📈 Intel Out, Nvidia In

Buffet sitting on $300B in cash, UAE pledges to increase oil supply, Boeing strike could end today, 78k US manufacturing jobs lost, Nvidia joins the Dow

Author

Evelio Silvera
November 04, 2024

Good morning.

⚡ The Fast Five → Buffet sitting on $300B in cash, UAE pledges to increase oil supply, Boeing strike could end today, 78k US manufacturing jobs lost, Nvidia joins the Dow

🔎 Market Trends → Wall St closed higher Friday as Amazon's gains offset weak job growth; Weak US Oct payrolls growth skewed by storms, strikes

And now…

⏱️ Your 5-minute briefing for Monday, November 4, 2024:

MARKET BRIEF
Before the Open

As of market close 11/1/2024.

Pre-Market

  • Amazon shares jumped 6.2%, among the top gainers on all three indexes.

  • Super Micro Computer was the worst performer on the S&P 500 and the Nasdaq Friday, down 11%.

Fear & Greed

 

Markets in Review

Tech Giants Lead Market Higher: Amazon's Cloud Success Signals Digital Economy Strength

S&P 500 closed at 5,728.8 (+0.4%), while Nasdaq jumped to 18,239.9 (+0.8%), powered by tech sector gains. Treasury yields climbed, with 10-year touching 4.38%.

The Big Picture

Big Tech's resilience is reshaping market narratives, with Amazon's (AMZN) stellar performance highlighting the enduring strength of cloud computing and digital advertising. The e-commerce giant's 6.2% surge demonstrates that tech titans can still deliver growth even amid macro headwinds.

Oil prices edged higher to $69.48 per barrel, reflecting ongoing Middle East tensions. Meanwhile, gold held near historical highs at $2,743, suggesting investors are maintaining defensive positions.

Go Deeper

  • Cloud Computing's Golden Age: Amazon Web Services' double-digit growth (+15%) signals robust enterprise tech spending, lifting the entire sector. Cloud peers Microsoft (MSFT) and Google (GOOGL) are well-positioned to benefit from this trend.

  • Cable's Comeback: Charter Communications (CHTR) surged 11.9% after crushing expectations, proving there's still life in traditional telecom players who successfully pivot to mobile services.

  • Warning Signs: Apple's (AAPL) 1.3% decline and a $10.2B EU tax charge highlight regulatory risks facing tech giants, while Super Micro Computer's (SMCI) 10.5% plunge suggests some tech valuations may be stretched.

What They're Saying

"The jobs report is more relief than alarm for the Fed," notes Jefferies' analysts, suggesting rate cuts could come sooner than expected.

WHAT WE’RE WATCHING
Events

  • Tues. Nov 5: Institute for Supply Management - Purchasing Managers’ Index, 8:30AM

  • Why You Should Care: It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.

Earnings Reports

  • Today: Vertex, Palantir, Constellation Energy, Marriott

  • Monday: Ferrari, Apollo Global Management, Thomson Reuters, Emerson Electric, Marathon Petroleum

MARKET BRIEF
Leading News

Nvidia's Dow Debut Signals AI's Arrival in the Old Guard Economy

Why it matters:

This isn't just a routine index reshuffling — it's a symbolic torch-passing moment that shows how AI and next-gen computing have become the heart of America's economic future.

The big picture:

The Dow Jones Industrial Average, that 128-year-old barometer of blue-chip America, is getting a major update. Nvidia (NVDA), the AI chip juggernaut that's up a staggering 180% this year, will replace semiconductor old-timer Intel (INTC) on November 8.

Think of it as the ultimate "OK Boomer" moment in corporate America — out with the PC-era champion, in with the AI revolution leader.

Go deeper:

  • Nvidia's market value has exploded to $1.2 trillion, making it worth nearly 6x more than Intel. That's not just performance — it's a changing of the guard

  • The move reflects a broader shift as traditional tech gets disrupted by AI-first companies. Even crypto believers are watching, as Nvidia's chips power much of the computational heavy lifting in both AI and crypto mining

  • Intel's exit marks the end of a 25-year run in the index, highlighting how quickly tech leadership can shift in the digital age

What they're saying:

"This isn't just about semiconductors — it's about who's building the foundation for the next decade of innovation," says Dan Ives, Wedbush Securities analyst. "Nvidia is the picks-and-shovels play for the AI gold rush."

The bottom line:

Smart move: Investors should view this as validation that AI isn't just hype — it's becoming part of the economic establishment. Consider using any market dips to build positions in AI-focused leaders, but remember even high-flyers like Nvidia aren't immune to volatility.

Headlines

  • Berkshire Hathaway’s cash fortress tops $300 billion as Buffett sells more stock, freezes buybacks (link)

  • Boeing factory workers to vote on deal that could end seven-week strike (link)

  • Chinese Hedge Fund Manager Indicted by US in Trade Secrets Case (link)

  • Viking Therapeutics Set To Break Out Powerfully On Latest Obesity Drug Data (link)

  • Manufacturing sector sheds 78K jobs in last three months (link)

  • Elon Musk Says 'We Can Cut $2 Trillion Out Of The Harris Biden Budget' And That Americans' Money Is Being Wasted On Unnecessary Spending (link)

  • UAE in pledge to increase oil output despite fall in prices (link)

CRYPTO
Fear & Greed

 

Headlines

  • Bitcoin Pulls Under $68K as Crypto Markets Falter Ahead of Election (link)

  • Taiwan’s FSC to heighten scrutiny of crypto listings on exchanges in upcoming January rules (link)

  • Funding Roundup: Glow, Nillion and Ellipsis all announce big raises (link)

DAILY SHARE
On the Socials

*Hat-tip to netcapgirl