📈 Sam returns

Binance CEO agrees to plead guilty and pay $50M fine, Fed gave no indication of possible rate cuts in last meeting, FDIC forms special committee to review allegations, and Nvidia’s revenue triples as chip boom continues and Nvidia failed to satisfy lofty investor expectations for AI boom...

November 22, 2023

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The Fast Five → Binance CEO agrees to plead guilty and pay $50M fine, Fed gave no indication of possible rate cuts in last meeting, FDIC forms special committee to review allegations, and Nvidia’s revenue triples as chip boom continues and Nvidia failed to satisfy lofty investor expectations for AI boom…

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Your 5-minute briefing for Wednesday:

BEFORE THE OPEN

As of market close 11/21/2023.

MARKETS:

  • Nasdaq 100 futures down 0.2% as Nvidia's earnings impact assessed.

  • S&P 500 futures dip 0.1%, Dow near flat.

  • Nvidia shares slide over 1% in extended trading despite beating Q3 earnings and revenue expectations.

  • Concerns rise over Nvidia's stock possibly being overvalued after a 200%+ surge this year.

  • S&P 500 and Nasdaq end five-day winning streak; Dow falls 0.18%, S&P 500 down 0.20%, Nasdaq drops 0.59%.

  • Federal Reserve maintains restrictive monetary policy, signaling no imminent interest rate cuts.

  • Watch for durable goods orders, jobless claims, and consumer sentiment data Wednesday.

  • Deere & Co. reports fiscal Q4 results before Wednesday's opening bell.

EARNINGS

  • What we're watching this week:

    • Today: Deere

    • Thursday: Royal Bank of Canada

  • Full calendar here

NEWS BRIEFING

  • Sam Altman Returns as OpenAI CEO in Dramatic Reversal (Read More)

  • Binance CEO ‘CZ’ Agrees to Plead Guilty, Pay $50 Million Fine (Read More)

  • Fed gave no indication of possible rate cuts at last meeting, minutes show (Read More)

  • U.S. FDIC announces special committee to review allegations of sexual harassment, misconduct (Read More)

  • Nvidia failed to satisfy lofty investor expectations for AI boom (Read More)

  • Fed wants more evidence before changing rate stance (Read More)

  • Tiger Global’s Scott Shleifer stepped down as head of private investing (Read More)

  • Sony facing $7.9 bln mass lawsuit over PlayStation Store prices (Read More)

  • Home sales fell to a new 13-year low in October (Read More)

  • Warren Buffett, 93, donates more Berkshire stock, assures ‘I feel good’ (Read More)

  • Musk defends himself on X after antisemitic furor deepens (Read More)

  • JPMorgan says ‘The Golden Year’ for carry trades is near its end (Read More)

  • Ford to scale back plans for $3.5B Michigan battery plant as EV demand disappoints, labor costs rise (Read More)

CRYPTO

  • Crypto lender Celsius Network scaled back its post-bankruptcy business plans and will focus only on bitcoin mining (Read More)

BULLISH BITES

🤪 House of cards: Inside OpenAI's weird governance structure.

🏚 On the mend: Bad business is breaking the smart home — good regulation can fix it.

🎬 Words of wisdom: Famed director Christopher Nolan on the promise and peril of technology.

🧑‍🎓 What? Students are now earning college credit for small talk.

FEATURED TRADES

NXP Semiconductors: Asian softness, ongoing strength in automotive

NXP Semiconductors N.V. provides a wide range of semiconductor products. The company's portfolio includes microcontrollers; application and communication processors; wireless connectivity solutions, such as near-field communications, ultra-wideband, Bluetooth low-energy, ZigBee, and Wi-Fi and Wi-Fi/Bluetooth integrated SoCs; analog and interface devices; radio frequency power amplifiers; security controllers; and semiconductor-based environmental and inertial sensors.

Ticker: NXPI | Price: $200.44 | Price Target: $260 (+30%) | Timeframe: 1 year

⚡️ Semiconductor | 💰 2% Dividend | 📈 Bullish Idea

In his analysis, Jim Kelleher, CFA, maintains a BUY rating for NXP Semiconductors N.V. (NYSE: NXPI), with a 12-month target price of $260. Despite a global economic slowdown, NXP surpassed 3Q23 sales and profit forecasts, driven largely by its robust automotive business, which grew in mid-single digits. Automotive gains are attributed to increased electronic content in EVs and hybrids, somewhat offset by high vehicle prices and financing costs. NXPI's Industrial & IoT sectors showed a decline, and Asian sales decreased due to COVID-related slowdowns in China. However, the company managed inventory and expenses effectively to maintain margins. Year-to-date, NXPI shares have underperformed compared to peers but showed resilience in the automotive sector. Financially, NXP reported 3Q23 revenue of $3.43 billion, stable year-over-year, with non-GAAP earnings of $3.70 per share. The company maintains a solid balance sheet, with active share repurchase programs and a growing dividend, currently at $1.014 per share. CEO Kurt Sievers anticipates inventory balance by 2024, positioning NXP favorably for future growth. The company's strategy focuses on market leadership across major sectors like automotive and IoT, supported by strong cash flow and a robust capital return policy. Despite some macroeconomic challenges, NXP's diverse market presence, particularly in automotive and communications infrastructure, and strategic financial management, underscore its solid investment potential.

Read the full article here (paywall). Read time: 11 min

DAILY SHARES

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