Here are the key updates that investors should know to kick off their day of trading:
1. Positive Market Trends
Stocks are still doing well this month. On Monday, the Dow increased by about 200 points, and the S&P 500 and Nasdaq both had five consecutive days of gains.
Treasury yields have slightly decreased, as there is optimism that the Federal Reserve is stepping back from its efforts to control inflation by raising interest rates. We’ll get more insight into the Fed’s views on inflation and the economy when they release the minutes from their recent policy-setting meeting.
2. Microsoft’s Concerns about OpenAI
Microsoft CEO Satya Nadella is expressing the need for changes at OpenAI, a startup that recently faced turmoil when it removed its co-founder and CEO, Sam Altman. Nadella stated that there’s a clear need for changes in how the organization is governed.
Microsoft has invested around $13 billion in OpenAI, known for creating the popular ChatGPT app that has significantly influenced the tech landscape in the past year. Microsoft promptly hired Altman to lead a new AI team.
Meanwhile, many OpenAI employees threatened to leave unless Altman was reinstated as the leader, given that Microsoft owns 49% of the startup. Nadella mentioned that the choice to stay or leave is up to the employees, and he is open to either option.
3. Retail’s Final Thoughts Before Black Friday
Several retailers are set to announce their earnings on Tuesday, providing investors with one last glimpse of their expectations for the holiday quarter just before Thanksgiving. The results have been somewhat unremarkable so far.
Black Friday, the day after Thanksgiving, isn’t as significant as it used to be, as discounts start earlier, and more money is spent on online shopping. However, it marks the beginning of the final stretch leading up to the holidays. On Tuesday morning, we’ll hear from Best Buy, Lowe’s, Dick’s Sporting Goods, as well as mall-based apparel sellers American Eagle Outfitters and Abercrombie and Fitch. Nordstrom will release its report after the stock market closes.
4. Nvidia Takes Center Stage
Tuesday isn’t just about retail earnings. Nvidia, a standout in the artificial intelligence boom, is scheduled to release its report after the stock market closes. Wall Street is excited as well. The stock reached an all-time high on Monday ahead of the quarterly report, having risen by an impressive 245% this year, outperforming the S&P 500.
Analysts anticipate a remarkable 170% growth in revenue for the company. Apart from the financial figures, investors are eager to hear Nvidia executives’ perspectives on the repercussions of OpenAI removing Sam Altman from his position.
5. Affordable Fuel
Gas prices are set to be the lowest for Thanksgiving since 2020 when Covid restrictions impacted travel plans. Overall, gas prices have been decreasing for over two months now. As of Monday, the average cost per gallon was $3.31, which is 25 cents less than a month ago. In 11 Southern and Midwestern states, it’s even below $3, as reported by AAA.
However, these price drops may not last long. OPEC might decide to reduce production at its upcoming meeting next week, potentially leading to an increase in crude oil prices.
Positive market trends continue with stocks performing well, while Microsoft expresses concerns about governance at OpenAI. Retail earnings ahead of Black Friday are somewhat unremarkable, and Nvidia shines in the AI sector with record-breaking stock performance. Additionally, gas prices are at their lowest since 2020, though OPEC’s potential production cuts could impact their sustainability.