Housekeeping: Good Morning. Discussion on m-BRIDGE with Tom Luongo will be emailed out today (bonus Jethro Tull vs Led Zeppelin debate for Premium). Recorded an in depth conversation with Peruvian Bull yesterday on Gold, Silver, and Bitcoin, Sitting with Andy Schectman today.
“The Gold reset is a process, not an event”
Today:
Discussion:
CPI Expectations
Headline CPI is expected to rise by 0.2% in October
Core CPI is expected to rise 0 3% M/M and 3.3% Y/Y
Open Interest Tells You This is Different
Full Goldman analysis at bottom
News/Analysis:
Equity Recap:
US equities retreated on Tuesday after a strong rally following Donald Trump's presidential win. Large caps bested small caps: S&P 500 (-0.29%) vs. Russell 2000 (-1.77%). MSCI Emerging Markets (EEM) and MSCI EAFE (EFA) dropped 1.90% and 1.86% respectively.
Market News:
"Amazon is poised to roll out its newest artificial intelligence chips as the Big Tech group seeks returns on its multibillion-dollar semiconductor investments and reduce its reliance on market leader Nvidia. FT
"The Justice Department on Tuesday sued to block UnitedHealth Group’s $3.3 billion acquisition of Amedisys, WSJ
"Apple, aiming to catch up with rivals in the smart home market, is nearing the launch of a new product category: Bloomberg
"Meta plans to give European users of Instagram and Facebook the option of receiving what it says are “less personalized ads,” a concession to regulators that risks hitting the company’s revenue in one of its largest markets.WSJ
"Citigroup Chief Executive Officer Jane Fraser said that clients who’d been waiting on the sidelines to do deals are focused on moving forward with mergers and acquisitions as they see that scale is needed to compete. Bloomberg
"Every year since 2020, one of the new iPhone models has lagged its siblings in sales. Source: CNBC
"ValueAct has a roughly $1 billion stake in Meta...CNBC
Politics/Geopolitics: Trump-Musk Moves
US President-elect Trump picked John Ratcliffe for CIA Director and will nominate Pete Hegseth for Defense Secretary, while it was also reported that Trump told allies he wants Robert Lighthizer as his trade czar.
Trump said Elon Musk, working in conjunction with Vivek Ramaswamy, will lead the department of government efficiency and aim to dismantle government bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure federal agencies.
Punchbowl News notes that the GOP is planning to pass a major tax bill in the first 100 days of the new Trump presidency. Sources add that conversations between Republicans from the House and Senate Budget Committees yesterday were largely a big-picture discussion about what Republicans are looking at for reconciliation.
"Wall Street investors Scott Bessent and Howard Lutnick are the leading contenders to be Donald Trump’s Treasury secretary after hedge fund billionaire John Paulson dropped out of the race for the job
Data on Deck: CPI/PPI
MONDAY, NOV. 11 Veteran's Day holiday, bond market closed
TUESDAY, NOV. 12 NFIB optimism
WEDNESDAY, NOV. 13 Consumer price index
THURSDAY, NOV. 14 PPI year over year
FRIDAY, NOV. 15 Retail sales minus autos
***FINAL MARKET CHECK***
