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- 👉 The Investing Week Ahead: 11/20/23
👉 The Investing Week Ahead: 11/20/23
Checking in on MSFT, NVDA, & OpenAI ahead of the holiday break...
Welcome to your new week, and Happy Thanksgiving.
The holidays have arrived, and we know you want us to keep this short. Before we begin, we want to give a major shoutout to the team at The Average Joe!
They’re one of our favorite newsletters, and a team of really great people. Their newsletter goes out to over 200K investors everyday — and they keep things simple.
This isn’t sponsored at all — we’re just wanting to share some love for The Average Joe team during this holiday of thankfulness. It’s one of the few newsletters that we actually read top-to-bottom each day.
We highly recommend that you drop your email in this link (click here)!
Key Earnings Announcements:
Dick’s Sporting Goods and chips.
Monday (11/20): Agilent Technologies, Keysight Technologies, Trip.com, Zoom Video
Tuesday (11/21): Abercrombie & Fitch, American Eagle, Analog Devices, Autodesk, Baidu, Best Buy, Burlington, Dick’s Sporting Goods, HP, Kohl’s, Lowe’s, Medtronic, Nvidia, Urban Outfitters
Wednesday (11/22): John Deere
Thursday (11/23): Stock Market Closed for Thanksgiving
Friday (11/24): Stock Market Closes Early / Black Friday
What We’re Watching:
You may remember some alarming headlines after the last Dick’s Sporting Goods earnings report — in which they revealed a profit drop, cut its earnings outlook for after seeing increased retail theft, and announced slow sales in its outdoor category.
Shares of DKS fell as much as -24% after the last report.
Nvidia’s most recent earnings report (August) was highlighted by a +171% annual increase in data center revenue. The guidance for this quarter also suggested an overall sales growth of +170% YoY. This earnings report is all about determining if that number was accurate, as well as hearing about the relationship of the U.S. and China.
Investor Events / Global Affairs:
You can now buy a freaking car on Amazon, and Microsoft makes a savvy move amidst the OpenAI drama.
Hyundai is Selling Cars on Amazon?
Wild — Hyundai will become the first automaker to sell new cars on Amazon starting in 2024, allowing customers to purchase vehicles from local dealerships on the e-commerce platform.
The move aims to provide convenience and streamline the car-buying process for consumers who are accustomed to the ease of purchasing products on Amazon.
Initially, 15 to 20 dealers will be part of the program, with plans to expand further.
As part of the partnership, Hyundai will integrate Amazon's Alexa technology into its cars beginning in 2025.
Hyundai has selected Amazon Web Services (AWS) as its preferred cloud provider to accelerate its digital transformation using broad and industry-leading AWS capabilities — from compute, storage, database, and analytics to artificial intelligence (generative AI) and Internet of Things (IoT).
Here’s a link to check out more from the official partnership announcement.
OpenAI CEO Gets Dumped, Then Joins Microsoft
Microsoft has hired Sam Altman — the ousted OpenAI chief, to lead its newly formed in-house AI research unit.
Altman was unexpectedly fired by OpenAI's board — leading to a weekend campaign for his reinstatement by OpenAI executives and investors, including Microsoft's CEO Satya Nadella.
In response, Nadella recruited Altman and another OpenAI co-founder, Greg Brockman, to lead Microsoft's AI efforts.
OpenAI named ex-Twitch co-founder Emmett Shear as interim CEO following the departure of Altman.
This raises questions about the future of OpenAI, including the risk of employee exodus to Microsoft and the impact on OpenAI's valuation and growth.
Major Economic Events:
Consumer Sentiment, Existing Home Sales, and the LEI.
Monday (11/20): Leading Economic Index (LEI)
Tuesday (11/21): Existing Home Sales, Fed Meeting Minutes
Wednesday (11/22): Consumer Sentiment, Durable Goods
Thursday (11/23): N/A — Thanksgiving
Friday (11/24): S&P Manufacturing PMI (Flash), S&P Services PMI (Flash)
What We’re Watching:
The last LEI release featured the below message… let’s see how it shakes out this go-round:
“The LEI for the US fell again in September, marking a year and a half of consecutive monthly declines since April 2022…
In September, negative or flat contributions from nine of the index’s ten components more than offset fewer initial claims for unemployment insurance. Although the six-month growth rate in the LEI is somewhat less negative, and the recession signal did not sound, it still signals risk of economic weakness ahead.
So far, the US economy has shown considerable resilience despite pressures from rising interest rates and high inflation. Nonetheless, The Conference Board forecasts that this trend will not be sustained for much longer, and a shallow recession is likely in the first half of 2024.”
— Justyna Zabinska-La Monica, Business Cycle Indicators at The Conference Board
Below are the key highlights from the last National Association of Realtors (NAR) release. We’ll be eager to see where the home sales slide finds a ‘bottom’.
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Disclaimer: This is not financial advice or recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
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