Portfolio Management – Page 12 – Cattolica Investment Club

20Dec 2023 by Cattolica Investment Club No Comments

Market ends losing streak as consumer confidence increases

Dec 20th, 2023 - On Wednesday, the Dow Jones and Nasdaq ended their 9-day winning streaks, decreasing by 1.27% to 37,082 and 1.50% to 14,777.94, respectively. The S&P 500 also slipped by 1.47% to 4,698.35. The Conference Board announced that the consumer confidence index increased to a 5-month high of 110.7 in December. It shows us that American consumer's optimism about future labor conditions is growing. November existing home sales increased by 0.8%, to 3.82 million units, however Economists were expecting a fall of 0.8% to 3.76 million. One of our portfolio holdings, Toyota (TM) (Purchased 0.5 units @ 186.34) announced that they will recall about 1 million cars because of a possible risk of malfunction of airbags, increasing the risk of injury. They also announced that they will stop…

20Dec 2023 by Cattolica Investment Club No Comments

The FED’s upcoming meeting and GME comeback

Daily in Portfolio Management

During this week’s Fed Meeting, it's very likely main interest rates will remain unchanged. But even if they don't do anything, what these decision-makers talk about, or don't talk about, can still affect the stock market. Currently, the Fed's benchmark interest rate is at its highest since 2001, a result of 11 rate hikes since March 2022 aimed at curbing inflation. Despite positive signs in inflation rates nearing the 2% target, speculation arises about the Fed potentially lowering interest rates soon. Fed Chair Jerome Powell recently cautioned against premature speculation on rate cuts, emphasizing the possibility of raising rates further if inflation worsens. The Federal Reserve is in a delicate situation, acknowledging the economic slowdown resulting from increased interest rates while refraining from premature cuts. It underscores the role of…

19Dec 2023 by Cattolica Investment Club No Comments

IBM GROWTH IN AI AND CLOUD SERVICES SECTORS CONTINUES, AS BOEING BENEFITS FROM LUFTHANSA EXPANSION PLANS AND ORACLE STARTS PROVIDING SERVICES TO A MAJOR US HOSPITAL

Daily in Portfolio Management

Dec 19th, 2023 - While experiencing a current negative trading trend (-0.45% at 12:30 EST), portfolio holding International Business Machines (IBM, 0.1693 units @ $151.04) announced the forthcoming acquisition of 2 major platforms, Software AG’s StreamSets and WebMethods, paying $2.3 billion cash. The decision taken by the tech giant will contribute to the increase of its dominance in the AI and Hybrid Cloud sectors, with positive outcomes on its market performances in the near future. StreamSets and WebMethods together form one unique tech super platform owned by Software AG, serving more than 1500 customers worldwide. Portfolio holding Boeing (BA, 0.15 units @ $251.28) is currently trading at $263.93 as of 12:46 EST (+1.35%). One of the main reasons behind this upward trend in the stock behavior is represented by an…

18Dec 2023 by Cattolica Investment Club No Comments

Meta’s resurgence: From struggle to soar in 2023

Daily in Portfolio Management

Dec 18th, 2023 - In 2022, Meta faced a crisis, with its stock at a six-year low, declining sales, and challenges from TikTok. However, 2023 marked a significant turnaround, with Meta shares surging by 178%, poised to become its best year on record. The change is thanks to the CEO Zuckerberg's new strategies, including substantial cost-cutting measures such as the reduction of over 20,000 jobs. After three quarters of declining sales in 2022, Meta experienced a remarkable 23% growth in the third quarter of 2023, due to the recovery of digital advertising and the capture of market share from rivals like Alphabet. The main drivers of the impressive recovery of the tech giant are two: the “change of attitude” of Zuckerberg, and Chinese advertisers support. The CEO’s shift in approach…

17Dec 2023 by Cattolica Investment Club No Comments

Fed holds rates again, market surges and broadcom shines

Daily in Portfolio Management

Dec 17th, 2023 - In a resolute move, the Federal Reserve has maintained its interest rates for the third consecutive meeting, with Chairman Jerome Powell indicating that the benchmark rate is likely peaking for this tightening cycle. Presently, the rates stand at their highest since 2001, fluctuating between 5.25% and 5.50%. Powell anticipates a shift in 2024, hinting at three potential rate cuts, with more expected in 2025 and 2026. This announcement was well-taken by the US stock indices, marking their seventh consecutive week of gains. The S&P 500 closed at its highest since January 2022, Dow Jones has reached for the first time the milestone of 37000, and NASDAQ was nearly 8% away from its all-time high. After the FED’s meeting, interest rate sensitive indices outperformed the S&P 500.…

16Dec 2023 by Cattolica Investment Club No Comments

AI’s Impact on Employment: Evolving Work Dynamics and Human-Centered Approaches

Daily in Portfolio Management

Dec 16th, 2023 - Recent statistics suggest a surge in AI-driven layoffs, with 37% of surveyed businesses reporting AI replacing workers in 2023 and 44% projecting future job cuts due to AI efficiency in 2024. However, this article aims to explore beyond headline figures, acknowledging discrepancies in technological adoption among businesses and underscoring the transformative potential of AI in reshaping job roles and organizational structures. Experts suggested avoiding direct alarmist interpretations of these statistics. Julia Toothacre from ResumeBuilder highlights the disparity in technology adoption among businesses, noting that smaller and traditional enterprises might not fully embrace AI. Moreover, insights from Alex Hood at Asana underscore the considerable amount of time spent on non-core work activities, suggesting that AI's capacity to streamline such tasks could lead to productivity enhancements. The concept…

15Dec 2023 by Cattolica Investment Club No Comments

S&P 500 LOSES GROUND AND INTEL LAUNCHES A NEW GENERATIVE AI CHIP: GAUDI3

Daily in Portfolio Management

Dec 15th, 2023 - Friday’s indices performances: Nasdaq closed at 14813.92 (+0.35%), S&P 500 at 4719.19 (-0.007%) and Dow Jones at 37305.16 (+0.15%). Intel (46.16, +2.17%) unveiled its new computer chips on Thursday, including Gaudi3, a chip for Generative AI software. Intel will launch Gaudi3 next year and it will compete with NVIDIA’s and AMD’s chipset and Intel is hoping with this new product to gain an important market share in the Generative AI sector, that for now has been dominated by NVIDIA. Colgate-Palmolive’s rating has been upgraded by Bank of America to buy from neutral, and its target price increased from $75 to $90. To motivate their choice, analysts said: “In our view, CL holds potential to grow above its long-term targets over the next 12 months, which should…

14Dec 2023 by Cattolica Investment Club No Comments

Stocks rise as investors brace for peak season

Daily in Portfolio Management

Dec 14th, 2023 - The Dow Jones closed higher on Thursday at 54.23 with a growth of 0.43%. The S&P also grew, closing at 4,719.55 adding 0,26%, while the Nasdaq gained 0.19% to 14,761.56. GM’s stock (GM) jumped 5% after the announcement that Cruise is laying off 900 employees, about 24% of its workforce. The layoff consists mostly of commercial operations and related corporate functions. It comes as a consequence of the October 2nd accident, when a pedestrian was dragged 20 feet by a Cruise self-driving car after being hit by another vehicle. The layoff came just one day after the Cruise dismissed nine “key leaders” and will resize the company from the 3800 employees it had before Thursday’s cut. The stock closed the day at 36.25 with a growth…

13Dec 2023 by Cattolica Investment Club No Comments

Indices jump on dovish statements from the Fed

Daily in Portfolio Management

Dec 13th, 2023 - On Wednesday, the Dow Jones increased by 1.4%, closing at 370,090.24. The S&P 500 increased by 1.37%, closing at 4,707.09. Also, the Nasdaq had an increase of 1.38%, closing at 14,733.96. All of them hit their 52-week highs. The Federal Reserve held the rates steady as expected. For the first time, the Fed admitted that inflation has eased over the past year and they also signaled upcoming rate cuts for 2024. Fed officials see core inflation falling to 3.2% in 2023 and 2.4% in 2024. The producer price index (which measures inflation before it reaches consumers), reported by the Labor Department, didn’t change from October to November. Tesla (TSLA) has announced that they are recalling 2 million of their vehicles in the US after a risk…

12Dec 2023 by Cattolica Investment Club No Comments

Oracle’s negative results worry analysts, while Hasbro Job Cuts lead to a decrease in its stock price, whilst Google’s power is in danger

Daily in Portfolio Management

Dec 12th, 2023 - Today’s market performance of portfolio holding Oracle (ORCL) (0.4 units @111.10) was characterized by a huge sell-off, which caused a remarkable percentage decrease in the stock price of -12.44%. This was mainly due to the negative reaction investors had in regards to Oracle’s results for the second quarter of its current fiscal year. Not only did sales for the period largely miss the target set by analysts by around $110 million, but revenue from key sectors like cloud services and license support also rose only by 12%, compared with the same period of the previous fiscal year. The latter is a very important factor to consider, taking into account that market operators are worried that Oracle will not be able to continue competing with the main…

Category: Portfolio Management