Good morning investors! Nvidia is going through a difficult time as AI earnings continue to impress.
Today we cover:
Home sales fall
Cisco and more report
Nvidia’s troubles
📊 Economy and News
US Existing-Home Sales Hit a 16-Year Low as High Mortgage Rates Pressure Buyers
U.S. existing-home sales fell 5.5% in October to an annualized rate of 3.75 million, the lowest level in 16 years. High mortgage rates and declining affordability continue to keep buyers out of the housing market.
Mortgage rates remain above 7%, making homeownership increasingly expensive. Although the 30-year mortgage rate recently declined to 7.11% for a fourth consecutive week, borrowing costs remain a major obstacle.
Housing Supply Is Increasing
October data shows signs of a cooling market:
Existing-home inventory rose 4.6% year over year to 1.59 million.
Housing supply increased to 5.1 months, its highest level since 2015.
The median home price reached $416,700, up just 0.4% annually.
A record 36% of homes listed on Redfin had price reductions.
Rising inventory and price cuts could eventually improve affordability, although many homeowners remain reluctant to sell because they have existing low-rate mortgages.
Global hits:
New Zealand home prices fall in October amid cost pressures.
Turkey central bank raises 2026 inflation forecast to 29.5% as India’s October retail inflation at 6.09% on-year.
AI spending helps lift UK growth to fastest since early 2024, yet house sales outlook is darkest since 2023.
Europe’s STOXX 600 hits record high on strong earnings, easing Mideast tensions.
Reminder: US starts 2027 fiscal year with record October budget deficit of $404 billion. In other news, Fed to skip rate vote at October 2027 meeting under Warsh plan.
👨 Sponsored
A Pentagon rule cuts off Chinese imports for specific American companies that day.
His are at the top of the list.
Most of his supply comes from China.
Will Elon buy this $5 stock in the next 7 days?
📈 Stocks
S&P 500 7,592.41 (-0.35%)
DJIA 52,297.09 (-0.36%)
NASDAQ 25,366.09 (-0.39%)
BRENT CRUDE 95.34 (+3.07%)
* Prices as of Nov 13th, 12:20 AM UTC
Nvidia’s Leadership Crisis: Huang’s Exit Puts AI Financing and Investor Confidence to the Test
Nvidia faces a major leadership and confidence test following the sudden resignation of co-founder and CEO Jensen Huang after reports of two extramarital affairs, including one involving Alice Huang, a woman U.S. intelligence agencies suspect of having links to Chinese intelligence, and another involving Nvidia executive Kimberly Powell.
Nvidia shares initially plunged more than 13%–14% following the announcement before recovering some losses.
Chief Financial Officer Colette Kress, who joined Nvidia in 2013 and previously held finance positions at Cisco, Microsoft and Texas Instruments, has been appointed interim CEO.
However, Nvidia has yet to announce a permanent successor and is considering both internal and external candidates. Some analysts believe Kress could lead on an interim basis for approximately a year before an external candidate with broader global leadership experience is appointed.
Beyond the leadership transition, Huang’s departure raises questions about Nvidia’s ambitious plan to mobilize more than $500 billion in financing for AI infrastructure.
Preliminary memorandums of understanding signed in August with Apollo Global Management, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR aim to attract institutional and private capital for data centers, chip factories and other computing infrastructure.
The proposed structures would use Nvidia GPUs as collateral, potentially transforming rapidly depreciating hardware into bankable infrastructure assets, similar to financing arrangements used for real estate and toll roads.
Despite Nvidia’s sharp share-price decline, financial advisers suggest that the direct impact on diversified ETF and mutual fund investors may be relatively limited.
Across the broader fund universe, large-growth funds have an average Nvidia allocation of 10.34%, while technology-sector funds average 7.31%.
However, the indirect risk could be greater. A sharp Nvidia sell-off may also pressure other semiconductor and AI-related companies, including AMD and Micron, potentially amplifying losses across technology-focused portfolios.
Interesting: Nscale updates IPO prospectus that shows widening loss.
Microsoft suffered a widespread outage on Thursday that impacted thousands of users across regions.
Family Dollar reaches $63 million settlement with US FTC, states over customer overcharges.
USPS plans 11% fuel surcharge on package deliveries.
Big earnings:
Cerebras reported better-than-expected revenue for the third quarter and issued strong guidance. Cerebras’ core revenue grew 70% from $135.7 million, compared with 103% growth in the second quarter. Cerebras said it expects revenue to triple in 2027. That implies about $2.85 billion in revenue. Analysts surveyed by LSEG were looking for $2.92 billion. The AI chipmaker said it recently signed a deal with hyperscaler Microsoft.
Cisco reported fiscal first-quarter earnings that topped estimates. Cisco raised its expectation for AI infrastructure revenue from hyperscalers to $9 billion this fiscal year, more than double the figure in fiscal 2026.
💵 Personal Finance
Homeowners tap into $481 billion in HELOC debt as borrowing surges
US homeowners increased borrowing through home equity lines of credit (HELOCs) by $23 billion in the third quarter, the largest quarterly jump since 2005, bringing total outstanding balances to $481 billion, according to the New York Federal Reserve.
With mortgage rates remaining high, many homeowners are using HELOCs to access their home equity without giving up existing low-rate mortgages. Nearly half of outstanding mortgages carry rates of 4% or lower, making homeowners reluctant to refinance or move.
HELOCs allow homeowners to borrow against their property as needed, offering flexible access to funds for renovations, major expenses or consolidating higher-interest debt. However, the average HELOC rate is currently 7.49% and is typically variable, meaning borrowing costs can rise. Homeowners should also consider that monthly payments may increase significantly once the repayment period begins and they must pay back both principal and interest.
💰 Be a Better Investor
“The goal of a successful trader is to make the best trades. Money is secondary.”
What did you think of today's newsletter?
👩🏽⚖️ Legal Stuff
FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT ADVICE. Morning Download products and services are offered for educational and informational purposes only and should NOT be construed as a securities-related offer or solicitation or be relied upon as personalized financial advice. We are not financial advisors and cannot give personalized advice. There is a risk of loss in all trading, and you may lose some or all of your original investment. Results presented are not typical. This message may contain paid advertisements, or affiliate links. This content is for educational purposes only.
Please review the full risk disclaimer: MorningDownload.com/terms-of-use