The Market News Reel for this week! Get the most important market news & updates for the week ahead each Monday!
Major headlines, excerpts from news sources and a link to the full article are shown below. "Breaking Thoughts" section is purely our opinion.
Black Friday, Retail Earnings, Economics Reports Outline Week
"The tail end of third-quarter earnings season will bring more results from major retailers next week, just as shoppers prepare for Black Friday. On Tuesday, investors will get quarterly results from some of retail’s biggest names, including Best Buy, Burlington Stores, Dick’s Sporting Goods, Dollar Tree, and Gap.
Friday will bring one of the busiest shopping days of the year and the traditional kick off for holiday shopping season. The National Retail Federation estimates that a record $851 billion will be spent by U.S. consumers this November and December, a 9.5% increase from last year.
On Wednesday, the Federal Open Market Committee releases minutes from its early-November monetary-policy meeting. The U.S. Census Bureau also releases the durable-goods report for October, while the U.S. Bureau of Economic Analysis reports personal income and spending for October." - read more on Barons here
Breaking Thoughts: Earnings from major retailers, plus more economic data and sales estimates from the black friday/cyber monday will give investors a much better understanding of the strength of the post-pandemic recovery.
Since 2020, most observers have been expecting a boom in economic activity and spending due to all time high build up of personal savings levels (in both Canada & the US) along with pent up demand. Watching for this data will help solidify the narrative or alternatively if it is disappointing could pose a strong counter to the bullishness.
"Bitcoin City" Launches with $1 Billion Bitcoin-bond Offering
"President Nayib Bukele, of El Salvador, announced yesterday he would issue a $1 billion “Bitcoin Bond” to build the first Bitcoin City in the world. The city would feature no taxes of any kind except VAT, and it would be carbon neutral, with most of the energy powering it coming from geothermal sources." - read more on Bitcoin.com here
Breaking Thoughts: El Salvador made Bitcoin along with the US dollar its national currency earlier this year. The government has also built geothermal powered Bitcoin mining machines and hosted several major crypto events in its famed "Bitcoin Beach" location.
Continuing with this major experiment in "crypto-izing" a national economy, they are now planning to build a geothermal powered and Bitcoin Bond funded city. People from all over the world can participate with as little as $100 worth of bonds and anyone can move there to be a citizen of the city. The major pull is no income, property, or capital gains taxes with the city being funded by crypto mining and VAT (sales) tax.
Many other countries, especially lower to middle income countries with histories of currency problems may look to El Salvador as an example of modernizing their payments system, attracting foreign investment, and increasing the value of their local buying power by utilizing crypto as a currency. As in a short time El Salvador's large "unbanked" population now has access to financial services via a phone app, the country gets income from mining and the value of their savings have increased greatly with the rise in Bitcoin since adoption. We live in exciting times of change.
Major Earnings This Week
Monday November 22:
Agilent Technologies (A): Expected Q4 earnings of $1.18 per share
Zoom Video Communications (ZM): Expected Q3 earnings of $1.09 per share
Tuesday November 23:
Best Buy (BBY): Expected Q3 earnings of $1.89 per share
Dell Technologies (DELL): Expected Q3 earnings of $2.17 per share
Dick's Sporting Goods (DKS): Expected Q3 earnings of $1.94 per share
Dollar Tree (DLTR): Expected Q3 earnings of $0.96 per share
Gap (GPS): Expected Q3 earnings of $0.50 per share
HP (HPQ): Expected Q4 earnings of $0.88 per share
Nordstrom (JWN): Expected Q3 earnings of $0.56 per share
VMware (VMW): Expected Q3 earnings of $1.54 per share
Major IPOs Expected This Week
Wednesday November 24:
Coveo (TSX: CVO) search, AI and SaaS company is raising $247M at a $650M valuation
See you next week!
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