TRG Fast Facts

By TRG Advisors on November 21, 2024

Weekly data-driven insights on the markets and economy

1. Market Eyes Nvidia

U.S. stocks fell on Wednesday as investors awaited computer manufacturing corporation Nvidia’s earnings. The Dow Jones dropped 0.3%, the S&P 500 fell 0.6%, and the Nasdaq slipped 0.8%. Nvidia’s results are seen as a crucial test for the AI trade that could influence market direction for days to come.^[i]

2. Tariff Troubles?

Corporate executives are cautiously observing President-elect Donald Trump’s plan to impose heavy tariffs on imports, with many expressing concerns about the potential impact on inflation. Major U.S. corporations, including Walmart, have highlighted that increased tariffs could lead to higher prices for consumers. Executives are also discussing efforts to diversify supply chains away from China, which is a primary target of Trump’s tariff proposals.^[ii]

3. Gold Rush

Gold prices hit a one-week high of $2,630 per ounce on Tuesday based on fears of nuclear escalation in the Russia-Ukraine war. Russian President Vladimir Putin recently signed a new nuclear policy, lowering the threshold for using nuclear weapons. Despite recent fluctuations, gold is up about 27% this year, with Goldman Sachs advising investors to buy gold as central banks continue to accumulate it.^[iii]

4. Housing Havoc

In October, U.S. single-family homebuilding dropped significantly, likely due to Hurricanes Helene and Milton in the South. Even though permits rose slightly, higher mortgage rates are expected to limit any rebound. The housing market is struggling with higher borrowing costs as the Federal Reserve tightens monetary policy to combat inflation. Economists have lowered their GDP estimate for the fourth quarter due to these ongoing challenges.^[iv]

5. Target Takes a Tumble

Target shares plunged 20% after the retailer missed Wall Street’s earnings and revenue expectations for the quarter. Despite price cuts and early holiday sales, Target lowered its full-year profit guidance and expects flat sales for the fourth quarter. Higher supply chain costs and weak demand for non-essential items hurt the company’s performance, leading to its biggest earnings miss in two years.^[v]

6. Conan O’Brien’s Oscar Debut

Emmy-winning late-night talk show host and podcaster Conan O’Brien will host the 97th Academy Awards, marking his first time emceeing the Oscars. The ceremony will air live on ABC on March 2 from the Dolby Theatre in Los Angeles. Known for his off-kilter and self-deprecating comedy style, O’Brien brings decades of live broadcast experience to the telecast.^[vi]

^[i] Friar, Karen and Schafer, Josh. “Stock market today: Dow, S&P 500, Nasdaq slide as Nvidia earnings loom large.” Yahoo Finance, 20 Nov. 2024, https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-slide-as-nvidia-earnings-loom-large-121829929.html. Accessed November 20, 2024.
^[ii] Nishant, Niket. “Walmart, other US companies raise wages amid labor shortages.” Yahoo Finance, 20 Nov. 2024, https://finance.yahoo.com/news/walmart-other-us-companies-raise-171946408.html. Accessed November 20, 2024.
^[iii] Ferré, Ines. “Gold jumps to 1-week high as Russia-Ukraine war escalates.” Yahoo Finance, 20 Nov. 2024, https://finance.yahoo.com/news/gold-jumps-to-1-week-high-as-russia-ukraine-war-escalates-155921872.html. Accessed November 20, 2024.
^[iv] Mutikani, Lucia. “US single-family housing starts drop significantly in October.” Yahoo Finance, 20 Nov. 2024, https://finance.yahoo.com/news/us-single-family-housing-starts-134759234.html. Accessed November 20, 2024.
^[v] Repko, Melissa. “Target Q3 2024 earnings.” CNBC, 20 Nov. 2024, https://www.cnbc.com/2024/11/20/target-tgt-q3-2024-earnings.html. Accessed November 20, 2024.
^[vi] Arkin, Daniel. “Conan O’Brien tapped to host Academy Awards.” NBC News, 20 Nov. 2024, https://www.nbcnews.com/pop-culture/awards/conan-obrien-tapped-host-academy-awards-rcna180311. Accessed November 20, 2024.