Good morning investors! The market recovered yesterday recording another green day.
Today we cover:
A look at the housing market
More earnings
Nvidia says it’s the best
📊 Economy and News
US Pending Home Sales Rise 1.9% in October with Prices Falling
U.S. pending home sales increased 1.9% month-over-month in October, beating expectations of +0.5%.
Gains were driven by lower mortgage rates following the Federal Reserve’s recent rate cuts.
Regionally: contracts rose in the Northeast, Midwest, and South; declined in the West.
Year-over-year, pending sales were down 0.4%. But, the supply of homes for sale is about 15% higher now than it was a year ago.
Interestingly, about 15% of the homes that were delisted in September were at risk of selling at a loss with 70% of homes listed in September sitting on the market for 60 days or longer. Overall, sellers are taking their homes off the market at the fastest pace in nearly a decade.
NAR chief economist Lawrence Yun noted that slower winter selling seasons typically give buyers more negotiating power.
Global hits:
Ukraine agrees to peace deal with US, talks with Russia underway.
UK government approves 4.1% rise in minimum wage for 2026, jumping to £12.71 in 2026.
China solar installations rise 30% in October as sector recovers.
The fall: The Consumer Confidence Index for November slumped to 88.7, a drop of 6.8 points from the prior month for its lowest reading in seven months.
And, private companies lost an average of 13,500 jobs a week over the past four weeks.
Reminder: US bank regulator approves relaxed leverage rules. Elsewhere, OPEC+ seen keeping oil output unchanged, focus on capacity debate. Furthermore, Republicans are proposing direct Health Savings Account payments to ACA enrollees rather than extending enhanced premium tax credits.
Core wholesale prices: The producer price index rose a seasonally adjusted 0.3% in September, matching the Dow Jones consensus forecast. Core PPI, excluding food and energy, climbed only 0.1%, missing the expected 0.2%. Retail sales gained 0.2% in September, slightly below the 0.3% projection. Excluding autos, however, sales advanced 0.3%, meeting estimates.
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📈 Stocks
S&P 500 6 765,88 (+0.92%)
DJIA 47 112,45 (+1.43%)
NASDAQ 23 025,59 (+0.67%)
BRENT CRUDE 62.48 (-0.89%)
* Prices as of Nov 26th, 12:20 AM UTC
Earnings are Here
Some major names announced earnings yesterday:
Abercrombie & Fitch beat Wall Street’s expectations on the top and bottom lines. Sales are slowing down at its namesake banner, but picking up at Hollister, which is expected to carry the company’s holiday shopping season. This sent the stock up nearly 30%. Also, Abercrombie’s holiday guidance is in line with expectations.
Alibaba reported cloud computing revenue up 34% year-on-year in its fiscal second quarter, beating market expectations. Also, Alibaba could ramp up spending on artificial intelligence beyond its projected levels if demand for the technology continues to remain strong.
Dell reported third-quarter earnings that missed Wall Street expectations for revenue. But the company said it would have a big fourth quarter driven by $9.4 billion in AI sales. The company said it was raising its expectations for AI server shipments during the year to $25 billion, up from $20 billion, and raised its full-year revenue guidance to $111.7 billion from $107 billion.
Interesting: Tesla's European FSD push hits snag as Dutch safety officials push back on fan lobbying.
In other news, Amazon to spend up to $50 billion on AI infrastructure for U.S. government.
Lastly, with shutdown over, airlines predict record numbers of travelers this Thanksgiving.
Surprising: Kohl’s names Michael Bender as permanent CEO after a turbulent year and sales declines. Elsewhere, TSMC filed a lawsuit against a former senior vice president it accused of leaking confidential information to Intel..
Heating up: Nvidia fell 3% after a report that Meta, one of Nvidia’s key customers, could strike a deal with Google to use its tensor processing units for its data centers. Nvidia responded in a statement on Tuesday, saying it “is a generation ahead of the industry.”
Binance sued by Oct. 7 victims’ families for allegedly aiding Hamas through crypto exchange.
Musk’s xAI to close $15 billion funding round in December.
💵 Personal Finance
IRS Issues Guidance on Trump’s New Tip and Overtime Tax Deductions
The IRS has released initial guidance on the temporary federal tax deductions for tipped income and overtime pay included in President Trump’s recent “big beautiful bill.”
Starting in 2025, eligible workers can deduct up to $25,000 in qualified tips and up to $12,500 ($25,000 for joint filers) in overtime pay from taxable income through 2028, with both benefits phasing out above $150,000 individual or $300,000 joint modified adjusted gross income.
Reporting for 2025 remains voluntary for employers, which tax experts warn will create widespread confusion when workers file 2026 returns. The IRS also provided temporary “transition relief” allowing some tipped workers in specified service trades or businesses (such as doctors, lawyers, and performers) to claim the tip deduction for 2025 only, until final regulations are issued that may exclude them in future years.
With roughly 6 million tipped workers and millions more earning overtime, professionals predict significant taxpayer confusion and filing challenges next tax season.
💰 Be a Better Investor
“Expect the best. Prepare for the worst. Capitalize on what comes.”
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