Good morning investors!
The S&P ended 0.2% higher after retail sales data showed a strong consumer and jobless claims were less than expected.
We get PMI data later this morning, which will give us some more insights into the economy, but other than that there is little to look forward to on the news front. So unless there are any surprises today, it should be a quiet end to the week.
Don’t miss a thing - head to the Discord to get full breakdowns of all earnings and economic reports.
Market Recap
It was a green day for the major indexes, Bitcoin and oil prices, while treasury yields ended lower.
Retail sales rose 0.3% in November vs. expectations for a decline
Consumers showed unexpected strength in November, giving a solid start to the holiday season as inflation showed signs of continued easing. Retail sales rose 0.3% in November, stronger than the 0.2% decline in October and better than the estimate for a decrease of 0.1%, the Commerce Department reported Thursday. “The rebound in retail sales in November provides further illustration that the continued rapid decline in inflation is not coming at the cost of significantly weaker economic growth,” said Andrew Hunter, deputy chief U.S. economist at Capital Economics. Read more
Intel unveils new AI chip to compete with Nvidia and AMD
Intel INTC 0.00%↑ unveiled new computer chips on Thursday, including Gaudi3, an artificial intelligence chip for generative AI software. Gaudi3 will launch next year and will compete with rival chips from Nvidia and AMD that power big and power-hungry AI models. The most prominent AI models, like OpenAI’s ChatGPT, run on Nvidia GPUs in the cloud. It’s one reason Nvidia stock has been up nearly 230% year to date while Intel shares have risen 68%. And it’s why companies like AMD and, now Intel, have announced chips that they hope will attract AI companies away from Nvidia’s dominant position in the market. Read more
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Costco reports earnings beat and declares special dividend
Costco Wholesale COST 0.00%↑ surpassed market expectations for quarterly sales on Thursday, as more customers turning to its stores for cheaper groceries and essentials offset slowing demand for discretionary items. Costco has increased its sales and market share thanks to its strategy of maintaining low prices on basic essentials and gas as well as a devoted membership base that benefits from incentives including testing of free samples and a yearly 2% reward on qualified purchases at its warehouses. The company also declared a special dividend of $15 per share to be paid on January 12, 2024. Here are the numbers from the report:
Earnings per share: $3.58 vs. $3.41 expected
Revenue: $57.80 billion vs. $57.71 billion expected
Disney prepares for bitter battle as activist Peltz seeks two board seats
Disney DIS 0.00%↑ is bracing for a bitter proxy battle as activist investor Nelson Peltz is seeking two board seats at Disney, his firm Trian Fund Management said on Thursday, pressing ahead with his second board challenge this year. Trian, which owns roughly $3 billion worth of Disney shares, abandoned an earlier bid for one board seat in February when the media conglomerate outlined a sweeping restructuring plan that addressed his criticisms. But now they are back. "As Disney's largest active shareholder, we can no longer sit idly by as the incumbent directors and their hand-picked replacements stand in the way of necessary change," Trian said in a statement, laying out the case for its two independent director candidates. Read more
GM’s Cruise laying off 900 employees, or 24% of its workforce
General Motors’ GM 0.00%↑ Cruise on Thursday announced internally that it will lay off 900 employees, or 24% of its workforce. The layoffs, which mostly hit commercial operations and related corporate functions, comes one day after the robotaxi subsidiary dismissed nine “key leaders” for the company’s response to an Oct. 2 accident in which a pedestrian was dragged 20 feet by a Cruise self-driving car after being struck by another vehicle. Since the incident, the company has suspended all trips on public roads and halted production of a new robotaxi, among other moves. Read more
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Chris
CMG Venture Group
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