Capital Markets Insights | 11 Nov - 15 Nov

Get stock analysis and detailed markets insights to make confident investment decisions

Tzanis Koronaios

Nov 17, 2024

Dear Investorean,

Too busy living life to keep up with the markets? No worries, we’ve got you covered! Here’s what happened this week:

This week, the U.S. Bureau of Labor Statistics released the latest Consumer Price Index (CPI) data for October 2024. Here are the key points:

Inflation Rate: The CPI rose by 0.2% in October, bringing the annual inflation rate to 2.6%. This marks an increase from September's 2.4% rate, indicating a slight uptick in inflation.

Core Inflation: Excluding food and energy, the core inflation rate was 3.3% over the past 12 months, consistent with previous months. This stability in core inflation suggests persistent underlying price pressures in the economy.

Sector-Specific Changes:

Energy: Energy prices decreased by 4.9% year-over-year, with gasoline prices falling by 12.2%.

Shelter: Shelter costs, a significant component of the CPI, rose by 4.9%, reflecting continued increases in rent and homeowners' equivalent rent.

These inflation numbers are crucial as they influence the Federal Reserve's monetary policy decisions, including interest rate adjustments. The slight rise in overall inflation could impact future rate cuts, as the Fed aims to balance economic growth with inflation control.

The stock market's Trump trade hit a speed bump last week. Major indexes took a nosedive, especially on Friday, dipping below key levels. Many top-performing stocks faced sharp drops or sudden reversals, often triggered by earnings reports. The Dow Jones Industrial Average shed 1.2% in last week's stock market trading. The S&P 500 index slumped 2.1%. The Nasdaq composite lost 3.15%. The small-cap Russell 2000 tumbled 4%.

This Week's Top Gainer in US Markets (excluding small caps under $2B market cap):

Company: BE (Bloom Energy Corp)

Gain: 60.52%

Bloom Energy (NYSE: BE) investors are having a fantastic Friday, with shares skyrocketing 47.8% by 10:30 a.m. ET. The surge follows Bloom's announcement of a deal to supply up to 1 gigawatt of fuel cells to American Electric Power (NASDAQ: AEP). AEP plans to use these fuel cells at customers' AI data centers. Yes, Bloom Energy is now in the AI game!

This Week's Top Loser:

Company: ZETA (Zeta Global Holdings Corp)

Loss: -50.59%

Top securities law firm Bleichmar Fonti & Auld LLP is investigating Zeta Global Holdings Corp. (NYSE: ZETA) for potential federal securities law violations. Zeta, a cloud-based marketing platform, claimed to have the industry’s largest opted-in data set. However, on November 13, 2024, Culper Research published a report titled “Zeta Global Holdings Corp (ZETA): Shams, Scams, and Spam.” The report alleges that Zeta's data was sourced from “consent farms,” fake websites collecting consumer data deceitfully. These consent farms reportedly accounted for 56% of Zeta’s Adjusted EBITDA and could lead to severe regulatory action.

Want to Make Informed Investment Decisions?

Understanding the factors behind market movements is crucial for successful investing. But how do you stay ahead of the curve and identify these potential winners and losers?

That's where Investorean comes in!

At Investorean, we provide the tools and insights you need to navigate the market with confidence. Our platform offers:

In-depth company analysis: Dive deep into financial statements, key metrics, and expert commentary to understand a company's true potential.

Investorean Indicators: Utilize our proprietary set of financial ratios to explore hidden gems in the market.

Market news and analysis: Stay informed about the latest market trends and industry developments that could impact your investments.

Now Let's wrap up this newsletter with one of our favourite quotes:

‘‘Its just money; its made up. Pieces of paper with pictures on it so we don't have to kill each other just to get something to eat. It's not wrong. And it's certainly no different today than its ever been. 1637, 1797, 1819, 37, 57, 84, 1901, 07, 29, 1937, 1974, 1987-92, 97, 2000 and whatever we want to call this. It's all just the same thing over and over; we can't help ourselves. And you and I can't control it, or stop it, or even slow it. Or even ever-so-slightly alter it. We just react. And we make a lot money if we get it right. And we get left by the side of the side of the road if we get it wrong. And there have always been and there always will be the same percentage of winners and losers. Happy foxes and sad sacks. Fat cats and starving dogs in this world. Yeah, there may be more of us today than there's ever been. But the percentages-they stay exactly the same.’’

Stay sharp, Investorean! Keep an eye on your investments and take care of that cash.

For more market insights like this, visit investorean.com.

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May Investorean Be With You

Until Next Time…