Good morning.

Stocks are down this morning as traders wait for tonight’s earnings report by Nvidia … with careful (and nervous) attention being paid to their guidance on what lies ahead.  Keep in mind that this has grown into a $3.6 trillion dollar company … almost tripling in value since the start of the year amid AI enthusiasm … and it has recently overtaken Apple as the world’s most valuable public company.

For many … including those in the S&P Index for which Nvidia makes up over 7% … a lot is riding on this afternoon’s report.

To show how one earnings discussion could have an effect, we might not need to look much further than Target … as the company saw its stock drop by 20% (ouch) following its own earnings hiccup.  On top of that, Target and Wal-Mart executives (among others) are expressing worry that tariffs could force them to raise prices … though Barron’s reports the CFO of Lowe’s says we’ll just have to see exactly what happens when the new administration comes in.

Housing starts slowed according to Oxford Economics, but what is interesting here is that single-family homes seem to be outpacing multi-family units under construction, which are having their biggest decline since 2011.  But it is not “first-time buyers” rushing to purchase homes.  The National Association of Realtors (“NAR”) claims the percentage of homes being bought by first-time buyers has fallen to a record low.

But looking at affordability (or lack thereof) who can blame young adults for delaying the purchase of a home?  After all, credit is getting tighter, and the NY Fed reports a very sharp rise in the rejection rate on credit applications.

Okay, that wraps it up for me today … as I will join others and nervously await tonight’s Nvidia announcements.

As I wait, I’ll do some reading and might even clean my fridge … for the first time in a while … in early preparation for Thanksgiving.

I’ve made it a habit of not throwing away perfectly good leftovers.

I put it in Tupperware … store it in the fridge … wait for it to become unrecognizable … and only then do I toss it away.

Have a great day,

Joseph G. Witthohn, CFA

Have any questions? Please contact info@teamemerald.com

https://www.salon.com/2024/11/19/chronic-pain-is-breaking-the-health-care-systems-back/

During each election you find a few people swearing they will leave the country “if the other guy wins.” One village in Italy is trying to take advantage by marketing to this emotional group (CNN)

https://www.cnn.com/2024/11/19/travel/italian-village-ollolai-wants-americans-election-one-dollar-homes/index.html

… even so, one item causing concerns among some retailers is tariffs … and many are clamoring to build up inventory just in case threatened tariffs are enacted (CNBC)

https://www.cnbc.com/2024/11/19/trump-tariffs-new-port-strikes-shippers-on-edge.html

Those in charge of safety are expanding the use of drones … and while concerned citizens like them, others complain over privacy issues.  Um, I think safety will win out (IBTimes)

https://www.ibtimes.com/nyc-expands-use-drones-respond-crimes-other-emergencies-3751633

With the holiday season starting, many need to load up on food-related items … and Costco will be their “go-to” place.  Do you need to become a member? This guide will help (USAToday)

https://www.usatoday.com/story/money/shopping/2024/11/20/costco-membership-deals/76412957007/?tbref=hp

Something heard less over the years is the parental cry of “why don’t you play outside?”  Not only is it to give parents peace of mind, but there are health reasons behind their plea (StudyFinds)

https://studyfinds.org/nutrients-and-vitamins-from-air/