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Top Stock Market News For Today November 24, 2021

Investors are on the edge of their seats as they await economic data.
The post Top Stock Market News For Today November 24, 2021 appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.com.

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Stock Market Futures Under Pressure Ahead Of Economic Data & Fed Minutes

Stock market futures are taking a breather in early morning trading on Wednesday. Even with markets taking a Thanksgiving holiday tomorrow, there is no shortage of key economic data points for investors to watch. To begin with, we have the U.S. Bureau of Economic Analysis’October figures from the Personal Consumption Expenditures Price (PCEP) index to consider. This would provide investors with insight regarding the changes in the price of goods and services purchased by U.S. consumers throughout October.

Adding to this is a quarterly update on the U.S. GDP alongside minutes from the Fed’s latest meeting. At the same time, the Labor Department will also be releasing the weekly unemployment figures a day earlier than usual due to the Thanksgiving holiday. As you can imagine, investors will likely spend some time digesting these data points. At the same time, there is plenty of stock market news to know about as well. As of 7:31 a.m. ET, the Dow, S&P 500, and Nasdaq futures are trading lower by 0.40%, 0.33%, and 0.39% respectively.

General Motors Sees Hike In Reservations After President Biden’s Hummer Test Drive

General Motors (NYSE: GM) seems to be benefitting from President Joe Biden’s recent visit to one of its plants. Namely, the President was at one of the company’s GMC Hummer production plants last week. During the visit, he reportedly test drove one of these electric pickups. As a result, GM is seeing a sevenfold increase in daily reservations. Additionally, the company’s website traffic more than tripled on the same day. Now, President Biden’s interest in electrifying the U.S. fleet is well-known at this point. After today’s visit, it seems like consumers are more inclined to follow suit as well.

Global head of GMC Duncan Aldred commented on all this. He said “It just shows that the customer’s intrigue and interest and willingness to buy remains super-high.” While the company did not provide the exact number of reservations, Aldred did mention that there were over 125,000 “hand-raisers”. The likes of which are looking to enquire about the electric Hummer via GM’s website. Notably, GM is also going to begin delivery of the first iteration of the GMC Hummer by mid-December. As GM continues to make its mark in the electric vehicle (EV) world, investors could be watching GM stock closely.

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HP Soaring On Earnings Beat As Some Make Return To Office

HP (NYSE: HPQ) is in focus in the stock market today thanks to its latest quarterly earnings report. Diving right in, the company posted an earnings per share of $0.94 on revenue of $16.68 billion for the quarter. More importantly, HP handily beat Wall Street’s estimates of $0.88 and $15.4 billion respectively. As a result, HPQ stock is surging by over 7% in pre-market trading. Overall, even as the broader tech industry is seeing a pullback, investor interest in the provider of computer hardware seems to persist.

In detail, HP’s personal systems division raked in a total net revenue of $11.8 billion for the quarter. This marks a solid year-over-year increase of 13%. Furthermore, the company’s consumer PC business revenue surged by 25% over the same time as well. According to HP CEO Enrique Lores, this momentum in the company’s commercial client division is thanks to industry tailwinds. This appears to be the case as consumers turn to HP’s offerings across work-from-home and return to office markets. Moving forward, Lores also adds that HP expects this robust demand to persist for the “foreseeable future”. With all this in mind, HPQ stock could be gaining attention after today’s opening bell.

Billion Dollar Tesla ‘Gigafactory’ To Be Completed By Year End

Elsewhere, Tesla (NASDAQ: TSLA) appears to be kicking into high gear on the operational front now. Evidently, news recently broke on its highly anticipated ‘Gigafactory’ in Austin, Texas. According to a recent public filing, Tesla is set to spend at least $1.06 billion on the new EV factory. Furthermore, the general construction of the facility is set to be completed by December 31. This includes the facilities needed for bodywork, stamping, casting, and full vehicle assembly among other key manufacturing assets.

According to CNBC sources, all this is from construction filings with the Texas Department of Regulation. Upon completion of construction, the Gigafactory will reportedly focus on the production of Tesla’s upcoming electric pickup truck, the Cybertruck. Moreover, the company will also be manufacturing its Model 3 and Model Y EVs there as well. By and large, as EV players like Tesla continue to ramp up their operations, investors’ focus on the EV industry could continue to grow. With the company leading this charge, it would not surprise me to see TSLA stock gaining traction.

[Read More] 5 Metaverse Stocks To Watch In November 2021

Levi Strauss Expecting “A Really Strong Holiday Season” Ahead

In other news, Levi Strauss (NYSE: LEVI) is among the retailers going into this holiday season with high expectations. To highlight, Levi Strauss CEO Chip Bergh recently spoke about the company’s projections for the quarter with CNBC’s Jim Cramer. In the interview, Bergh said, “We’re expecting a really strong holiday season, and it’s all being fueled by a super-strong consumer right now.” He argued that the consumer “home balance sheet” is as strong as ever now.

In particular, Levi Strauss is riding a new cycle in the denim jeans market. Bergh explained, “About 40% of Americans have changed their waist size. Some up, some down, but that drives you to have to go out and update your wardrobe. That, combined with the new denim silhouette, which is really driving a new denim cycle, is really the tailwind behind our business right now.” Not to mention, retailers, in general, are currently sporting better e-commerce services than ever. Even with a resurgence in coronavirus cases, this holiday shopping season could be one to watch closely.

[Read More] Top Reddit Stocks To Buy Right Now? 5 For Your Late 2021 Watchlist

Earnings To Note In The Stock Market Today

Not forgetting, there are also companies posting their quarterly figures in the pre-market today. They include Deere & Company (NYSE: DE), Futu (NASDAQ: FUTU), and Kingsoft Cloud (NASDAQ: KC). From today’s flurry of economic data to earnings and companies making plays, there is enough to keep investors busy ahead of Thanksgiving. 

The post Top Stock Market News For Today November 24, 2021 appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.com.

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Economics

FT-IGM US Macroeconomists Survey for December

The FT-IGM US Macroeconomists survey is out (it was conducted over the weekend). The results are summarized here, and an FT article here (gated). Here’s some of the results. For GDP, assuming Q4 is as predicted in the November Survey of Professional…

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The FT-IGM US Macroeconomists survey is out (it was conducted over the weekend). The results are summarized here, and an FT article here (gated). Here’s some of the results.

For GDP, assuming Q4 is as predicted in the November Survey of Professional Forecasters, we have the following picture.

Figure 1: GDP (black), potential GDP (gray), November Survey of Professional Forecasters (red), November SPF subtracting 1.5ppts in Q1, 05ppts in Q2 (blue), FT-IGM December survey (sky blue squares), all on log scale. FT-IGM GDP level assumes 2021Q4 growth rate equals SPF November forecast. NBER defined recession dates peak-to-trough shaded gray. Source: BEA 2021Q3 2nd release, Philadelphia Fed November SPF, FT-IGM December survey, and author’s calculations.

In the figure above, I’ve used the SPF forecast of 4.6% SAAR in 2021Q4; the Atlanta Fed’s nowcast as of yesterday (12/7) was 8.6% SAAR. A new nowcast comes out tomorrow.

Interestingly, q4/q4 median forecasted growth equals that implied by the Survey of Professional Forecasters November survey (which was taken nearly a month before news of the omicron variant came out).

The q4/q4 forecast distribution for 2022 is skewed, with the 90th percentile at 5% growth, the 10th percentile at 2.5%, and median at 3.5%. I show the corresponding implied levels of GDP (once again assuming 2021Q4 growth equals the SPF ).

Figure 2: GDP (black), November Survey of Professional Forecasters (red), FT-IGM December survey (sky blue squares), 90th percentile and 10th percentile implied levels (light blue +), my median forecast (green triangle), all on log scale. FT-IGM GDP level assumes 2021Q4 growth rate equals SPF November forecast. NBER defined recession dates peak-to-trough shaded gray. Source: BEA 2021Q3 2nd release, Philadelphia Fed November SPF, FT-IGM December survey, and author’s calculations.

On unemployment, the median forecast is for a deceleration in recovery,

Figure 3: Unemployment rate (black), November Survey of Professional Forecasters (red), FT-IGM December survey (sky blue square), 90th percentile and 10th percentile implied levels (light blue +), my median forecast (green triangle). NBER defined recession dates peak-to-trough shaded gray. Source: BEA 2021Q3 2nd release, Philadelphia Fed November SPF, FT-IGM December survey, and author’s calculations.

The survey respondents also think that the participation rate will take a long time to return to pre-pandemic levels.

Source: FT-IGM, December 2021 survey.

On inflation, the median is higher than the November SPF mean estimate for 2022 of 2.3% (and Goldman Sachs’ current estimate).

Source: FT-IGM, December 2021 survey.

The entire survey results are here.

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Government

Over 170 companies delisted from major U.S. stock exchanges in 12 months

  Over the years, United States-based exchanges have remained an attractive destination for most companies aiming to go public. With businesses jostling to join the trading platforms, the exchanges have also delisted a significant number of companies….

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Over the years, United States-based exchanges have remained an attractive destination for most companies aiming to go public. With businesses jostling to join the trading platforms, the exchanges have also delisted a significant number of companies.

According to data acquired by Finbold, a total of 179 companies have been delisted from the major United States exchanges between 2020 and 2021. In 2021, the number of companies on Nasdaq and the New York Stock Exchange (NYSE) stands at 6,000, dropping 2.89% from last year’s figure of 6,179. In 2019, the listed companies stood at 5,454.

NYSE recorded the highest delisting with companies on the platform, dropping 15.28% year-over-year from 2,873 to 2,434. Elsewhere, Nasdaq listed companies grew 7.86% from 3,306 to 3,566. Data on the number of listed companies on NASDAQ and NYSE is provided by The World Federation of Exchanges.

The delisting of the companies is potentially guided by basic factors such as violating listing regulations and failing to meet minimum financial standards like the inability to maintain a minimum share price, financial ratios, and sales levels. Additionally, some companies might opt for voluntary delisting motivated by the desire to trade on other exchanges.

Furthermore, the delisting on U.S. major exchanges might be due to the emergence of new alternative markets, especially in Asia. China and Hong Kong markets have become more appealing, with regulators making local listings more attractive. Over the years, exchanges in the region have strived to emerge as key players amid dominance by U.S. equity markets. As per a previous report, the U.S. controls 56% of the global stock market value.

A significant portion of the delisted companies also stems from the regulatory perspective pitting U.S. agencies and their Chinese counterparts. For instance, China Mobile Ltd, China Unicom, and China Telecom Corp announced their delisting from NYSE, citing investment restrictions dating from 2020.

Worth noting is that the delisting of firms was initiated due to strict measures put in place by the Trump administration. The current administration has left the regulations in place while proposing additional regulations. For instance, a recent regulation update by the Securities Exchange Commission requiring US-listed Chinese companies to disclose their ownership structure has led to the exit of cab-hailing company Didi from the NYSE.

Impact of pandemic on the listing of companies

The delisting also comes in the wake of the Covid-19 pandemic that resulted in economic turmoil. With the shutdown of the economy, most companies entered into bankruptcies as the stock market crashed to historical lows.

Lower stock prices translate to less wealth for businesses, pension funds, and individual investors, and listed companies could not get the much-needed funding for their normal operations.

At the same time, the focus on more companies going public over the last year can be highlighted by firms on the Nasdaq exchange. Worth noting is that in 2020, there was tremendous growth in special purpose acquisition companies (SPACs), mainly driven by the impact of the coronavirus pandemic. With the uncertainty of raising money through the traditional means, SPACs found a perfect role to inject more funds into capital-starving companies to go public.

From the data, foreign companies listing in the United States have grown steadily, with the business aiming to leverage the benefits of operating in the country. Notably, listing on U.S. exchanges guarantees companies liquidity and high potential to raise capital. Furthermore, listing on either NYSE or Nasdaq comes with the needed credibility to attract more investors. The companies are generally viewed as a home for established, respected, and successful global companies.

In general, over the past year, factors like the pandemic have altered the face of stock exchanges to some point threatening the continued dominance of major U.S. exchanges. Tensions between the US and China are contributing to the crisis which will eventually impact the number of listed companies.

 

Courtesy of Finbold.

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Economics

Stock futures open flat as Omicron concerns ease

Dow futures edged up 0.02%, while contracts on the Nasdaq Composite inched up 0.10%…
The post Stock futures open flat as Omicron concerns ease first appeared on Trading and Investment News.

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Dow futures edged up 0.02%, while contracts on the Nasdaq Composite inched up 0.10%

Stock futures opened relatively flat on Wednesday evening, though sustaining gains posted by a three-day recovery rally that was led by cooled investor concerns around the Omicron variant of the coronavirus.

Dow futures edged up 0.02%, while contracts on the tech-focused Nasdaq Composite inched up 0.10%. All major indexes closed up, with the S&P 500 adding 14.46 points to end the session at 4,701.21, just 0.5% short of the trading session on Nov. 24, a day before the latest COVID-19 variant was announced by the World Health Organization (WHO).

The moves were supported by eased virus fears after Pfizer Inc. and BioNTech reported that early lab studies show a third dose of their coronavirus vaccine mitigates the Omicron variant.

The vaccine makers had indicated the initial two doses may not be enough to protect against infection from Omicron. Shares of Pfizer (PFE) traded 0.62% lower on Wednesday, closing at $51.40.

With virus concerns diminishing, investors are pivoting their attention back to economic data, awaiting Consumer Price Index (CPI) figures on Friday to assess the extent inflationary pressures will persist.

If the Omicron variant was to lead to a resurgence in goods spending at the expense of services or to further complicate supply disruptions, there could be a clear inflationary impact, too, HSBC economist James Pomeroy wrote earlier this week in a research note to clients.

He stated: The inflation news in the past few weeks has been decidedly mixed — with upside surprises in both the U.S. and eurozone being offset by the possibility of some of the supply chain issues starting to alleviate, while energy prices have fallen sharply in recent days.

The post Stock futures open flat as Omicron concerns ease first appeared on Trading and Investment News.

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