Good morning investors!
After opening the day up nearly 0.8% thanks to a strong GDP report, the S&P ended the day in the red. The turnaround came after Fed member Thomas Barkin said there’s no definitive policy path going forward, meaning there could be more hikes if data changes.
After the bell, Salesforce reported strong earnings that beat analyst estimates, which propelled the stock higher in after hours trading.
Today is a huge day for the market as the PCE report, the inflation data the Fed pays closest attention to, will be released. Plus the jobless claims and pending home sales reports will also add to the mix later this morning.
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 Dow and oil prices, while the S&P, Nasdaq, Bitcoin, and treasury yields ended lower.
U.S. GDP grew at a 5.2% rate in the third quarter, even stronger than first indicated
The U.S. economy grew at an even stronger pace then previously indicated in the third quarter, the product of better-than-expected business investment and stronger government spending, the Commerce Department reported Wednesday. Gross domestic product, a measure of all goods and services produced during the three-month period, accelerated at a 5.2% annualized pace, the department’s second estimate showed. The acceleration topped the initial 4.9% reading and was better than the 5% forecast from economists. Read more
Salesforce shares jump on better-than-expected earnings report
Salesforce CRM 0.00%↑ shares rose 7% in extended trading on Wednesday after the cloud software vendor reported fiscal third-quarter earnings that topped analysts’ estimates. Salesforce, which has historically expanded by well over 20% a year, has seen its growth rates slip in recent quarters as businesses have looked to reduce spending due to economic uncertainties and high interest rates. Revenue increased 11% from $7.84 billion a year ago. It also said revenue for the fiscal fourth quarter will increase about 10% to between $9.18 billion and $9.23 billion. Read more
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Cigna, Humana shares fall after report health-care giants are in talks to merge
Shares of Cigna CI 0.00%↑ and Humana HUM 0.00%↑ slid Wednesday after a report that the two health-care giants are in talks to merge. The companies are discussing a stock-and-cash deal that could be finalized by the end of this year. A merger would be a mega deal. Cigna’s market value sat at roughly $80 billion on Wednesday and Humana’s was around $63 billion, making them two of the nation’s largest health insurers. Shares of Cigna fell more than 7% Wednesday, while Humana’s stock dropped more than 5%. Read more
Fed’s Barkin says rate hikes are still on the table if inflation doesn’t continue to ease
Richmond Federal Reserve President Thomas Barkin said Wednesday that policymakers need to retain the option of raising interest rates if inflation doesn’t show enough progress coming down. Markets largely expect the Fed has stopped raising rates and will start cutting in 2024. But Barkin said he’s not ready to commit to a particular policy path with so much uncertainty in the air. “If inflation comes down naturally and smoothly, awesome, you know, there’s no particular need to do anything with interest rates if inflation steps down,” Barkin said during an interview at the CNBC CFO Council Summit. “But if inflation is going to flare back up, I think you want to have the option of doing more on rates,” he added. Read more
Mark Cuban selling his majority stake in Dallas Mavericks to Adelson family
Dallas Mavericks owner Mark Cuban agreed to sell a majority of his NBA club to the family of Miriam Adelson, widow of the late GOP donor and casino magnate Sheldon Adelson. "The Adelson and Dumont families have entered into binding purchase agreements to acquire majority ownership and the right to serve as Governor of the Dallas Mavericks," according a statement released by the NBA on behalf of the prospective new owners. The agreement would be in the valuation range of $3.5 billion and take weeks for the league to process. Mark Cuban would remain governor of the franchise and in control of all basketball decisions, according to sources. 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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