03Dec 2023 by Cattolica Investment Club No Comments

Powell’s Remarks on Interest Rates and Pfizer weight loss pill flop 

Portfolio Management
Jerome Powell, Chairman of the Federal Reserve, recently discussed the topic of interest rates and  inflation, cautioning against premature aggressive rate cuts. He suggested keeping policy restrictive  until there's certainty that inflation is on a clear path back to the 2% target set by the Federal Open  Market Committee (FOMC).  Even though current policy remains restrictive, Powell highlighted a balance between combating  inflation and preventing economic slowdown. His comments had a positive impact on markets, with  stocks climbing on Wall Street and Treasury yields dropping sharply.  The rise of interest rates by the Federal Reserve in response to high inflation significantly influenced economic activity and inflation levels. Powell mentioned that while these policies have had an impact, their effects might not have been fully realized yet.  Market expectations indicate a…
Read More
03Dec 2023 by Cattolica Investment Club No Comments
The Impact of AI on the Global and Financial Markets

The Impact of AI on the Global and Financial Markets

Markets
Humans have been fascinated by the possibility of creating machines capable of simulating the human brain. The term “artificial intelligence” was coined in 1955 by John McCarthy, who, along with other scientists, organised the 'Dartmouth Summer Research Project on Artificial Intelligence' in 1956. This event led to the creation of machine learning, deep learning, predictive analysis, and, more recently, prescriptive analysis. Furthermore, it gave rise to a completely new field of study, namely data science. Today, artificial intelligence forms the basis of all computer learning technologies and represents the future of all complex decision-making processes. Artificial intelligence is the ability of a machine to display human capabilities such as reasoning, learning, planning and creativity. It allows systems to understand their environment, relate to what they perceive, solve problems and act…
Read More
01Dec 2023 by Cattolica Investment Club No Comments

Dow Jones and S&P 500 reach a New – Year high, as Tesla struggles with the Cybertruck

Portfolio Management
Dec 1st, 2023 - It was a very positive Friday for the US indices, as the Dow Jones (36245.50, +0.82%) and the S&P 500 (4594.63, +0.59%) both reached their highest value of the year. Nasdaq went also really close to its year-highest closing at 14305.03, with a 0.55% gain.  Alibaba shares lost more than 1% on Friday as Morgan Stanley analysts downgraded shares to equal weight from overweight, and also massively reduced the target price from $90 per share to $20. Alibaba was expected to change their core business with the spinoff of their cloud business, which has not happened because of US export restrictions on advanced chips.  Tesla shares fell in the first hours of Friday around 3%, after the first deliveries of the Cybertruck.  Finally, Tesla’s Cybertruck is…
Read More
30Nov 2023 by Cattolica Investment Club No Comments

Dow rises, as Salesforce tops estimates

Portfolio Management
Nov 30th, 2023 - Thursday was a good day for the markets, with the S&P growing 0.38%, NASDAQ by 0.25% and Dow Jones by 1.47%. European markets closed higher this Thursday rounding off the month as investors assessed inflation data in the Eurozone, suggesting pressure from rising prices is easing. The regional Stoxx 600 closed up 0.5% at a 10-week high. (J.Reid) Salesforce’s (CRM) stock climbed 7.4% after October-quarter earnings topped estimates, as the cost cutting process improved profit margins while revenue met views. Guidance for CRM stock came in over the expectations despite the rise in CRM over the year. For the quarter ended Oct. 31 earnings jumped 51% to $2.11 per share and revenue climbed 11% to $8.72 billion, surpassing the expectations of $2.05 earnings per share on…
Read More
29Nov 2023 by Cattolica Investment Club No Comments

As markets fall, we’re hit with less hawkish statement from Fed governor

Portfolio Management
Nov 29th, 2023 - On Wednesday, markets closed the day with a decrease in the S&P500 and Nasdaq by 0.09% and 0.16% whereas Dow Jones closed near flat with an increase of 0.04%. Fed Governor Christopher Waller, who is known as a hawkish figure expressed his confidence in the current policy’s ability to bring back the inflation the the 2% target. The third quarter's gross domestic product increased at a faster rate than anticipated, rising to 5.2% annualized growth, according to figures released on Wednesday. Changes to government expenditure and investments in nonresidential structures were the main sources of the increase. New chips have been released by Amazon Web Service’s cloud division, which enables users to create and execute artificial intelligence (AI) apps. There are plans in the announcement to…
Read More
29Nov 2023 by Cattolica Investment Club No Comments
What makes a company increase in price after they beat earnings?

What makes a company increase in price after they beat earnings?

Portfolio Management
Stocks’ prices are affected by many factors that cannot be controlled all at once, mainly we can think about the most influential ones as a group of how investors feel about that certain stock. Earnings reports must be published by publicly traded companies in the U.S on a quarterly and on an annual basis. These reports are official financial documents issued by the company itself that shows expenses, earnings and overall profit in a certain period. They provide a periodic update of a company’s financial statement along with an income statement, cash flow statement and balance sheet. Investors can use a company’s earnings report as an indicator of performance and financial position of the company, however the report usually gives an overly positive idea of the financial situation and therefore…
Read More
28Nov 2023 by Cattolica Investment Club No Comments

BFF bank performance impresses analysts as Leonardo develops its helicopter business worldwide and Amazon and Toyota efforts aren’t rewarded. 

Portfolio Management
Nov 28th, 2023 - Today marked a very important moment in Bff Bank’s (BFF) history, as its stock price rose to the highest level ever since the Italian company went public in 2017. In fact, BBF closed at 10.43€ today, with a daily percentage increase of 5.14%. Also, Mediobanca’s research confirmed the outperform rating of BFF shares, mainly due to the advantages the bank gained through the approval of an european regulation regarding payment delays.   Leonardo (LDO) just signed a very remunerative agreement with Omni Helicopters  International, according to which the italian company will deliver 2 AW189 and a AW189K to  its portuguese counterparty, increasing its presence in Latin America. Furthermore, Leonardo entered into another deal with Leman Aviation which will receive 10 units of the new AW09 helicopter. Both…
Read More
27Nov 2023 by Cattolica Investment Club No Comments

Tesla sues Sweden: The potential impact at the European Level

Portfolio Management
Nov 27th, 2023 - Tesla has filed a lawsuit against the Swedish Transport Agency after postal workers of the country stopped delivering license plates connected to the U.S. carmaker: the company claims that such negligent behavior constitutes an “illegal and discriminatory attack”. However, the legal action filed on the 27th of November, is part of a broader conflict between the carmaker and the Swedish unions. The tension between the two started coming out a month ago, on October 27, when 130 members of the powerful Swedish metalworkers’ union “IF Metall”, went on strike at seven workshops across the country advocating for a collective labor agreement. Indeed, since Tesla isn’t unionized as a company, Swedish workers have been striving for better salaries, pensions and insurance systems. Mechanics then joined the “protests”,…
Read More
27Nov 2023 by Cattolica Investment Club No Comments
NVIDIA Corporation Analysis

NVIDIA Corporation Analysis

Corporate Finance
NVIDIA: Qualitative description NVIDIA Corporation, headquartered in Santa Clara, California, is a leading technology company specializing in the design and manufacture of graphics processing units (GPUs), as well as system-on-a-chip units for mobile computing and automotive applications.  Founded in 1993, NVIDIA operates in various segments, including Gaming, Professional Visualization, Data Center, and Automotive. Its mayor institutional investors, in order, are Vanguard Group Inc (203mln shares), Blackrock Inc (180mln shares) and FMR (129mln shares). In the fiscal year 2022, NVIDIA reported a total revenue of $26.97B (Y/Y % 0,22%).  The company achieved an impressive EBITDA margin of 21.38%, showcasing efficient cost management and profitability. The Gaming and Data Center segments were major contributors to revenue, with Gaming accounting for 49% and Data Center contributing 41%. NVIDIA has established itself as a…
Read More
26Nov 2023 by Cattolica Investment Club No Comments

Apple’s Singles Day, Deere’s Guidance, and Coinbase’s Bitcoin Surge

Portfolio Management
Nov 26th, 2023 - Portfolio holding Apple (AAPL)(0.6 units @ 183.96) shares dropped by 1% Friday, as iPhone sales during China's 2023 Singles Day fell 4% from the previous year. Singles' Day is a major global online shopping event, comparable to Black Friday and Cyber Monday in the U.S. Apple trailed behind local competitors Huawei and Xiaomi, with the latter experiencing a 66% sales increase. iPhones contribute nearly 50% to Apple's total revenue. Investors closely monitor iPhone sales, and the global smartphone market rebounded in October, driven by releases like Huawei's Mate 60 and Apple's iPhone 15, marking the highest sales since January 2022. Deere & Co. (DE) saw a 3% decline this week as the farm equipment manufacturer's guidance fell short of estimates. Deere & Co, also known as…
Read More