📈 Rate cuts coming

☕️ Good Morning.

The Fast Five → Fed holds rates and indicates three cuts coming in 2024, Dow closes above 37,000 for the first time, Tesla recalls nearly all vehicles to boost autopilot safeguards, Etsy lays off 11% of its staff, and OpenAI and Axel Springer strike unprecedented deal to offer news in ChatGPT...

Here’s your 5-min briefing for Thursday:

BEFORE THE OPEN

MARKETS

• US stocks rallied after the Fed signaled that they would cut rates several times next year

• The Dow led indices with a 1.40% gain

• Treasury yields sank due to the Fed’s plan to cut rates by 75 basis points next year

• US 2Y yields fell 30 bps

• US 10Y yields dropped below 4% once again

EARNINGS

• Adobe shares fell ~5% despite beating Q4 earnings and revenue expectations due to a weaker-than-expected 2024 forecast (link)

• What we're watching this week:

  • Today: Costco

  • Friday: Darden Restaurants

• Full calendar here

NEWS BRIEFING

Fed Holds Rates Steady, Indicates Three Cuts Coming in 2024

Tesla Recalls Nearly All Vehicles on US Roads Over Lack of Autopilot Safeguards

• Dow ends at record high as Fed says it sees lower borrowing costs in 2024 (link)

• 10-year Treasury yield drops to lowest level since August as Fed forecasts easing rates 3 times next year (link)

• Wholesale prices held flat in November, providing another encouraging inflation signal (link)

• House approves resolution demanding MIT, Harvard presidents resign after antisemitism testimony (link)

• Mortgage refinance applications surge as rates drop to 6-month low (link)

• FCC votes to ban termination fees for cable and satellite services (link)

• China chip firm powered by US tech and money avoids Biden's crackdown (link)

• Etsy stock falls after company lays off 11% of its staff, citing ‘very challenging’ environment (link)

• Citi offers partial early bonuses to encourage staff departures (link)

• SpaceX valuation climbs to $180 billion (link)

• OpenAI, Axel Springer strike unprecedented deal to offer news in ChatGPT (link)

• Apple now requires a judge's consent to hand over push notification data (link)

• McDonald's concept CosMc's could win the coffee war against Starbucks and Dunkin' (link)

• Wall Street traders go all-in on great monetary pivot of 2024 (link)

• California orders freeze on $68B budget deficit (link)

• A year after audit deal, Chinese IPOs in US are small and rare (link)

• Google offers enhanced generative AI features for cloud customers (link)

• GM Cruise executives leave after October crash (link)

CRYPTO

• Montenegro extended the detention of Terraform Labs co-founder Do Kwon at the request of the US and South Korea (link)

• The US CFTC approved a plan from Chicago cryptocurrency derivatives exchange and brokerage Bitnomial to also act as its own registered clearinghouse (link)

• Coinbase will begin offering spot trading on its international exchange from today (link)

BULLISH BITES

✨ Magic: With AI Studio, Google launches an easy-to-use tool for developing apps and chatbots based on its Gemini model.

🍫 Shortlist: The 13 best chocolates in 2023, tested and reviewed by a professional chocolatier.

🛍 OutShein’d: How Shein outgrew Zara and H&M and pioneered fast-fashion 2.0.

🤑 Pay to play: Welcome to the ad-free internet.

FEATURED TRADES

Optimist Fund's largest holding: $CVNA

Carvana is an online used car retailer that provides a platform for buying, selling, and financing used cars. It's known for its automated car vending machines and has a goal of changing the way people buy cars.

Ticker: CVNA | Price: $45.04 | Price Target: $600 (+1200%) | Timeframe: 5-year

🚗 Online Auto Retailer | 📈 Bullish Idea

Read the full article here. Read time: 2 min

DAILY SHARES

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