To The Moon

On Thu, 21 Nov 2024, US stocks climbed after market superstar $NVIDIA Corp(NVDA)$ and other US companies said they are more profitable than expected. (see below) US market bucked Wednesday downwards trend and ended trading day higher: DJIA rose +1.1% (+461.88 points to 43,870.35), hitting a one-week tops. (see above) S&P 500 rose +0.5%, (+31.60 to 5,948.71). Posted 67 new 52-week highs and 4 new lows. Also hitting a one-week tops. Nasdaq rose less than +0.1% (+6.28 to 18,972.42). 2,875 stocks rose and 1,444 fell as advancing issues outnumbered decliners by a 1.99-to-1 ratio. Trading volume on US exchanges was 15.32 billion shares, compared with 14.55-billion average for the full session over the last 20 trading days. US market - Week to date: Dow is up +1.0% or 425.36 points.. S&P 500 is up +1.3% or 78.09 points. Nasdaq is up +1.6% or 292.30 points. US market - Year to date: Dow is up +16.4% or 6,180.81 points. S&P 500 is up +24.7% or 1,178.88 points. Nasdaq is up +26.4% or 3,961.07 points. Rally’s Catalyst. Like I mentioned in my Monday post (click here ! to read and help to Repost), Nvidia’s strong earnings helped the Dow to surge by over 570 points on Thursday. For a fleeting moment, the #1AI chip leader even hit a 52-week high of $152.89 per share intraday. Nvidia’s quarterly earnings. Nvidia beat on top and bottom lines for the third quarter: Earnings per share (EPS) was $0.81 vs analysts’ expectations of $0.75. Revenue clocked was $35.08 billion vs expected revenue of $33.16 billion vs $30 billion (a year ago). Net income was $19.3 billion. More importantly, Nvidia also gave a better-than-expected forecast for the current (4th) quarter that is above estimates. Ameriprise Financial, Chief market strategist, Anthony Saglimbene has said: The fundamentals of AI and Nvidia continue to fire on all cylinders. Outlook for 2025 remains positive. Naysayers. As expected, some investors were unimpressed that the forecast was its slowest in seven quarters. (see above) I supposed there is no pleasing for everyone. Meanwhile, shares of $SUPER MICRO COMPUTER INC(SMCI)$ rose over by +15.12% on Thursday. (see above) Many attributed it to Nvidia’s shoutout support (by mentioning its partners) during its earnings conference call on Wednesday. Considering Super Micro’s outstanding accounting issues, investors felt reassured that the partnership is strong enough for the company to be featured. As a reseller of Nvidia’s GPUs and other components, Super Micro incorporates Nvidia’s technology into its servers to support AI workloads. The two companies have a long-standing relationship. Both CEOs - Charles Liang (Super Micro) and Jensen Huang are Taiwanese immigrants. As per my Wednesday post (click here ! to read, help to repost) - SMCI is at best good for speculation given its volatility. It should not be part of a long-term game plan; not until the whole saga blows over. Overall, Ameriprise Financial’s Chief market strategist, Anthony Saglimbene summarizes: US market has moved on from the election a bit. Nvidia’s earnings are out. Next thing, market will look for is the next Fed FOMC meeting. Already some policy speak from Fed officials this week have pointed to a maybe pause in the making for December. Investors will be closely monitoring commentary from Federal Reserve officials before the mid-December FOMC meeting. According to the CME FedWatch tool, money-market is still betting a further -0.25% interest cut by the Fed in December 2024. (see below) In spite of confidence exhibited by money market on an impending interest cut, the CME Fedwatch tool paints a different picture. Looking at the CME FedWatch tool’s interest cut probability taken on 12 Nov, 14 Nov (after Mr Powell speech) and 22 Nov: (see above) Probability of a further -0.25% interest cut: Fell from 82.5% to 61.6% to 55.9% (latest). Probability of status quo, no interest cut: Rose from 17.5% to 38.4% to 44.1% (latest). FOMC Members Spoke. Before the start of December’s blackout period from 7 Dec 2024 to 19 Dec 2024, Fed members have been hitting the ground, promoting transparency about the Fed's monetary policy decisions and their impact on the economy Below are excerpts from 4 FOMC members. According to a media report, Richmond Fed President Tom Barkin said the US is more vulnerable to inflationary shocks than in the past. Chicago Federal Reserve President Austan Goolsbee said on Thursday he supports further interest rate cuts and is open to doing them more slowly. Federal Reserve Governor Lisa Cook said the timing of further interest-rate cuts will depend on coming data, leaving the central bank’s decision at its December meeting uncertain. Federal Reserve Governor Michelle Bowman said she prefer to proceed cautiously on further interest-rate cuts because progress in reducing inflation has slowed and recognizing that 2% inflation goal has not been achieved yet. US weekly jobless claims Rounding things up for Thursday was US weekly jobless claims report. For week ending 16 Nov 2024, US weekly jobless claims came in at 213,000 vs Wall Street estimates of 220,000 and last’s week revised claims of 219,00. This is US’s lowest reading since April 2024, as the impact of $Boeing(BA)$ labour strikes and severe weather that has made weekly data noisy over the last few months began to fade out. Latest data showed that US labour market is holding steady. Will positive sentiments from Thursday carry over to Friday ? Will the S&P 500 index be able to clock another new high to round off the week ? Must Read: Click on below titles to access. Give a like & help to repost ok. Thanks. Will PLTR & META Tie-Up Sparks Rally ? SMCI Rose +31% but Still In Danger ! Can NIO surge to $10 ? How soon ? Do you think Nvidia’s current quarter earnings will be even “more outstanding” when it is time to report in 3 months’ time, with knowledge that demand for Blackwell far exceeds Hopper? Do you think it is a ‘chore’ to speculate on SMCI, to possibly earn or lose a buck quickly? If you find this post interesting, give it wings! ️ Repost and share the insights ? Do consider “Follow me” and get firsthand read of my daily new post. Thank you. @Daily_Discussion @TigerPM @TigerStars @Tiger_SG @TigerEvents