Good morning investors!
Despite another report that indicated the labor market is weakening, the S&P rose 0.8% after Alphabet announced a new AI model. Artificial intelligence is the economy now.
Today is all about the nonfarm payrolls report. All the previous jobs reports this week were just appetizers. Tomorrow is the main course which will influence how the market trades going forward as well as the Fed’s next rate hike decision.
It should be an exciting 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, treasury yields and oil prices while Bitcoin ended lower.
Alphabet and AMD fuel AI rally
The Nasdaq surged on Thursday, with Alphabet GOOG 0.00%↑ and Advanced Micro Devices AMD 0.00%↑ sparking a megacap rally on fresh optimism about artificial intelligence. Shares of Alphabet jumped over 5% as analysts cheered the launch of the Google-parent's newest AI model called Gemini, while AMD soared more than 9% after the company estimated the potential market for its data center AI chips could reach $45 billion this year. Other heavyweight tech-related stocks also gained, with Nvidia and Amazon climbing nearly 2%, Meta Platforms rising 2.8% and Apple up about 1%. Read more
McDonald’s to open first CosMc’s spinoff restaurant this week
McDonald’s MCD 0.00%↑ will open the first location of its new spinoff brand CosMc’s this week in Bolingbrook, Illinois. The fast-food giant plans to open 10 CosMc’s locations, including nine restaurants in Texas, by the end of 2024 in a test. McDonald’s will then spend a year analyzing data to decide whether it will expand the small-format chain. With a menu that includes old favorites such as Egg McMuffins and M&M McFlurries, and new items such as Churro Frappes and pretzel bites, the burger chain is positioning CosMc’s as a fast, convenient way to grab a pick-me-up snack or coffee. The name for the new brand comes from CosMc, a McDonaldland mascot that appeared in advertisements in the late 1980s and early 1990s. Read more
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Facing fines, cluttered aisles and late-night mockery, Dollar General’s returning CEO tries to drive a turnaround
Dollar General DG 0.00%↑ has gotten hit by steep fines for safety violations, slammed on late-night TV and even overruled by its own shareholders. On Thursday, CEO Todd Vasos laid out on an earnings call with investors the discounter’s plans to try to turn around both the company’s performance and its public relations problems. He said the retailer will put more workers in the front of its stores, slow down new store openings, take underperforming items off shelves and step up efforts to keep merchandise in stock. Here’s what the retailer reported for the last quarter:
Earnings per share: $1.26 vs. $1.19 expected
Revenue: $9.69 billion vs $9.64 billion expected
U.S. labor market steadily slowing as jobless claims tick higher
The number of Americans filing new claims for unemployment benefits increased moderately last week to a seasonally adjusted 220,000, suggesting that the labor market was gradually losing momentum as higher borrowing costs curb demand in the broader economy. The weekly jobless claims report from the Labor Department on Thursday also showed unemployment rolls declining in late November after the so-called continuing claims hit a two-year high in the middle of the month. While the mixed report supported economists' views that the Federal Reserve was likely done raising interest rates this cycle, it suggested that financial market expectations of a cut as early as the first quarter were premature. Read more
Lululemon shares fall as retailer gives tepid holiday outlook
Lululemon LULU 0.00%↑ on Thursday said it saw strong third-quarter demand and a positive start to the holiday shopping season, but the retailer’s shares fell in extended trading after it gave a tepid fourth-quarter outlook. During the quarter, sales jumped 12% in North America and 49% internationally but the retailer’s holiday guidance came in light of expectations. Lululemon said it’s expecting sales to be between $3.14 billion and $3.17 billion for the fourth quarter, which is shy of the $3.18 billion analysts had expected. The company did authorize a $1 billion share buyback program. Read more
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Thank you for taking the time to read today’s newsletter. Until next time investors!
Chris
CMG Venture Group
Disclaimer
I am not a licensed financial advisor or financial professional. This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.
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