Good morning investors!

If this is your first time reading, welcome to The Investor’s Edge — a thriving community of over 20,000 subscribers striving to be better investors with an edge in the market.

Every Wednesday we publish “The Mid-Week Wrap-Up” — your ticket to being well informed and staying ahead in the investment game!

This report is designed to help investors of all skill levels break down important stories/topics within the stock market. And best of all, we cut through all of the BS and give you exactly what you need to know in easy to digest, bite sized pieces of content.

This article is designed to truly give you that EDGE in the day ahead!

Grab your afternoon pick me up and let’s dive in.

Market Talk

Markets are relatively flat to start the week, though treasury yields and Bitcoin continue to surge higher following the election.

3 Stories Moving the Market

These are some of the biggest stories so far this week that are having an influence on market action.

Annual inflation rate hit 2.6% in October, meeting expectations

Inflation rose in October, aligning with Wall Street expectations, as the Consumer Price Index (CPI) increased 0.2% for the month and 2.6% annually, up 0.2 percentage points from September. Core CPI, excluding food and energy, rose 0.3% monthly and 3.3% yearly, also meeting forecasts.

Energy costs were flat for the month and down 4.9% year-over-year, while food prices rose 0.2% monthly and 2.1% annually. Shelter costs, which make up one-third of the CPI, increased 0.4% in October, doubling September's gain and up 4.9% annually, contributing more than half of the total CPI rise.

Other notable changes included a 2.7% monthly increase in used vehicle costs, a 3.2% rise in airline fares, and a 6.4% drop in egg prices, though eggs remain 30.4% higher year-over-year. Inflation-adjusted hourly earnings rose 0.1% for the month and 1.4% annually.

The inflation data moves further from the Federal Reserve's 2% target, potentially complicating monetary policy decisions as a new administration takes office in January.

Bitcoin pushes past $90k for the first time ever

Bitcoin has crossed $90,000, reaching a peak of $91,000 this morning, up 11% in a day and now just over 10% shy of $100,000.

The cryptocurrency has surged over 30% since Trump’s presidential victory on Nov. 5, amid a broader rally in crypto and stock markets.

Shares of Coinbase have jumped 75% since the election, closing at $324.24 on Nov. 11 after a 20% single-day gain. U.S.-based crypto miners like Marathon Digital saw nearly 30% gains on Nov. 11, with other firms, including CleanSpark and Hut 8, up over 25%.

Meanwhile, the S&P 500 has risen 4.25% since election day, hitting a record high above $6,000 on Nov. 11.

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Home Depot’s sales are improving, but it says consumers are still cautious about spending

Home Depot delivered solid Q3 2024 earnings, exceeding revenue and EPS expectations but reporting softer comparable sales growth.

The company generated $40.22 billion in revenue, up 7% year-over-year, surpassing estimates by 2.31%. Net income for the quarter came in at $3.6 billion, a 4% decline compared to the previous year, with EPS at $3.78, beating projections by 3.56%.

Key highlights include flat operating income of $5.4 billion, while operating expenses rose 9% to $8.0 billion. U.S. comparable sales fell by 1.2%, with global comparable sales declining by 1.3%. Operating cash flow for the quarter was $15.1 billion, reflecting an 8% YoY drop, and the profit margin stood at 9.1%. The company also benefited from the integration of its recently acquired SRS business.

CFO Richard McPhail said consumers are still deferring purchases as they wait for lower mortgage rates and borrowing costs and express caution about the economy. About 90% of the company’s do-it-yourself customers own their homes.

For FY 2024, Home Depot expects total sales to grow approximately 4%, with full-year EPS projected to decline by 2%. Comparable sales are forecasted to decrease between 2.5% and 3.0%, reflecting ongoing macroeconomic challenges.

In Other News

In this section we'll be curating a selection of news headlines we think you'll find interesting. If a topic catches your eye, click the provided links to read more about it.

• Spirit Airlines stock plunges 60% as company reportedly preps bankruptcy filing

• Amazon debuts discount store with everything under $20 to take on Temu and Shein

• Shopify stock skyrockets 21% on revenue beat, rosy holiday forecast

• VW’s $5.8 billion investment in Rivian isn’t guaranteed. Here are the milestones the EV maker needs to hit

• Spotify Stock Pops as Subscribers Jump

• Mortgage demand stalls as financial markets digest Trump presidency

• Cava Group Q3 Earnings and Revenues Beat Estimates, Stock Surges

• Sea beats revenue estimates as Shopee turns profitable, shares jump

• Rocket Lab stock surges 40% after company reports strong revenue growth, first Neutron deal

• DirecTV says Dish purchase is off

The Second Half

With the CPI report in the books, focus shifts to the PPI report and retail sales data. There’s also several key earnings reports to watch.

Earnings Reports

There are still some major earnings this week. We will be watching Cisco, Disney, and Alibaba.

Here is the calendar of earnings releases scheduled for the rest of the week:

Economic Reports

With CPI data showing some concerns regarding inflation, focus now shifts to the PPI report tomorrow. There will also be the latest initial jobless claims data and retail sales numbers.

Here is the full calendar of events scheduled for the remainder of the week:

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Thank you for reading this edition of the Mid-Week Wrap-Up.

Until next time investors!

Mark & Chris

The Investor’s Edge

Disclosure

This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.