November 18th - 22nd, 2024
Investors focus on earnings from NVIDIA, the world's largest company and Bitcoin soars to new hights
The S&P 500 is up 0.61%, the Nasdaq is up 0.22%, and the Dow Industrials is up 0.65% WTD
The 10-Yr U.S. Treasury yield has decreased -0.017% to a current yield of 4.42%, whereas the 30-Yr U.S. Treasury yield decreased -0.012% to a current yield of 4.611%
Crude oil prices increased 5.24% to a current $70.69/bbl while bitcoin decreased 9.89% to a current $98,682.44/coin
Nvidia's stock has soared over ninefold since 2022, adding an unprecedented $2.2 trillion in market value in 2024, surpassing all but three U.S. companies in history and solidifying its dominance in AI-driven innovation [WSJ]
Wall Street is split on the post-election rally's sustainability amid inflation, tariffs, high valuations, and policy uncertainty, despite optimism about tax cuts and deregulation [WSJ]
MicroStrategy has purchased $4.6 billion worth of bitcoin, its largest acquisition yet, as part of a bold $42 billion capital-raising plan to amass cryptocurrency, boosting its stock value more than fivefold this year amid Bitcoin's record highs [WSJ]
Spirit Airlines' bankruptcy highlights the challenges of sustaining low-cost models in a competitive market, as its "bare fares" strategy reshaped U.S. airfare pricing but failed to create lasting profitability [WSJ]
Nvidia's AI dominance faces new challenges as growth slows, production issues arise, and geopolitical risks loom amid the launch of its Blackwell AI systems [WSJ]
Recycling efforts are ramping up to meet soaring copper demands, Tesla’s stock price is rising, and investors are eagerly buying auto loan-backed bonds
Walmart's strong sales growth, driven by market share gains, improved convenience, and pricing power, highlights its dominance over competitors like Target and dollar stores, potentially dampening holiday success for others [WSJ]
To meet soaring copper demand driven by renewable energy and technology growth, major producers like Glencore are ramping up recycling efforts, as nearly half of global copper needs are projected to come from scrap by 2050 [WSJ]
Investors are eagerly buying auto loan-backed bonds, including subprime tranches, despite rising delinquencies, driven by high yields, economic resilience, and demand from insurers and money managers [WSJ]
Qualcomm's ambitious diversification plan to reduce reliance on handset revenue faces challenges, including competition in AI and PC markets, uncertainty around Apple’s modem chip exit, and muted growth amid handset headwinds [WSJ]
Tesla's stock has surged 35% since Election Day, fueled by optimism over federal self-driving regulations, with investors actively trading call options anticipating further gains [WSJ]
M&A activity continues to remain mixed with some encouraging developments
Packaging firm Amcor agreed to buy US peer Berry Global in an $8.4B stock deal [SA]
Blackstone will acquire Jersey Mike's Subs at an $8B valuation, including debt [YHF]
Drone maker AeroVironment will buy space and defense engineering firm BlueHalo from Arlington Capital Partners in a $4.1B all-stock deal [MW]
A consortium including PSG Equity and Golub Capital agreed to acquire a minority stake in data center monitoring firm LogicMonitor from Vista Equity Partners at a $2.4B valuation, including debt
PE firm Cinven acquired a stake in accounting firm Grant Thornton UK at a reported $1.9B valuation [FT]
Canada's OTPP agreed to acquire a 50% stake in Swedish financial adviser Max Matthiessen from PE firm Nordic Capital at a $1.1B valuation, including debt
DT Midstream will buy three natural gas transmission pipelines from Oneok for $1.2B [YHF]
Prosperity Asset Management and insurance firm Kuvare acquired minority stakes in real estate investor Evergreen Residential for $1B [DI]
Keppel DC REIT agreed to acquire two data center buildings in Singapore in a $747M deal
Recent developments across four key industries highlight natural gas prices hitting a one-year high, Amazon doubling its investment in AI startup Anthropic, and RFK’s potential new role raising fears of stricter policies
Energy & Natural Resources
While Trump’s pro-drilling stance and regulatory rollbacks favor smaller oil and gas producers, major companies benefit from stricter regulations that challenge smaller competitors and boost their market dominance [WSJ]
Natural gas prices hit a one-year high as traders anticipate colder weather, while uncertainty looms over how production cuts will respond to rising demand [WSJ]
Technology, Media, & Telecommunications
Elon Musk and Jeff Bezos reignited their rivalry with public exchanges on X, highlighting their contrasting ties to Trump, space industry competition, and ongoing corporate and political tensions [WSJ]
Amazon has doubled its investment in AI startup Anthropic to $8 billion, strengthening its AI ambitions while supporting cloud-computing services and advancing Anthropic's AI assistant, Claude [WSJ]
Healthcare & Life Sciences
Novo Nordisk has launched its Wegovy weight-loss drug in China, targeting the country's growing obesity crisis with a focus on out-of-pocket payers, as demand for similar treatments surges globally [WSJ]
Robert F. Kennedy Jr.'s potential role as Health and Human Services secretary under Trump raises market fears of stricter policies targeting Big Pharma, but significant reforms face uncertainty due to political complexity and competing priorities [WSJ]
Financial Services
BBVA proposed measures to address regulatory concerns over its €11.53 billion hostile takeover bid for Banco de Sabadell, focusing on preserving SME credit and branch access in key regions while seeking swift approval from Spanish authorities [WSJ]
President-elect Trump is considering financier Kevin Warsh for Treasury secretary, with a potential future nomination as Federal Reserve chair, while weighing other candidates and economic policy stances [WSJ]
Cole LaCour
Nov 22, 2024
