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- 🚘 Ford Beats but Revises Guidance
🚘 Ford Beats but Revises Guidance
and USA to grow more
Michael Wight, Jason Phillips, Morning Download & Trajan King
October 29, 2024
In partnership with
Good morning investors! Markets jumped yesterday due to falling oil prices.
Today we cover:
US GDP to grow
Ford beats but issues low guidance
How to invest in gold
📊 Economy and News
U.S. Economy Likely Accelerated In Third Quarter
Forecasters anticipate the U.S. economy grew at an annualized rate of 3.2% in the third quarter, a steady and encouraging pace by historical measures and an improvement from the previous quarter’s 3% rate. This growth underscores the resilience of the economy, even amid the Federal Reserve’s series of interest rate hikes designed to curb inflation by increasing borrowing costs.
A robust job market has been key, sustaining consumer spending, which in turn supports business hiring. This cycle remains unbroken, suggesting that employment strength continues to fuel economic activity.
Analysts at Goldman Sachs attribute this GDP growth to gains in consumer spending and business investments, offsetting the challenges posed by a sluggish housing market. However, a rise in imports, which detracts from GDP, may have modestly reduced overall growth.
The Bureau of Economic Analysis is expected to release its preliminary estimate of third-quarter economic growth tomorrow, which will shed further light on these projections.
Global hits:
Wise’s billionaire CEO fined £350,000 by UK regulators over failure to report tax issue.
U.S. oil on pace for worst day in two years after Israel spares Iran crude facilities.
Volkswagen targets layoffs and 10% pay cuts amid plans for German plant closures, union says.
Interesting: JPMorgan begins suing customers who allegedly stole thousands of dollars in ‘infinite money glitch’. Elsewhere, Chinese IPOs in the U.S. and Hong Kong are set to increase next year.
Worth Checking: More families making over $150,000 are living paycheck to paycheck. Also, Microsoft says Google is running ‘shadow campaigns’ in Europe to influence regulators.
📈 Stocks
S&P 500 5,823.52 (+0.27%)
DJIA 42,387.57 (+0.65%)
NASDAQ 18,567.19 (+0.26%)
BRENT CRUDE 71.42 (-6.17%)
* Prices as of Oct 29th, 12:20 AM UTC
Ford Beats Expectations But Lowers Outlook
Ford Motor has revised its 2024 earnings outlook to the lower end of its previously projected range, although it modestly exceeded Wall Street’s expectations for the third quarter.
The Detroit-based automaker announced on Monday that it now anticipates adjusted earnings before interest and taxes (EBIT) of approximately $10 billion, down from its earlier guidance of $10 billion to $12 billion. However, Ford maintained its outlook for adjusted free cash flow, expecting it to range between $7.5 billion and $8.5 billion.
For the third quarter, Ford’s results came in slightly ahead of analyst predictions compiled by LSEG:
Adjusted earnings per share: 49 cents (versus 47 cents expected)
Automotive revenue: $43.07 billion (versus $41.88 billion expected)
This revision follows a challenging second quarter, during which unexpected warranty costs led to an earnings shortfall that disappointed Wall Street.
Apple Gets Intelligent: Apple introduced iOS 18.1 on Monday, bringing the first public release of Apple Intelligence, its highly anticipated artificial intelligence system, to iPhones. Alongside iOS, Apple also rolled out similar updates for iPad and Mac, incorporating Apple Intelligence across its ecosystem.
This launch marks a significant step for Apple, supporting its marketing efforts around the new iPhone 16 lineup, which debuted last month. However, Apple Intelligence is only available to users with an iPhone 15 Pro, iPhone 15 Pro Max, or any model in the iPhone 16 series.
Also check: Delta sues CrowdStrike over software update that prompted mass flight disruptions.
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🔐 Crypto
Bitcoin $69,899 (+2.85%)
Ether $2,567 (+2.43%)
Solana $177 (+1.33%)
Total market cap $2.32T (+2.41%)
* Prices as of Oct 29th, 12:20 AM UTC
Bitcoin Crosses 70,000 Again
Bitcoin crossed $70,000 yesterday and might be preparing for another run. Ensure you don’t miss out on this opportunity by joining our newsletter covering crypto, AI, and more: Future Download.
What triggered this?
News came that more and more countries are realizing the power of BTC.
El Salvador, for example, made Bitcoin a legal tender in 2021, and is now promoting Bitcoin mining powered by geothermal energy from its volcanoes.
Argentina is also seeing a surge in mining operations, encouraged in part by the country’s subsidized electricity rates. Meanwhile, Ethiopia has shown interest in Bitcoin mining as a component of its broader digital transformation strategy.
Lastly, Dubai is positioning itself as a crypto-friendly hub, attracting mining operations with a supportive regulatory framework. Bhutan, too, is reportedly exploring Bitcoin mining, seeking to harness its extensive hydroelectric resources for this purpose.
What next?
Keep an eye on BTC as Microsoft prepares to evaluate Bitcoin as corporate reserve later this month.
💵 Personal Finance
A Practical Guide to Buying Gold: Steps and Considerations
For a new gold buyer, the first step is defining your reason for purchasing gold, whether as a portfolio diversifier or a safe-haven asset. Once your objective is clear, it’s important to decide between two main investment forms: gold-backed financial instruments, like exchange-traded funds (ETFs), or physical gold.
Each approach has unique considerations. Physical gold involves decisions on storage, delivery, and security, while ETFs offer ease of purchase without storage concerns. If you choose physical gold, pay attention to the premium over the spot price to ensure you're getting fair value, as collectibles and jewelry may carry higher costs.
The choice of a seller is also crucial. Options include banks, reputable brick-and-mortar shops, and online retailers. Selecting a reliable partner helps facilitate not only the purchase but also the eventual sale. This “round-trip mentality” ensures you can easily sell your gold later, ideally through the same trusted source.
Purity and form factor are other aspects to consider. Gold jewelry, for example, often has added design premiums and may be harder to liquidate at market value. In contrast, gold-backed ETFs make entry and exit simple and inexpensive, often similar to trading stocks on a commission-free platform.
Finally, exercise caution and conduct thorough research before investing in gold. Rushing into an investment rarely yields benefits; instead, take your time to understand the market and avoid offers that seem too good to be true. Prudence and patience are key to a sound gold investment strategy.
Also, don’t remember that gold can be a part of your retirement plan.
Here’s an interesting video for you:
💰 Be a Better Investor
"Making money is art and working is art and good business is the best art."
Resources:
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👩🏽⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.