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- 👉 The Investing Week Ahead: Sticky Inflation?
👉 The Investing Week Ahead: Sticky Inflation?
Nvidia's MC is bigger than Canada's GDP...
Welcome to your new week.
It’s Monday — so let’s start out with something light and funny.
Jim Cramer, you simply never fail to amaze us:
Key Earnings Announcements:
A diverse showcase of tech, retail and biotech shine this week.
Monday (3/4): AeroVironment, Avadel, GitLab, Paymentus, Science Applications International Corp, Semrush
Tuesday (3/5): Chargepoint, Couchbase, Crowdstrike, Nio, Nordstrom, Riskified, Ross, Target, Vividseats
Wednesday (3/6): EVgo, Honest , JD.com, OneSpan, Victoria’s Secret, Yext
Thursday (3/7): ABM, BigBear.ai, Broadcom, Costco, DocuSign, Kroger, Marvell Technology, MongoDB, Samsara
Friday (3/8): America’s Car-Mart, Bio-Path Holdings, Genesco
What We’re Watching:
Broadcom is set to flex its financial muscle in the tech world for Q4 — with a +4% boost in revenue to $9.295 billion and 51% of it as free cash flow. It’s increasing their dividend by +14% to $5.25, signaling strong shareholder confidence.
Thanks to the VMware acquisition and riding the massive AI / semiconductor wave — Broadcom projects a +40% revenue jump to $50 billion in fiscal 2024.
CrowdStrike's Q3 results were impressive, with ARR hitting $3.15B — a +35% YoY surge — and diluted EPS up +105% to $0.82. Operating margin rose by +7 points to 22%, and free cash flow increased 37% to $239M.
Last quarter demonstrated strong profitability coupled with rapid growth. However, with the stock climbing over +200% within a year, there's a growing sentiment among analysts that it may be overbought. Watching this one closely.
Investor Events / Global Affairs:
Canada needs to sell more maple syrup, hedge funds are playing real life Farmville, and real estate is bringing the bears out of hibernation.
Canada GDP
Canada's economy grew by +1.1% from Q4 2022 to Q4 2023 — but faces challenges with a population increase outpacing economic expansion.
This growth lag has led to a per capita GDP decline of approximately -2% annually — continuing a troubling trend of zero economic growth spanning over six years. Oh… and Nvidia’s now worth more than the entire Canadian GDP.
Largest Short Position in 2 Decades
Hedge funds have taken a massive short position on grains. With 546,000 contracts across corn, wheat, and soybeans — this marks the largest short bet across these categories in 20+ years.
This bet could be due to bumper crops (crops that had unexpectedly productive harvests) or shifts in trade. Such a stance could stir market volatility – impacting everything from farming to food prices in your local grocery store.
Real Estate Quick Overview
Pending home sales have fallen to their lowest since 2008, dropping -6.9% YoY.
Major Economic Events:
Consumer credit insights and labor market dynamics are in focus.
Monday (3/4): None Scheduled
Tuesday (3/5): Factory Orders, ISM Services
Wednesday (3/6): ADP Employment, Fed Reserve Beige Book, Job Openings, U.S. Wholesale Inventories
Thursday (3/7): Consumer Credit, Fed Chair Jerome Powell Monetary Policy Report to Congress, Initial Jobless Claims, U.S. Productivity (revision), U.S. Trade Balance,
Friday (3/8): Consumer Sentiment (final), U.S. Hourly Wages, U.S. Nonfarm Payroll, U.S. Unemployment Rate
What We’re Watching:
In 2023, U.S. consumer credit saw a +2.4% increase — driven by a significant +8.4% rise in revolving credit and a modest +0.4% uptick in non-revolving credit. Momentum continued into Q4, with consumer credit expanding at a seasonally adjusted annual rate of +2.6%.
A rising challenge to consider: card delinquency rates are climbing quickly, with total credit card debt exceeding $1 trillion.
Auto loan delinquencies are approaching levels not seen since 2008. Commercial bank interest rates on credit cards are increasing, alongside a notable decrease in bank lending.
In January 2024, the U.S. unemployment rate held steady at 3.7% — and there’s now an expected rise to ~4.0%. Despite a stable labor force, the twist comes as the majority of 2024's job gains have been part-time — pushing part-time workers to an all-time high of 17.3%.
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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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