trend, ticking up nearly 2%.
Forex & Bonds
EUR/USD: 1.0538 ▲ 0.0009 (+0.08%)
USD/JPY: 154.28 ▼ 1.97 (-1.26%)
GBP/USD: 1.2616 ▼ 0.0049 (-0.39%)
BTC/USD: $91,116.00 ▼ $217.00 (-0.24%)
5-Year Treasury: 4.298% ▲ 0.006 (+0.14%)
10-Year Treasury: 4.428% ▲ 0.01 (+0.23%)
30-Year Treasury: 4.601% ▲ 0.018 (+0.39%)
Summary: The forex market saw moderate activity, with the USD weakening against the yen and showing small gains against the euro. Treasury yields edged higher across all durations.
Major Stock Changes
Biggest Gainers:
PLTR ▲ +11.14%
MS ▲ +1.23%
TSLA ▲ +3.07%
SMCI ▲ +3.16%
Biggest Losers:
AMAT ▼ -9.20%
MRNA ▼ -7.34%
PFE ▼ -4.69%
AMZN ▼ -4.19%
META ▼ -4.00%
NVDA ▼ -3.26%
MSFT ▼ -2.79%
CMG ▼ -2.14%
RIVN ▼ -2.42%
BABA ▼ -2.20%
NFLX ▼ -1.59%
AAPL ▼ -1.41%
Summary: Stocks experienced mixed fortunes, with Palantir soaring over 11% and Morgan Stanley inching higher. Tech heavyweights like NVIDIA, Amazon, and Meta faced sharp declines, with Applied Materials plunging over 9%.
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Bankrate report shows 37% of Americans near maxed out credit cards
A recent Bankrate survey reveals that 37% of American credit card holders have maxed out or are close to maxing out their cards. This trend follows the Federal Reserve's interest rate hikes that began in March 2022.
Despite recent interest rate cuts by the Fed, credit card interest rates remain high, ranging from 20% to 28%. Many consumers are struggling with credit card debt as a result.
Experts suggest conducting a financial review and considering balance transfers to zero percent interest cards. They also recommend paying off cards with the lowest balances first while maintaining minimum payments on others.
SpaceX prepares for sixth Starship flight test as it aims for orbit
SpaceX's Starship rocket is advancing towards its goal of reaching orbit, with a sixth flight test scheduled for November 18. This test replicates previous successes and assesses new hardware and software upgrades.
Starship, the largest rocket ever built, is designed to be fully reusable, potentially lowering launch costs significantly. It is crucial for NASA's Artemis program, which plans to land astronauts on the moon.
Elon Musk estimates that a mission to Mars could occur as early as 2026, but significant technical challenges remain, including the need for on-orbit refueling. Future Starship models may be even larger, reaching up to 500 feet.
Trump's second term could reshape U.S. approach to ransomware and cybersecurity
The U.S. government has made significant progress in combating ransomware during President Biden's term, declaring it a national security threat and disrupting major ransomware operations. However, cyberattacks continue to rise, with 2024 expected to see record levels of ransomware incidents.
As President-elect Trump prepares to take office, there are concerns about potential deregulation and reduced funding for cybersecurity. His administration may shift the Cybersecurity and Infrastructure Security Agency to the Department of Transportation and could revise existing breach reporting requirements.
Experts suggest that a second Trump term might see a return to offensive cyber strategies, including increased hacking-back initiatives. This could impact international cooperation on ransomware and reduce the effectiveness of current U.S. cybersecurity efforts.
Source: https://techcrunch.com/2024/11/16/what-a-second-trump-term-means-for-the-future-of-ransomware/
U.S. inflation rises to 2.6% in October as Federal Reserve cuts interest rates again
Inflation in the U.S. has increased slightly to 2.6% in October, up from 2.4% in September. This rise comes after a period of declining inflation, raising concerns about a potential resurgence. Key categories like food, energy, and rent contributed to this uptick.
The Federal Reserve has cut interest rates again, but the likelihood of further cuts is decreasing as inflation data is closely monitored. Market reactions show rising long-term interest rates, indicating investor concerns about inflation returning.
Looking ahead, President-elect Donald Trump's proposed policies, including new tariffs and immigration cuts, could further impact inflation. These changes may challenge his administration as consumer confidence remains fragile after recent inflationary pressures.
Source: https://finance.yahoo.com/news/this-week-in-bidenomics-uh-oh-reflation-150041895.html
Earnings from Walmart and Target highlight key week for investors as Bitcoin cools to $90,000
Investors will focus on earnings reports from Nvidia, Walmart, and Target next week. Walmart is expected to show slower growth, while Target has lagged behind. Nvidia's upcoming report will highlight its new AI processor, Blackwell.
Bitcoin prices have cooled to around $90,000 after reaching record highs above $93,000. Analysts remain optimistic about its potential to reach $200,000 by the end of 2025. The stock market has seen losses recently, particularly among small-cap stocks.
Chinese EV companies Xpeng and Nio are set to report earnings in the automotive sector, with expectations of narrowing losses. The ongoing price war in the EV market continues to impact sales as new energy vehicles gain popularity in China.
Bernard Arnault sues Elon Musk over content dispute as EV stocks decline and Apple plans new smart home device
Bernard Arnault is suing Elon Musk over allegations that Musk's social media platform, X, republished content from Arnault's media outlets without permission. This legal dispute highlights tensions between two of the world's wealthiest individuals.
Electric vehicle stocks, including Tesla, Rivian, and Lucid, are declining following reports that the incoming Trump administration plans to eliminate a tax credit for electric vehicle buyers. This change could impact consumer incentives for purchasing electric cars.
Apple is developing a new smart home device to compete with Google and Amazon. The device will serve as a wall-mounted command center, allowing users to control appliances, access Siri, and make video calls.
Source: https://qz.com/apple-ai-smart-home-ev-stocks-tesla-elon-musk-1851700537
U.S. utilities urge Trump and Republicans to preserve clean energy tax credits from Inflation Reduction Act
U.S. utility leaders are urging the incoming Trump administration and Republican Congress to keep clean energy and electric vehicle tax credits from the Inflation Reduction Act. This act, passed in 2022, provides significant funding for clean energy initiatives.
Pedro Pizarro, CEO of Edison International, emphasized that the act's benefits primarily support customers and infrastructure rather than shareholders. He noted that the utility industry actively communicates these benefits to the Trump transition team.
Trump's team is considering eliminating the $7,500 tax credit for electric vehicles. Major EV manufacturers have also requested that these credits remain, highlighting their importance in key Republican states.
Trump's expected return to the White House boosts billionaire wealth and stock market
Donald Trump is expected to return to the White House in January, following a significant market surge after the recent election. The S&P 500 rose 2.5%, and Elon Musk's wealth increased by $26.5 billion, benefiting from the market's reaction.
The world's ten richest people gained about $64 billion on the day after the election. This includes notable figures like Jeff Bezos and Mark Zuckerberg, who publicly congratulated Trump, highlighting the financial impact of his potential presidency.
Large institutional investors, often called "elephants," dominate the market with their significant capital. Tracking their buying patterns can provide insights into potential stock gains, as these investors can influence stock prices substantially.
Source: https://investorplace.com/market360/2024/11/how-to-join-the-trump-boom-billionaires/
Disney CEO Bob Iger shares earnings guidance through 2027 to boost investor confidence
Disney CEO Bob Iger has announced earnings guidance through 2027, surprising analysts with this level of transparency. The company expects high-single-digit earnings growth in 2025, followed by double-digit increases in the following years.
This move comes after a strong quarterly earnings report, with a 23% rise in operating income and a profit in streaming. Iger aims to showcase Disney's recovery and long-term potential, contrasting with the previous leadership under Bob Chapek.
Iger's decision to provide detailed forecasts may help ease concerns about succession, as he prepares to name a new CEO in early 2026. This guidance signals confidence in Disney's future and aims to reassure investors.
Trump outlines bold agenda for first day in office if re-elected
Donald Trump has outlined an ambitious agenda for his first day in office if he wins the presidency again. His plans include mass deportations of migrants, pardoning January 6 Capitol rioters, and reshaping the federal workforce by firing thousands of employees he views as adversaries.
Trump aims to roll back Biden administration policies on education and environmental protections, impose tariffs on imports, and dismantle protections for transgender students. He also intends to increase fossil fuel production and negotiate a peace deal for the ongoing war in Ukraine.
In addition to his policy goals, Trump has announced key personnel appointments, including Tom Homan for immigration enforcement and Marco Rubio as secretary of state. His administration will focus on reducing the federal workforce and addressing what he calls a "deep state" within the government.
Major changes in cryptocurrency regulation and Bitcoin reserve expected in 2025
In 2025, significant changes in cryptocurrency regulation are expected. A new framework may reduce the SEC's role, with the Commodity Futures Trading Commission likely becoming the main regulator. This shift aims to clarify rules for crypto investments.
Additionally, the U.S. may establish a strategic Bitcoin reserve, potentially acquiring 1 million Bitcoins over five years. This move could position the U.S. as a major player in the Bitcoin market, prompting other countries to consider similar strategies.
The crypto market may also see the rise of new tokens, similar to past bull markets. Opportunities in Bitcoin mining are emerging, especially with new policies. However, challenges remain in regulatory development and the implementation of the Bitcoin reserve.
Trump begins White House transition with key personnel announcements
President-elect Donald Trump has begun his transition to the White House with key personnel announcements, including controversial picks like Matt Gaetz for attorney general and Tulsi Gabbard for director of national intelligence. These choices may challenge Senate Republicans' support.
Trump's appointments signal a focus on strengthening ties with evangelical Christians and right-wing Israeli leaders, potentially alienating some American Muslims and Jews. The selections of Mike Huckabee as ambassador to Israel and Steven Witkoff as special envoy to the Mideast reflect this strategy.
Senate confirmation battles are expected, particularly regarding Gaetz, who faces an ethics investigation. His resignation from Congress has complicated the situation, leaving uncertainty about the investigation's findings and their impact on his nomination.
Source: https://www.latimes.com/politics/newsletter/2024-11-16/trumps-early-moves-politics
China prepares for new trade conflict with U.S. as tensions rise
China is preparing for a potential new trade conflict with the U.S. as the president-elect has appointed officials who favor tough measures against China. He has proposed imposing 60% tariffs on Chinese goods, which could severely impact trade.
In response, China has developed various strategies to counter U.S. actions, including the possibility of selling off its $734 billion in U.S. Treasuries, weakening its currency, and restricting exports of critical minerals. These measures could disrupt global markets and affect trade dynamics.
China is also targeting U.S. companies through new laws and investigations, while seeking to strengthen alliances with other nations to mitigate the impact of U.S. policies. This shift may lead to increased tensions and a more complex trade landscape.
Source: https://www.courant.com/2024/11/16/chinas-asymmetrical-tools-for-new-trade-war-carry-global-peril-2/
AI market growth drives interest in Microsoft, Adobe, and Alphabet stocks
The AI market continues to expand, with significant growth expected in generative AI infrastructure and software spending. Companies like Microsoft, Adobe, and Alphabet are positioned to benefit from this trend, making them attractive investment options.
Microsoft's Azure AI service has seen a 60% increase in customers, driving a 33% rise in revenue. The company is also experiencing strong adoption of its AI tools, such as Copilot, which enhances productivity across its software suite.
Adobe is enhancing its software with AI tools like Firefly, which streamlines creative processes. The company is converting users of its free service into paid subscribers. Alphabet is integrating AI into its search and advertising tools, leading to increased engagement and revenue growth in its cloud services.
AI startups secure funding as OpenAI launches ChatGPT desktop app for Windows
This week, AI startups Writer, 11x, and Accelsius announced significant funding rounds. These developments highlight ongoing investment in the AI sector.
OpenAI released its ChatGPT desktop app for Windows, now available to all users, including free ones. The app allows users to ask questions, search the web, and upload files.
The macOS version is in early beta and integrates with developer tools like VS Code and Xcode. Users can connect their IDEs to the app for improved responses, with more desktop apps planned for the future.
Source: https://qz.com/chatgpt-update-deepl-voice-translator-ai-startups-raise-1851700339
Masayoshi Son sees Nvidia as undervalued after $130 billion AI stock investments
Masayoshi Son, CEO of Softbank, has invested heavily in AI stocks, with his stake in Arm Holdings now valued at around $130 billion. He previously sold his Nvidia shares but now believes Nvidia is undervalued amid growing AI demand.
At a recent conference, Son discussed the potential of artificial general intelligence, predicting it could generate $9 trillion in revenue annually. He emphasized the need for significant infrastructure, including 200 million chips and substantial energy resources.
Son's investment history includes both successes and failures, notably with Arm and Alibaba. He continues to advocate for AI investments, suggesting that companies like Arm and Nvidia could benefit greatly from advancements in AI technology.
Analysts predict surge in mergers and acquisitions with Trump back in office
Mergers and acquisitions may increase with Donald Trump returning to the White House and the Republican party controlling Congress. Analysts expect a less strict regulatory environment, which could encourage more deal-making.
Recent interest rate cuts by the Federal Reserve and easing inflation may also support a rise in M&A activity. Companies have been cautious due to high borrowing costs and market valuations.
Viking Therapeutics, a clinical-stage pharmaceutical company, is seen as a potential acquisition target. Its focus on obesity treatments could attract interest from larger firms, with estimates suggesting a possible acquisition price around $15 billion.
U.S. companies brace for potential Chinese retaliation as Trump adopts tough trade stance
U.S. companies are worried about potential retaliation from China as President-elect Donald Trump adopts a tough stance on trade. Trump has proposed high tariffs on Chinese goods, which could disrupt supply chains and lead to higher prices for consumers.
During Trump's first term, China responded to U.S. tariffs with its own, impacting American exports, especially agricultural products. Analysts predict similar actions could occur again, with China potentially targeting U.S. companies operating within its borders.
The business environment in China has become more challenging for U.S. firms, with stricter regulations and increased scrutiny. Many companies feel less welcome, and legal changes could further complicate operations, raising concerns about their future in the Chinese market.
Google highlights AI, cybercrime, and geopolitics as top business security threats for 2025
Google has identified AI, cybercrime, and geopolitical tensions as the top security threats for businesses in 2025. AI is expected to be used in both cyberattacks and defenses, marking a significant shift in cybersecurity strategies.
State-sponsored attacks from countries like Russia, China, Iran, and North Korea are anticipated to increase, particularly against critical infrastructure. The ongoing conflicts in Ukraine and Gaza are likely to exacerbate these politically motivated threats.
Ransomware and data theft are also predicted to remain major issues. The frequency of ransomware attacks has surged in 2024, and custom malware is expected to continue targeting organizations globally in 2025.
Alaska leaders optimistic as Trump plans to expand oil drilling opportunities
Alaska political leaders are optimistic about President-elect Donald Trump's plans to expand oil drilling, which they believe could boost the state's economy. They feel the Biden administration has hindered oil production efforts.
The debate over drilling in the Arctic National Wildlife Refuge is expected to intensify. While some Alaska Native communities support drilling for economic reasons, others oppose it, citing concerns for wildlife and cultural significance.
Trump's election may lead to the reversal of Biden-era restrictions on oil and gas leasing in Alaska. This could open up new opportunities for resource development, although environmentalists continue to advocate for protections in the region.
I'm liking your newsletter, short to the point and great take away!!
Jack, Excellent!