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- 👉 The Investing Week Ahead: 12/04/23
👉 The Investing Week Ahead: 12/04/23
It seemed so simple, but it lost Goldman over $4B...
Welcome to your new week.
Before we get started — this edition of Rate of Return is brought to you by Percent!
Finding returns in a high interest rate environment
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You’ll get access to:
Key Earnings Announcements:
Stretchy pants and workflow management.
Monday (12/4): GitLab, SAIC
Tuesday (12/5): Asana, AutoZone, Box, Dave & Buster’s, Designer Brands, Ferguson, HealthEquity, JM Smucker, MongoDB, Nio, SentinelOne, Signet Jewelers, Stitch Fix, Toll Brothers
Wednesday (12/6): C3.ai, Campbell’s, ChargePoint, Chewy, Duckhorn, GameStop, LoveSac, Ollie’s, Oxford, Sportsman’s Warehouse, Thor Industries, Veeva, Vera Bradley
Thursday (12/7): Broadcom, Ciena, DocuSign, Dollar General, Lululemon, RH, Smith & Wesson
Friday (12/8): Hello Group
What We’re Watching:
International expansion is the name of the game for LULU. Investors will be eager to see if this past quarter lived up to the impressive global progress from the middle of 2023.
Asana’s last earnings report (September) saw the company beat expectations and provide decent outlook — but the stock still slid. Analysts are skeptical that a stock with negative earnings and < $200M in quarterly revenues is worth a $5B+ market cap. The fall from grace has been real for this one — and it’s a pivotal report for CEO Dustin Moskovitz.
Investor Events / Global Affairs:
NVDA seems to be pushing its limits, and Apple’s partnership with Goldman Sachs comes to an end.
Nvidia (NVDA) Playing w/ Fire?
On Friday — U.S. Commerce Secretary Gina Raimondo emphasized the need for increased funding to prevent China from obtaining advanced semiconductor technology. "We cannot let China get these chips."
She highlighted the importance of denying China cutting-edge technology and urged Congress to provide more funding to the Commerce Department's Bureau of Industry and Security.
Raimondo acknowledged the impact of export controls on American chip companies, stressing that protecting national security takes precedence over short-term revenue. She specifically mentioned Nvidia — warning that if a chip is redesigned for China, she would immediately impose controls, citing it as a crucial step in addressing the significant national security threat posed by China.
“If you redesign a chip around a particular cut line that enables them to do AI, I’m going to control it the very next day.”
The Commerce Department updated the semiconductor curbs this fall to capture Nvidia’s made-for-China chips — and the company responded by designing three new AI components for the Asian country.”
Apple & Goldman Sachs Walk Away
The Apple x Goldman Sachs relationship was supposed to create a thriving partnership — with high-yield savings accounts, BNPL offers, dozens of perks etc. While most of that came true — it ultimately led to big issues for Goldman Sachs’ balance sheet.
Major Economic Events:
A big week of insights into the labor market.
Monday (12/4): Factory Orders
Tuesday (12/5): ISM Services, Job Openings, S&P Services PMI
Wednesday (12/6): ADP Employment, U.S. Productivity, U.S. Trade Deficit
Thursday (12/7): Consumer Credit, Wholesale Inventories
Friday (12/8): Consumer Sentiment (Prelim.), Jobs Report + Unemployment Rate
What We’re Watching:
It’s been a slow rise for the unemployment rate in the second half of 2023. This will be the final indication for how the trend is looking going into 2024.
The ADP jobs report is also important to keep an eye on. It gives more specific insights to private employment, and is also a good source to cross-reference the official U.S. jobs report.
According to ADP — the largest job gains have recently been in education & health services, as well as trade, transportation, & utilities.
If you’re starting your investing journey or are interested in buying T-bills yielding 5% or more, consider visiting Public.com.
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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