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Plus, Where did the Charging Bull statue in Manhattan's Financial District come from?
Hi All - Happy Saturday and welcome back to Street Tweets from The Street Sheet.
One of the biggest stories of the week was China's decision to cut the amount of cash banks must keep in reserve and lower a key policy rate. Global sentiment immediately turned positive and it prompted one hedge fund manager to say he wished he bought more of "everything" as it relates to China.
Billionaire manager, David Tepper, revealed his major investment move following the Federal Reserve's rate cut was to buy Chinese stocks. He anticipated China would follow the Fed’s lead by easing its own policies and was surprised by the scale of China’s stimulus measures.
Tepper noted that Chinese equities are more attractive than U.S. stocks, citing lower price-to-earnings ratios and strong growth prospects. His comments alone led to a rally in the iShares China Large-Cap ETF (FXI), which surged over 6%.
As part of his China strategy, Tepper also invested in casino stocks like Wynn Resorts and Las Vegas Sands, which saw significant gains.
Despite rising geopolitical risks, including U.S.-China tariffs, Tepper remains bullish on China, telling CNBC’s “Squawk Box” on Thursday, “My counter bet is that I don’t care."
Not everyone feels this way. The Wall Street Journal noted that although "China’s over $100 billion push to bolster its stock markets has stirred optimism, [it] begs the question of whether investors and businesses will take the bait amid lingering doubts about the economy’s underlying weakness." Click here to keep reading (subscription required)
Market Review: The Dow Jones Industrial Average reached a new record on Friday, gaining 137.89 points (0.33%) to close at 42,313.00, marking its third consecutive week of gains. Despite a slight dip in the S&P 500, which fell 0.13% to 5,738.17, and a 0.39% decline in the Nasdaq Composite, the markets have shown strength overall, with the Nasdaq up nearly 1% for the week. Investors were encouraged by positive inflation data, as the Fed's preferred inflation measure, the personal consumption expenditures price index, rose just 0.1% in August, aligning with expectations. This continued cooling of inflation could give the Federal Reserve confidence to further reduce interest rates. Strong economic indicators, including falling jobless claims and a robust 3% GDP growth rate in the second quarter, have also boosted market optimism.
Market Preview: The upcoming week is packed with important economic data and key earnings reports. On Monday, Sept. 30, watch for the Chicago PMI and Dallas Fed Index, followed by Federal Reserve Chair Jerome Powell's speech on the economic outlook. Tuesday brings a busy morning with data releases on manufacturing, construction spending, and job openings. Earnings reports from Nike, McCormick, and Lamb Weston are also expected. On Wednesday, the ADP Employment Survey for September will be in focus. Thursday delivers more jobs data with initial and continuing jobless claims, along with PMI, durable orders, and factory orders reports. The week concludes with a key jobs report on Friday, featuring nonfarm payrolls, unemployment rate, and hourly earnings for September. Earnings from Conagra and Constellation Brands are also on tap.
TOGETHER WITH MONEY
Safeguarding your retirement with a Gold IRA can help you shield your wealth from market shifts, economic uncertainty, and inflation. And with gold’s value projected to increase in 2024, now is a good time to invest. Planning for retirement involves more than saving, so fortify your portfolio with gold today and plan for a better tomorrow.
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Sam Altman will give himself 7% of Open AI which at its current valuation of $150B would be $10.5B in shares
Sam Altman on taking shares in OpenAI just 4 months ago:
“It's so deeply unimaginable to people to say i don’t really need more money... If I… x.com/i/web/status/1…
— @levelsio (@levelsio)
6:45 AM • Sep 26, 2024
OpenAI is switching things up with a plan to go for-profit, and it’s going to make CEO Sam Altman a whole lot richer. The non-profit board will step back, holding just a minority stake, while Altman finally gets equity in the company he co-founded with Elon Musk.
Sources say his stake could be worth $10.5 billion based on an estimated $150 billion valuation. Yes, you read that right, but, as Altman says, "I'm doing this because I love it." 🙄
$NVDA added over $126 BILLION in market cap today
That's more than...
â–Ş $SCHW Charles Schwab - $118 billion
â–Ş $C Citigroup - $114 billion
â–Ş $SONY Sony - $115 billion
â–Ş $BX Blackstone - $113 billion
▪ $UPS United Parcel Service - $110 billion x.com/i/web/status/1…— Stocktwits (@Stocktwits)
5:40 PM • Sep 24, 2024
Remember last week’s edition, “If You're Buying, He Might Be Selling”?
Well, this week we learned that Jensen Huang, the CEO and co-founder of Nvidia, is no longer selling (for the time being), and the market took that as a good sign.
NVIDIA casually added $126 billion in market cap in one day this week... no biggie. That’s only more than Schwab, Citi, Sony, Blackstone, and UPS — combined.
While interest rates have dropped this week, they are still too high for many would-be home buyers after property values surged during the pandemic. It’s helping spur the growth of a new sector of the housing market…Built to Rent. We take a look:
— Kris Van Cleave (@krisvancleave)
4:35 AM • Sep 20, 2024
With interest rates dropping — but still high enough to make most would-be home buyers groan — more people are saying “no thanks” to mortgages and turning to a new player in the housing game: build to rent.
What’s the deal with build-to-rent? The video in this tweet is your guide.
TOGETHER WITH MONEY
Safeguarding your retirement with a Gold IRA can help you shield your wealth from market shifts, economic uncertainty, and inflation. And with gold’s value projected to increase in 2024, now is a good time to invest. Planning for retirement involves more than saving, so fortify your portfolio with gold today and plan for a better tomorrow.
The first reference to Bitcoin on television was in 2012.
Bitcoin has since risen by 918,238%.
— Jon Erlichman (@JonErlichman)
6:05 PM • Sep 24, 2024
Bitcoin was trading at roughly $13 at the end of 2012. Sorry for ruining your weekend.
Just making money cheaper won’t lift the Chinese economy if consumers don’t want to spend in the face of layoffs, sliding corporate profits and falling property prices. New home prices clocked their biggest decline last month since 2014. bloomberg.com/news/articles/…
— Lisa Abramowicz (@lisaabramowicz1)
8:52 AM • Sep 24, 2024
China making money cheaper when no one is spending is like adding gas to a car with no engine — it’s not going anywhere. With layoffs, shrinking profits, and tanking property prices, consumer confidence is shot. And that spells trouble for the global economy.
It’s not just the U.S. fighting the economic heat. 🥵
TRIVIA
Where did the Charging Bull statue in Manhattan's Financial District come from?
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