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Dow, S&P 500, Nasdaq trade mixed as inflation print keeps Fed rate cut on track

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Dow, S&P 500, Nasdaq poised to drop as inflation worries rise


US stocks traded mixed in early trading on Wednesday as investors weighed fresh consumer inflation data that looked to keep the Federal Reserve on pace for another rate cut next month.

The Dow Jones Industrial Average (^DJI) rose just around 0.1%, coming off a steep slide as stocks closed lower across the board. Both the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) fell into the red after initially rising earlier in the session, down about 0.1% and 0.3%, respectively.

Consumer prices rose largely as forecast in October, with the Consumer Price Index rising 2.6% year over year and 0.2% on a month-over-month basis, both meeting forecasts. Rises in “core” inflation — of 3.3% year over year and 0.3% month over month — also met estimates.

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Inflation has taken center stage again after the post-election rip higher hit a wall. The FOMO market lost some mojo Tuesday as it ponders whether President-elect Donald Trump’s policies could boost inflation as well as the economy. That has helped push Treasury yields higher, promising higher borrowing costs all around.

The report appears to keep the Federal Reserve on track for a December rate cut. Minneapolis Fed president Neel Kashkari told Yahoo Finance that inflation data was the key focus for the central bank in the weeks ahead, saying at Yahoo Finance’s Invest conference that any surprise to the upside “might give us pause.”

According to the CME FedWatch tool, 80% of traders expect a rate cut in December.

Meanwhile, Trump has named Tesla (TSLA) CEO Elon Musk to co-lead a new Department of Government Efficiency — another challenge for analysts trying to assess the EV maker’s prospects. The incoming president’s picks for his cabinet are also being closely watched for impact on his policies and the economy, though DOGE is not an government agency.

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Tesla’s stock erased earlier gains as shares attempt a comeback from a 6% fall on Tuesday. Meanwhile, shares of Rivian (RIVN) jumped double digits after Volkswagen raised its investment in the rival electric carmaker to $5.8 billion.

Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards

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  • Alexandra Canal

    Inflation progress ‘a slow grind’ as outlook remains uncertain

    New inflation data out Wednesday showed consumer prices rose as forecast in October, keeping the Federal Reserve on track to lower interest rates again in December.

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    “There is progress on inflation,” Claudia Sahm, chief economist at New Century Advisors told Yahoo Finance following the data’s release. “We are pointed in the right direction, but it has been a slow grind. And this is another month that fits in that slow grind.”

    The outlook remains uncertain as economists warn of another potential inflation resurgence following the election of Donald Trump as the nation’s next president.

    Trump and his proposed policies have been viewed as potentially more inflationary due to the president-elect’s campaign promises of high tariffs on imported goods, tax cuts for corporations, and curbs on immigration.

    Immediately following Wednesday’s release, markets continued to price in another 25 basis point rate cut in December after the central bank cut rates by that amount last week. Traders currently see a more than 80% chance the Fed cuts rates by 0.25% next month, up from just under 60% on Tuesday, according to data from CME’s FedWatch Tool.

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    “It is clear that the Federal Reserve’s job is still unfinished and that markets are correct in repricing federal funds rate expectations going forward,” Raymond James’ chief economist Eugenio Aleman said in a note to clients following the report.

    “Under this environment, it is only oil and gasoline prices that are keeping inflation contained. That is, any surge in oil and gas prices could severely compromise the Fed’s inflation target. The Fed should be particularly concerned about the services less energy component of CPI.”

    Read more here.

  • Alexandra Canal

    Stocks open higher after inflation data

    US stocks moved to the upside in early trading on Wednesday as investors weighed fresh consumer inflation data that met economist forecasts as the central bank debates another rate cut next month.

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    The Dow Jones Industrial Average (^DJI) opened about 0.2% higher, coming off a steep slide as stocks closed lower across the board. Both the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) each rose roughly 0.1%.

  • Inflation holds steady in October

    A closely watched report on US inflation showed consumer price increases remained consistent during the month of October, according to the latest data from the Bureau of Labor Statistics released Wednesday morning.

    The Consumer Price Index (CPI) increased 2.6% over the prior year in October, a slight uptick from September’s 2.4% annual gain in prices. The yearly increase matched economist expectations.

    The index rose 0.2% over the previous month, matching the increase seen in September and also on par with economist estimates.

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    On a “core” basis, which strips out the more volatile costs of food and gas, prices in October climbed 0.3% over the prior month, matching September, and 3.3% over last year for the third consecutive month.

  • Jenny McCall

    Good morning. Here’s what’s happening today.

    Here’s a look at today’s key economic and market themes: Wall Street awaits fresh consumer inflation data, while Spirit Airlines (SAVE) plummets 70% amid looming bankruptcy concerns. US mortgage rates continue their post-election climb following Donald Trump’s victory. Meanwhile, SoftBank Group (SFTBY) plans to build a supercomputer using Nvidia’s (NVDA) new Blackwell chips, underscoring its ambitions in AI.

    Economic data: MBA Mortgage Applications, (week ending Nov. 8); Consumer Price Index, October; Real average hourly earnings, October

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    Earnings: Cisco (CSCO)

    Here are some of the biggest stories you may have missed overnight and early this morning:

    Kashkari: Inflation surprise could prompt Fed ‘pause’

    Stocks have ‘room to run’ but that doesn’t mean buy: Bridgewater CIO

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    Inflation ‘unlikely to show much progress’ in October

    Spotify forecasts profit above estimates, stock jumps

    US mortgage rates rose again in week after Trump’s victory

    Spirit plunges 70% amid looming bankruptcy threat

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    SoftBank first to get new Nvidia chips for supercomputer



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3 Ultra-Safe Dividend Stocks That Have Been Paying Dividends for More Than 100 Years

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3 Ultra-Safe Dividend Stocks That Have Been Paying Dividends for More Than 100 Years


The past doesn’t predict the future. But if a company has been paying dividends for a long time, that can give investors confidence in its ability to continue doing so. It demonstrates that the company can weather a lot of adversity and innovate and launch new products to meet changing demand. Those are key characteristics investors will want to see when considering long-term investments.

Three stocks that have not only been around for a century but have also been paying dividends for that long are Coca-Cola (NYSE: KO), Eli Lilly (NYSE: LLY), and Abbott Laboratories (NYSE: ABT). Here’s why these can be some of the safest stocks you can add to your portfolio today.

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Coca-Cola has an iconic brand that’s known all around the world. It’s a top Warren Buffett holding, and a big reason for that is its strong brand power. Its products are found in millions of households, across hundreds of countries. While the company is known for its Coke products, it has evolved over the years and now has more than 200 brands, branching out beyond just soft drinks and into coffee, tea, and water.

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The company has created no-sugar products to meet changing customer demand, and it has also expanded via acquisitions. Coca-Cola may not be the growth machine it once was, but it’s still a reliable business to invest in. It has generated $10.4 billion in profit over the past four quarters on sales of $46.4 billion, for a profit margin of 22%.

Coca-Cola has paid a dividend going back to 1893. Today, it’s part of an exclusive club of Dividend Kings, which have increased their dividend payments for more than 50 straight years. Its dividend yields 3%, and if your priority is to generate a safe and recurring dividend, Coca-Cola may be an ideal stock to put into your portfolio right now.

Eli Lilly is a hot growth stock to buy, as investors are bullish on its prospects in the weight loss market. The company has an incredibly promising product in tirzepatide, which regulators have approved for diabetes treatment (Mounjaro) and weight loss (Zepbound). At its peak, tirzepatide may be the best-selling drug ever, with some analysts projecting that its annual revenue will eventually top more than $50 billion.

To put into perspective just how massive that is, consider that Eli Lilly generated $34 billion in sales last year — from all of its products. With so much excitement surrounding Eli Lilly’s potential, it’s little wonder that the healthcare stock has risen by more than 200% in just the past three years.

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ASML maintains bullish 2030 outlook on AI-driven demand

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ASML maintains bullish 2030 outlook on AI-driven demand


(Bloomberg) — ASML Holding NV (ASML), the Dutch maker of advanced chip-making machines that are critical to global supply chains, reaffirmed its long-term revenue outlook as it bets on an artificial intelligence-driven boom in semiconductor demand.

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The Dutch firm projected that sales in 2030 will range from €44 billion ($46 billion) to €60 billion, in line with its previous forecast, according to a statement issued as part of the company’s investor day on Thursday.

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The outlook is meant to reassure investors after the company’s order intake significantly missed analysts’ estimates in the third quarter, sparking a selloff in its shares and those of other chip-related businesses. Chipmakers such as Nvidia Corp. have enjoyed a boom in demand for their AI chips. But sales to other key buyers, including automakers and mobile phone and PC manufacturers, have remained mired in a prolonged slump.

“A few weeks ago, we had a bit of a conservative view for 2025,” Chief Executive Officer Christophe Fouquet said at the investor day. “In many ways, this is related to the change of the market. But when it comes to 2030, we are still very, very bullish.”

ASML expects growing AI demand will help boost global chip sales to over $1 trillion by 2030, which it said represents an annual growth rate in the semiconductor market of about 9%.

ASML is the only company in the world that makes the kind of lithography machines that help semiconductor companies in turn produce the advanced chips powering everything from Apple Inc.’s smartphones to Nvidia’s AI accelerators. As such, it is often viewed as a bellwether for the broader industry and an early indicator of global semiconductor demand.

Manufacturing more cutting-edge AI chips will mean more of ASML’s advanced extreme ultraviolet lithography machines will be needed by semiconductor makers. The company foresees double-digit growth in EUV spending annually through 2030 for both advanced logic and DRAM.

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The company forecast a gross margin of between approximately 56% and 60%​ in 2030.

ASML shares rose as much as 5.9% in Amsterdam on Thursday, the biggest intraday gain since July 31. They were up 5% to €659.10 at 1:18 p.m.

While ASML in October cut its sales outlook for next year, it said on Thursday it will maintain its spending priorities. ASML currently has an ongoing €12 billion buyback through 2025 of which only 14% has been repurchased.



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Bitcoin miner outflows surge as price hits new highs

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Bitcoin miner outflows surge as price hits new highs


Data from CryptoQuant showed that 25,367 BTC flowed out of miner wallets as Bitcoin approached $90,000 on Nov. 12.



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Disney earnings beat as streaming profit tops estimates

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Disney earnings beat as streaming profit tops estimates


Disney (DIS) on Thursday reported fiscal fourth quarter earnings per share and revenue that topped Wall Street estimates as its direct-to-consumer business built on recent momentum and swung to a profit.

The company reported Q4 adjusted earnings of $1.14 per share, above the $1.10 analysts polled by Bloomberg had expected and higher than the $0.82 Disney reported in the prior-year period.

Revenue came in at $22.57 billion, exceeding consensus expectations for $22.47 billion and higher than the $21.24 billion reported in the year-ago period.

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The stock rose over 5% in premarket trading immediately following the results.

Disney’s direct-to-consumer (DTC) streaming business, which includes Disney+, Hulu, and ESPN+, posted operating income of $321 million for the three months ending Sept. 28, compared to a loss of $387 million in the prior-year period.

Analysts polled by Bloomberg had expected DTC operating income to come in around $203 million after the company reached its first quarter of streaming profitability in its Q3 results.

Achieving consistent profits in streaming is critical for Disney and other media giants as more consumers shift to DTC services over traditional pay-TV packages.

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In mid-October, the company hiked the price of its various subscription plans, highlighting a trend that has gained traction over the past year as media companies attempt to boost margins on direct-to-consumer (DTC) offerings in the face of greater linear television declines.

Disney said Thursday that it expects DTC operating income of approximately $875 million in fiscal 2025.

The entertainment giant’s results come as it searches for a successor to current CEO Bob Iger to help it navigate a changing industry. A recent report from the Wall Street Journal said the pool of candidates is expanding as the executive is set to leave Disney for a second time by the end of 2026.

Last month, Disney said it plans to announce its next CEO in early 2026, with current Disney board member and former Morgan Stanley (MS) CEO James Gorman leading the charge. He will serve as the company’s new chairman of the board, effective Jan. 2, 2025.

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Among the investor concerns Iger’s successor will inherit is a potential slowdown in Disney’s theme parks business.

Revenue for the parks division came in slightly ahead of estimates, rising 1% year over year to reach $8.24 billion.

Operating income, however, fell short of expectations of $2.31 billion to hit $1.66 billion in the quarter, a 6% drop compared to the prior year.

This was primarily driven by weak results overseas with international operating income plummeting 32% year over year. The company cited a decline in attendance and a decrease in guest spending amid the Paris Olympics and a typhoon in Shanghai.

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Crypto community hopeful about new Senate leader John Thune

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Crypto community hopeful about new Senate leader John Thune


Not endorsed by Donald Trump, Senator John Thune defeated the Elon Musk-supported Senator Rick Scott to become the new Senate majority leader.



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Want $1 Million In Retirement? Invest $100,000 in These 3 Stocks and Wait a Decade

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Want $1 Million In Retirement? Invest $100,000 in These 3 Stocks and Wait a Decade


Even if an investor starts from a relatively large base, achieving a $1 million net worth in the stock market is a challenging feat. If one finds a stock on track for massive gains in a shorter period, like a year, forecasting such growth and sustaining it over a long period of time is quite another matter.

Fortunately, the market offers innovative stocks set to benefit from such trends. Admittedly, the market offers no guarantees, but given their pace of innovation and the pace of growth expected to follow, one stands a reasonable probability of achieving such returns in these three stocks.

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Tesla (NASDAQ: TSLA) has impressed investors with massive growth, as its release of the Model 3 and Model Y showed that a mass-market electric vehicle could not only become popular among consumers, but help Tesla achieve considerable growth and profitability.

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Fortunately for investors, Tesla has not finished innovating, and its artificial intelligence (AI)-driven self-driving technology could spark the next wave of stock price growth. It just released its Cybercab, its upcoming self-driving vehicle, estimating it can grow production to 2 million units annually by 2026.

Additionally, Tesla expects to offer this technology as a sort of self-driving platform-as-a-service offering. Cathie Wood’s Ark Invest believes that could take its stock to $2,600 per share, a roughly eightfold gain in five years, as self-driving technology eventually drives the majority of Tesla’s revenue growth.

As of now, Tesla stock is on the road to recovery, having more than tripled from a multiyear low of just over $100 per share in early 2023. Indeed, the recent P/E ratio of 88 may seem elevated. However, if Ark Invest is right about self-driving technology becoming the company’s primary revenue driver, that premium may be a small price to pay for Tesla’s growth potential.

When it comes to the AI chip market, a semiconductor stock like Qualcomm (NASDAQ: QCOM) may seem like an afterthought. After all, the company’s revenue had declined in recent quarters, and with the 5G upgrade cycle having run its course, it appeared poised for a pullback.

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However, AI has given consumers a new reason to buy a smartphone, and Qualcomm stands ready to provide AI capabilities with its Snapdragon 8 Gen 3 and Elite Mobile Platform. Also, it continues to beat the competition as companies like Apple attempt to develop a superior product, only to sign back up with the company.



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