Anti-Clickbait News Summaries for December 19, 2024
Stanley Druckenmiller sells most of Palantir stake and invests in Broadcom's AI growth
Hi, it’s Jack and the Daily Moat team with your daily news summaries 😇
Happening Today:
Economic Data Releases
Gross Domestic Product (GDP): The U.S. Bureau of Economic Analysis (BEA) will release the third estimate for Q3 2024 GDP at 8:30 AM ET. The previous estimate indicated a 2.8% annual growth rate. Investors will scrutinize this release for any revisions that might impact economic outlooks.
Initial Jobless Claims: The Department of Labor will report the number of new unemployment claims filed for the week ending December 14. The consensus forecast is 230,000, down from the previous week's 242,000. This data provides insight into the labor market's health.
Existing Home Sales: The National Association of Realtors will release data on existing home sales for November at 10:00 AM ET. The forecast is 4.1 million units, up from 3.96 million in October. This metric reflects housing market trends and consumer confidence.
Corporate Earnings Reports
Several major companies are scheduled to report earnings today:
Accenture (ACN): The global consulting firm reported earnings of $3.59 per share on revenues of $17.69 billion for its fiscal first quarter, surpassing expectations. Despite this, Accenture lowered its full-year earnings outlook, forecasting revenue growth of 4% to 7% in local currency and reducing its earnings-per-share estimate to between $12.43 and $12.79. The stock rose over 6% in premarket trading, reaching $369.30.
FedEx (FDX): The logistics giant is set to release its fiscal second-quarter earnings after the market close. Analysts expect earnings of $4.05 per share on revenue of $22.17 billion. Additionally, there is speculation about a potential spinout of its freight business, which could significantly impact the company's valuation.
Nike (NKE): The athletic apparel company will report its fiscal second-quarter results after the market close. Analysts anticipate earnings of $0.65 per share on revenue of $12.18 billion. This will be the first earnings report under new CEO Elliott Hill, with investors keen on the company's performance and future guidance.
Darden Restaurants (DRI): The parent company of Olive Garden and LongHorn Steakhouse is expected to report earnings of $2.03 per share on revenue of $2.86 billion. These results will provide insights into consumer spending in the dining sector.
FactSet Research Systems (FDS): The financial data and analytics provider is anticipated to report earnings of $4.25 per share on revenue of $565.1 million. Investors will look for updates on subscription growth and client retention rates.
CarMax (KMX): The used car retailer is expected to announce earnings of $0.61 per share on revenue of $6.04 billion. Given the dynamic automotive market, insights into consumer demand and inventory levels will be crucial.
Federal Reserve Policy Impact
Following the Federal Reserve's recent decision to cut interest rates by 0.25 percentage points, bringing the federal funds rate to a range of 4.25%–4.5%, markets are adjusting to the implications. The Fed's projections suggest that 4% policy rates may remain the minimum throughout the upcoming year, potentially delaying any rate easing until mid-2024 or later. This stance has strengthened the U.S. dollar to its highest level in over two years, affecting various markets, including emerging economies and cryptocurrencies.
Global Economic Events
Bank of England Interest Rate Decision: The Bank of England is expected to maintain its current interest rates, following higher inflation and wage growth. While this decision directly affects the UK economy, it can have indirect implications for global financial markets, including the U.S.
Bank of Japan Policy Meeting: The Bank of Japan is likely to hold rates steady but may suggest future hikes. Given Japan's significant role in global trade and finance, any policy shifts can influence international markets.
The Markets:
Futures Highlights
A day of mixed performance across major futures: natural gas leads with strong gains, while gold pulls back.
🟢 Natural Gas: 3.4840 (+0.1100 | +3.26%)
🟢 S&P 500: 5986.25 (+46.00 | +0.77%)
🟢 Russell 2000: 2272.80 (+16.90 | +0.75%)
🟢 Nasdaq 100: 21660.00 (+158.25 | +0.74%)
🟢 Dow: 43050.00 (+272.00 | +0.64%)
🔴 Crude Oil: 69.76 (-0.26 | -0.37%)
🔴 Gold: 2620.10 (-33.20 | -1.25%)
Forex & Bonds Highlights
Currencies and bonds advanced, with treasuries showing notable yield increases and Bitcoin maintaining upward momentum.
🟢 5-Year Treasury: 4.38 (+0.132 | +3.11%)
🟢 10-Year Treasury: 4.494 (+0.109 | +2.49%)
🟢 30-Year Treasury: 4.659 (+0.08 | +1.75%)
🟢 BTC/USD: 101995.90 (+1351.90 | +1.34%)
🟢 USD/JPY: 156.84 (+2.02 | +1.31%)
🟢 EUR/USD: 1.0399 (+0.0047 | +0.45%)
🟢 GBP/USD: 1.2618 (+0.0044 | +0.35%)
Major News Highlights
All featured stocks declined, with Tesla and AVGO topping the list of biggest losers as markets showed broad weakness in tech and growth sectors.
🔴 NVDA: -1.14%
🔴 KMX: -2.05%
🔴 AAPL: -2.14%
🔴 ACN: -2.71%
🔴 BLK: -2.76%
🔴 JPM: -3.35%
🔴 GOOG: -3.54%
🔴 GOOGL: -3.59%
🔴 META: -3.59%
🔴 MSFT: -3.76%
🔴 GLRE: -3.81%
🔴 MU: -4.33%
🔴 AMZN: -4.60%
🔴 KKR: -5.47%
🔴 AVGO: -6.91%
🔴 TSLA: -8.28%
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