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Behind the monster rally that drove the Nasdaq to 20,000. (00:24) Nvidia increases headcount in China to boost AI-driven car technology – report. (01:54) Kroger launches $7.5B stock buyback after merger with Albertsons gets terminated. (02:44)
This is an abridged transcript of the podcast.
Investors are bringing out the champagne glasses after the Nasdaq (COMP.IND) closed above 20,000 points for the first time ever. Helping notch the new heights were the latest CPI numbers, which cemented expectations for another quarter-point rate cut by the Federal Reserve next week. The new milestone brings the return of the tech-concentrated Nasdaq (COMP.IND) to over 30% YTD and shows the staying power of the index’s bull market rally that commenced in May 2023.
The biggest catalysts for the move higher have been fresh record highs at companies like Alphabet (GOOGL), Amazon (AMZN) and Meta (META). A dose of generative AI headlines has given an extra boost to the Mag7 names, such as Google’s launch of Gemini 2 and a “mind-boggling” quantum computing chip, as well as Apple’s (AAPL) long-awaited integration of Siri with ChatGPT and the reported development of in-house AI server chips with Broadcom (AVGO). Tesla (TSLA) also climbed to a fresh record after GM dropped out of the robotaxi race, continuing a monster 70% advance since President-elect Donald Trump’s victory only a month ago.
What does SA Investing Group Leader Lawrence Fuller say about the rate of economic growth compared to 2021 and what does he see for earnings season in January?
For more on this be sure to check our top story in the Wall Street Breakfast newsletter, our daily one-page news summary. Sign up for the newsletter here.
Chip maker Nvidia (NASDAQ:NVDA) has significantly increased its headcount in China this year, with a focus on enhancing its research capabilities for autonomous technology in self-driven cars.
Bloomberg reported, citing people with knowledge of the matter, that the company is expected to close 2024 with ~4,000 employees in China, up from about 3,000 at the start of the year.
The report explained that this expansion includes an addition of around 200 new staff members in Beijing specifically dedicated to developing self-driving technologies.
The California-based chipmaker also expanded its networking software development and after-sales service teams in the country.
The move comes amidst a push for autonomous driving technology in China, with companies like Baidu (BIDU) testing robotaxi services.
Now an update to a story we brought you Wednesday on Wall Street Lunch with Kim Khan.
Kroger (NYSE:KR) announced a $7.5B stock buyback in the wake of its terminated merger with Albertsons (NYSE:ACI).
The new buyback plan replaces the company’s existing $1B authorization, which was approved in September 2022, and includes an “accelerated share repurchase” agreement to buy back about $5B in stock.
Kroger said it will begin redeeming the $4.7B of its senior notes issued on August 27, 2024, which includes a special mandatory redemption provision in accordance with the terms of the notes, in connection with the termination of the merger agreement.
The company is also terminating its previously announced offers to exchange any and all outstanding notes issued by Albertsons of up to $7.4B.
KR is up 2.5% premarket.
More articles on Seeking Alpha:
Exxon unveils low-carbon plan to power data centers; eyes $140B in Permian Basin capex
Trump 2.0 will worsen the economic slowdown says Pantheon Macroeconomics
Red Bull may have won the 2024 energy drink battle as it fended off Celsius and Monster
Catalyst watch:
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Centene (CNC) investor day.
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Zymeworks (ZYME) Research and Development day.
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Under Armour (UA) investor day.
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Papa John’s (PZZA) investor day.
Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in the red. Crude oil is flat at $70/barrel. Bitcoin is up 2.5% above $100,000.
In the world markets, the FTSE 100 is up 0.2% and the DAX is flat.
The biggest movers for the day premarket: Adobe (ADBE) is down 10% despite surpassing FQ4 estimates, as its FY2025 guidance fell short of consensus.
On today’s economic calendar:
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8:30 am Initial Jobless Claims. The jobless claims are expected to dip slightly to 220K after rising to 224K last week.
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10:00 AM Quarterly Services Survey
