Market Breathes a Sigh of Relief as Inflation Data Meets Expectations
The October consumer price index report brought a sense of calm to Wall Street, as the data aligned with predictions. The S&P 500 and Nasdaq, which had been on a post-election winning streak, finally took a breather on Tuesday. Meanwhile, bond yields slipped, and traders are now pricing in a 70% chance of a quarter-point interest rate cut at the Federal Reserve’s December meeting.
Inflation and the Fed: The Market’s Guiding Forces
As the market continues to navigate the complexities of inflation and interest rates, all eyes are on the Federal Reserve’s next move. But what about the impact of the new administration on the economy? A potential collaboration between Elon Musk and Vivek Ramaswamy to reduce government waste could have significant implications for the market.
Home Loan Demand Stalls, but Opportunities Ahead
The mortgage market has hit a roadblock, with demand stalling last week. However, with mortgage rates trending upwards alongside bond yields, there may be opportunities on the horizon. When mortgage rates eventually come down, stocks like Home Depot and Stanley Black & Decker could see a significant boost.
Rocket Lab USA Blasts Off with Surging Backlog
Rocket Lab USA’s backlog grew at an astonishing rate, sending shares soaring over 25%. The company is now a serious contender in the rocket launch industry, with a new partnership with a commercial satellite constellation operator.
Spotify’s Subscriber Growth Propels Stock Higher
Spotify’s focus on sign-ups rather than earnings paid off, with the stock jumping over 8%. The music streaming service saw a significant increase in monthly active users and paying subscribers, beating expectations and earning multiple analyst price target boosts.
Cava’s Same-Store Sales Surge, Honeywell Responds to Activist Group
Cava’s same-store sales inflection point sent shares up 16%, with an impressive 18% increase, including a 12% growth in guest traffic. Meanwhile, Honeywell responded to activist group Elliott’s stake and push for a breakup, welcoming investor feedback as it continues to overhaul its portfolio.
Howmet Aerospace Wins Over Brokerages
Howmet, the pure aerospace company, has won the hearts of brokerages, with price target increases from Bank of America and Wells Fargo. As the analogue to Honeywell’s aerospace division, Howmet is one to watch.
Softbank and Nvidia Partner on AI Supercomputer
Softbank plans to develop a supercomputer using Nvidia’s next-generation Blackwell artificial intelligence chip platform. In a fireside chat, CEO Jensen Huang emphasized the need for digital and physical integration, including AI agents and robotics.
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