- Asian Stocks Fluctuate; Bitcoin Tops $100,000: Markets Wrap
Asian equities traded in a narrow range while the region’s currencies stayed relatively calm, as traders
digested the effects of the political storms in France and South Korea. Bitcoin exceeded $100,000. China and
Hong Kong fell. Korean equities retreated, with the country’s ruling party looking to prevent President Yoon
Suk Yeol’s impeachment by voting against a motion to initiate proceedings that may take place Saturday.
Bitcoin extended a rally from Wednesday to hit the $100,000 mark for the first time ever, after President
elect Donald Trump picked a crypto proponent to be the next head of the US securities regulator. - Dow posts first close above 45,000; S&P 500 reaches new record as tech shares surge
The S&P 500 and Nasdaq Composite scaled to record highs Wednesday, with tech shares leading the charge
following strong reports from Salesforce and Marvell Technology. The broad market index gained 0.61%,
closing at 6,086.49, while the tech-heavy Nasdaq advanced 1.3% to 19,735.12. The Dow Jones Industrial
Average advanced 308.51 points, or 0.69%, to 45,014.04. All three major averages hit all-time highs during
the session and closed at records, with the 30-stock Dow ending above the 45,000 threshold for the first
time. - Oil prices rise with all eyes on OPEC+ supply decision
Oil prices rose on Thursday ahead of an OPEC+ meeting later in the day, with investors waiting to see what
the producer group would do next on supply cuts while also monitoring tension in the Middle East. Brent
crude futures climbed 12 cents, or 0.2%, to $72.43 a barrel by 0103 GMT while U.S. crude futures were at
$68.70 a barrel, up 16 cents, or 0.2%. Both benchmarks fell nearly 2% on Wednesday. The Organization of the
Petroleum Exporting Countries and its allies in OPEC+ are likely to extend their latest round of oil production
cuts by at least three months from January when it meets online at 1100 GMT on Thursday, OPEC+ sources
told Reuters, to provide additional support for the oil market. OPEC+ has been looking to phase out supply
cuts through next year. - Gold flat as investors await U.S. payrolls data
Gold prices were little changed on Thursday as investors awaited U.S. payrolls data that is expected to
provide more insights into the Federal Reserve’s monetary policy path. Spot gold was nearly unchanged at
$2,647.17 per ounce, as of 0326 GMT. U.S. gold futures eased 0.2% to $2,671.10. Gold prices probably will
stay around these levels with a downward bias at least until (the end of) December, said Brian Lan, managing
director at Singapore-based dealer GoldSilver Central. The payrolls report on Friday will be followed U.S.
inflation data for November, which is expected next week. - BOJ Rate Hike Bets Retreat as Traders Count Down to Key Meeting
Market expectations of a Bank of Japan interest rate hike this month sank after a local media report cast
doubt on an increase, damping the outlook for the yen’s recovery. Overnight indexed swaps on Thursday
were pricing in a 36% chance of a rate hike at the central bank’s Dec. 18-19 meeting, falling sharply from 66%
on Nov. 29. The yen briefly weakened further against the dollar after BOJ board member Toyoaki Nakamura
maintained his dovish stance. The Japanese currency remains weaker than the key 150 per dollar level, even
after recouping some losses following a decline of as much as 1.1% on Wednesday. - France Plunges Deeper Into Crisis After Macron’s Premier Ousted
Emmanuel Macron is looking for a new prime minister on Thursday after the far right joined forces with the
left to push through a no-confidence motion against his government over a budget dispute. The French
president needs to find a premier who can pass a 2025 budget through a deeply divided parliament.
But any new leader will face the same financial squeeze that brought down Prime Minister Michel Barnier’s
administration. The budget bill presented by Barnier, that sank with his government, contained €60 billion
($63 billion) in tax increases and spending cuts that aimed for a reduction in the deficit to 5% of economic
output in 2025, from an estimated 6.1% this year. - South Korea’s Yoon replaces Defence Chief as parliament is poised to vote on his impeachment
South Korea’s President accepted the resignation of his Defence Minister on Thursday (December 5, 2024) as
opposition parties moved to impeach both men over the stunning yet short-lived imposition of martial
law that brought armed troops into Seoul streets. The main opposition Democratic Party and other small
opposition parties submitted a joint motion to impeach President Yoon Suk Yeol on Wednesday over his
martial law declaration the previous night. Martial law lasted about six hours, as the National Assembly
quickly voted to overrule the President, forcing his Cabinet to lift it before daybreak Wednesday. - Fed’s Powell Expects Good Relations With Trump Administration
Federal Reserve Chair Jerome Powell downplayed the prospects of tension with the incoming Trump
administration and said he expects officials can move cautiously as they continue lowering interest rates. We
can afford to be a little more cautious as we try to find neutral, Powell said in reference to the level for rates
that neither spurs nor restrains the economy. The Fed’s preferred measure of underlying inflation
accelerated in October on an annual basis, offering support for a careful approach to further reductions.
Meanwhile, Powell noted downside risks to the jobs market appear to have receded. - Bitcoin tops $100,000 as monster 2024 rally reaches new heights
The price of bitcoin soared past the long-awaited $100,000 benchmark for the first time ever Wednesday
night. The move came after the S&P 500 and Nasdaq Composite registered new closing records, in the same
day President-elect Trump announced his pick for SEC chair and Fed chair Jerome Powell likened bitcoin to
gold. Bitcoin is now up more than 140% in 2024 and 48% since the election. - Far from a bazooka, China’s stimulus measures are just trickling through the economy
China’s latest efforts to kickstart growth are just trickling through the economy, data and company earnings
show. While it will take some time for the positive effect to fully materialize and to further [expand] to more
consumption categories, we are confident that these policies will gradually provide more support for the real
economy, said Shaohui Chen, Meituan CFO and senior vice president, according to a recording of a recent
earnings call. Looking ahead, our sources expect that stimulus in 2025 will trickle out incrementally and in a
data-dependent fashion, Gabriel Wildau, managing director at Teneo, said in a note Monday summarizing a
recent trip to China. - Banking stocks shine ahead of RBI MPC meeting outcome; HDFC Bank, ICICI Bank, SBI among 8 top picks
of experts
Several banking stocks, including HDFC Bank, ICICI Bank and SBI, traded with healthy gains on Wednesday,
December 4, fuelled by hopes of supportive monetary policy from the Reserve Bank of India (RBI) after recent
macroeconomic data signalled a slowdown in India’s growth momentum. The entire financial space is
teeming with positivity. In intraday trade on Wednesday, the Nifty Bank and Private Bank index rose almost 1
per cent each, while the PSU Bank index clocked a gain of almost 1.5 per cent. The Nifty Financial Services
index rose over a per cent. Financial stocks are rising as the market expects a CRR (cash reserve ratio) cut this
Friday, which will boost their profitability. - Marvell stock surges as strong AI demand yields earnings beat, strong guidance
Marvell Technology Inc (NASDAQ:MRVL) reported third-quarter fiscal 2025 earnings that exceeded analyst
expectations, driving its stock nearly 13% higher in premarket trading Wednesday. The company also
provided an optimistic outlook for the fourth quarter, citing robust demand for its AI-related products.
The data infrastructure semiconductor solutions provider posted adjusted earnings per share of $0.43,
surpassing the analyst consensus of $0.41. Revenue for the quarter reached $1.52 billion, beating estimates
of $1.45 billion and marking a 7% increase YoY. Marvell’s fourth-quarter guidance also impressed investors.
The company forecasts revenue of $1.8 billion (+/- 5%), significantly above the $1.646 billion consensus.
Adjusted EPS is expected to be $0.59 (+/- $0.05), topping analyst projections of $0.52. - Dollar Tree Rises 5% on Q3 Earnings & Sales Beat, Upbeat View
Dollar Tree’s Q3 earnings and sales beat expectations, with adjusted EPS growing 15.5% year over year to
$1.12 and consolidated net sales improving 3.5% to $7.56 billion. The company’s same-store sales rose 1.8%
year over year, driven by a 1.6% increase in traffic and a 0.2% increase in average ticket. Dollar Tree’s shares
rose 5.1% in pre-market trading following the strong results. The company also revised its fiscal 2024 outlook,
projecting consolidated net sales of $30.7-30.9 billion and adjusted EPS of $5.31-5.51. - Analysts reboot Salesforce stock price targets after earnings
Salesforce’s Q3 earnings report showed revenue growth of 8% to $9.44 billion, beating estimates, but
earnings per share fell short of expectations. CEO Marc Benioff highlighted the company’s AI-powered
Agentforce platform as a key driver of future growth, calling it a ‘revolutionary transformation.’ Analysts from
Wedbush, Roth MKM, and Loop Capital raised their price targets for Salesforce, citing the potential of
Agentforce, while veteran trader Stephen Guilfoyle was less impressed, calling the results ‘solid, but
unspectacular’ and questioning the company’s guidance. - Chewy Stock Slips as Online Pet Supplies Retailer Loses Active Customers
Chewy (CHWY) shares dipped 2.5% Wednesday when the online pet supplies retailer missed profit forecasts
as the number of active customers fell and costs rose. The company reported third-quarter adjusted earnings
per share (EPS) of $0.20, while the average estimate of analysts surveyed by Visible Alpha was $0.23.
Revenue rose 4.8% year-over-year to $2.88 billion, slightly more than expected. Chewy said active customers
declined 0.5% to 20.16 million and operating expenses rose 3.3% to $818.2 million. Net sales per active
customer increased 4.2% to $567, and autoship customer sales rose 8.7% to $2.30 billion. Chewy anticipates
current-quarter sales of $3.18 billion to $3.20 billion. It revised its full-year sales outlook to $11.79 billion to
$11.81 billion from the previous $11.60 billion to $11.80 billion. Despite today’s decline, shares of Chewy are
almost 40% higher this year. They have had an interesting run in 2024 after meme stock hero Keith Gill,
better known as Roaring Kitty, took a large stake in the company over the summer, only to dump it a few
months later. - SentinelOne down 11% after Q3 profit miss
SentinelOne Inc (NYSE:S) shares dropped 11% in extended trading after the cybersecurity firm missed Wall
Street’s profit estimates for the third quarter. For the quarter ended October 31, the company reported a
breakeven result, with a GAAP earnings per share of $0.00, falling short of analysts’ expectations of $0.10 per
share. The Mountain View, California-based company posted a 28% increase in revenue, reaching $210.6
million, slightly above the projected $209.73 million, driven by strong demand. Enterprise clients continue to
invest in AI-powered cybersecurity solutions as rising digital scams and high-profile security breaches pose
significant risks to business operations and reputation. SentinelOne has introduced innovative products,
including the generative AI-powered Purple AI and the Singularity platform, aimed at addressing
vulnerabilities associated with businesses’ expanding digital presence. The company issued revenue guidance
for the fourth quarter, projecting it to be approximately $222 million.
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