Macrosynthesis
TLDR
- Markets Wrap: Dow +2.1%, S&P +1.62%, Nasdaq +1.53%.
- Trump's Policies: Domestic focus, tariffs, crypto-friendly shift.
- Crypto Surge: Bitcoin +45%, nears $100K milestone.
- Russia Escalation: Hypersonic missile heightens NATO tensions.
- Retail Split: Walmart thrives, Target struggles.
Thats a Wrap
U.S. stocks closed higher Friday, with the S&P 500 up 0.3%, the Dow rising 426 points, and the Nasdaq edging up 0.1%, weighed by tech declines in Nvidia (-3.2%) and Alphabet (-1.7%). Tesla gained 3.8%, while Meta and Amazon fell slightly. Investor rotation into financials and industrials supported broader gains. Pam Bondi was named U.S. attorney general. For the week, the S&P 500 and Nasdaq gained 1.62% and 1.53%, with the Dow up 2.1%.
Trumped Up Reaganomics
The upcoming presidential transition will signal a fundamental reshaping of American economic policy, moving decisively away from traditional free-market globalization toward a more domestically-focused economic strategy. This shift represents a stark departure from the supply-side economics that dominated policy since the Reagan era.
Key characteristics of this new economic approach include:
- Strategic Protectionism: Expect aggressive use of tariffs as both a revenue generation tool and a geopolitical lever. The administration plans to prioritize domestic production by creating economic incentives that favor American manufacturing and reduce reliance on global supply chains. Companies importing heavily, like Walmart and Target, will see costs rise. Companies producing domestically, like Ford and GM, will likely see reduced competition.
- Fiscal Restructuring: Proposed tax reforms aim to redistribute economic burdens, potentially extending previous tax cuts while introducing new incentives for domestic production. The goal appears to be stimulating internal economic activity rather than facilitating global capital flows.
- Monetary Policy Realignment: The Federal Reserve may face pressure to adopt a more dollar-weakening stance, reversing decades of strong-dollar policies. This could have significant implications for international trade and investment strategies.
Domestic Production Renaissance
The Trump administration's renewed focus on domestic production also represents a potential watershed moment for U.S. manufacturing and investment landscapes. This strategic pivot aims to fundamentally reshape economic priorities, with significant market implications.
Manufacturing sector resurgence outcomes will likely include substantial investment in domestic manufacturing capabilities, particularly in strategic sectors like semiconductors, automotive, and advanced technologies. Companies demonstrating strong domestic production potential could see significant valuation increases.
- Domestic equipment manufacturers
- Caterpillar, John Deere
- Automation and robotics technology providers
- Rockwell Automation, ABB Robotics
- Advanced manufacturing infrastructure companies
- Quanta (PWR)
- Regional industrial real estate developers
- Pacer Industrial Real Estate ETF (INDS)
- Trucking and Supply Chain
- Old Dominion Freight Line (ODFL)
The push towards reshoring will trigger comprehensive supply chain transformations. Companies with flexible, adaptable supply chain models will likely outperform rigid, globally-dependent competitors.
A New Era for Crypto and Digital Assets May Have Arrived
The cryptocurrency landscape is undergoing a seismic shift after Trump’s electoral victory and Gary Gensler's resignation. Bitcoin has soared over 45% this month, nearing $100,000, driven by anticipation of a crypto-friendly administration. President-elect Trump’s proposed initiatives—including a crypto advisory council, a potential national Bitcoin reserve, and the rumored appointment of Coinbase CEO Brian Armstrong as a White House crypto “Tsar”—have electrified markets. Major exchanges like Coinbase and Kraken vie for influence, while Ripple and Circle position themselves to shape policies. This contrasts sharply with Biden’s enforcement-driven approach, signaling a potential regulatory reset and pivotal moment for cryptocurrency adoption.
In parallel, the CFTC's Global Markets Advisory Committee unanimously recommended tokenized assets as collateral for derivatives margin without regulatory changes. These assets, transferable 24/7, promise to improve collateral mobility, reduce counterparty risks, and lower costs, showcasing tokenization’s transformative potential in financial markets.
Russia, U.S., Ukraine Tensions Escalate
Russia's recent use of their Oreshnik hypersonic missile marks a significant escalation in the Ukraine conflict. Designed to bypass advanced Western defenses, the missile serves as a stark warning to NATO. President Putin has declared that Russia will target facilities in nations whose weapons are used against Russian forces, heightening risks for U.S. and NATO allies supplying arms to Ukraine. The U.S. Embassy in Ukraine was emptied temporarily as a precaution.
The Russian move follows the Biden administration’s approval of Ukraine’s use of U.S.-made, long-range ATACMS missiles and anti-personnel landmines, further intensifying U.S. involvement in the war. The escalation comes as Donald Trump prepares to assume the presidency, promising to end the war within 24 hours. However, Russia’s aggressive stance and nuclear threats suggest limited room for diplomatic compromise under these conditions.
This week, the S&P 500 sectors saw widespread gains, with Consumer Staples leading at +3.1%, closely followed by Materials at +3%, and Utilities and Real Estate both advancing +2.6%. Energy also had a strong showing, up +2.3%, while Industrials rose +2.5%. Financials gained +1.7%, alongside Consumer Discretionary, Information Technology, and Healthcare, which all posted a +1.6% increase. The only sector to decline was Telecom, slipping -0.3%. Overall, the market reflected broad-based strength across most sectors, indicating a positive momentum for equities.
A Short Trading Week Ahead With Thanksgiving Closing Markets Thursday
The week ahead offers a lighter economic calendar in the U.S., with a focus on manufacturing, services PMI data, and housing market updates. Key releases include Manufacturing and Services PMI on Monday, Building Permits and Housing Starts on Tuesday, and Existing Home Sales on Wednesday. Monetary policy will also be in focus, with speeches from Federal Reserve officials and ECB President Christine Lagarde drawing attention. U.S. Market are closed the 28th and close early the 29th.
.png)
Natural Gas
-6.17% (1D Chg)
+10.98% (1W Chg)
Crude Oil
+1.6% (1D Chg)
+6.5% (1W Chg)
Gold
+1.5% (1D Chg)
+5.71% (1W Chg)
Coffee
+6.7% (1W Chg)
+20.09% (1M Chg)
Company News
Top LevelFields AI Alerts this Week
This week, LevelFields AI alerts yielded significant moves. SINT surged 55% in a single day following the announcement of a $500K stock buyback. REPL saw a 44% one-day gain after unveiling a breakthrough therapy. NGVC experienced a 20% one-day increase driven by a 20% dividend hike. Conversely, CATO faced a sharp decline, losing 28% in one day after suspending its dividend.
Nvidia’s Q3 Earnings: Strong Growth But Investor Caution Lingers
Nvidia's Q3 earnings showed impressive growth, with revenue climbing 94% year-over-year to $35.1 billion, driven by robust demand for AI chips. Earnings per share hit $0.81, surpassing analyst expectations of $0.74. The company also provided strong Q4 guidance, projecting $37.5 billion in revenue, slightly above Wall Street estimates.
However, some metrics fell short of lofty expectations. Gaming revenue reached $3.3 billion, up from $2.8 billion but marginally below the most optimistic forecasts. While the Data Center division grew 112% to $30.8 billion, signs of slowing growth compared to previous quarters raised concerns.
Investor caution weighed on Nvidia's stock, which fluctuated after the report. Despite being up 192% year-to-date, the market remains wary of potential demand normalization and global risks, including tariff threats under a potential Trump presidency.
Target and Walmart: A Tale of Two Giants
Target's Q3 earnings missed expectations, with revenue reaching $25.67 billion, below forecasts, and EPS falling 20% short at $1.85. The retailer cited weak discretionary spending and higher supply chain costs as key challenges. Despite price cuts on thousands of items, sales growth remained tepid, contrasting with Walmart's strong performance. Target's struggles highlight ongoing consumer caution amid inflationary pressures, shedding light on broader U.S. consumer trends. Shares dropped 21%, reflecting diminished confidence in the retailer’s outlook.
In contrast, Walmart reported robust Q3 results, beating expectations with $169.59 billion in revenue and $0.58 EPS. Same-store sales grew 5.5%, driven by increased foot traffic, e-commerce growth of 22%, and gains across income groups, including higher-income households. Walmart raised its full-year guidance for the third time, signaling strong consumer demand.
Snowflake Returns to Growth, Beats Earnings Estimates
Snowflake reported third-quarter revenue of $942.1 million, a 28% year-over-year increase, with adjusted earnings per share of 20 cents, surpassing analyst expectations of 15 cents. The company also raised its annual product revenue forecast to $3.43 billion, up from the previous estimate of $3.36 billion.
MSTR's Big Bitcoin Gamble Continues
MicroStrategy's stock dropped 16% after Citron Research revealed a short position, citing a disconnect from Bitcoin fundamentals. Despite this setback, the stock has surged over 50% since President-elect Donald Trump’s victory and more than 500% year-to-date, outperforming Nvidia's 192% gain. Bitcoin’s record high of $98,000 has further propelled MicroStrategy, which recently added 51,780 bitcoins to its holdings, bringing its total to 331,200 Bitcoins at an average cost of $49,874. The company completed a $3 billion convertible note offering to fund these purchases. Chairman Michael Saylor continues to advocate for Bitcoin as a dominant digital asset, while Trump’s crypto-friendly policies, including a proposed national Bitcoin stockpile, drive optimism in the sector.
The chart above shows the total returns of all premium alerts sent to Level 2 members that were closed since we launched the service. Level 2 members receive 1-2 alerts per week, selected by our analysts using a combination of AI, fundamental analysis, technical analysis, and macroeconomic analysis...so you don't have to.We're happy to share the trade log and a sample alert if you're interested in seeing it. Just enter your email at the bottom of this page to get a copy emailed to you directly.
.png)
New Features
Stock Price Alerts
You can now set custom price targets directly on company profile pages and receive instant notifications via email or text when your targets are reached. Stay informed and never miss an opportunity!
Paper Trading
In the watchlist, you can now simulate trades by setting a purchase price and the number of shares bought. Track your portfolio’s performance without risking real money and sharpen your investing skills. Use the cog icon on the right side of a watchlist row to add this information. Set columns by selecting the metrics on the left.
Upcoming Earnings
Monday: Bath and Body Works (BBWI), Zoom Video Communications (ZM)
Tuesday: Abercrombie & Fitch (ANF), Best Buy (BBY), Macy's (M), Dell Technologies (DELL), Crowdstrike (CRWD), Workday (WDAY), Urban Outfitters (URBN)
Wednesday: Kroger (KR)
Thursday: Thanksgiving Day
This is not financial advice. All information represent opinions only for informational purposes. Given the vast number of stocks we cover in these reports, assume staff covering stocks have positions in stocks discussed.
Have feedback or a request for specific data? Drop us a note at support@levelfields.ai