Alibaba (BABA, Financial) has made a strategic move by investing an additional $634 million into its Southeast Asian e-commerce unit Lazada, as reported by Nikkei Asia. This marks the third investment in Lazada by Alibaba this year, totaling over $1.8 billion. The investment is a clear signal of Alibaba's commitment to maintaining its competitive edge in the region against rivals such as TikTok's owner ByteDance (BDNCE) and Sea's (SE) Shopee. TikTok has recently announced a significant investment in Indonesia's GoTo Group, aiming to take a 75% share in Tokopedia and bolster its e-commerce presence in the country.
Apple (AAPL, Financial) has been forecasted by Citi to potentially outperform in 2024 after surpassing the $3 trillion market cap this year. Citi maintains a Buy rating with a $230 price target, citing three main reasons for the anticipated rally: growth in services revenue, sustained iPhone demand, and the potential of AI Phone and Vision Pro. Apple's services business, particularly the App Store, has shown robust revenue growth, and the company's iPhone supplier Hon Hai Precision Industry (HNHAF) (HNHPF) has revised its Q4 outlook to exceed initial expectations for significant growth.
Bank stocks have received a positive outlook from Odeon Capital analyst Dick Bove, who upgraded Bank of America (BAC, Financial), Wells Fargo (WFC, Financial), U.S. Bancorp (USB, Financial), PNC Financial (PNC, Financial), and Truist Financial (TFC, Financial) to Buy from Hold. The anticipation of future rate cuts by the Federal Reserve is expected to enhance bank asset values and net interest margins, potentially leading to higher equity values and price-to-book value multiples. In premarket trading, shares of these banks showed notable gains.
November retail sales exceeded expectations, rising 0.3% month-over-month to $705.7 billion, signaling a stronger consumer spending trend than anticipated. Core retail sales also saw an increase, and sectors such as nonstore retailers and food services experienced significant year-over-year growth. This data suggests a resilient retail sector despite economic uncertainties.
Pfizer (PFE, Financial) has successfully completed the acquisition of cancer drugmaker Seagen (SGEN, Financial) for an estimated $43 billion. The deal, which was initially expected to close later, faced regulatory challenges but was finalized after Pfizer agreed to certain concessions with the FTC. The acquisition significantly expands Pfizer's oncology pipeline and is seen as a key growth driver for the company.
Goldman Sachs has revised its expectations for interest rate cuts in the upcoming year, predicting three consecutive cuts starting in March. The firm has also lowered its inflation forecast, with core PCE inflation anticipated to trend near 2% by December 2024. This dovish stance from the Fed has influenced Goldman Sachs' economic outlook.
Berkshire Hathaway (BRK.B) (BRK.A) has increased its stake in Occidental Petroleum (OXY, Financial) by purchasing nearly 10.5 million shares. The investment comes after Occidental announced a $12 billion deal to acquire Permian producer CrownRock. Berkshire, already the largest shareholder in Occidental, now holds over a 27% stake in the company.
Moderna (MRNA, Financial) and Merck (MRK, Financial) have reported that their combined mRNA-based skin cancer treatment significantly reduces the risk of disease recurrence or death. The treatment, which pairs Moderna's investigational mRNA therapy with Merck's Keytruda, has shown promising results in a Phase 2b trial, potentially offering a new approach to melanoma treatment.
The World Health Organization has called for a ban on flavored e-cigarettes to curb their rising popularity among young people. The organization also suggests additional measures such as reducing nicotine content and increasing taxes on these products. This could impact e-cigarette companies like Philip Morris (PM, Financial), Altria (MO, Financial), British American Tobacco (BTI, Financial), Turning Point Brands (TPB, Financial), and RLX Technology (RLX, Financial).
Intel (INTC, Financial) shares have seen a significant rebound in 2023, but concerns about the company's valuation and growth prospects remain, particularly as it ventures into the foundry business. Despite the recent surge in stock price, analysts are cautious about Intel's long-term performance.
Freight Technologies (FRGT, Financial) announced that Amazon Mexico has selected its logistical solutions for the second consecutive high-demand season. This endorsement from Amazon underscores Freight Technologies' capabilities in the logistics sector.
Arista Networks (ANET, Financial) has been highlighted by Citi as a top networking pick for 2024, with the analyst raising the price target and adding the company to its US Focus List. Arista is expected to benefit from market share gains in the enterprise and opportunities in the cloud sector.
ARMOUR Residential REIT (ARR, Financial) has announced a significant decrease in its monthly dividend, citing a strategic adjustment based on capital, risk analysis, and portfolio earnings power. The new dividend rate reflects a more conservative approach in light of the current economic environment.
Initial jobless claims have declined more than expected, suggesting a resilient labor market. The drop in claims could influence the Federal Reserve's policy decisions as it monitors economic indicators for signs of stability or weakness.
Greystone Housing Impact (GHI, Financial) has maintained its quarterly dividend, providing a steady return to shareholders. The company also announced a supplemental cash distribution, reflecting its commitment to delivering value to investors.
The International Energy Agency has forecasted a slowdown in global oil demand growth for the next year, attributing the deceleration to higher borrowing costs and economic weakness in major economies. This revised outlook could impact the energy sector and global markets.
