Good morning investors! The stock market continues to make new records but there are shifts in the bond market that may not be very good.
Fun fact: The S&P 500 includes multiple share classes, so it actually tracks more than 500 tickers.
Today we cover:
Trump wants semiannual earnings reports
Nvidia in trouble?
Dealing with the rate cut
📊 Economy and News
Trump Proposes Semiannual Earnings Reports
President Donald Trump wants companies to switch from quarterly to semiannual earnings reports, pending SEC approval. In a Truth Social post, Trump argued this would save costs and allow managers to focus on long-term company management, citing China's long-term view as a model.
The idea, previously explored during Trump’s first term, has sparked debate.
Supporters of quarterly reporting, like Art Hogan of B. Riley Wealth Management, argue it ensures transparency and timely investor information. Critics, including Warren Buffett and Jamie Dimon in a 2018 op-ed, say quarterly guidance fosters short-termism over long-term strategy.
The SEC, with a Republican majority, could implement the change within 6-12 months without Congressional approval, though its independence may temper action.
U.S. reporting is considered highly transparent due to GAAP standards, unlike less frequent reporting in places like the U.K. and EU.
China, despite Trump’s comments, mandates quarterly, semiannual, and annual reports.
Do you agree with Trump's suggestion?
Global hits:
TikTok deal ‘framework’ reached with China, Trump and Xi will finalize it Friday.
Trump administration moves forward with push to fire Fed governor Lisa Cook.
India and U.S. to hold trade talks in New Delhi.
Also check: New York State manufacturing contracted in September as the Empire State index fell below zero, signaling softer orders and shipments.
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📈 Stocks
S&P 500 6,615.28 (+0.47%)
DJIA 45,883.45 (+0.11%)
NASDAQ 22,348.75 (+0.94%)
BRENT CRUDE 67.47 (+0.71%)
* Prices as of Mar 3rd, 12:20 AM UTC
China Accuses Nvidia of Anti-Monopoly Violations in Mellanox Deal
China’s market regulator announced that Nvidia violated the country’s anti-monopoly laws in its 2020 acquisition of Mellanox, following a preliminary probe.
The State Administration for Market Regulation (SAMR) is continuing its investigation into the U.S. chip giant, though specifics on the violations were not disclosed.
Nvidia’s shares dropped about 2% after the report. The company stated it complies with all laws and will cooperate with authorities. This development could impact ongoing U.S.-China trade talks, amid rising tensions over technology and semiconductors.
Nvidia, a key player in China’s AI and data center markets, recently secured a deal to resume chip sales to China, ceding 15% of revenue to the U.S. government.
Musk still likes Tesla: A Form 4 filed yesterday showed Elon Musk bought roughly $1 billion of TSLA late last week, sending shares up helping the stock go green for the year after a dismal quarterly report.
Look here: VF Corporation has agreed to sell its Dickies workwear brand to Bluestar Alliance for $600 million in cash. Also, Alphabet (Google) is now the fourth company to reach $3 trillion market cap. Lastly, CoreWeave has secured an order worth at least $6.3 billion from Nvidia.
Reminder: Facebook users who filed a claim in parent company Meta’s $725 million settlement related to the Cambridge Analytica scandal may soon get a payment.
💵 Personal Finance
A reverse mortgage can be a smart way for older homeowners to fund home improvement projects – especially upgrades that make aging in place safer and more comfortable.
Whether it’s remodeling a kitchen, installing a walk-in tub, or adding ramps and railings for accessibility, the loan lets you tap into your home’s equity for cash without monthly payments. That means you can invest in the updates you need now while continuing to live in the home you’ve built over the years. To qualify for a reverse mortgage, you must meet the following requirements:
You must be at least 62 years old.
You must own your home outright or have a low remaining mortgage balance that can be paid off at closing with reverse mortgage proceeds.
The home must be your primary residence (not a second home or rental property).
Eligible properties include single-family homes, FHA-approved condos, townhomes, and certain multi-unit properties (up to 4 units, as long as you live in one).
You must demonstrate the ability to pay property taxes, homeowners insurance, and maintenance costs.
You must complete a HUD-approved reverse mortgage counseling session to ensure you understand the loan terms and implications.
💰 Be a Better Investor
"Fortune sides with him who dares."
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👩🏽⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.