Oil futures finished lower on Friday for a second session in a row. Traders looked to a decision by OPEC+ to cut production further in the first quarter with skepticism. “It seems traders either aren’t buying that members will be compliant or don’t view it as being sufficient,” said Craig Erlam, senior market analyst at OANDA. It could also be that the “lack of formal commitment hints at fractures within the alliance, which could impact its ability to hit its targets, let alone cut further if necessary.” January West Texas Intermediate crude CLF24 fell $1.89, or 2.5%, to settle at $74.07 a barrel on the New York Mercantile Exchange. Prices based on the front-month contract fell nearly 2% for the week, according to Dow Jones Market Data.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Powell Comments Send Everything Soaring, Gold Hits All Time High, Dollar Plummets As Market Prices In Rate Cuts After November's furious meltup, which saw the S&P rise by 9% (the Nasdaq was up an even more ludicrous 11%), which was the best November for the stock market since 1980... ... all eyes were on Jerome Powell today to see if the Fed chair would say something to stem the surging stock market tide following the month which saw the biggest easing in financial conditions on record, equivalent to nearly 4 rate cuts. We got the answer shortly after 11am ET, when after what seemed to be otherwise balanced remarks with a dose of hawkish comments... "It would be premature to conclude with confidence that we have  achieved a sufficiently restrictive stance, or to speculate on when  policy might ease. We are prepared to tighten policy further if it becomes appropriate to do so." ... offset by some clearly dovish statements... "The strong actions we have taken have moved our policy rate well into restrictive territory, meaning that tight monetary policy is putting downward pressure on economic activity and inflation. Monetary policy is thought to affect economic conditions with a lag, and the full effects of our tightening have likely not yet been felt." ... and generally sounding rather optimistic while answering student questions, saying that the US is on the path to 2% inflation without large job losses - i.e., a soft landing - which helped the market to convince itself that Powell had just given the green light for a continued market meltup (thanks to the blackout period, there will be no more Fed comments until the Dec 13 FOMC) as Bloomberg put it... "Powell points to how the Fed’s past tightening moves will continue to have an impact on the economy -- the full impact hasn’t been felt yet. If anybody thought the Fed wasn’t finished raising rates, his prepared remarks today sure put a fork in it. They are done." .... and what happened next was a violent repricing in easing odds, with March rate cut odds hitting a lifetime high of 80%, effectively doubling overnight and up from 10% just 5 days ago... ... which then immediately cascaded across assets and sent everything exploding higher, led by stocks which surged above 4,600 for the first time since the July FOMC (aka the "final rate hike")... ... and one look below the surface reveals that this was indeed the QE trade: the Nasdaq barely rose while meme stonks and most shorted names exploded higher. And yet, this eruption in the most shorted/hated names means that hedge funds actually had a catastrophic day: and indeed, looking at the HF VIP (most long) less most shorted basket pair trade we see a whopping 5% drop as many hedge funds were stopped out and margin called. Putting today's plunge in contact, this was the worst day for hedge funds since June 2021 and the second worst day since the covid crash! Next, looking at the bond market, here too everything jumped but especially 2-Year TSYs, whose yields tumbled a whopping 12bps to 4.56%... ... and on course for the biggest weekly slide since the regional banking crisis in March, down almost 40bps. Yet neither stocks, nor bonds, had quite as much fun as either "digital gold", with Bitcoin briefly hitting a fresh 2023 high, briefly surging to $39,000 before easing back with Ether rising to $2100 ... ... but the biggest winner by far from today's market conclusion that a renewed dollar destruction is on deck, was gold which briefly rose above its all time high of $2,075... ... and that's just the start: now that a new record is in the history books, a frenzy of gold calls was bought, both for futures and the biggest ETF tied to the metal, and as shown in the chart below, the buildup of open interest between $2,000 and $2,500 has been relentless over the past week on growing optimism that rates are primed to decline. Next up for gold? $2500 or higher. Yet not everyone had a great day: the dollar predictably tumbled, extending it losses for a third straight week, the longest streak since June, and comes after the dollar saw its worst month in a year this November. One dollar pair trade where the convexity is especially high is USDJPY, which after soaring for much of the past year suddenly finds itself in a Wile E Coyote moment, trading just below the 100DMA. Should the selling persist, we may see the pair quickly tumble down to 140, or lower. To be sure, not all the moves made sense: as Bloomberg noted, bonds have a better reason to rally than stocks, which have to factor in the growth concerns that underpin Powell’s remarks. Evidence is gathering that the economy is slowing and stocks will have to reconcile that with their bullish rate views. Today’s ISM Manufacturing data is case in point that the stagflationary slowing that started in October — and Bloomberg Economics says it’s observing typical early signs of recession — extended last month. The ISM commentary was generally downbeat, equally split between companies hiring and others reducing their labor forces "a first since such comments have been tracked" according to Bloomberg. But it gets worse: the latest update to the Atlanta GDPNOW tracker slipped to 1.2% from 1.8% yesterday and over 2% just last week. And after diverging for much of the year, all three regional Feds that do GDP nowcasts have converged on 2% -  a far cry from the "5.2%" GDP print the Biden department of seasonal adjustments goalseeked last month. Bottom line: the onus is now on the payrolls report next week to further guide markets into next year. The continued rise in ongoing jobless claims pose a risk that unemployment could rise further. But so far, this isn’t a consensus view, with economists projecting the unemployment rate to stay unchanged at 3.9% (and more see a 3.8% rate than 4%). And while that may only add more fuel to the rate-cut speculation, at some point the softening in economic data will have to be squared with its impact on profits. As a reminder, while much of the interval between the last rate hike and the first rate cut is favorable for risk assets, the weeks right before the cut usually send stocks anywhere between 10% and 30% lower as the market realizes just why the Fed is panicking. However, judging by today's action, we still have some time before that particular rude awakening kicks in. Tyler Durden Fri, 12/01/2023 - 16:07.....»»

Powell, You Have A Problem: Gold Hits All Time High As Markets Price In Rate Cuts As Soon As March Ahead of the looming Fed blackout period - which lasts until the Dec 13 FOMC meeting - Powell had once last chance to tame euphoric markets after the best November in the past 40 years... and he blew it. Instead of pushing forcefully against the meltup in risk assets after the biggest easing in financial conditions on record during November... ... the Fed chair appeared largely nonchallant, and in his fireside chat earlier today, what the market focused on was Powell's comment that rates are "well into restrictive territory" which not only assured there would be no more rate hikes, but steamrolled Powell's other, hawkish warning, that it is premature to speculate when the Fed might ease. The result was a collapse in yields, a surge in stocks, bitcoin spiking to new 2023 highs above $38,000, all driven by renewed bets that the Fed will cut rates as soon as March where the market now assigns odds of a rate cut as high as 80%, roughly double from yesterday. And while it is unclear if it was Powell's intention to give markets the green light to keep rallying into year-end, a problem has emerged, the same problem that emerges every time the market views the Fed as willing to sacrifice the dollar to prop up risk assets: gold. After surging from a ytd low of $1820 in early October, to a high of $2,040 last week, largely thanks to a relentless gold buying spree out of China as we reported previously, gold has finally realized which way the wind is blowing and as shown below, it exploded higher amid a frenzy of institutional, ETF and retail buying (and perhaps continued Chinese buying), all of which managed to finally push the yellow metal to hit new all time highs of $2,075.41, the highest on record. That's just the start. As Bloomberg notes, gold calls were also in strong demand, both for futures and the biggest ETF tied to the metal, as bullion marched closer to a record high Friday. As shown in the chart below, the  buildup of open interest between $2,000 and $2,500 has been relentless over the past week on growing optimism that rates are primed to decline: That, alongside continued Chinese buying, and perhaps a reversal in ETF selling now that gold is clearly breaking out to new all time highs, means that the Fed has a new "old" problem on its hands: wholesale flight from fiat and into the safety of hard currencies, such as gold. No wonder "digital gold", aka bitcoin, is also surging... although that one still has a ways to go to reach its previous all time high. Then again, if the Fed is indeed set to cut rates as soon as March, and then proceed with more QE which will be inevitable to monetize the soaring US budget deficit and exploding interest payments, then we are set for new all time highs in everything - gold, bitcoin, stocks... oh and oil; because after the current bout of CTA selling is finally over, oil and commodities will be the next asset class to hit record highs at which point Powell's mutation into Arthur Burns will be complete, confidence in the Fed will be crushed as the next - and far sharper inflation cycle kicks in - and the countdown to the end of the Dollar reserve currency system can finally begin. Tyler Durden Fri, 12/01/2023 - 14:07.....»»

Powell's Dovish Comments Send Everything Soaring, Gold Hits All Time High As Dollar Plummets After November's furious meltup, which saw the S&P rise by 9% (the Nasdaq was up an even more ludicrous 11%), which was the best November for the stock market since 1980... ... all eyes were on Jerome Powell today to see if the Fed chair would say something to stem the surging stock market tide following the month which saw the biggest easing in financial conditions on record, equivalent to nearly 4 rate cuts. We got the answer shortly after 11am ET, when after what seemed to be otherwise balanced remarks with a dose of hawkish comments... "It would be premature to conclude with confidence that we have  achieved a sufficiently restrictive stance, or to speculate on when  policy might ease. We are prepared to tighten policy further if it becomes appropriate to do so." ... offset by some clearly dovish statements... "The strong actions we have taken have moved our policy rate well into restrictive territory, meaning that tight monetary policy is putting downward pressure on economic activity and inflation. Monetary policy is thought to affect economic conditions with a lag, and the full effects of our tightening have likely not yet been felt." ... and generally sounding rather optimistic while answering student questions, saying that the US is on the path to 2% inflation without large job losses - i.e., a soft landing - which helped the market to convince itself that Powell had just given the green light for a continued market meltup (thanks to the blackout period, there will be no more Fed comments until the Dec 13 FOMC) as Bloomberg put it... "Powell points to how the Fed’s past tightening moves will continue to have an impact on the economy -- the full impact hasn’t been felt yet. If anybody thought the Fed wasn’t finished raising rates, his prepared remarks today sure put a fork in it. They are done." .... and what happened next was a violent repricing in easing odds, with March rate cut odds hitting a lifetime high of 80%, effectively doubling overnight and up from 10% just 5 days ago... ... which then immediately cascaded across assets and sent everything exploding higher, led by stocks which surged above 4,600 for the first time since the July FOMC (aka the "final rate hike")... ...passing through the bond market, and especially 2-Year yields, which tumbled a whopping 12bps to 4.56%... ... and on course for the biggest weekly slide since the regional banking crisis in March, down almost 40bps. Yet neither stocks, nor bonds, had quite as much fun as either "digital gold", with Bitcoin briefly hitting a fresh 2023 high, briefly surging to $39,000 before easing back with Ether rising to $2100 ... ... but the biggest winner by far from today's market conclusion that a renewed dollar destruction is on deck, was gold which briefly rose above its all time high of $2,075... ... and that's just the start: now that a new record is in the history books, a frenzy of gold calls was bought, both for futures and the biggest ETF tied to the metal, and as shown in the chart below, the buildup of open interest between $2,000 and $2,500 has been relentless over the past week on growing optimism that rates are primed to decline. Next up for gold? $2500 or higher. Yet not everyone had a great day: the dollar predictably tumbled, extending it losses for a third straight week, the longest streak since June, and comes after the dollar saw its worst month in a year this November. One dollar pair trade where the convexity is especially high is USDJPY, which after soaring for much of the past year suddenly finds itself in a Wile E Coyote moment, trading just below the 100DMA. Should the selling persist, we may see the pair quickly tumble down to 140, or lower. To be sure, not all the moves made sense: as Bloomberg noted, bonds have a better reason to rally than stocks, which have to factor in the growth concerns that underpin Powell’s remarks. Evidence is gathering that the economy is slowing and stocks will have to reconcile that with their bullish rate views. Today’s ISM Manufacturing data is case in point that the stagflationary slowing that started in October — and Bloomberg Economics says it’s observing typical early signs of recession — extended last month. The ISM commentary was generally downbeat, equally split between companies hiring and others reducing their labor forces "a first since such comments have been tracked" according to Bloomberg. But it gets worse: the latest update to the Atlanta GDPNOW tracker slipped to 1.2% from 1.8% yesterday and over 2% just last week. And after diverging for much of the year, all three regional Feds that do GDP nowcasts have converged on 2% -  a far cry from the "5.2%" GDP print the Biden department of seasonal adjustments goalseeked last month. Bottom line: the onus is now on the payrolls report next week to further guide markets into next year. The continued rise in ongoing jobless claims pose a risk that unemployment could rise further. But so far, this isn’t a consensus view, with economists projecting the unemployment rate to stay unchanged at 3.9% (and more see a 3.8% rate than 4%). And while that may only add more fuel to the rate-cut speculation, at some point the softening in economic data will have to be squared with its impact on profits. As a reminder, while much of the interval between the last rate hike and the first rate cut is favorable for risk assets, the weeks right before the cut usually send stocks anywhere between 10% and 30% lower as the market realizes just why the Fed is panicking. However, judging by today's action, we still have some time before that particular rude awakening kicks in. Tyler Durden Fri, 12/01/2023 - 16:07.....»»

Oil futures fall for a second straight session, erasing a gain for the week following the outcome of an eagerly awaited OPEC+ meeting......»»

This is a Real-time headline. These are breaking news, delivered the minute it happens, delivered ticker-tape style. Visit www.marketwatch.com or the quote page for more information about this breaking news......»»

Gold futures rallied Friday, with prices reaching record settlement and intraday highs on Comex. Gold prices surged as the market reacted to the escalating tensions in the Middle East, said Bas Kooijman, CEO and asset manager of DHF Capital. The escalation has “helped extend gold’s uptrend of the last two months as traders take into account changing expectations regarding monetary policy.” February gold GCG24 rose $32.50, or 1.6%, to settle at $2,089.70 an ounce after trading as high as $2,095.70. Prices based on the most-active contract marked their highest settlement and intraday price levels on record, according to Dow Jones Market Data.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Inside the best and worst performing ETFs of November. Wall Street has witnessed an impressive surge in November. Specifically, the S&P 500 has surged by 8.5% past month, and the Nasdaq Composite Index has seen a substantial rise of nearly 11%. Furthermore, the Dow Jones has achieved a 7.2% increase in November, marking its best month in about a year. The Russell 2000 was also not far behind as it scored 5.6% gains past month. The gains were broad-based and well spread out across various segments.The technology sector has led the month with about 13% gains, while the energy sector has been a laggard, losing 2.3%. The bets that the Fed rates have peaked resulted in this surge in the markets. As the growth sectors like technology relies on borrowing for superior growth, these outperform in a low-rate environment.Further, better-than-expected earnings added to the strength. The overall Q3 earnings picture remains stable and largely positive. The third-quarter reporting cycle is on track to record year-over-year earnings growth after three back-to-back quarters of earnings decline.The Personal Consumption Expenditures (PCE) Index grew 3% year over year for the month of October, down from 3.4% in September and in line with expectations. "Core" PCE, which bars the volatile food and energy categories, grew 3.5%, down from 3.7% from the month prior and also in line with what economists surveyed by Bloomberg had expected. This was yet another good news for the month.Upbeat consumer confidence is another reason for the uptick in the markets. Americans have spent by a record figure this year over the five-day Thanksgiving weekend lured by significant discounts across various categories, including beauty products, toys and electronics.According to a survey by the National Retail Federation (“NRF”), more than 200 million shoppers engaged in in-store and online purchases over the Thanksgiving weekend (Thanksgiving Day through Cyber Monday). This represents about 2% growth from the previous year and an increase from the NRF's initial estimates of 182 million.Against this backdrop, below we highlight a few winning & losing ETFs of November.Winning ETFs in FocusBreakwave Dry Bulk Shipping ETF BDRY – Up 83.4%The underlying Capesize 5TC Index, Panamax 4TC Index & Supramax 6TC Index measure rates for shipping dry bulk freight. The expense ratio of the fund is 3.50%.ARK Innovation ETF ARKK – Up 37.5%ARKK is an actively managed Exchange Traded Fund that seeks long-term growth of capital by investing under normal circumstances primarily (at least 65% of its assets) in domestic and foreign equity securities of companies that are relevant to the Fund’s investment theme of disruptive innovation. The fund charges 75 bps in fees.ARK Fintech Innovation ETF ARKF – Up 36.6%ARKF is an actively managed Exchange Traded Fund that seeks long-term growth of capital. It seeks to achieve this investment objective by investing under normal circumstances primarily (at least 80% of its assets) in domestic and foreign equity securities of companies that are engaged in the Fund’s investment theme of financial technology (“Fintech”) innovation. It charges 75 bps in fees.Global X Blockchain ETF BKCH – Up 36.6%The underlying Solactive Blockchain Index provides exposure to companies that are positioned to benefit from further advances in the field of blockchain technology. The fund charges 50 bps in fees.Losing ETFs in FocusSimplify Tail Risk Strategy ETF (CYA) – Down 89.8%This ETF is active and does not track a benchmark. The Simplify Tail Risk Strategy ETF seeks to provide investors with a standalone solution for hedging diversified portfolios against severe equity market selloffs. The fund charges 84 bps in fees.KraneShares Global Carbon Offset Strategy ETF KSET – Down 35.3%The KraneShares Global Carbon Offset Strategy ETF provides broad coverage of the voluntary carbon market by tracking carbon offset futures contracts. The fund charges 79 bps in fees.iPath Series B S&P 500 VIX Short-Term Futures ETN VXX – Down 35.2%The underlying S&P 500 VIX Short-Term Futures Index Total Return offers exposure to a daily rolling long position in the first and second month VIX futures contracts and reflects views of the future direction of the VIX index at the time of expiration of the VIX futures contracts comprising the Index. The fund charges 89 bps in fees.United States Natural Gas ETF (UNG) – Down 23.5%The Natural Gas Price Index is the futures contract on natural gas as traded on the NYMEX. The expense ratio of the fund is 1.06%. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX): ETF Research Reports ARK Innovation ETF (ARKK): ETF Research Reports United States Natural Gas ETF (UNG): ETF Research Reports Breakwave Dry Bulk Shipping ETF (BDRY): ETF Research Reports ARK Fintech Innovation ETF (ARKF): ETF Research Reports Global X Blockchain ETF (BKCH): ETF Research Reports Simplify Tail Risk Strategy ETF (CYA): ETF Research Reports KraneShares Global Carbon Offset Strategy ETF (KSET): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Gold futures look to end Friday's session at their highest on record, with prices reaching a so-called golden cross --- signaling their potential for further upside in the precious metal......»»

American Financial (AFG) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. A month has gone by since the last earnings report for American Financial Group (AFG). Shares have added about 5.1% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is American Financial due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. American Financial Q3 Earnings Miss, Revenues BeatAmerican Financial Group, Inc. reported third-quarter 2023 net operating earnings per share of $2.45, which missed the Zacks Consensus Estimate by 0.8%. The bottom line increased 9.4% year over year. American Financial’s results reflected higher premiums, increased average renewal pricing across the Property and Casualty (P&C) group and improved net investment income, offset by higher expenses and catastrophe losses.Behind the Headlines  Total revenues of $2 billion increased 6% year over year in the quarter. The growth came on the back of higher P&C insurance net earned premiums, other income and net investment income. The top line beat the Zacks Consensus Estimate by 5.9%. Net investment income climbed 11.2% year over year to $168 million in the quarter under review. The figure was lower than our estimate of $204.6 million and missed the Zacks Consensus Estimate of $189 million.Total cost and expenses increased 9.6% year over year to $1.9 billion due to higher P&C insurance losses and expenses, cost of managed investment entities and other expenses. The figure was higher than our estimate of $1.7 billion.Segmental UpdateThe Specialty P&C Insurance segment generated $2 billion in net written premiums, which rose 4% year over year. The growth reflects a larger percentage of crop insurance premium written in the second quarter of 2023 due to the earlier planting of corn and soybeans, as well as the impact of lower 2023 spring commodity futures pricing and related volatility. Average renewal pricing across P&C Group, excluding workers’ compensation, increased approximately 7% in the quarter.Net written premiums in Property & Transportation Group decreased 6% year over year to $905 million in the quarter. The figure was lower than our estimate of $922.1 million. Net written premiums at Specialty Casualty Group increased 7% year over year to $829 million. The figure was higher than our estimate of $781.7 million. Further, net written premiums at Specialty Financial increased 48% year over year to $261 million. The figure was higher than our estimate of $224.3 million.Net written premiums at other divisions decreased 8% year over year to $66 million. The figure was lower than our estimate of $80.6 million. The Specialty P&C Insurance segment’s underwriting profit decreased 9.5% year over year to $143 million in the quarter. A higher frequency of lower severity convective storms throughout the 2023 period resulted in catastrophe losses of $56 million, which included the impact of Hurricane Ian. Higher year-over-year underwriting profit in the Property and Transportation and Specialty Financial Groups was more than offset by lower underwriting profit in the Specialty Casualty Group. The figure was higher than our estimate of $123.9 million. The combined ratio deteriorated 110 basis points (bps) year over year to 92.2% at the segment.Financial UpdateAmerican Financial exited the third quarter with total cash and investments of $14.8 billion, which increased 1.9% from the 2022-end level. The figure is lower than our estimate of $15.4 billion. As of Sep 30, 2023, long-term debt totaled $1.5 billion, which decreased 1.5% from the level at 2022 end.As of Sep 30, 2023, the company’s adjusted book value per share, which excludes unrealized gains (losses) related to fixed maturities, was $53.90, up 0.3% from the 2022-end level. Annualized return on equity came in at 15.7% for the third quarter, expanding 100 bps year over year.Prudent Capital DeploymentAmerican Financial declared a special cash dividend of $1.50 per share in the third quarter. The dividend will be paid out on Nov 22 to shareholders of record at the close of business as of Nov 13, 2023. The aggregate amount of this special dividend will be approximately $126 million. During the third quarter of 2023, AFG repurchased shares for $86 million.2023 Guidance RevisedAmerican Financial continues to expect core net operating earnings in the range of $10.15 to $11.15 per share. The guidance reflects updated expectations of a below average crop year, offset by higher-than-previously expected net investment income. At the midpoint of the range, revised guidance would produce a core return on equity of approximately 20%. The insurer expects an overall 2023 calendar year combined ratio in the range of 90% to 92%.AFG has increased guidance for net written premiums and expects net written premiums to be 6% to 8% higher than the $6.2 billion reported in 2022. This compares to previous guidance of growth in the range of 5% to 8% and will establish a record for net written premiums for 2023. American Financial continues to expect a return of approximately 9% on alternative investments.How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.VGM ScoresAt this time, American Financial has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, American Financial has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerAmerican Financial is part of the Zacks Insurance - Property and Casualty industry. Over the past month, First American Financial (FAF), a stock from the same industry, has gained 10.6%. The company reported its results for the quarter ended September 2023 more than a month ago.First American Financial reported revenues of $1.48 billion in the last reported quarter, representing a year-over-year change of -18.8%. EPS of $1.22 for the same period compares with $1.62 a year ago.First American Financial is expected to post earnings of $1.19 per share for the current quarter, representing a year-over-year change of -11.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -7.4%.First American Financial has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Financial Group, Inc. (AFG): Free Stock Analysis Report First American Financial Corporation (FAF): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Wall Street wrapped up its best month of 2023, with all three major indices logging in blockbuster gains. Wall Street wrapped up its best month of 2023, with all three major indices logging in blockbuster gains. The Nasdaq Composite Index was the outperformer, rising 10.7% — the best monthly gain since July 2022. Meanwhile, the S&P 500 and Dow Jones Industrial advanced 8.9% and 8.8%, respectively. The former registered the best monthly gain since July 2022, whereas the latter marks its best monthly performance since October 2022.This has resulted in increased demand for leveraged ETFs as investors seek to register big gains in a short span. We highlight a bunch of the best-performing leveraged equity ETFs from different corners of the market that are leaders in their segments.These include Direxion Daily Homebuilders & Supplies Bull 3X Shares NAIL, MicroSectors U.S. Big Banks Index 3X Leveraged ETN BNKU, AdvisorShares MSOS 2x Daily ETF MSOX, MicroSectors Travel 3x Leveraged ETN FLYU and MicroSectors Solactive FANG & Innovation 3X Leveraged ETN BULZ. These funds will continue to be investors’ darlings, at least in the near term, provided the sentiments remain bullish.The monster rally was driven by optimism that the Fed is done with interest rate hikes, which has pushed the Treasury yields down and rekindled investors’ risk-on trade. Yields on U.S. Treasuries saw the biggest monthly drop since 2008 (read: Treasury ETFs on Track for Best Month Since March).Better-than-expected earnings added to the strength. The overall Q3 earnings picture is stable and largely positive. The third-quarter reporting cycle recorded year-over-year earnings growth after three back-to-back quarters of earnings declines. However, there has been a notable acceleration in negative estimate revisions for the fourth quarter over the last few weeks, a development that reverses the largely favorable revision trend of the preceding six months (read: 5 Best ETF Charts of This Earnings Season).Leveraged ETFsLeveraged ETFs provide multiple exposures (2X or 3X) to the daily performance of the underlying index. These funds employ various investment strategies, such as the use of swaps, futures contracts and other derivative instruments to accomplish their objectives. Due to their compounding effect, investors can enjoy higher returns in a short period, provided the trend remains a friend.Since most of these ETFs seek to attain their goals on a daily basis, their performances could vary significantly from the performance of their underlying index or benchmark over a longer period compared with a shorter period (such as weeks, months or years) due to their compounding effect (see: all Leveraged Equity ETFs here).Investors should also note that leveraged ETFs involve a great deal of risk than traditional funds. They are often more costly and can be less tax-efficient, as they can see capital gains through the use of swaps and other derivative instruments.Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL) - Up 72%Direxion Daily Homebuilders & Supplies Bull 3X Shares provides leveraged exposure to homebuilders. It creates a three-times-long position in the Dow Jones U.S. Select Home Construction Index, charging an annual fee of 93 bps. Direxion Daily Homebuilders & Supplies Bull 3X Shares trades in a good average daily volume of about 325,000 shares and has accumulated $217.8 million in its asset base.MicroSectors U.S. Big Banks Index 3X Leveraged ETN (BNKU) – Up 64.6%MicroSectors U.S. Big Banks Index 3X Leveraged ETN seeks to offer three times exposure to the Solactive MicroSectors U.S. Big Banks Index. The ETN has accumulated $156.4 million in its asset base. MicroSectors U.S. Big Banks Index 3X Leveraged ETN charges 95 bps in annual fees and trades in an average daily volume of 1 million shares.AdvisorShares MSOS 2x Daily ETF (MSOX) – Up 62.4%AdvisorShares MSOS 2x Daily ETF is actively managed and designed for sophisticated investors looking to gain magnified exposure to the U.S. cannabis sector. It offers daily investment results that correspond to two times the daily performance of the AdvisorShares Pure US Cannabis ETF. AdvisorShares MSOS 2x Daily ETF has accumulated $26 million in its asset base. It charges 1.13% in annual fees and trades in a volume of 463,000 shares a day on average.MicroSectors Travel 3x Leveraged ETN (FLYU) – Up 58.8%MicroSectors Travel 3x Leveraged ETN offers three times exposure to the performance of the MerQube MicroSectors U.S. Travel Index. It has accumulated $5.2 million in its asset base and charges 95 bps in annual fees. MicroSectors Travel 3x Leveraged ETN trades in a paltry volume of 6,000 shares per day, on average (read: 5 ETFs to Make the Most of Solid Thanksgiving Travel Trend).MicroSectors Solactive FANG & Innovation 3X Leveraged ETN (BULZ) – Up 57.1%MicroSectors Solactive FANG & Innovation 3X Leveraged ETN seeks three times leverage exposure to the performance of the Solactive FANG Innovation Index, which includes 15 highly liquid stocks focused on building tomorrow’s technology today. It has an AUM of $755.2 million and charges 95 bps in annual fees. MicroSectors Solactive FANG & Innovation 3X Leveraged ETN trades in a volume of 159,000 shares a day on average. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL): ETF Research Reports MicroSectors U.S. Big Banks Index 3X Leveraged ETN (BNKU): ETF Research Reports MicroSectors FANG & Innovation 3X Leveraged ETN (BULZ): ETF Research Reports MicroSectors Travel 3X Leveraged ETNs (FLYU): ETF Research Reports AdvisorShares MSOS 2x Daily ETF (MSOX): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment Research.....»»

The past month of trading has been extraordinary, with the S&P +7.4%, both the Dow and Russell +7.9% and the Nasdaq +8.1%. We enter this Friday morning with pre-market futures down slightly, and with no new majorly impactful data releases to affect investment trajectories ahead of the bell. That’s OK; we’ve had an eventful week — from housing data to PCE to Q3 earnings from important companies like Salesforce CRM — so perhaps this is a good opportunity to review now that the smoke has cleared. Currently, the Dow is -8 points, the S&P 500 is -7, the Nasdaq -39 points and the small-cap Russell 2000 -2.Only the Nasdaq is down over the past week of trading, with the blue-chip Dow leading the way, +1.9%. The past month of trading has been extraordinary, with the S&P +7.4%, both the Dow and Russell +7.9% and the Nasdaq +8.1%. This has helped all major indices improve trading year to date, with one month to go in the year: the Russell +2.8%, the Dow +8.2%, the S&P +18.8% and the Nasdaq up a stellar +45.7%, as 2023 has become the year of A.I. speculation.We’re also seeing meaningful improvements on inflation metrics. This week alone, we’ve seen both new and pending home sales dip lower (Case-Shiller home prices were flat), PCE was flat on headline but lower on year-over-year core, trade balance sank lower but Chicago PMI was surprisingly strong. Initial Jobless Claims were up slightly but Continuing Claims were up big — headed toward 2 million in the next week or two, if trends hold.Overall, market participants have clearly been encouraged: inflation is at last coming under control, though gradually — the better the escape a recession with. Consumer sentiment is up, so that portends a healthy holiday shopping season. The Fed won’t be raising rates again this cycle, and now the watch is on for when the monetary policy body might start cutting (hint: not too soon). In short, we’re set to close calendar 2023 as a nice rebound to a rather dismal 2022, especially on the Nasdaq/tech side.After today’s open, we’ll see new Manufacturing data from S&P PMI and ISM, both for November, and both expected to improve month over month. Construction Spending for October is expected to tick down, and we’ll be hearing from Fed Chair Jay Powell and Chicago Fed President Austan Goolsbee today, among others. Auto Sales numbers will be filing in throughout the day, as well.None of this is expected to dramatically alter current market conditions, and we might expect Friday (lower) volumes of trading. Next week brings us monthly jobs numbers, and they will tell the tale of the cooling economy. Bond yields currently sit at 4.685% on the 2-year and 4.318% on 10s. Happy Friday!Questions or comments about this article and/or author? Click here>> Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Salesforce Inc. (CRM): Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Pre-Markets in the Red to Start December We enter this Friday morning with pre-market futures down slightly, and with no new majorly impactful data releases to affect investment trajectories ahead of the bell. That’s OK; we’ve had an eventful week — from housing data to PCE to Q3 earnings from important companies like Salesforce (CRM) — so perhaps this is a good opportunity to review now that the smoke has cleared. Currently, the Dow is -8 points, the S&P 500 is -7, the Nasdaq -39 points and the small-cap Russell 2000 -2.Only the Nasdaq is down over the past week of trading, with the blue-chip Dow leading the way, +1.9%. The past month of trading has been extraordinary, with the S&P +7.4%, both the Dow and Russell +7.9% and the Nasdaq +8.1%. This has helped all major indices improve trading year to date, with one month to go in the year: the Russell +2.8%, the Dow +8.2%, the S&P +18.8% and the Nasdaq up a stellar +45.7%, as 2023 has become the year of A.I. speculation.We’re also seeing meaningful improvements on inflation metrics. This week alone, we’ve seen both new and pending home sales dip lower (Case-Shiller home prices were flat), PCE was flat on headline but lower on year-over-year core, trade balance sank lower but Chicago PMI was surprisingly strong. Initial Jobless Claims were up slightly but Continuing Claims were up big — headed toward 2 million in the next week or two, if trends hold.Overall, market participants have clearly been encouraged: inflation is at last coming under control, though gradually — the better the escape a recession with. Consumer sentiment is up, so that portends a healthy holiday shopping season. The Fed won’t be raising rates again this cycle, and now the watch is on for when the monetary policy body might start cutting (hint: not too soon). In short, we’re set to close calendar 2023 as a nice rebound to a rather dismal 2022, especially on the Nasdaq/tech side.After today’s open, we’ll see new Manufacturing data from S&P PMI and ISM, both for November, and both expected to improve month over month. Construction Spending for October is expected to tick down, and we’ll be hearing from Fed Chair Jay Powell and Chicago Fed President Austan Goolsbee today, among others. Auto Sales numbers will be filing in throughout the day, as well.None of this is expected to dramatically alter current market conditions, and we might expect Friday (lower) volumes of trading. Next week brings us monthly jobs numbers, and they will tell the tale of the cooling economy. Bond yields currently sit at 4.685% on the 2-year and 4.318% on 10s. Happy Friday! Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Salesforce Inc. (CRM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Oil futures bounced after slumping the previous after following the outcome of an eagerly awaited OPEC+ meeting......»»

Futures Drop In First Trading Day Of Last Month As Powell "Fireside Chat" Looms US futures reversed some of Thursday's gains to start the final month of the year after a blowout performance in November, as European stocks gained, and Asia stuttered. US Treasuries and the dollar posted small moves before comments from Fed Chair Jerome Powell at 11am ET that may offer clues on the path of interest rates. Oil rebounded after OPEC+ promised further output cuts but was hazy on details. Israel resumed fighting against Hamas in the Gaza Strip after a weeklong truce ended: Israel’s army said Hamas violated the cease-fire terms by firing toward its territory. Bitcoin soared to its highest price so far this year. Base metals are rallying after the strong China Caixin Mfg. PMI results (50.7 s. 49.6 survey vs. 49.5 prior). Today, we get the November ISM-Mfg. at 10am ET (exp. 47.9, last 46.7) and hear from Powell at a "fireside chat" at Spelman College in Atlanta on Friday at 11am ET ahead of Fed’s blackout period. Focus for Powell events is whether he’ll back dovish comments earlier this week by Fed Governor Waller, which spurred a rally across front-end of the Treasuries curve. In premarket trading, Pfizer dropped 3.5% after dropping development of its experimental weight-loss pill. Tesla slipped 2.1% as the electric-vehicle maker kicked off deliveries of its Cybertruck. RBC said the vehicle is priced at the higher end of expectations. Here are some other notable premarket movers: Marvell Technology slipped 5% after the chipmaker’s fourth-quarter revenue forecast fell short of expectations. PagerDuty rose 5% after the company reported third-quarter results that beat expectations and raised its full-year forecast. Dell Technologies drops 5.4% after reporting revenue that declined more than expected, buffeted by continued sluggish corporate demand for personal computers. Lemonade falls 3.2% after Oppenheimer downgraded the insurance company, noting the outlook for weather patterns to return to normal in 2024 after a relatively quiet 2023. Samsara, a provider of GPS fleet tracking, gains 13% after boosting its profit and revenue guidance for the full year. UiPath jumps 14% as analysts hike their targets after third-quarter results beat expectations at the robotic process automation software company. Ulta Beauty gains 12% after the cosmetics retailer reported forecast-beating comparable sales growth in the third quarter. After we predicted one month ago to brace for a face-ripping rally in November... 1. Dealer gamma turns deeply positive 2. $5BN in daily buybacks until mid-Dec 3. CTAs buying up to $200BN in global stocks over next month 4. Hedge Funds least net long since 2011 5. Seasonals pic.twitter.com/Rv3U1HLGHx — zerohedge (@zerohedge) November 3, 2023 ... that's precisely what happened, as US stocks posted their best month in close to a year-and-a-half and had their second-best November since 1980s, defying the skeptical calls and fueling hopes that more gains are to come, while the MSCI All Country World Index saw its third-largest monthly gain in the past decade. The Bloomberg Dollar Spot Index dropped by the most in a year, while US Treasury yields tumbled about 60 basis points in the month. This was mostly down to plunging bond yields amid mounting signs that the Federal Reserve is managing to tame inflation without breaking the economy. Money-market fund assets surged to a fresh all-time high and Cathie Wood got in on the action too, with her ARKK Innovation ETF racking up a 31% gain for the month. “Almost everyone was offsides coming into November,” said Ryan Detrick, chief market strategist at Carson Group. Everyone except for our raders that is. “There’s still a big opportunity for traders to chase gains in December, too.” This morning, investors were trying to assess if November’s scorching gains across asset classes can go further. Yesterday's core PCE data showed that the Fed's favorite measure of inflation eased in October, adding to the case for an end to the Fed’s tightening and bolstering the narrative that lifted markets globally last month. Some suggest optimistic market wagers on the timing of interest-rate cuts next year read too much into recent comments by Fed officials. Powell is set to speak at Spelman College in Atlanta on Friday. "The market is wondering whether it has gone ahead of itself in expecting US rate cuts next year,” said Sébastien Barbé, head of emerging-market research and strategy at Credit Agricole. “From Powell’s point of view, it may be tempting to warn the market against excess optimism about possible rate cuts in order to keep monetary conditions tight enough to make sure disinflation is sustainable.” Meanwhile, oil prices steadied after the drop suffered yesterday following an OPEC+ meeting which sewed confusion among traders. The cartel promised further cuts to output but was hazy on the details, with the lack of a concluding press conference and final communiques leaving the market puzzled. Notably, the cuts agreed are voluntary, so whether the additional supply cuts that were announced will be delivered remains to be seen. Part of the rebound was driven by news Israel resumed fighting against Hamas in the Gaza Strip after a weeklong truce ended. Israel’s army said Hamas violated the cease-fire terms by firing toward its territory. Jets started striking Gaza soon after the deadline passed. Israel dropped leaflets telling people to leave some parts of southern Gaza. Qatar said truce negotiations continue European stocks gain in early Friday trading, with the advance led by the Stoxx 600 Basic Resources index, as mining stocks outperform after broker upgrades, with the Automotive and Food, Beverage & Tobacco sectors the worst performing. Anglo American and Rio Tinto led gains in the Stoxx 600 Index after China’s manufacturing data beat estimates. The Euro Stoxx 50 rose 0.7% with the FTSE 100 outperforming regional peers. Here are the biggest movers Friday: Mining shares outperform in Europe on Friday as Anglo American and Rio Tinto are upgraded to buy at UBS and Liberum, respectively, with Anglo American gaining as much as 7.6%, the most since September Signify shares rise as much as 6.6% after the lighting maker announced a new divisional structure and said it will implement measures to reduce non-manufacturing costs by more than €200 million Jenoptik rises as much as 5.8% after the optical systems technology firm upgraded its Ebitda margin target for 2025, citing better-than-expected organic development in its semiconductors and electronics businesses Technogym gains as much as 11% after NIF Holding bought about 8.8 million ordinary shares of the fitness-equipment maker at €9.20 apiece in a reverse accelerated bookbuilding Leonteq shares tumble as much as 18% to the lowest level since 2020 after the Swiss technology and service provider revised down its FY2023 forecast. ZKB flags that the dividend could be reduced LVMH shares fall as much as 1.9% after the luxury goods maker is downgraded to equal-weight at Morgan Stanley given the likelihood of a further deterioration in demand for the industry in the fourth quarter Viaplay shares plunge as much as 83%, the most on record, in early Friday trading. Analysts said shareholders can expect to see their holdings reduced to almost nothing under a new recapitalization plan Ceres Power shares plunge as much as 27%, the most since 2012, after the UK-based energy generator and distributor said it hasn’t been able to conclude a new license partnership in this financial year ITV shares fall as much as 2.9% after Deutsche Bank downgraded rating on the broadcaster to hold from buy, citing headwinds from a continued slump in advertising revenue Swiss Re shares fall as much as 2% as investors focus on its new reserving allowance, which is expected to have a “negative impact” of approximately $500 million on profit after tax Earlier in the session, Asian stocks fell as concerns about China’s economy persisted, with sentiment cautious ahead of comments from Federal Reserve Chair Jerome Powell later on Friday. The MSCI Asia Pacific Index dropped as much as 0.4%, led by technology shares, as some Fed officials remained wary of interest rate cuts next year. Tech-heavy markets such as South Korea and Taiwan also fell. Stocks in Japan gained as a stall in yen strength boosted exporters. Chinese shares declined, extending their recent underperformance versus global peers, with the CSI 300 Index set for its lowest close since 2019. Investors remained concerned about the weak economic recovery even as a private survey of China’s manufacturing activity unexpectedly expanded. The decline in home sales also accelerated in November despite more funding support for developers. Chinese's losses were almost erased, however, after the China Securities Journal reported that the "National Team" was back as an unidentified Chinese state institution bought exchange-traded funds whose underlying assets are A-shares issued by central state-owned enterprises in the domestic stock market Friday. Hang Seng and Shanghai Comp were gradually pressured following the PBoC’s substantial net liquidity drain, whilst the latter eventually moved into the green amid reports China state-owned capital operating Co. reportedly bought ETFs on Friday, whilst the session also saw a surprise return to expansion territory for the Chinese Caixin Manufacturing PMI. Japan's Nikkei 225 traded indecisively as encouraging data releases offset the headwinds from early currency strength. Australia's ASX 200 was dragged lower by underperformance in tech and consumer-related sectors amid higher yields. In FX, US equity futures are steady, while the dollar was slightly down ahead of speeches by the Fed’s Powell and Goolsbee. US ISM manufacturing data is also due. DKK and EUR are the weakest performers in G-10 FX, NOK and SEK outperform. In rates, Treasuries were slightly cheaper across the curve with losses led by long-end, moving inverted 2s10s spread back toward top of Thursday’s range. TSY yields are cheaper by up to 2bp across long-end of the curve with 2s10s spread wider by 0.5bp on the day; 10-year yields around 4.345% with bunds outperforming by 3.5bp in the sector, Italian 10-year by 5bp. Focus for Powell events is whether he’ll back dovish comments earlier this week by Fed Governor Waller, which spurred a rally across front-end of the Treasuries curve. Fed-dated OIS currently price in a 25bp rate cut in May and a total of 112bp cuts by the December FOMC meeting. US economic data includes November S&P Global manufacturing PMI (9:45am New York time), October construction spending and November ISM manufacturing (10am). In Europe, Italian bonds outperform following surprise drop in Italy’s manufacturing PMI for November; bund 10-year yields are down some 2 bps, outperforming comparable USTs and gilts. US session includes manufacturing data and two scheduled appearances by Fed Chair Powell. In commodities, oil pared some post-OPEC+ losses. WTI trades within Thursday’s range, adding 0.3% to trade near $76.20. Spot gold was on track for a third weekly gain, rising roughly $8 to trade near $2,045/oz as it inches toward its all-time high after Israel resumed its war against Hamas; it was then summarily smacked down by some central bank amid fears a new all time high will lead to a surge in gold to $2500 and higher and destabilize the fiat system. Most base metals trade in the green after China's Caixin Mfg PMI unexpectedly entered expansion, rising to 50.7 from 49.5, and beating estimates of 49.8; LME tin rose 1.3%, outperforming peers. To the day ahead now, and central bank speakers include Fed Chair Powell, the Fed’s Barr, Goolsbee and Cook, ECB President Lagarde, and the ECB’s Elderson and De Cos. Data releases include the global manufacturing PMIs, along with the ISM manufacturing reading from the US. Market Snapshot S&P 500 futures up 0.2% to 4,583.75 MXAP down 0.3% to 161.81 MXAPJ down 0.6% to 503.36 Nikkei down 0.2% to 33,431.51 Topix up 0.3% to 2,382.52 Hang Seng Index down 1.2% to 16,830.30 Shanghai Composite little changed at 3,031.64 Sensex up 0.7% to 67,464.96 Australia S&P/ASX 200 down 0.2% to 7,073.18 Kospi down 1.2% to 2,505.01 STOXX Europe 600 up 0.7% to 464.87 German 10Y yield little changed at 2.42% Euro little changed at $1.0898 Brent Futures down 0.4% to $80.51/bbl Gold spot up 0.6% to $2,048.93 U.S. Dollar Index down 0.17% to 103.32 Top overnight news China’s Caixin manufacturing PMI for Nov came in ahead of plan at 50.7, up from 49.5 in Oct and above the Street’s 49.6 forecast (this follows the NBS PMIs Wed night falling short of expectations). RTRS Europe’s final manufacturing PMI for Nov came in at 44.2, up from the flash reading of 43.8. BBG Ukraine president Volodymyr Zelenskyy has pushed to “accelerate” the construction of military fortifications at key points along the frontline in the east of the country where Russian forces have stepped up attacks in recent weeks. FT Israel resumed fighting against Hamas in the Gaza Strip after a weeklong truce ended. Israel’s army said Hamas violated the cease-fire terms by firing toward its territory. Jets started striking Gaza soon after the deadline passed. Israel dropped leaflets telling people to leave some parts of southern Gaza. Qatar said truce negotiations continue. BBG Washington aims to slash Russia’s oil and gas revenue by 50% by the end of the decade to ensure Putin doesn’t have the funds to attack his neighbors. FT Caracas has for over 200 years claimed rights over Essequibo, a vast swath of the territory of neighbouring Guyana. But only now has it opted to hold a referendum among Venezuelans on taking over the 160,000 sq km of land. FT PFE announces a setback in its GLP1 anti-obesity ambitions. Its twice-daily danuglipron formulation will NOT advance into P3 studies.  The drug achieved weight reductions of 8-13% over 32 weeks and 5-9.5% at 26 weeks, less than the 14-15% many thought would be needed to compete in the market. More significantly (and negatively), there were high rates of adverse side effects (up to 73% nausea; up to 47% vomiting; up to 25% diarrhea) and high discontinuation rates (greater than 50%). RTRS Apple and Paramount Global have discussed bundling their streaming services at a discount, the latest attempt by rival entertainment giants to team up as they look to make their offerings more affordable and attractive. WSJ BPCE is exploring options for its $1.2 trillion Natixis asset management business, including selling a majority stake, people familiar said. BBG A more detailed look at global markets courtesy of Newsquawk APAC stocks began the new month with price action rangebound as markets paused following the November rally amid another busy day of economic releases, while the conflict in Gaza also resumed. ASX 200 was dragged lower by underperformance in tech and consumer-related sectors amid higher yields. Nikkei 225 traded indecisively as encouraging data releases offset the headwinds from early currency strength. Hang Seng and Shanghai Comp were gradually pressured following the PBoC’s substantial net liquidity drain, whilst the latter eventually moved into the green amid reports China state-owned capital operating Co. reportedly bought ETFs on Friday, whilst the session also saw a surprise return to expansion territory for the Chinese Caixin Manufacturing PMI. Top Asian news China state-owned capital operating Co. reportedly bought ETFs on Friday, according to Bloomberg. US judge blocked the Montana state ban on Tiktok from taking effect, according to a court order. US lawmakers seek a Biden administration investigation into Chinese drone maker Autel Robotics due to national security concerns. Japan's largest trade union RENGO said it formally agreed on a 2024 pay hike demand of 5% or more, according to Reuters. European equities, Eurostoxx50, +0.5%, are extending gains; FTSE100, +0.8%, which has been lifted by mining-related stocks. European sectors are mostly in the green, with significant outperformance in Basic Resources, being propped up by mining stocks following broker upgrades at Anglo American, +6.4%, and Antofagasta, +4.7%; Optimised Personal Care & Grocery is marginally hampered by a Tesco, -1.3%, downgrade. US Futures are trading on the front foot, albeit to a lesser extent in comparison to their European counterparts ahead of ISM & Powell; RTY, +0.3%, slightly outperforms. Top European news ECB's Nagel said recent inflation developments are encouraging but the ECB cannot be satisfied yet and inflation risks are still on the upside so a further rate hike cannot be ruled out. Nagel also stated that longer-term inflation expectations are still some way from 2% and that a leaner ECB balance sheet is desirable and the reduction can accelerate, while he added it is far too early to discuss rate cuts. EU weighs concessions in the US steel feud amid concerns over a Trump return, according to Bloomberg sources. German government spokesperson, re. budget talks, says they are aware of the urgency and there is a lot of momentum to solve this as soon as possible FX Dollar drifts after month-end revival awaiting US manufacturing ISM for interim impetus before guidance from Fed Chair Powell; DXY dithering within 103.45-26 range. Kiwi back in sight of 0.6200 vs Greenback after hawkish RBNZ rhetoric from Hawkesby. Aussie encouraged by China's Caixin manufacturing PMI rebound to 50.0+ level as AUD/USD hold above 0.6600. Loonie underpinned ahead of Canadian LFS with USD/CAD sub-1.3550. Cable firm on 1.2600 handle after upward revision to final UK manufacturing PMI. Euro tethered to 1.0900 vs Dollar amidst nearby option expiries and post-mostly better than flash or forecast Eurozone manufacturing PMIs. PBoC set USD/CNY mid-point at 7.1104 vs exp. 7.1458 (prev. 7.1018). Fixed Income Debt futures back on a firmer footing, on balance, after steep month end retracement. Bunds bounce further from sub-132.00 towards 133.00 again. Gilts towards top of 96.80-25 range, but still lagging in run up to Fitch UK rating review. T-note hovering around 110-00 within 110-04/109-27+ confines awaiting US manufacturing ISM and Fed speakers headlined by Chair Powell twice. Commodities WTI and Brent are modestly firmer intraday in the aftermath of the OPEC+ confab on Thursday which ultimately underwhelmed the market given that output cuts are voluntary; as it stands, benchmarks are holding incrementally above the unchanged mark in narrow ranges around the prior session's trough. Spot gold holds an upward bias as the Dollar remains subdued; Base metals are firmer across the board amid upbeat Chinese data overnight, and upward bias in risk sentiment in Europe. OPEC Secretariat announced several OPEC+ countries will conduct additional voluntary cuts to the total of 2.2mln BPD (exp. 2.0mln). It was confirmed that Brazil will join OPEC+ from January 2024. Saudi Arabia will extend its voluntary cut of 1mln BPD to the end of Q1 2024 with its production to be approx. 9mln BPD and Russia is also to extend its voluntary cut in oil supplies until the end of Q1 2024 with its voluntary supply cut to reach 500k BPD. Kuwait is to make a further 135k BPD OPEC+ oil output cut, while the UAE is to make an additional 160k BPD OPEC+ output cut and Iraq is said to cut its production by 220k BPD in Q1. Conversely, Angola rejected its OPEC quota for 1.11mln BPD and said it will produce 1.18mln BPD, according to Bloomberg. Click here for the detailed headline. US is purchasing 2.73mln bbls of oil for the strategic reserve, according to a document cited by Reuters. US aims to halve Russia's energy revenue by 2030, while Assistant Secretary of State for Energy Resources Pyatt said Western sanctions will continue for years to come to curb Moscow's war machine, according to FT. US President Biden and Angola's President welcomed the launch of a US-Angola energy security dialogue in 2024 during a meeting on Thursday, according to the White House US State Department said the US reiterated its pledge to ‘reconsider’ the steps it took to ease sanctions on Venezuela if the latter fails to comply with certain commitments by the end-November deadline, while it added that Venezuela must define steps for lifting bans on opposition candidates and begin the release of Venezuelan political prisoners and wrongfully detained Americans. It was later reported that banned Venezuelan candidates would be allowed to take their cases to a tribunal. Morgan Stanley says commitment to new OPEC+ cuts appears to be uncertain, expect compliance to only be partial, Foresees Saudi Arabia ultimately extending the cuts to Q2-2024. Maintain Brent forecast at USD 85/bb and flat throughout 2024. Lowered OPEC+ production forecast for Q1-2024 by 0.6mln BPD, still see the oil market turning into a small surplus again in Q2 & Q3. Russia's Kremlin says OPEC+ contributes to stabilisation of energy markets and creation of conditions for supporting energy prices at a balanced level; Russia is interested in continuing working with OPEC+. First Quantum is suspending production guidance for Cobre Panama for the current year Geopolitics Israel's military said that Hamas violated the truce and fired towards Israeli territory, while it has resumed combat against Hamas in Gaza Initial reports suggested Israel and Hamas agreed to extend the truce for an eighth day, according to Egyptian officials cited by WSJ. However, there was no official statement made by Israel, Hamas or mediator Qatar. Rocket sirens sounded in Israeli areas near the Gaza border and the Israeli military said one launch was detected from Gaza which was intercepted, while Hamas-affiliated media reported that explosions and gunfire were heard in the northern Gaza Strip. Furthermore, Israeli planes were reportedly flying over Gaza and Israeli army vehicles are firing in the northwest of the Gaza Strip, according to a correspondent cited by Al Jazeera. The Israeli army raises the alert on the border with Lebanon, according to Al Arabiya Qatari and Egyptian mediators have been in contact with Hamas and Israel since fighting resumed in Gaza on Friday, according to Reuters citing sources; negotiations between both sides is continuing Senior Hezbollah member says Lebanon remain ready to confront any danger from Israel, adds Gaza developments can still affect the Lebanon situation US Treasury Department issued new North Korean sanctions targeting 8 individuals and the hacking group Kimsuky, while South Korea imposed sanctions on 11 North Korean individuals, according to the Foreign Ministry. US Event Calendar 09:45: Nov. S&P Global US Manufacturing PM, est. 49.5, prior 49.4 10:00: Oct. Construction Spending MoM, est. 0.3%, prior 0.4% 10:00: Nov. ISM Employment, est. 47.2, prior 46.8 10:00: Nov. ISM New Orders, est. 46.7, prior 45.5 10:00: Nov. ISM Prices Paid, est. 45.9, prior 45.1 10:00: Nov. ISM Manufacturing, est. 47.8, prior 46.7 Central Banks 03:00: Fed’s Barr Speaks on Bank Supervision and Regulation 10:00: Fed’s Goolsbee Participates in Moderated Discussion 11:00: Fed’s Powell Speaks in Fireside Chat 14:00: Fed’s Powell, Cook Participate in Roundtable Discussion DB's Jim Reid concludes the overnight wrap Happy December. My wife is organizing Santa's Grotto at the kids' school tomorrow and until yesterday was missing one key thing. A Santa! A call over the last few weeks for a volunteer amongst all parents and grandparents had fallen upon deaf ears so my wife rung a couple of agencies and found the cheapest Santa was £600 for 90mins work. So that's a great business to get into, although I accept the work might have a seasonal bias! Since it’s the start of December this morning, we’ll shortly be releasing our monthly performance review for November. Overall, it was a great month for markets after a run of three fairly weak ones, which has led to a big turnaround in some of the YTD numbers for 2023. In fact, it was the best month for global bonds since December 2008, the best month for US bonds since May 1985, as well as the strongest month for the S&P 500 this year. The full report will be in your inboxes shortly. Whether the trends of November continue into Xmas might in part depend on Powell’s speech later today (4pm GMT), just before the FOMC blackout. Market moves have been so great since he suggested that tight financial conditions were doing some of the Fed's job for them (November 1st) that you have to think he will address the subsequent moves and either push back or endorse. On balance I think he may take a similar tone to Williams yesterday and push back a little while acknowledging the progress that has seemingly been made . On that theme, NY Fed President Williams' remarks yesterday helped the month end on a soggier tone, especially for bonds. He said he expects “it will be appropriate to maintain a restrictive stance for quite some time to fully restore balance and to bring inflation back to our 2% longer-run goal on a sustained basis .” Separately, San Francisco President Daly said that “I’m not thinking about rate cuts at all right now”. Those developments had a notable impact on sovereign bonds, which pared back some of their recent gains on both sides of the Atlantic. For instance, the 10yr Treasury yield bounced back +7.1bps to 4.33%. Over in Europe there were slightly smaller moves for 10yr bunds (+1.5bps), OATs (+2.3bps) and BTPs (+5.5bps), while Gilts underperformed (+8.0bps) . This came even as the data generally pointed in a dovish direction. In particular, we had the latest PCE inflation data for October yesterday, which is the measure the Fed officially targets. That showed headline PCE at a monthly 0.0% (vs. +0.1% expected), which brought the year-on-year number down to +3.0%, and the lowest since March 2021. It also brings us closer to the sort of numbers where the Fed has historically pivoted towards rate cuts in the past. Core PCE was still a bit higher at +3.5%, but to be fair, the more recent figures have been better, and if you just look at the last 6 months alone, core PCE is now down to an annualised +2.5% . Over in the Euro Area, there was similarly good news from the flash CPI reading for November. It showed headline annual inflation was down to +2.4% (vs +2.7% expected) , the lowest since July 2021, and almost back at the ECB’s 2% target. This was partly down to a big negative impetus from energy prices, which are currently down -11.5% year-on-year. Core inflation remained more elevated at +3.6% but this also surprised clearly on the downside (+3.9% exp) with a marked slowdown in the past three months, down from +5.3% as recently as August. Amidst the better news on inflation, the bigger concern came from the labour market, where the latest data showed things were continuing to soften. For example, US continuing jobless claims were up to their highest level in almost two years, at 1.927m (vs. 1.865m expected). Seasonals seem to be a little all over the place this year so some caution is required. Meanwhile in Germany, the r egistered unemployment rate climbed to a two-and-a-half year high of 5.9%, so this wasn’t just a US theme. As it happens, we’re now just a week away from the final US jobs report of the year, and it was last month that the unemployment rate hit its highest since January 2022. So if it does show any further softening, that’ll only ramp up the H1 2024 rate cut speculation as we get closer to the Fed’s December meeting just a few days later . With the data softening, US equities continued their pretty flat performance this week. But a sizeable rally in the final 30 minutes of US trading, probably reflecting month-end flows, left the S&P 500 posting a decent rise (+0.38%). Bank stocks outperformed for the second day in a row (+1.03%), while a strong day for industrials led the Dow Jones index to a +1.47% gain. Tech stocks underperformed, with the NASDAQ (-0.23%) and the FANG+ index (-0.27%) dipping. Meanwhile in Europe, the STOXX 600 (+0.55%) continued its recent outperformance, closing at a two-month high . This morning Asian equity markets are drifting lower at the start of the last month of the year despite the late-day rebound on Wall Street overnight. As I check my screens, the KOSPI (-1.03%) is the biggest underperformer across the region with the CSI (-0.91%), the Hang Seng (-0.69%) and the Shanghai Composite (-0.32%) also trading in the red amid mixed economic signals from China (more on this below). Elsewhere, the Nikkei (+0.03%) is flickering between gains and losses this morning. In overnight trading, US stock futures are indicating a negative start with those on the S&P 500 (-0.06%) just below flat while those on the NASDAQ 100 (-0.19%) inching lower. Coming back to China, the Caixin PMI measure of the manufacturing sector unexpectedly expanded in November, hitting 50.7 (v/s 49.6 expected). That was the fastest expansion in three months and up from 49.5 in October. Of course, the Caixin PMI stands in contrast to the latest official PMI which dropped to 49.4, highlighting that mores stimulus will likely be required to reinvigorate growth in the world’s second biggest economy. Elsewhere, Japan’s unemployment rate edged down to 2.5% in October (v/s 2.6% expected) while the job-to-application ratio slightly went up to 1.30 after having stayed at 1.29 in the preceding three months. In a separate report, capital spending in 3Q23 advanced +3.4% y/y as expected after a +4.5% gain in the previous quarter. Elsewhere yesterday, oil prices gave up their earlier gains following the conclusion of the OPEC+ meeting. T he group agreed additional supply cuts totalling about 900kb/d on top of an existing reduction of 1,300kb/d by Saudi Arabia and Russia . However, the move was in the form of “voluntary cuts” by several OPEC+ countries rather than a more typical agreement on reduced production quotas, leaving questions over how disciplined the implementation of the supply curbs will be. WTI crude had been trading c. 2% higher on the day prior to the news but fell by more than 5% intra-day and was down -2.44% by the close at $75.96/bbl. Brent crude saw more modest swings, and was down -0.32% to $82.83/bbl yesterday. Overnight, Brent crude prices are under pressure, trading -2.61% lower to trade at $80.67/bbl on softer output cuts . To the day ahead now, and central bank speakers include Fed Chair Powell, the Fed’s Barr, Goolsbee and Cook, ECB President Lagarde, and the ECB’s Elderson and De Cos. Data releases include the global manufacturing PMIs, along with the ISM manufacturing reading from the US. Tyler Durden Fri, 12/01/2023 - 08:20.....»»

Fixed income investors have benefitted from a huge rally over the past month, with bonds notching their best performance in nearly 40 years. Bill GrossJim Young/Reuters Legendary bond investor Bill Gross made around $4 million from a recent bet on interest rates, Bloomberg reported. Gross reportedly purchased contracts tied to the SOFR, a benchmark lending.  Bond prices have seen a huge rally over the past month, seeing their best performance in nearly 40 years. Legendary bond investor Bill Gross reportedly made millions from the latest rally in bonds, via bets on futures contracts tied to a short-term lending rate that have rallied in price as investors adjust their expectations for Federal Reserve policy.The PIMCO co-founder and "Bond King" made over $4 million from betting on the Secured Overnight Financing Rate, a short-term lending benchmark for dollar-denominated loans, according to analysis from Bloomberg. The bet is tied to a recession call that the famed investor announced in a post on X in October. Gross purchased 3,000 three-month March 2025 contracts tied to SOFR in late October, a spokesperson for Gross confirmed to Bloomberg. The report estimated Gross' total profits so far based on the price for that contract, which has risen from around $95 in late October to trade around $96.45 on Friday.Gross' bet is ongoing, meaning those profits haven't been realized yet. His media team did not immediately respond to Business Insider's request for comment.The reported gains come amid a stunning rally in the US bond market, with prices notching their best monthly performance in nearly 40 years in November. Bond prices, which move in the opposite direction as bond yields, rallied last month as markets dialed back expectations for more Fed tightening. November's move in bonds was in stark contrast to October, when the market suffered one of the worst sell-offs in history as investors reacted to the outlook of higher for longer rates from Fed chief Jerome Powell. But now, investors see a 48% chance rates could head lower by the first quarter of next year, up from just a 14% chance priced in a month ago, the CME FedWatch tool shows. Wall Street commentators are also growing more bullish on asset prices, with some forecasting that the Fed could shift to full-on monetary easing next year. That could involve as many as six interest rate cuts in 2024, ING Economics estimated, predicting the fed funds rate to ease to about 3.83% by the end of next year. Read the original article on Business Insider.....»»

She grew up in Ohio and is raising kids in New Delhi. Students in India learn several languages and face high pressure to get into schools early. The author grew up attending school in Ohio; now her kids attend school in New Delhi.Courtesy of the authorI went to public school in Ohio, and now my three kids are going to school in New Delhi. There's a lottery system to get into the most sought-after schools, which puts pressure on parents.My kids have been learning multiple languages since they were in pre-K. My foray into the Indian school system began with education — not my children's, but my own. I met my husband during my study-abroad semester in New Delhi. We got married in 2010 and made our home there. We now have three sons, aged 10, 8, and 4, who are enrolled in an Indian school.I grew up attending a public school in suburban Ohio. My experience living in the megacity of New Delhi and navigating the school system here vastly differs from what I grew up with.Here are my firsthand perspectives on the disparities between schools in India and the US.Formal schooling starts earlyOne of the most striking differences I noticed is the age at which formal schooling begins for children in India.In our case, my kids started in a formal pre-K program when they were 3 years old. The immense demand for quality education, especially in India's cities, where competition for school admission is fierce, drives this early start. This leads to the prevailing notion that if you don't enroll your child in the formal school system early, you might miss the window of opportunity to secure a spot in one of the more coveted institutions later.There's a lot of pressure to get into some schoolsSchool admissions in New Delhi are a high-stakes endeavor, unlike the public-school system I grew up with in the US, where your address mostly dictates which school you attend.The admissions process here is complex and multifaceted, incorporating factors such as proximity to the school and alumni status. But schools also consider things like parents' education levels, giving preference to better-educated parents with the idea that it may signal the family prioritizes education. Even factors like a child's gender are taken into consideration. Historically in India, many families prioritized the education of sons over that of daughters because the sons would continue to care for their parents in old age. Schools, in awarding additional points in admissions consideration to girls, are trying to advocate for girls' education and correct that longstanding gender bias. After students meet these criteria, schools select them through lotteries. The acceptance rates at some of the most sought-after schools are staggeringly low, hovering at around 1%. The pressure on parents to secure their child's admission begins months, if not years, in advance, and this intense competition can be incredibly stressful.There are more one-day school holidaysI remember growing up with leisurely summer and winter breaks that ranged from three weeks to three months in length. My kids, on the other hand, only enjoy a six-week summer hiatus from mid-May to late June, and a 10-day break in January.However, the Indian school calendar compensates with frequent one-day holidays throughout the year. These single-day "chuttis"— "holidays" in Hindi — encompass an array of religious and public holidays, including Eid, Christmas, Buddha's Birthday, Mahatma Gandhi's birthday, Diwali, various Hindu gods' birthdays, Sikh gurus' birthdays, and national holidays such as Independence Day and Republic Day.My kids are learning several languagesMost Indian schools adopt a bilingual approach to education. In our case, instructors teach our kids in English, our kids have studied Hindi since kindergarten, and they'll begin learning a third foreign language in the fourth grade. This multilingual approach reflects the diverse linguistic landscape of India and prepares students to communicate effectively in both a country as diverse as India and in the wider world.There's more emphasis on STEM subjectsIndian schools place significant emphasis on STEM subjects. While they do teach basic grammar, there is often less emphasis on reading full books as part of the curricula.In my children's English textbooks, there are excerpts from works such as "Alice's Adventures in Wonderland," "Treasure Island," and "The Jungle Book," but teachers assign few full novels as reading. In contrast, in his environmental-studies class, my fifth grader is delving into topics including human and plant anatomy that I didn't encounter until my freshman year of college in the US. This focus on STEM subjects sometimes comes at the cost of arts and humanities education, requiring parents to supplement their children's learning in these areas outside school.While navigating the Indian education system — and the education system in any country, for that matter — has its own set of challenges, our family has embraced this adventure. We are excited to see how it shapes our children's futures, and opportunities for growth, learning, and adaptation.Read the original article on Business Insider.....»»

UP Fintech Holding Limited (NASDAQ:TIGR) Q3 2023 Earnings Call Transcript November 27, 2023 UP Fintech Holding Limited beats earnings expectations. Reported EPS is $0.08, expectations were $0.03855. Operator: Ladies and gentlemen, thank you for standing by, and welcome to UP Fintech Holdings Limited Third Quarter 2023 Earnings Conference Call. At this time, all participants are […] UP Fintech Holding Limited (NASDAQ:TIGR) Q3 2023 Earnings Call Transcript November 27, 2023 UP Fintech Holding Limited beats earnings expectations. Reported EPS is $0.08, expectations were $0.03855. Operator: Ladies and gentlemen, thank you for standing by, and welcome to UP Fintech Holdings Limited Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. I must advise you that today’s conference is being recorded today, November 27, 2023. I’d now like to hand the conference over to your first speaker today, Mr. Aaron Li, the Head of IR. Thank you. Please go ahead. Aaron Li: Thank you, operator. Hello everyone and thank you for joining us for the call today. UP Fintech Holding Limited’s third quarter 2023 earnings release was distributed earlier today and is available on IR website at ir.itigerup.com, as well as GlobeNewswire services. On the call today from UP Fintech are Mr. Wu Tianhua, Chairman and Chief Executive Officer; Mr. John Zeng, Chief Financial Officer; Mr. Huang Lei, CEO of U.S. Tiger Securities, and Mr. Kenny Zhao, our Financial Controller. Mr. Wu will give an overview of our business operations and discuss corporate highlights. Mr. Zeng will then discuss our financial results. They will both be available to answer your questions during the Q&A session that follows their remarks. Now let me cover the Safe Harbor. Some statements we are about to make contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement. For more information about factors that could cause actual results to materially differ from those in the forward-looking statements, please refer to our Form 6-K furnished today, November 27, 2023 and our annual report on Form 20-F filed on April 26, 2023. We undertake no obligation to update any forward-looking statement except as required under applicable law. It is my pleasure to now introduce our Chairman and Chief Executive Officer, Mr. Wu. Mr. Wu will make remarks in Chinese which will be followed by English translation. Mr. Wu, please go ahead with your remarks. Tianhua Wu: [Foreign Language] Hello, everyone. Thank you for joining the Tiger Brokers’ third quarter 2023 earnings conference call. In the third quarter, we saw improvement in both commission and interest-related income. As a result, total revenue was USD70 million, an increase of 6.2% quarter-over-quarter and 26.6% year-over-year. On the bottom line, as we started to see more operating leverage, net income attributable UP Fintech was USD13.2 million, a slight increase from the previous quarter and approximately 4x that of the same quarter of last year. Non-GAAP net income attributable to UP Fintech was USD16 million, up 4.3% from second quarter of this year and an increase of 141% from the same quarter of last year. We are glad to see a consistent quarter-over-quarter in the company’s bottom line for all three quarters this year. Total non-GAAP net income of the first three quarters of this year was USD41 million, already exceeding the combined full-year non-GAAP net income of 2021 and 2022. We are confident in our business model to be adaptable in different market environments and regulatory framework. In the third quarter, we added 24,604 new funded accounts, bringing the total number of new funded accounts in the first three quarters of this year to over 84,000. Total number of funded accounts at the end of the third quarter reached 865,000 representing a growth of 15% compared to the same quarter of last year. In terms of total current assets, the trend of asset inflow remains strong, with net inflow over USD1.5 billion in the third quarter. After neutralizing the impact from market loss, total current assets in this quarter increased by 9.3% quarter-over-quarter and 45.4% year-over-year, reaching USD18.9 billion. Specifically, in the Singapore market, net inflow from local users remains stable and strong. In Singapore, the average net asset inflows of our newly acquired clients in the third quarter was approximately USD10,000, and we see similar trends in terms of net asset inflow from previous quarterly cohort groups. This demonstrates our ability to attract high-quality new users in Singapore and solidify our leading position in the local market. We continue to add new products to our platform to enhance user experience, which we believe is the key to our long-term success. In the third quarter, the Tiger community introduced the Trading Sparks feature. Users can follow best-performing traders on our platform and leverage their trading ideas for investment opportunities. Additionally, on the wealth management business, following the launch of the U.S. dollar and Hong Kong dollar money market fund on [Tiger Bolt] earlier this year, we recently added U.S. Treasury to our wealth management platform in Singapore. We anticipate the launching of this new feature for Hong Kong users in December. Our 2B business continues to perform well. In investment banking, we underwrote four U.S. and Hong Kong IPOs in the third quarter, including Earlyworks and Keep. In our ESOP business, we added 27 new clients in the third quarter, bringing the total number of ESOP clients served to 505 for the end of the third quarter of 2023, increased by 29% year-over-year. Now, I would like to invite our CFO, John, to go over our financials. John Zeng: Hello, everyone. Thanks, Tianhua and Aaron. Let me go through our financial performance for the third quarter. All numbers are in U.S. dollar. Total revenue was $70.1 million this quarter, increased 6.2% quarter-over-quarter and 26.6% year-over-year. Both commission income and interest-related income saw a sequential increase this quarter. Cash equity take rate was 6.1 bps this quarter, slightly decreased from last quarter. Within commission revenue, about 60% comes from cash equities, 30% from options, and the rest comes from futures and other products. Now on cost, interest expense was $12.1 million, increased 182% from the same quarter of last year, in line with the rate hike. Execution and clearing expense were $2.4 million, decreased 26% from the same period of last year, primarily due to more self-clearing in U.S. and Hong Kong securities. Employee compensation and benefits expense were $26 million, an increase of 8% year-over-year due to an increase in global headcounts. Depreciation expense decreased 10% to $2.2 million as the depreciation of the headquarters office declaration expense has been completed. Communication and market data expense were $7.6 million, an increase of 16% year-over-year due to the increase in user base. Marketing expense were $5.2 million this quarter, decreased 30% year-over-year as we remain prudent with our marketing approach in the third quarter. General and administrative expense were $5.4 million, an increase of 55% year-over-year due to increase in professional service fees. Total operating expense were $48.8 million, slightly increased 3.1% from the same quarter of last year. As a result, both GAAP and non-GAAP bottom line increased quarter-over-quarter and year-over-year. GAAP-related income was $13.2 million, slightly increased 1% from the previous quarter and about 4x that of the same quarter of last year. Non-GAAP-related income was $16 million, up 4% from the previous quarter and increased 141% versus the same quarter of last year. Now we have concluded our presentation. Operator, please open the line for Q&A. Thanks. Operator: [Operator Instructions] First question comes from the line of Han Pu from CICC. Please go ahead. See also 20 States with Highest Minimum Wage and Low Cost of Living and 12 Countries That Consume the Most Salt.  Q&A Session Follow Tigerlogic Corp (NASDAQ:TIGR) Follow Tigerlogic Corp (NASDAQ:TIGR) We may use your email to send marketing emails about our services. Click here to read our privacy policy. Han Pu: [Foreign Language] Thanks management, for taking my question. I have two questions. Firstly, could you please give us the regional breakdown of the new funded accounts in Q3? And secondly, we have seen the positive improvement in the bottom line this year. Strategically, how do you balance the growth and the probability in 2024? Do we have any plans for new markets? Thank you. Tianhua Wu: [Foreign Language] For the first question, among the new funded accounts in the third quarter, approximately 55% came from Singapore. The contributions from Hong Kong, Australia and New Zealand region and the United States accounted for around 15% each. We’ve seen quarterly growth on bottom line throughout the first three quarters of this year, accumulating over USD41 million. As of now, the number of new funded clients has already exceeded our annual guidance of 500,000, and total client assets at the end of the third quarter have increased by 9.3% quarter-over-quarter and 45.4% year-over-year, reaching USD18.9 billion. So we have improved our profitability while growing user base and assets under custody. I believe the growth of user base and client assets goes hand-in-hand with the profit growth in the long run. There is a cap on how much cost savings can help profitability, especially with some variable costs, for example, our clearing expenses, are already one of the lowest in the industry. So the key is still to acquire more high-quality users, get more access on platform to increase total revenue and net income. It’s a great question that you ask and it’s also a question we keep asking ourselves, how to achieve better operating leverage if we incur more costs like CC. That’s why we use ROI and payback period as important metrics to evaluate our different subsidiaries. As of now, our focus will continue to be on driving sustained profit growth in the existing market with manageable investment. So we can build buffer for company’s future expansion, we will carefully evaluate all aspects of the company’s resources before determining the pace and direction of new markets we want to enter. Thank you. Operator: [Operator Instructions] Next up, we have the line from Cindy Wang from China Renaissance. Please ask your question. Cindy Wang: [Foreign Language] So thanks management for taking my questions. So, I have two questions. First question is market, is that the Fed rate hike cycle is coming to the end, and they start to cut interest rate in the mid-2024. So based on this scenario, how would you adjust strategy and operations to maintain the current or even higher profit margin? The second question is the blended take rate in the third quarter was down sequentially. So what’s the reasoning behind it? Thank you. Tianhua Wu: [Foreign Language] Okay. I’ll translate his answer for first question. We think a good thing about the broker-dealer business model is trading velocity in general nature hedge with interest rate. When risks go up, velocity in trading commission tend to go down, and vice versa. In our business, a big chunk of interest income comes from margin financing and securities lending, where we earn a relatively stable interest spread. Therefore, the impact of interest rate costs on our interest income will be fairly limited. And of course, we will also adjust our product and operational strategy based on different market backdrop. For example, in the past year with the Fed rate hikes, we introduced more yield products such as U.S. dollar and Hong Kong dollar money market funds, and features for investments in U.S. Treasury. We also generated more interest income through treasury management and margin financing, securities lending business. But in the future, as market activity improves with interest rate cuts, more client assets will likely to shift from fixed income investment to equity investments. We will roll out more tailored investor education and promotions based on market conditions. So overall, we still consider future interest rate cuts as a positive signal, given increased market activity is more likely to generate beta effect growth on our top line. John Zeng: [Foreign Language] So the slight decrease in blended take rate was due to high price names like Tesla and Nvidia, accounted for a big portion of our trading volume in the third quarter. So the increase in share price of those names outpaced the increase in number of shares traded. Since we charge commission by number of shares, the blended take rate came down slightly versus last quarter, even our pricing remained the same. Thanks. Operator: [Operator Instructions] The next question comes from the line of Alan Kuang from Citibank. Please go ahead. Alan Kuang: [Foreign Language] Thanks management for taking the question. This is Alan from Citi Research. I have two questions today. And the first one is about the Singapore market. Recently, we have seen one of our Tiger competitors building up growth momentum in Singapore with decent paying customer growth and market share gain during the third quarter. As Singapore is Tiger’s core market, wondering if management have any comments on the latest local market share trends, and on a forward-looking basis, could management give us some color or update on the latest growth strategy for the Singapore market? And the second question is about crypto trading license. I’m wondering if management have any updates on the license application. Thanks. Tianhua Wu: [Foreign Language] So for the first question regarding our business in Singapore. The Singapore market has been a key profit driver for Tiger. Thanks to our low average CC which is staying below USD200 in the first three quarters, we’ve seen a double-digit compound growth on the bottom line throughout the first three quarters of this year. Also, the success in Singapore has boosted Tiger’s reputation in the entire Southeast Asian market, brings us solid foundation and brand advantage for future entry into those Southeast Asian market. In the third quarter, the overall net asset inflow continued its strong momentum with around USD1.5 billion. Singapore played a big part in it, with average net asset inflows of our newly acquired clients in the third quarter reaching around USD10,000, and more importantly, our existing users from Singapore market showed a similar trend in terms of net asset inflows. The retention rate of our local users with assets remain at 99%, and the cash equity trading volumes saw a quarter-over-quarter increased about 10%, and we ranked at number 1 among our online brokers in Singapore in terms of Singapore shares trading volume. So whether we are looking at our strategic position, profitability, net inflows of client assets, or retention rates, we are comfortable with where we stand in Singapore. Our success locally is closely tied to our focus on user quality and our commitment to balancing ROI. So looking ahead, we will continue this strategy ensuring profitability while attracting high-quality users. Thank you. John Zeng: [Foreign Language] So in our view, crypto is becoming a very important asset class. It’s a natural extension of business as a broker dealer to add a new asset class. And the [Web3] technology is also integrated with Tiger’s fintech background and low-how. So we are planning for multiple licenses across regions. For example, in the U.S., we are applying for MSP licensing each state. In Singapore, we are applying for PSA license. In Hong Kong, we already submitted our VATP application following SFC’s consultation back in June. So hopefully, by next year, we will get an approval and offer crypto trading to investors. Thank you......»»

With U.S. stock futures trading mixed this morning on Friday, some of the stocks that may grab investor focus today are as follows: read more.....»»

U.S. stock futures paused Friday after a final flourish to a fantastic month, as investors awaited comments from Fed Chair Jerome Powell......»»