⛰ Stocks take a hit

and these are better than Nvidia

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Morning Download
March 11, 2024

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Good morning investors! Start of another week after a great last week for crypto and a mixed week for stocks. Plus, companies like Adobe are set to announce earnings this week.

Today we cover:

  • Events happening this week

  • Stocks take a hit

  • Stocks better than Nvidia

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📊 Economy and News 

What to look out for this week

Last week’s job report did not rattle the market, but some major economic data is expected this week. Here’s what to keep an eye on:

  • Tuesday's inflation data could help gauge how soon the Fed could start cutting interest rates. Economists are expecting February's consumer price index to rise 0.4% after a faster than expected increase of 0.3% in January.

  • Bitcoin will be under scrutiny after crossing the $70,000 mark. Historically, such booms are usually followed by reductions, so it will be interesting to see where it heads this week.

  • Oil prices ended Friday 1% lower, continuing a downward trend for the week, with market concerns lingering over weakened Chinese demand. These worries persisted despite the decision by the OPEC+ producer group to extend supply cuts. It will be interesting to see if prices will go up following the decision.

  • The stock market is changing and analysts say that investors are locking in profits and moving to stocks with more potential. Could it continue this week?

  • After the US, the UK is expected to release job data this week on Tuesday. In December, the rate of growth in average hourly pay slowed to 6.2%, marking the slowest pace in over a year. However, this deceleration was not significant enough to persuade Bank of England (BoE) officials that the current interest rates, which are at 16-year highs, will need to be lowered sooner rather than later.

Global hits:

📈 Stocks

S&P 500 5,123.69 (-0.65%)
DJIA 38,722.69 (-0.18%)
NASDAQ 18,018.45 (-1.53%)
BRENT CRUDE 82.03 (-1.66%)
* Prices as of Mar 11th, 12:20 AM UTC

Dow closes out worst week since October

Stocks pulled back on Friday, wrapping up a volatile week as Nvidia's remarkable surge paused.

Both the Nasdaq and the S&P 500 turned negative after hitting new record highs earlier in the day. This decline marked the worst week for the 30-stock Dow since October.

Nvidia, a leader in artificial intelligence, saw its momentum slow, closing down more than 5%, its worst performance since late May.

Despite this setback, Nvidia's shares still ended the week up more than 6%, contributing to a massive rally that has boosted the stock's market cap by over $1 trillion since the beginning of the year.

But, not all tech stocks were down as Apple rose 1% in Friday trading, snapping its longest losing streak since early 2022 at seven days. Shares, however, are down nearly 5% on the week, making it the worst performer in the 30-stock Dow.

Nvidia’s terrible Friday is proof that investors need to be careful. Things can change in the blink of an eye.

Bit about medicines: Novo Nordisk CEO Lars Fruergaard Jørgensen said the company’s experimental weight loss drug pill, amycretin, could eventually become a best-in-class treatment for obesity. 

On the other hand, Eli Lilly said that the Food and Drug Administration has pushed back its approval decision deadline for the drugmaker’s experimental Alzheimer’s treatment donanemab in a surprise move.

Lastly, The Food and Drug Administration has approved Novo Nordisk’s blockbuster weight loss drug Wegovy for use in slashing the risk of serious cardiovascular complications in people with obesity and heart disease, the company said.

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💵 Personal Finance

These small companies have done better than Nvidia

Money appears to be flowing from bigger names to smaller companies, so let’s have a look at some smaller firms that have given better returns than the likes of Nvidia and Tesla.

Nvidia, the microchip giant, has been a standout performer, delivering an impressive return of 1,904% over the last five years. But, some have done even better.

Cosmetics firm e.l.f. Beauty Over the same period HAS returned 2,491%, a lot higher than Nvidia. It isn’t, however the only company to have done so.

Cloud computing firm Super Micro Computer outperformed even e.l.f. Beauty , boasting a return of 4,175%. Meanwhile, Celsius Holdings, an energy drink manufacturer, achieved a staggering return of over 5,300% over the past five years. That’s over 1,000% per year.

Why have you never heard of these companies? Because still aren’t big enough to be among the market’s largest 500 companies.

This means you might be missing out on some great opportunities if you are focused on only big companies.

Check this video to know more about small cap companies:

💰 Be a Better Investor

“The stock market is the story of cycles and of the human behavior that is responsible for overreactions in both directions.”

Seth Klarman

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Nothing in this newsletter is financial advice. Always do your own research and think for yourself.