Vaccine Stocks Tumble After Shakeup

MARKETS
YEAR-TO-DATE

HEADLINES
What You Need To Know

Vaccine stocks slid Thursday after President-elect Donald Trump nominated Robert F. Kennedy Jr. to lead the Department of Health and Human Services. Moderna dropped over 5%, Novavax fell more than 7%, and Pfizer slid 2%, with BioNTech and GSK also seeing declines. Trump confirmed the nomination on Truth Social, pushing shares of these companies lower in extended trading. Vaccine makers like Pfizer and Moderna are already navigating challenges from declining Covid vaccination rates, which have weighed on profits over the past two years.

Dogecoin surged nearly 20% Tuesday night after President-elect Donald Trump announced the creation of the Department of Government Efficiency, or "DOGE," to be led by Tesla CEO Elon Musk and Vivek Ramaswamy. The memecoin has soared 153% since Election Day, outperforming Bitcoin’s 30% rise and climbing to become the sixth-largest cryptocurrency by market cap. Often a gauge of retail investor enthusiasm, Dogecoin has gained traction thanks to Musk’s influence, who has long been a vocal supporter of the coin. Meanwhile, Bitcoin held steady at $87,000, with other crypto stocks seeing slight declines..

Warren Buffett’s Berkshire Hathaway made some surprising moves in the third quarter, adding stakes in Domino’s Pizza and Pool Corp. Domino’s saw nearly 1.3 million shares purchased, worth $550 million, while Pool Corp. joined the portfolio with a $152 million stake. Meanwhile, Buffett sold off one-quarter of Berkshire’s massive Apple stake, now down to $70 billion, and offloaded 235 million Bank of America shares. The firm also exited Floor & Decor Holdings, slashed Ulta Beauty holdings, and trimmed positions in Capital One, Charter, and Nu Holdings, while slightly increasing its stake in aerospace company Heico Corp. These moves come as Berkshire’s cash pile hit a record $320.3 billion.

Mattel is pulling its "Wicked"-branded fashion dolls after a packaging error directed buyers to a pornographic website instead of Universal’s official "Wicked" movie site. Major retailers like Target, Walmart, and Amazon quickly removed the dolls, while resellers pounced on the mishap, listing the dolls on eBay for up to $2,100. Mattel has apologized for the error and advised parents to discard the packaging or obscure the link. The mix-up comes just ahead of the film’s Nov. 22 release and could impact Mattel’s revenue as the company manages the fallout and supply chain adjustments.

Federal Reserve Chair Jerome Powell struck a cautious tone Thursday, signaling that strong U.S. economic growth allows policymakers to take their time with rate cuts. Speaking to business leaders in Dallas, Powell emphasized the need for a balanced approach, aiming to support the labor market while guiding inflation closer to the Fed’s 2% target. While inflation has eased, Powell noted it hasn’t reached the goal yet, describing the path forward as “sometimes bumpy.” His comments sent stocks lower and Treasury yields higher, with traders scaling back expectations for a December rate cut. Powell stressed the importance of moving carefully, saying the Fed aims to avoid cutting rates too quickly or too slowly to sustain economic growth.

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UPCOMING
What You Need To Watch

Nvidia reports earnings Wednesday after the close, and it’s a must-watch for investors. The company has been a driving force behind the stock market’s performance this year, especially with its dominance in AI. A strong report could reinforce bullish sentiment, while a miss might cause a ripple effect across the tech sector.

It’s not just Nvidia stealing the spotlight this week several other big names are reporting earnings. On Tuesday, Walmart and Lowe’s will give insights into consumer spending and home improvement trends. Wednesday brings reports from Target and Wix.com, shedding light on retail and tech. Finally, John Deere closes out the week on Thursday, offering a glimpse into the agricultural and industrial sectors.

Tuesday brings updates on U.S. Building Permits and Housing Starts, a pulse check on the housing market. Are we building more homes, or is the slowdown real? Then on Wednesday, Weekly Jobless Claims drop, giving us a read on how the job market’s holding up. Both reports help paint a clearer picture of where the economy might be heading.

The G20 Summit begins Monday in Rio de Janeiro, bringing together leaders from the world's largest economies to discuss global issues like trade, climate change, and economic stability. For investors, outcomes from this summit can influence international markets and economic policies, potentially impacting investment strategies and market sentiment.

TIP
INDEX FUNDS

If you’re new to investing, index funds are the perfect place to start. They’re like a sampler platter for the stock market, giving you a slice of the entire market or specific sectors without needing to pick individual stocks. Instead of trying to beat the market (spoiler: most pros don’t even succeed), you’re investing in it, which often leads to steady, long-term growth. For example, an S&P 500 index fund lets you own a tiny piece of 500 of the largest U.S. companies. It’s low-cost, diversified, and easy to manage ideal for building wealth without stress.

CHART
HOW DOES GOOGLE MAKE MONEY

Google’s business model revolves around advertising, which accounts for the majority of its revenue. In Q3, 55.96% of Google’s revenue came from Google Advertising, with an additional 10.11% from YouTube Ads. Together, ad revenue dominates, showing how crucial ads are to the company’s bottom line. Other notable segments include Google Cloud at 12.86%, which supports businesses through cloud solutions, and Google Subscriptions, Platforms, and Devices at 12.08%, including services like Google Play. Other Bets, which explores futuristic projects, contributes a modest 0.44%. This breakdown highlights Google’s dependence on ads while showing its push to diversify revenue streams.

TERM
Capital Appreciation

Capital appreciation is the increase in the value of an investment over time. It’s the goal of many investors who focus on growth. For instance, if you buy a stock at $50 and its price rises to $75, that $25 gain is your capital appreciation. Unlike dividends or interest, which provide income, capital appreciation represents unrealized gains until you sell the asset. Intermediate investors often target capital appreciation in growth stocks or real estate, aiming for higher returns over a longer horizon. The trade-off? It typically involves more risk compared to income-focused investments.

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