November 11th - 15th, 2024
Jobless claims fell to 217,000, indicating a resilient labor market gradually normalizing with slower hiring but minimal layoffs
The S&P 500 is down 0.46%, the Nasdaq is down 1.29%, and the Dow Industrials is up 0.97% WTD
The 10-Yr U.S. Treasury yield has increased +0.181% to a current yield of 4.487%, whereas the 30-Yr U.S. Treasury yield decreased +0.163% to a current yield of 4.636%
Crude oil prices decreased 2.37% to a current $68.07/bbl while bitcoin increased 10.66% to a current $88,970.40/coin
Bitcoin surged past $90,000 amid investor optimism over Trump’s pro-crypto stance, a wave of supportive policies, and strong interest in newly launched spot bitcoin ETFs [WSJ]
U.S. consumer prices rose slightly in October, maintaining a cooling inflation trend but sparking investor expectations of a Federal Reserve rate cut in December, amid optimism over Trump's incoming administration and steady economic indicators [WSJ]
Rising global military spending and Trump’s re-election have boosted demand for South Korean defense contractors, driving their stock prices up significantly and sparking investor interest [WSJ]
Trump’s election has fueled market hopes for dealmaking and regulatory easing, positioning Goldman Sachs to benefit significantly from increased M&A activity, private credit growth, and alternative asset management expansion [WSJ]
Spotify’s stock has surged due to strong growth in profitability, user base, and premium subscribers, as it leverages its dominant position in music streaming to boost margins and cash flow [WSJ]
Markets face shifting dynamics as narrowing equity risk premiums boost bonds' appeal and cryptocurrencies surge on expectations of Trump’s crypto-friendly policies
The equity risk premium has narrowed to its lowest level since 2002, reducing stocks' appeal over bonds as 10-year Treasury yields rise, potentially shifting investor preference toward safer assets [WSJ]
Citi’s new banking head, Vis Raghavan, aims to revive its private-equity business to increase investment-banking fees and market share despite fierce competition [WSJ]
Bitcoin, Dogecoin, and Solana surged after Donald Trump's election, fueled by expectations of crypto-friendly regulations and promises of a national bitcoin reserve [WSJ]
Hoka, On, Ugg, and Birkenstock are thriving by balancing comfort and style with a selective distribution strategy that mirrors luxury brands, prioritizing long-term brand cachet over rapid growth [WSJ]
Rising core PCE inflation in October, erasing recent progress toward the Fed's 2% target, complicates decisions on further interest rate cuts despite expectations of temporary price increases easing in the future [WSJ]
M&A activity continues to remain mixed with a positive outlook
Charter Communications agreed to buy Liberty Broadband in a ~$14B all-stock deal
Blackstone and Warburg Pincus are weighing a $12B sale of fintech IntraFi
Frontier Communications shareholders approved the $9.6B sale to Verizon despite opposition from some large shareholders
Coterra Energy agreed to acquire Permian Basin assets from Franklin Mountain Energy and Avant Natural Resources for $3.95B in cash and stock
Canada's PSP-owned airport operator AviAlliance agreed to acquire three UK airports from Spanish infrastructure giant Ferrovial and Macquarie for $1.9B
Blackstone is in talks to acquire a 20% stake in the snacks business of India's Haldiram's at an $8B valuation
EV maker Zeekr will acquire a 51% stake in peer Lynk at a $2.5B valuation as Chinese automotive giant Geely seeks to streamlines its businesses
Shale producer Ovintiv will acquire Canadian oil assets from Paramount Resources for $2.4B cash
ADQ-backed healthcare group PureHealth is weighing an acquisition of hospital operator NMC Healthcare for a few billion dollars
General Mills agreed to acquire the North American unit of Whitebridge Pet Brands for ~$1.45B
Recent developments across four key industries highlight markets reacting to diverse shifts as natural gas spikes and healthcare startups are anticipating regulatory changes
Energy & Natural Resources
U.S. crude oil inventories rose by 2.1 million barrels last week, while gasoline stockpiles dropped by 4.4 million barrels amid higher demand, with refinery usage and both crude imports and exports also increasing [WSJ]
OPEC has reduced its oil-demand growth forecast for the fourth month, citing weaker global consumption and lower prices, while extending production cuts to support prices amid uncertainties in demand from China and potential shifts under a Trump administration [WSJ]
Natural-gas futures surged 9.4% due to production cuts, colder weather forecasts, and traders closing short positions, despite long-term bearish fundamentals [WSJ]
Technology, Media, & Telecommunications
Nvidia plans to launch its Jetson Thor technology for humanoid robots in early 2025, focusing on enabling robot manufacturers with advanced AI capabilities rather than building robots directly [WSJ]
The European Commission fined Meta $843 million for linking its Marketplace to Facebook, citing unfair competition, and ordered the company to end the practice, a decision Meta plans to appeal [WSJ]
Healthcare & Life Sciences
The Trump administration and Congress are expected to influence healthcare startups through regulatory changes in drug approvals, device reimbursement, and M&A policies [WSJ]
Johnson & Johnson sued a federal agency to support its plan to shift 340B drug discounts to a rebate system, arguing it aligns with the program's intent, despite pushback from hospitals and potential penalties from regulators [WSJ]
Big pharma’s pipeline-building strategy mirrors sports drafts, where companies like AbbVie face high-risk, high-reward decisions in acquiring biotech assets to sustain growth, balancing price with success probability in a game of probabilities [WSJ]
Financial Services
Berkshire Hathaway increased holdings in Domino’s Pizza and Pool Corp. while largely selling stocks and building its cash reserves, with Buffett possibly cautious due to high market valuations [WSJ]
Western Asset Management faces client exodus and multiple federal investigations over alleged trade misconduct by its former star manager, jeopardizing its future and dealing a significant blow to parent company Franklin Templeton's modernization efforts [WSJ]
Cole LaCour
Nov 15, 2024
