SFM Observer- November 2024

Glenn Sweeney |

SFM OBSERVER

November 2024 Recap

A CONCISE REVIEW OF THE MONTH IN THE INVESTMENT MARKETS

Issued: December 5, 2024 

The Dow closed the month of November at 44,910 for a monthly gain of 3,147 points or 7.5%.  A monster return for one month. It was an election rally that celebrated the Trump victory and also the removal of the anticipated disruption and violence that a disputed election would have caused.  Bitcoin and other cryptocurrencies have also been on a tear as Trump and his allies are more friendly regarding regulation and adoption of crypto.

Some interesting events from the month just past:

  • TGIF has filed for bankruptcy protection as the chain was never able to fully recover from the pandemic.  Sales have been declining on an annual basis and they have fully tapped out their sources of credit.  TGIF has 292 locations, but they have been closing restaurants to conserve cash.
  • NVIDIA continues to set a high bar for corporate growth and performance.  In its latest quarter, the company increased sales over the prior year by 94% and reported profits of $19 billion or a net profit margin of 54%.  This is an unheard of number.  Most public companies have net profits of 5% - 10%.
  • Home Depot raised their guidance for an unusual reason…hurricanes.  Usually, companies will raise their guidance due to a new hit product or a surge in demand caused by a booming economy.  Home Depot raised because of the weather.  Customers in the Southeast were busy buying generators, chain saws, flashlights and plywood.
  • The food company Unilever said it is going to focus its growth efforts on India.  India has a population of 1.4 billion people compared to the U.S. at 340 million.  The citizens of India have growing personal income and more disposable income to buy Unilever products.
  • The Biden administration awarded Intel $7.8 billion as part of its Chips Act.  Part of the award is earmarked to build secure chip making facilities for the military and intelligence agencies.

Thank you for reading this issue of the SFM OBSERVER.  If you have any comments or questions, please send us a reply.  If you have a friend or associate that might be interested in the SFM OBSERVER, feel free to forward this email. 

Until next month,

Glenn Sweeney CFA