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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 mixed to start the week, though the Nasdaq is higher as investors front run tonight’s Nvidia’s earnings.

3 Stories Moving the Market

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

Walmart, Lowe's among latest companies to warn Trump tariffs could raise product costs

Walmart and Lowe’s highlighted potential challenges from President-elect Donald Trump’s proposed tariffs, with Walmart warning of likely higher consumer prices and Lowe’s expressing caution about increased costs.

Walmart's CFO noted the impact of a potential 60% tax on Chinese goods and 10%-20% tariffs on other imports, while Lowe’s took a wait-and-see approach.

Both companies reflected broader consumer struggles with high inflation and elevated interest rates—Walmart emphasized resilient but food-focused spending, while Lowe’s pointed to delayed home-improvement projects due to high borrowing costs.

Trump’s nomination of a tariff-supporting Commerce Secretary and UBS estimates of an 8% price increase from a 20% tariff add to concerns. While markets remain upbeat following the election, tariffs risk reigniting inflation and dampening consumer and market sentiment.

Tesla stock pops after report Trump wants to relax U.S. self-driving rules

Tesla shares have surged another 5% this week after reports suggested that President-elect Donald Trump's transition team plans to prioritize creating a federal framework to regulate self-driving vehicles.

This potential regulation would benefit Tesla significantly, as the company has long aimed to develop autonomous vehicles and a robotaxi fleet but has yet to achieve fully unsupervised self-driving technology.

The announcement follows Tesla CEO Elon Musk’s close ties to Trump, who recently appointed Musk to lead the newly formed Department of Government Efficiency, aimed at reducing bureaucracy and relaxing regulations. The regulatory push could accelerate Tesla's plans to deploy its "Full Self-Driving" (FSD) technology and new autonomous vehicle concepts, such as the "Cybercab" robotaxi.

Meanwhile, competitors like ride-hailing companies Uber and Lyft saw their stocks decline due to concerns over Tesla’s potential disruption of the autonomous ride-hailing market. Google’s Waymo, which has already launched self-driving cars, is also another company to watch on this news.

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Target shares plunge 20% after discounter cuts forecast, posts biggest earnings miss in two years

Target reported mixed Q3 2024 earnings, with revenue narrowly missing expectations and EPS falling significantly below estimates due to cost pressures and a challenging retail environment.

The company achieved a net income of $854 million, or $1.85 per share, compared to $971 million, or $2.10 per share, in Q3 2023. Total revenue increased by 1% year-over-year to $25.67 billion, driven by 0.3% comparable sales growth and strong performance in digital channels.

Digital revenue surged 11% YoY, contributing $4.7 billion, while store-originated sales dipped by 1%. Operating income declined 11% to $1.2 billion due to higher fulfillment costs and increased SG&A expenses, which grew by 3%. Same-store sales rose 0.3%, supported by a 2.4% increase in guest traffic, while beauty and essentials categories showed notable strength.

For Q4, Target forecasts flat comparable sales and GAAP and adjusted EPS between $1.85 and $2.45. Full-year 2024 EPS guidance has been adjusted to a range of $8.30 to $8.90.

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.

• Nvidia drops on report overheating issue could delay new Blackwell AI servers

• Walmart hikes its outlook again as shoppers spend more outside the grocery aisles

• Lowe’s beats on earnings and hikes guidance, but still expects sales to fall this year

• How Spirit's bankruptcy will impact consumers, shareholders

• Mike Tyson, Jake Paul fight was the most-streamed sporting event ever, Netflix says

• Delta Predicts 2025 Growth as High-End Travel Fuels Airline Revenue

• Comcast to spin off cable networks as subscribers flee the bundle

• Ford, facing economic headwinds and weak EV sales, to cut 4,000 jobs in Europe

• Super Micro shares soar 31% after company names new auditor to help keep Nasdaq listing

• TJX Slips on Weaker-Than-Expected Sales at Key Unit

• MicroStrategy increases note sales to $2.6B for Bitcoin purchases

The Second Half

There’s still a few key earnings to watch this week as well as some important economic data, but let’s be honest, tonight’s earnings report from Nvidia will be the major catalyst for the rest of the week.

Earnings Reports

On top of Nvidia’s earnings, we will be watching Palo Alto and Deere earnings to end the week.

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

Economic Reports

Although guaranteed to be overshadowed by Nvidia’s earnings, there are several key economic reports to watch over the next two days, including PMI data, existing home sales, initial jobless claims and consumer sentiment.

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.