🚘 GM reigns supreme

and what to expect this week

Good morning investors! This is going to be a busy week.

Today we cover:

  • A look at this week

  • Reviewing car deliveries

  • Will AI replace humans?

📊 Economy and News 

What to expect this week

This is going to be a busy with a lot expected. However, the U.S. markets will close Thursday to honor former President Jimmy Carter.

U.S. Jobs Report

Friday’s report is expected to show 153,000 jobs added in December, with unemployment steady at 4.2%. November rebounded with 227,000 jobs after a weak October. Key updates include JOLTS data on Tuesday and private hiring plus early jobless claims on Wednesday.

Federal Reserve Updates

Fed minutes from December’s meeting, where rates were cut by 25 basis points, come Wednesday. Analysts expect insights into policy disagreements. Fed speeches from Governors Cook and Waller and regional presidents Barkin and Harker will add to the outlook.

Inflation Data

Eurozone inflation data on Tuesday will test ECB rate cut expectations, with German and French data preceding it. China’s Thursday report will show whether government stimulus is boosting demand.

Oil Prices

Oil rose last week, with Brent up 3.3% and WTI 5%, aided by cold weather and China’s stimulus. Gains may be limited by a strong dollar, though colder forecasts could sustain demand for heating oil.

Global hits:

Must check: Massive winter storm to clobber U.S. from Plains to East Coast.

Sponsored by Mode Mobile

No, it’s not Nvidia… It's Mode Mobile, last year's fastest-growing software company according to Deloitte.

Mode’s disruptive $martphone, has already helped consumers earn and save $325M+ through simple, everyday use. That led to 32,481% revenue growth between 2019 and 2022, and presence in 170+ countries. Turning smartphones from an expense into an income stream, Mode is disrupting the $1 trillion smartphone industry, like Uber did with taxis and Airbnb with hotels.

They've just been granted the stock ticker $MODE by the Nasdaq, and you can still invest in their pre-IPO offering at just $0.26/share.

📈 Stocks

S&P 500 5,942.47 (+1.26%)
DJIA 42,732.13 (+0.80%)
NASDAQ 19,621.68 (+1.77%)
BRENT CRUDE 76.55 (+0.77%)
* Prices as of Dec 5th, 12:20 AM UTC

Strong U.S. Auto Sales in 2024: A Post-Pandemic Recovery

General Motors (GM) and Ford Motor reported their strongest annual U.S. new vehicle sales since 2019, signaling a notable recovery from the impacts of the coronavirus pandemic and yearslong supply chain disruptions.

These results align with broader industry expectations, as market analysts had predicted U.S. automakers would sell nearly 16 million vehicles in 2024. This figure marks the industry’s best performance since 2019, when roughly 17 million units were sold.

GM retained its position as the country’s top-selling automaker, followed by Toyota and Ford.

General Motors Leads the Market

GM reported total sales of over 2.7 million vehicles in 2024, a 4.3% increase compared to the previous year. This is still below the 2.9 million units sold in 2019. The company credited its performance to strong demand across its four U.S. brands and a significant uptick in electric vehicle (EV) sales, which rose by approximately 50% to over 114,400 units.

While EVs comprised only 4.2% of GM’s total sales, the automaker estimated a 12% share of the U.S. EV market in the fourth quarter.

Ford’s Electrified Growth

Ford reported 2024 sales of 2.08 million vehicles, up from just under 2 million in 2023 but still below the 2.42 million sold in 2019.

Fourth-quarter sales increased by 8.8% year-over-year to 530,660 units. While traditional internal combustion engine vehicle sales rose marginally by 0.2%, Ford experienced a significant 38.3% year-over-year growth in sales of electrified vehicles, including EVs and hybrids.

These vehicles accounted for 13.7% of Ford’s total annual sales, reflecting the growing consumer interest in alternative powertrains.

Other Automaker Highlights

  • Toyota: Sales increased by 3.7% in 2024, reaching more than 2.3 million vehicles, despite a 7.1% decline in December. The company is now betting half a billion on Joby Aviation's electric aircraft.

  • Honda: Annual sales rose by 8.8% to 1.4 million vehicles, with a 9.9% boost in December alone.

  • Hyundai: The Hyundai brand achieved record sales of over 836,800 vehicles in 2024, representing a 4% year-over-year increase.

  • Rivian: Rivian met its 2024 production target of 52,600 vehicles, marking progress in scaling operations despite supply chain challenges. The EV maker aims to expand production and its lineup to strengthen its competitive position.

  • Kia: Hyundai’s sibling company, Kia, also reported record U.S. sales of 796,488 vehicles in 2024, a 1.8% increase from its previous record in 2023.

In another vehicle-related news, Stellantis Italy output fell 37% in 2024, car production hit 68-year low.

Good to know: Nearly a year after a door plug blew off an Alaska Airlines 737 Max 9 aircraft, Boeing says it has made strides improving safety for airline passengers. Also, Apple to pay $95 million to settle Siri privacy lawsuit.

Controversial: Biden blocks Nippon Steel's $14.9 billion takeover of U.S. Steel. Also, JetBlue fined $2 million for ‘unrealistic scheduling’ and chronic delays. Lastly. Hindenburg Research disclosed a short position in Carvana, claiming the company’s recent turnaround is a “mirage” that is being propped up by unstable loans and accounting manipulation.

💵 Personal Finance

Will Roboadvisors replace humans?

Robots are now helping people make money and the number of users in the Robo-Advisors market is expected to reach 34.020m users by 2027. Almost all major financial platforms offer this service but not everyone trusts robo-advisors.

However, things are changing and may soon manage more than $1 trillion of Americans’ wealth.

What are they?

Robo-advisors are automated platforms that provide financial advice or investment management online with minimal human intervention.

Introduced around 2008, they are cost effective and accessible with little barriers and low requirements. Plus, they make things easier by automating different processes and offering additional financial tools. Some say they can be great (and even better) for new investors.

Hence, it doesn't come as a surprise that the average robo user skews younger. For example, about 90% of the 470,000 clients at Wealthfront are under 40.

But, they also have some cons, including the risk of technical errors and a lack of flexibility.

They’re improving

Today’s robo-advisors are smarter than ever. This is why even older and experienced investors are now using robo-advisors.

Investors get to not only save time but also money. An investor with $100,000 would pay the typical human $1,000 a year for their services, and $250 to the average robo thanks to robo-advisors offering lower fees.

Many platforms now even offer a hybrid system where investors use robos but also have the option to get in touch with humans.

But, they can’t do it all

Humans do a lot more. Most importantly, they understand psychology that today’s robos don’t understand.

Try these robo advisors

Here are some top robos to try:

  • Betterment with several investment options, including cash and ETFs. It has no minimum balance requirement, and the annual account fee is a low 0.25%

  • Wealthfront is another excellent choice with a $500 minimum and a lot l.25% fee. It offers bonuses to new clients and some great investment options such as a 529 college savings plan and a 4.05% APY checking account with debit card access.

  • Charles Schwab offers two robo-advisor platforms: Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium™. Both have a minimum balance requirement of $5,000. On the plus side, there are no fees. Plus, it offers tax loss harvesting, which can be great for large investors.

Most platforms will select a portfolio based on some questions presented to the investor when they sign up. Make sure to answer these correctly.

Here’s an interesting video on the topic:

Interesting in learning more about robo advisors and AI? Join Future Download, a free newsletter by the Morning Download team that talks about the future, including crypto and AI.

💰 Be a Better Investor

"Without continual growth and progress, such words as improvement, achievement, and success have no meaning."

Benjamin Franklin

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👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.