🎤 BTC over $100K

and Fed Chair Jerome Powell speaks

Good morning investors! Stocks continue to climb as BTC shatters records to cross the $100K mark as Trump picks SEC chair seen as being pro-crypto. Bitcoin is up 130% for the year so far, with the post-election rally accounting for a significant portion of its gains. Its performance far outpaces the S&P 500, which is up 28% over the same period.

Today we cover:

  • Fed Chair Jerome Powell speaks

  • Stocks hit a new high

  • More earnings

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📊 Economy and News 

Federal Reserve Signals Caution Amid Economic Strength and Mixed Indicators

Federal Reserve Chair Jerome Powell expressed confidence in the U.S. economy, describing it as stronger than initially perceived in September when the central bank began reducing interest rates. His remarks suggest a more cautious approach to further rate cuts, indicating that policymakers may pause to evaluate conditions before moving closer to a neutral stance.

Powell’s comments likely represent his final public statement before the Federal Reserve enters a quiet period ahead of its December 17-18 meeting. Market speculation prior to his speech leaned toward the expectation of a third consecutive interest rate cut, a sentiment bolstered by signals from other Federal Reserve officials. Governor Christopher Waller, for instance, noted earlier this week that he was inclined toward a cut, though not all policymakers have committed to this course.

Economic indicators paint a mixed picture. A key business survey highlighted a slowdown in the expansive U.S. services sector, with businesses expressing concerns about potential tariff increases from the incoming Trump administration. These tariffs could drive higher prices and uncertainty. However, other metrics remain robust, with November auto sales reaching their highest levels in over three years, reflecting resilient consumer demand.

As the Fed navigates these varied signals, Powell’s cautious tone underscores the balancing act of supporting growth while maintaining economic stability. Lessons from this moment emphasize the importance of flexibility and responsiveness in monetary policy during times of economic uncertainty.

Global hits:

Falling mortgage rate: U.S. mortgage rates dropped to their lowest since mid-October, boosting home purchase financing. The 30-year mortgage rate fell 17 basis points to 6.69% for the week ending November 29, the largest weekly decline since August.

US grows: U.S. economic activity has expanded slightly in most regions since early October, with employment growth "subdued" and inflation rising at a modest pace and businesses expressing optimism about the future.

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📈 Stocks

S&P 500 6,086.49 (+0.61%)
DJIA 45,014.04 (+0.69%)
NASDAQ 19,735.12 (+1.30%)
BRENT CRUDE 72.54 (-1.55%)
* Prices as of Dec 5th, 12:20 AM UTC

S&P 500 and Nasdaq Hit Record Highs for Third Straight Day Amid Tech Surge

The S&P 500 and Nasdaq reached record highs for the third consecutive day on Wednesday, powered by impressive gains in the technology sector.

Here are major movers:

Salesforce led the charge, with its stock soaring +11% after the company exceeded third-quarter revenue expectations and raised the lower end of its annual revenue forecast. The growth was fueled by strong demand for its enterprise cloud solutions.

Dollar Tree also posted gains, with its stock rising +2% following better-than-expected third-quarter earnings and revenue. The discount retailer credited robust same-store sales growth across its major brands for the strong performance.

Marvell Technology saw a staggering +23% surge in its stock price after delivering third-quarter results and forward guidance that surpassed Wall Street’s projections.

Okta followed suit, climbing +5% after the digital identity verification company reported a profit for the third quarter, a sharp turnaround from a loss in the same period last year. New products accounted for 15% of its bookings, highlighting successful innovation efforts.

However, not all stocks shared in the rally. Foot Locker experienced an -8% decline after disappointing third-quarter results prompted the footwear retailer to cut its annual earnings and sales forecasts, citing weaker consumer spending trends.

American Eagle lands: American Eagle cut its full-year sales forecast and issued holiday guidance that came in below expectations.

The apparel retailer saw strong demand during back-to-school but said consumers are pulling back in between key moments.

American Eagle’s Aerie brand saw strong growth with comparable sales up 5%, on top of 12% in the year-ago period.

Shocking: GM expects more than $5 billion impact from China restructuring, including plant closures. Elsewhere, Coca-Cola is dramatically scaling back its plastic promises.

💵 Personal Finance

How to fund your child’s education - Part II

Let’s resume yesterday’s topic and discuss some more ways to fund your child’s education

Look for aid

Fill out the Free Application for Federal Student Aid (FAFSA). It covers a variety of things, including federal grants, school aid, work-study programs, and state aid.

Beware: The FAFSA shows how much one qualifies for, so ensure the letter you receive mentions aid and not a loan.

Consider scholarships

Countries like the US, UK, and even Canada offer gracious scholarships – up to 40% – with some countries even offering up to 90%. These scholarships are offered to meritorious students, students in financial need, students from marginalized communities, and more.

Encourage your child to apply for any scholarship they’re eligible for. They can make a lot of difference so get ready to do some paperwork.

Get enrolled in AP classes

Advanced Placement (AP) classes can be a great way to save money. They give students a chance to earn college credits while in high school, which means less money to spend when they go to college.

Want more? Try this:

  • Encourage your child to take a job. Most kids can manage a few hours of work while studying, which can help reduce the burden.

  • Save boarding money by encouraging your child to live at home.

  • See if there are tuition reimbursement options.

Here’s an interesting video on the topic:

💰 Be a Better Investor

“As in roulette, same is true of the stock trader, who will find that the expense of trading weights the dice heavily against him.”

Benjamin Graham

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