Breakfast News: Gold Hush
November 12, 2024
| Monday's Markets | |
|---|---|
| S&P 500 6,001 (+0.10%) |
|
| Nasdaq 19,299 (+0.06%) |
|
| Dow 44,293 (+0.69%) |
|
| Bitcoin 88,174 (+7.38%) |
|
Source: Image created by Jester AI.
1) Not All That Glitters is Gold
Gold prices fell to a four-week low on Monday, as the impact of the latest Federal Reserve interest rate cut and lack of uncertainty around the election results caused investors to pile into other assets.
- Short-term retracement but rally intact: The precious metal is down over 5% since election day, but is still up 26% year to date. Yesterday, silver hit the lowest level since early October and now has the same performance as gold in 2024.
- Pressure from key consumption market: After the disappointment over Chinese stimulus measures late last week, iron ore futures fell Monday to a two-week low below $100 per ton.
2) 6,000 Reasons to Be Happy
Monday saw the S&P 500 close over 6,000 points and the Dow Jones finish above 44,000 for the first time ever, as the post-election rally continued.
- Risk-on mood in markets: Consumer discretionary stocks led the way, with the sector up 1.75% on the day, while more defensive sectors such as healthcare and real estate lost ground.
- Money piling into cryptocurrencies: Bitcoin traded just shy of $90,000 as the coin vaulted higher, with the total crypto market cap at $3.1 trillion, exceeding the pandemic high."
3) Lululemon’s Stretch Goals
Lululemon (LULU -0.14%) outlined big ambitions for growth in a new Financial Times interview with CEO Calvin McDonald. Management anticipates 2024 annual revenues to grow 8% year over year, to around $10.3 billion.
- “We’ll quadruple our men’s business by 2026”: McDonald spoke of the growth potential in menswear, with evidence of that already apparent from Q2 results, which saw men’s sales grow 11%, compared to 6% in women’s sales.
- “Many foreign brands haven't sustained in China but LULU is making a name for itself”: Fool analyst Sanmeet Deo observed “Chinese consumers [are] buying up premium priced clothing from Lululemon amidst a macroeconomic slowdown.”
4) Next Up: Can On Holdings Set the Pace?
Before the opening bell, On Holdings (ONON 0.47%) is due to report Q3 earnings.
- Pushing brand ambassadors and online spend: Revenue is forecasted to be $718.8 million,up 32.2% from last year. Earnings per share is expected at $0.24, a rise from the $0.22 in Q3 2023.
- “Thesis is ‘on track’ (pun intended)”: Fool analyst Yasser El-Shimy liked the looks of August’s Q2 results: “There is strength across the board from [direct to consumer] to wholesale to international.”
5) Foolish Fun
Some companies are best understood in comparison to others. Which of these comparisons makes the company most intriguing to you as a potential investment? Debate with friends and family, or become a member to hear what your fellow Fools are saying!
