MarketLens
Market Overview
The S&P 500 added 0.96% this week while the NASDAQ gained 0.47%.
After a significant tech sell-off on Friday, Nvidia was the only "Magnificent Seven" stock to finish in the green. The S&P and NASDAQ could have delivered stronger performances without the sell-off.
Meanwhile, the Dow was up 1.63% this week, but here’s a reminder of why the Dow is not a reliable indicator of market health:
The DJI only contains the 30 largest companies in the U.S. equity market. The small sample size is not an accurate reflection of performance.
The DJI is also weighted by price, while the S&P 500 is weighted by market cap.
Overall, it offers a narrow perspective of market growth and trends, and should not be used to make investment decisions.
Bitcoin is on the verge of surpassing $100,000. This week, the first Bitcoin ETF Options began trading, with BlackRock’s iShares Bitcoin Trust ETF trading about 73,000 options contracts within Tuesday's first hour of trading. The momentum behind President-Elect Trump’s victory and the increase in exposure through options trading have fueled Bitcoin’s rally, up more than 40% in two weeks.
We anticipate the asset will trend upward, potentially surpassing $100K by year-end. What comes next in 2025 remains uncertain.
Consider this a friendly reminder to stay grounded, take profits when appropriate, and have a clear strategy. It’s easy to get caught up in the excitement when your “unrealized gains” hit an all-time high, but keeping a level head is key.
Economic Insights You Need to Know
Mortgage applications are down 50% since 2019, hitting a 30-year low, according to the Mortgage Bankers Association. As a leading indicator of home sales, this drop signals a likely decline in sales figures over the next two months. Rising mortgage rates, discussed in a prior MarketLens Newsletter, along with high home prices and low buyer sentiment—84% of Americans believe it’s a bad time to buy—are keeping potential buyers sidelined. Despite predictions of a market crash, housing prices remain stable.
President-Elect Donald Trump has nominated hedge fund manager Scott Bessent as Treasury Secretary for his second administration, entrusting him with implementing major economic initiatives, including tax cuts and managing $36 trillion in federal debt. Bessent aims to cut government spending and uphold the dollar's status as the global reserve currency. He will oversee sanctions, Wall Street regulations, and the economic strategy of the U.S. economy, pending Senate confirmation.
Stock of the Week: MicroStrategy Inc.
MicroStrategy Inc. (NASDAQ: MSTR) has seen its stock price jump 22% this week and is up 515.70% YTD. The company, led by Michael Saylor, became Wall Street’s second-most traded stock on Wednesday, trailing only Nvidia. The increase in trading was fueled by its Bitcoin buying, including a recent $4.6 billion purchase of 51,780 Bitcoin. The company now holds over 331,200 Bitcoin, worth $31 billion, making it a major participant in cryptocurrency investments.
U.S. Business News
Nvidia released Q3 earnings, beating Wall Street estimates. Nvidia reported revenues of $35 billion, a 94% increase from a year ago, while their profits doubled YoY to $19.3 billion. Nvidia’s Q4 guidance projects about $37.5 billion in revenues. The company has only missed revenue projections one quarter in the past five years.
Apple plans to redesign Siri and integrate AI into the new version. Compared to ChatGPT, Gemini, and Meta AI, Siri lacks functionality and practicality. The new Siri will be called Siri LLM and is not set to release in 2026. Apple does plan to release an iOS update in December that will integrate ChatGPT, aiming to enhance AI capabilities across devices.
U.S. regulators are pushing for Google to be broken up after a court found the company abused its market power in the search engine market. The Department of Justice has proposed measures, including forcing Google to sell its Chrome browser and limiting Android’s preference for Google’s search engine. Regulators also want to ban Google’s deals that make its search engine the default on devices, increase transparency in its ad pricing, and allow competitors access to its search data. Google claims such actions go too far. The case resembles past efforts to break up Microsoft, which were overturned.
Comcast plans to spin off most of NBCUniversal’s cable networks into a separate public company called "SpinCo" to improve its stock performance by shedding declining assets. While these cable networks still generate revenue, they are losing subscribers as more people switch to streaming services. The spinoff aims to create a leaner Comcast, but there’s uncertainty about whether SpinCo will succeed as an independent entity, as its assets are declining and less integrated with streaming than competitors like Disney.
Spirit Airlines officially filed for bankruptcy protection this week. Despite losing over $2.5 billion since 2020, Spirit plans to continue operations during the restructuring. The airline has secured financial support from bondholders, including $350 million in investments and a $300 million loan, to help stabilize operations. Challenges include rising costs, declining revenue from fares, and competition from major airlines offering budget options. Spirit previously attempted a merger with JetBlue, which was blocked by the Department of Justice in 2023.
Walmart reported strong Q3 earnings, citing sales of $169.5 billion, beating Wall Street’s $167.5 billion estimate. Walmart's stock rose 4% following the reports and its stock is up 65% YTD
Target’s Q3 earnings reported relatively flat sales growth, with same-store sales up just 3% YOY. Target missed analysts' expectations of 1.5% growth and cited customers have cut back on spending on non-essential items. Their Q3 profits dropped by 12%. Target has implemented price-cutting to attract more customers and even saw an increase in in-store foot traffic. Here’s a view of Target’s stock chart before and after reporting earnings this week:
Gap reported Q3 earnings and beat estimates on revenues and profits. Other Gap-operated brands including Banana Republic, Old Navy, and Altheta also saw an increase in sales. Gap shares were up as much as 15% Friday morning in response.
Overseas Updates
Russia escalated its conflict with Ukraine by launching an experimental RS-26 missile after the U.S. granted permission for Ukraine to use long-range missiles against Russian targets. While the missile didn’t carry a payload and seemed more like a warning, it was a clear signal from Moscow trying to show its strength without fully crossing into nuclear action. This move highlights Russia’s difficulty in stopping U.S. support for Ukraine while trying to maintain good relations with countries like China. Experts say this step shows Russia is testing limits carefully rather than making drastic moves.
The U.S. has charged Gotham Adani, India’s second richest man, with fraud and bribery. Andani is charged with paying hundreds of millions of dollars in bribes to get solar energy contracts in India for his energy company, Adani Green. The company has raised around $175 million with U.S. investors. The U.S. investors were unaware of Adani’s business model, which included bribery to win over customers. Adani has previously been at the center of another accounting fraud and stock manipulation scandal that was released in a report by U.S.-based Hindenburg Research in 2023.
News in Sports
NFL
Thursday Night Football: The Cleveland Browns defeated the Pittsburgh Steelers 26-18 in the first snow game of the NFL season.
Sunday Night Football: The Los Angeles Rams will host the Philadelphia Eagles
Monday Night Football: The Los Angeles Chargers face off against the Baltimore Eagles
NCAA Football
SEC: No. 7 Alabama vs. Oklahoma
Big-10: No. 2 Ohio State vs. No. 5 Indiana
ACC: No. 6 Notre Dame vs. No. 19 Army
Big-12: No. 12 BYU vs. No. 21 Arizona State
NBA
Closing Remarks
Bitcoin is currently the 7th most valuable asset in the world.
Gen Z is accruing debt at a faster and higher rate than millennials ever did.
As a reminder, during this time of high equity and crypto returns, relying solely on short-term price moves as an investment strategy is extremely risky and not an ideal long-term approach.
The stock and bond markets will be closed next Thursday, Nov. 28 for Thanksgiving. Additionally, the stock market closes early at 1 p.m. ET and the bond market closes at 2 p.m. ET on Black Friday.
Stay with us for more insights next week.
Disclaimer: This is not financial advice or a recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
Ashlyn Haringa