Breakfast News: The World Keeps Turning
December 9, 2024
| S&P 500 6,090 (+0.25%) |
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| Nasdaq 19,860 (+0.81%) |
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| Dow 44,643 (-0.28%) |
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| Bitcoin $101,099 (+2.06%) |
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Source: Image created by Jester AI.
1. Geopolitics Under the Microscope
Global events have piled on the pressure in recent days, with the toppling of Syria's President Assad and an impeachment vote in South Korea hitting the headlines. U.S. markets are shrugging it off so far, after the S&P 500 and Nasdaq both hit new record highs last week.
- "Momentum begets momentum": Carson Group's Sonu Varghese is among the bulls expecting the year-end rally to continue, but Ed Yardeni of Yardeni Research thinks "there may be too many charged-up bulls." At The Motley Fool, we continue to both invest and manage cash positions to balance out our risks.
- "We are excited to be expanding here in Saudi Arabia with the launch of the Apple Store online next year": Middle East fears aren't holding back Hidden Gems rec Apple's (AAPL 0.20%) plans, with CEO Tim Cook planning physical stores from 2026.
2. Will MongoDB Beat Expectations Again?
Database software provider MongoDB (MDB 1.11%) will post Q3 results after today's closing bell. The Rule Breakers recommendation previously smashed through Q2 estimates, with Fool analyst Tim Beyers saying at the time "MongoDB has a tough task: Win AI business a project at a time. Now we have evidence the strategy may be working."
- Data demand: Cloud-based managed database service Atlas made up 71% of total Q2 revenue, though revenue growth slowed a little. Q3 should show where the trend is going.
- Future AI driver: Eyes will be on the company's AI Applications Program (MAAP), with AI likely to be one of the biggest future drivers of cloud computing.
3. Checking in on Consumers' Checkouts
The retail sector heaves into view after healthy Thanksgiving and Black Friday sales. Two key companies report in the same week that brings us inflation news, as investors look for more signs of strong U.S. consumer demand.
- A strategic focus on high-volume sales at low prices: Costco (COST 0.65%) will post Q1 earnings on Thursday, after Q4 saw 1% revenue growth. Watch out for news on global store openings and e-commerce growth. Recommended in Stock Advisor way back in 2002, Costco has since beaten the S&P 500 by 2,683%.
- Accounting investigation resolution: Macy's (M -2.02%) Q3 update is due Wednesday, delayed after an employee hid between $132-$154 million in expenses since 2021. Q3 net sales fell, and investors will want to see the effect on earnings.
4. Next Up: Latest Inflation Print
Two key inflation measures come our way this week, ahead of the U.S. Federal Reserve's December 17-18 meeting. The November consumer price index (CPI) print is due Wednesday, expected to show prices up 0.3% on the month and 2.7% year over year. The consensus for Thursday's producer price index (PPI) suggests 0.2% for the month.
- "The Fed should be in a position to move forward on the December rate cut": Rick Rieder of BlackRock (BLK 0.54%) echoed the wider market's expectation, which suggests a further 25-point interest rate cut.
- Markets love certainty: In Sunday's 'Meet the Press' interview, President-elect Donald Trump says he has no plans to try to remove Fed chair Jerome Powell, despite previous criticisms.
5. Foolish Fun
In last week's Rule Breaker Investing podcast, David Gardner shared his annual tabletop gaming gift guide. What games are you likely to play with friends or family in the coming weeks? Become a member to hear what your fellow Fools are saying!
