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Market Moves Yesterday
S&P 500 @ 6,084.19 ( ⬆️ 0.82%)
Nasdaq Composite @ 20,034.90 ( ⬆️ 1.77%)
Bitcoin @ $101,012.23 ( ⬆️ 2.56%)
Hey Scoopers,
Happy Thursday! Here’s what we’re covering today 👇
👉 Tesla surges to record high
👉 Adobe disappoints Wall Street
👉 ETF inflows cross $1 trillion in 2024
So, let’s go 🚀
Market Wrap
The Nasdaq Composite rallied Wednesday following November's inflation data that met market expectations, boosting optimism for potential Federal Reserve rate cuts at the upcoming December meeting.
Moreover, the tech-heavy index soared past the 20k milestone for the first time ever.
Big Tech Gains Big 💰
Technology Select Sector SPDR Fund (XLK): +1%, up 24% YTD
Alphabet: +5.5%, extending gains after quantum computing breakthrough
Nvidia: +3%, up 181% YTD
Tesla: +6%, up 71% YTD
Meta and Amazon also advanced to fresh all-time highs
Upcoming Market Catalysts:
Thursday's economic data:
Producer Price Index (November) - expected +0.2% monthly
Weekly jobless claims
After-Hours Earnings:
Broadcom
RH
Costco Wholesale
Trending Stocks 🔥
Chewy - The pet goods retailer is down 3% in pre-market after announcing an underwritten public offering of $500 million, which is sold by Buddy Chester Sub LLC. Chewy won’t receive any proceeds from the sale.
Broadcom - Shares gained 6.6% following a report from The Information that the semiconductor manufacturer was assisting Apple in creating an artificial intelligence chip.
Ge Vernova - Shares of the energy equipment maker jumped more than 5% after announcing it would initiate a dividend of $0.25 per share and an initial $6 billion share repurchase authorization.
Tesla Charges On
Four of the "Magnificent Seven" tech stocks - Amazon, Meta, Tesla, and Alphabet - reached all-time highs on Wednesday, collectively adding $416 billion in market value.
The tech rally gained momentum after November's inflation data met expectations, fueling optimism about potential Federal Reserve rate cuts.
Tesla's stock, up about 71% year-to-date, received an additional boost from Goldman Sachs, which raised its price target, following similar moves from Morgan Stanley and Bank of America.
Tesla is an outlier because most of its gains have come after Donald Trump’s election victory last month. Tesla CEO Elon Musk has a close relationship with the president-elect and is set to lead the Department of Government Efficiency.
The new administrative role could give Musk power over federal agency budgets and the ability to push for the elimination of inconvenient regulations.
Meanwhile, the broader tech sector rally reflects investors' growing confidence in the Fed's ability to manage inflation while maintaining economic growth.
Analysts suggest the potential for rate cuts in 2024 could continue supporting tech valuations, though market observers note the importance of monitoring future inflation trends.
Adobe Stock Tanks Post Q4 Results
Adobe shares fell 8% in after-hours trading Wednesday following weaker-than-expected revenue guidance despite strong Q4 results.
Financial Highlights:
Revenue of $5.61 billion, up 11% YoY
Net income of $1.68 billion or $3.79 per share vs. $1.48 billion or $3.23 per share last year
Digital media annual recurring revenue of $578 million
Revenue forecast for fiscal 2025 stood at $23.42 billion, below estimates of $23.77 billion
Strong FY24 numbers:
Total Revenue: $21.51 billion (up 11% YoY)
Operating Cash Flow: $8.06 billion (record)
GAAP Net Income: $5.56 billion
Non-GAAP Net Income: $8.28 billion
During the earnings call, CEO Shantanu Narayen emphasized Adobe's strategic position in the AI economy, while CFO Dan Durn highlighted the company's strong financial foundation and growth potential for 2025 and beyond.
Total ETF Inflows Top $1 Trillion
The U.S. ETF industry achieved a historic milestone in 2024, exceeding $1 trillion in total inflows for the first time, according to ETFGI and the Investment Company Institute.
Notable Fund Performance:
Top Inflows: Vanguard S&P 500 ETF (VOO) - approximately $100 billion
Fastest-Growing New Fund: iShares Bitcoin Trust (IBIT) - over $34 billion since January launch
Industry Trends:
ETF total assets now exceed $10 trillion
Previous inflow record: $920 billion (2021)
Mutual funds experienced $200 million in outflows (per State Street Global Advisors)
Some mutual fund managers are converting their products to ETFs
The record-breaking inflows reflect growing investor confidence in financial markets and a continued shift from traditional mutual funds to passively managed ETF investment vehicles.
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Headlines You Can't Miss!
ServiceTitan prices IPO at $71
OpenAI confirms ChatGPT is back online after outage
The U.S. budget deficit swells in November
Ethereum ETF inflows are on the rise
Bitcoin reclaims $100k on CPI relief
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DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.