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US markets rallied yesterday after softer inflation numbers boosted hopes for a Fed rate cut. The S&P 500 surged 1.8%, its best day since the November election and erasing its 2025 losses. Big names led the charge: Tesla jumped 8.0%, Nvidia gained 3.4%, Meta added 3.8%, and Amazon rose 2.6%.

In corporate news, Goldman Sachs popped 6% after smashing estimates, thanks to its equity traders delivering their best year yet. Meanwhile, NetApp is offloading a portfolio of cloud software assets, originally picked up during its acquisition spree to Flexera, backed by private equity giant Thoma Bravo.

In summary, the JSE All-share was up 1.69%, the S&P 500 leaped 1.83%, and the Nasdaq screamed 2.45% higher.

Yesterday was a rather uneventful day for markets, as all three indices we track moved less than 0.5%. In the US, PPI came in at 0.2% month on month, which means production prices increased at half the speed Wall Street was expecting. Generally, low production costs leads to lower consumer prices in the coming months, so that's positive.

In company news, Eli Lilly fell 6.6% after they released Q4 guidance below market expectations. Analysts were expecting revenue of $13.95 billion, but the company thinks it will only achieve $13.5 billion, which is still 45% higher than last year. If a company has high expectations, even a small miss can spook traders. It is worth noting that the long term growth forecasts are still on track. In the short term, supply chain and production delays have lead and lag impacts that are quite unpredictable.

In summary, the JSE All-share closed up 0.10%, the S&P 500 rose 0.11%, and the Nasdaq ended 0.23% lower.

Yesterday the S&P 500 opened 0.9% lower but squeaked into the green at the close. Local stocks had a tough day as the exchange rate weakened to $/R19.21, and most sectors were down over 1%.

In company news, Howard Hughes Holdings soared 9.21% after billionaire hedge fund manager Bill Ackman offered to acquire the portion of the real estate developer that he doesn't already own. His plan is to turn the property company into a modern Berkshire Hathaway by investing surplus cash in other companies.

Conversely, vaccine maker Moderna plunged 16.8% as it lowered its revenue guidance by $1 billion. The stock recently rallied after the US reported the outbreak of bird flu, but that was short-lived. Abercrombie & Fitch also had a bad day, dropping by 15.7% after it raised is guidance. Unfortunately, Wall Street had expected a higher increase. Expectations drive share prices in the short term.

In summary, the JSE All-share closed down 1.70%, but the S&P 500 rose by 0.16%, and the Nasdaq slid 0.38%.

2024 was another stellar year. The Vestact model portfolio rose by 40.9%, crushing the S&P 500 by a wide margin. This is a real portfolio which pays advice fees and occasional brokerage charges and earns dividends. It belongs to an East Rand-based businessman who sent us $800 000 in 2014. The account is now worth over $5 million.

Vestact's 10-year investment performance has a nice margin of safety over the broad index. We are up 18.6% per year after all fees, on average, compared to the S&P 500 which is only up 11.1% on average. It's a been a good run.

In 2024, some of our stocks (like Nvidia) did well, and others did not do so well (like Nike). The portfolio is invested in major US stocks in the tech and healthcare sectors. Over time, we expect our preferred stocks to do better than the S&P 500, with very little turnover.

We don't know what will happen in 2025, but we are still optimistic. We believe that the Fed still has space to trim US interest rates, because shelter (housing) prices will moderate further, lowering inflation. The Trump administration says it will cut taxes, remove regulation and promote mergers and acquisitions. We are excited about the advances in AI and weight-loss drugs. The second half of the 2020s will be good, so we should all be fully invested.

2024 was a big year for electoral upheaval, so there are now lots of new politicians on the job. We make a point of staying in the market when public policy seems volatile.

The main driver of share price performance is earnings, and the good news is that earnings season starts this week! Wall Street currently expects the S&P 500 to report Q4 earnings growth of 8.81%.

We will keep writing our daily newsletter, starting again tomorrow. Our goal is to keep you amused and well-informed, and to share important company updates and market developments with you.

Our business strategy remains the same: we have just one office in Rosebank, offer top-notch service, own large-cap US growth stocks in our preferred sectors for the long-run and charge low fees (1% per annum).

All the best for 2025.

Regards,
Paul

US markets took a breather yesterday, after some iffy producer price data. It's been a stellar year so far, with the S&P 500 up 27.6% year-to-date, and the Nasdaq Composite up 34.8%. We have no complaints!

Giants like Nvidia (+185%), Meta (+82%), Tesla (+68%), and Apple (+34%) have led the charge this year. Staying fully invested through the cycles has paid off, and we're grateful for your trust in our long-term approach.

In corporate news, chipmaker Broadcom surged another 5% after hours on strong fourth-quarter profits. Meanwhile, Adobe tumbled 13.7% after issuing a cautious annual sales forecast, fuelling concerns over competition from AI-based startups. ServiceTitan made a splashy debut, opening 42% above its IPO price after raising $625 million.

In summary, the JSE All-share was down 0.17%, the S&P 500 fell 0.54%, and the Nasdaq was 0.66% lower. Ah well.

US markets rebounded strongly yesterday after benign inflation numbers bolstered expectations of a Fed rate cut next week. The Nasdaq 100 surged to a record high, led by the "Magnificent Seven" tech giants. Tesla (+5.9%), Amazon (+2.3%), and Meta Platforms (+2.2%) all hit individual all-time highs, while Alphabet (+5.5%) and Nvidia (+3.1%) also posted solid gains.

In corporate news, Broadcom jumped 6.6% on reports of a collaboration with Apple on AI-focused server chips. Meanwhile, GameStop soared 7.6% after delivering a surprise Q3 profit, attributed to successful cost-cutting efforts. Finally, contact lens manufacturer Bausch + Lomb was the biggest loser of the day (-12.1%) on news that Blackstone may back out of an attempted acquisition of the company.

In summary, the JSE All-share was down 0.18%, the S&P 500 rose 0.82%, and the Nasdaq was 1.77% higher. Cowabunga!

US markets slipped yesterday, with the S&P 500 and the Nasdaq retreating from recent peaks. Bond yields edged higher ahead of the year's final CPI report, which is anticipated to show a rise in the annualised headline figure.

In company news, Alphabet jumped 5.6% after unveiling a breakthrough in quantum computing with its Willow chip. Meanwhile, Oracle slid 6.7% on lackluster results. Lastly, Eli Lilly approved a $15 billion buyback program and hiked its dividend by 15%, boosted by Zepbound's blockbuster success.

Here's the lowdown, the JSE All-share was down 0.42%, the S&P 500 fell 0.30%, and the Nasdaq was 0.25% lower.

US markets took a step backwards yesterday, retreating from recent highs. Nvidia shares slid 2.6% after China launched an anti-monopoly probe into the chipmaker, in what sounds like a tit-for-tat reaction.

Attention now turns to inflation data that could shape the Fed's rate outlook, at its meeting on Wednesday next week. The signs are that a small cut is in the offing.

In company news, Apollo Global Management and Workday are being added to the S&P 500. The former will join Blackstone as another alt-asset manager in the world's top equity index. Elsewhere, Mondelez is eyeing a sweet deal to acquire Hershey, which could create a $50 billion snacks and chocolate powerhouse. Finally, Omnicom (-10.3%) has agreed to buy Interpublic Group to form the world's largest ad agency.

At the close, the JSE All-share was up 0.81%, but the S&P 500 fell 0.61%, and the Nasdaq slid 0.62% lower. You can't win them all.

US stocks hit fresh record highs on Friday after solid jobs data reminded investors that the US economy is in great shape. The S&P 500 is up nearly 30% this year, and barring a Christmas nightmare, is on track for its best annual performance since 2019.

In company news, Meta rose 2.4% and Google added 1.3% as TikTok's Chinese parent, ByteDance, faces a ban in America unless it sells its US operations. Elsewhere, Qualcomm fell 0.6% as Apple plans to roll out its own modem in iPhones, replacing Qualcomm's components.

On Friday, the JSE All-share was up 0.11%, the S&P 500 rose 0.25%, and the Nasdaq was 0.81% higher. Very nice.

US markets cooled yesterday, just slightly coming off record highs as Wall Street shifted focus to upcoming jobs data, which could influence the Fed's December rate decision. Both the S&P 500 and the Nasdaq Composite closed in the red after a steaming hot rally.

In company news, Tesla gained 3.2% after a price target boost from Bank of America. Applied Materials slid 5% following a Morgan Stanley downgrade. Meanwhile, Eli Lilly is investing $3 billion in expanding US manufacturing for its diabetes and weight-loss drug portfolio.

Yesterday, the JSE All-share was up 0.62%, the S&P 500 retreated 0.19%, and the Nasdaq cooled off 0.17%. Nothing serious.

US markets soared to new highs yesterday as Fed Chair Jerome Powell highlighted the economy's resilience. Big tech led the charge, pushing the S&P 500 to its 56th record close of 2024, while the Nasdaq jumped over 1%. Nvidia was the standout among the "Magnificent Seven" megacaps, and is now up almost 65% this year. How nice!

In company news, Salesforce (+11%) and Marvell Technology (+23%) surged after strong results bolstered optimism about their ability to ride the AI boom sweeping the industry. Elsewhere, Eli Lilly's weight-loss drug Zepbound beat Novo Nordisk's Wegovy in their first head-to-head trial, giving Lilly a potential edge in the blockbuster obesity treatment race. Lilly stock rose 2.0%.

Izolo, the JSE All-share was up 0.58%, the S&P 500 rose 0.61%, and the Nasdaq was 1.3% higher. A nice green day.

US markets ended slightly higher yesterday in a quiet session. We are back to waiting for key jobs data on Friday and parsing Fed Chair Jerome Powell's remarks for rate-cut signals. Risk appetite was also dampened by geopolitical jitters after South Korea's mad hatter president briefly declared martial law. Our favourite names like Meta (+3.5%), Eli Lilly (+1.7%), Apple (+1.3%), and Nvidia (+1.2%) managed to stay ahead.

In company news, Amazon rose 1.0% after reports that US consumers spent $13.3 billion on Cyber Monday, well above 2023's less impressive $12.4 billion, making it the single biggest shopping day of all time. Elsewhere, BlackRock has agreed to acquire HPS Investment Partners in an all-stock deal worth about $12 billion, boosting its position in the private credit sector.

At the end of the day, the JSE All-share was up 0.10%, the S&P 500 rose by a modest 0.05%, and the Nasdaq was 0.40% higher. Life continues.

US markets had a strong session yesterday, thanks to a rally in large technology stocks. The S&P 500 notched up its 54th record close this year, while the Nasdaq jumped just shy of 1%. The standout performers were Tesla (+3.5%), Meta (+3.2%) and Apple (+1.0%). That's a new all-time high for the iPhone maker.

In company news, Intel CEO Pat Gelsinger was forced out by his board after they lost faith in his turnaround strategy for the iconic chipmaker. Meanwhile, Super Micro's independent review cleared its management team of misconduct and its shares jumped by 26.9%. That stock has been ridiculously volatile.

In short, the JSE All-share was up 1.44%, the S&P 500 rose 0.24%, and the Nasdaq was 0.97% higher.

US markets closed up in a shortened session on Friday, with the S&P 500 hitting fresh record highs. November was exceptional for the index, the gain of 5.7% was the best of 2024, bringing year-to-date returns to 27%. US equities attracted $141 billion in inflows over the past four weeks.

In company news, Amazon is stepping up its chip game, developing in-house processors to reduce dependence on industry giants like Nvidia and AMD. Elsewhere, Nissan shares edged higher after news that CFO Stephen Ma will step down. The stock rose 1% in early trading but remains down nearly 35% year-to-date.

On Friday, the JSE All-share was down 0.33%, but the S&P 500 rose 0.56%, and the Nasdaq was 0.83% higher. Good, good.

US markets were closed yesterday for the Thanksgiving public holiday. In Europe, stocks rebounded after two days of losses, led by tech gains on hopes that US restrictions on chip sales to China might be less severe than anticipated. Semiconductor stocks like ASML (+2.4%), VAT Group (+1.1%), and Aixtron (+0.71%) were among the top performers.

In company news, Direct Line Insurance shares soared up to 45% after the company turned down a GBP3.3 billion takeover offer from Aviva. Elsewhere, Amazon reported strong signups for their Prime Video streaming service, because of the scheduled NFL game between the Las Vegas Raiders and Kansas City Chiefs.

Here in Joburg, the JSE All-share was down 0.37%. That's it.