← The Rundown
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Public.com presents the rundown. Your daily market update in under 10 minutes. My name is Zadod Mani and Today is Monday, December 1st. In today's episode, we'll put a bow on the month of November and tell you what to look forward to in December. We'll also tell you about Tesla's struggling sales in Europe last month. Then stick around to the end of the show to find out why the future of movie theaters will will be all about kids. We got a great show for you today. Let's go. Stocks are coming off a winning week and a winning month. Last week The S&P 500 rallied 3.7% despite it being a short trading week. The Nasdaq did even better, jumping nearly 5% thanks to a rally in tech stocks. You know, the end of November was a pretty surprising turnaround from earlier in the month. Ten days ago, it felt like the sky was falling. Investors were worried about economy and the lack of rate cuts and also an AI bubble. You know, the S and P was down nearly 5% at its lows in November while the Nasdaq was down 7% at one point. But thanks to the late month rally, the S P was able to squeeze out a small gain of 0.1% in November, making that the seventh straight winning month. The Nasdaq couldn't quite get a win, losing about 1.5% last month. You know, this brick turnaround in the markets was sparked by renewed hopes of a rate cut by the Fed. The market is now pricing in an 85 chance of a rate cut and at the December Fed meeting. Now what's interesting is that this renewed optimism for a rate cut didn't seem to help the crypto market. Both Bitcoin and Ethereum dropped more than 20% in November and some altcoins are down even more now. Crypto saw a small bounce back late last week, but it's back in the red today. Both Bitcoin and Ethereum are down more than 5/ percent in the last 24 hours. So the crypto market can't seem to find any momentum right now. It probably doesn't help that the People's bank of China warned over the weekend about illegal activity tied to digital currencies. Plus, The S&P 500 Global downgraded the stablecoin company tether last week over concerns of the reserves. So crypto is starting December on shaky footing. Now, looking ahead, there is a lot going on in December. Obviously we had the fed meeting on December 10th, but we're also getting fresh inflation and labor market data from the government. So investors are definitely going to be paying attention to that and depending on what the data says, we might be in for a bumpy month. As always, we're going to stay on top of all the market moves and drama, so make sure you guys are subscribed to the podcast and tuning in every day to stay in the loop. Let's run through some headlines, starting with Tesla. Tesla continues to struggle across major European markets. In November, new registrations for Teslas dropped 58% in France, 59% in Sweden, 49% in Denmark and 44% in the Netherlands. Now one of the few bright spots was Norway. Tesla saw sales triple in November compared to last year. Tesla even broke Norway's annual sales record with a month to spare. But outside of that, Europe has been a struggling market for Tesla all year. And usually this is the part where I bring up how Chinese EV makers are eating Tesla's lunch in Europe. But that wasn't really the case. In November. The Chinese EV giant BYD also saw their sales drop in some European markets like Sweden and Norway. I think the broader issue here is that the novelty and demand for EVs has worn off with we're seeing this in the US where US automakers are cutting back on EV production and now we're seeing it in Europe as well. European drivers are instead more interested in plug in hybrids, which I think are like the best of both worlds when it comes to cars. The short day to day driving can be covered by the battery, but then you also have the flexibility of doing road trips. Unfortunately for Tesla, they don't make hybrids, they only make EVs. But then again, like Tesla is betting the entire company on self driving and robotics. And that's one reason why the stock has barely reacted to the negative European sales numbers. But that puts a lot of pressure pressure on Tesla and Elon Musk to deliver on the full self driving technology and the robotics. Let's shift gears and talk about a tech rivalry heating up in China between Alibaba and ByteDance. ByteDance is the parent company of TikTok. It's one of the biggest private companies in the world and they've quietly become a major threat to Alibaba's dominance in cloud computing in China. They're doing this by selling companies access to AI models through the cloud at much lower prices than Alibaba. According to the information, ByteDance's cloud division, Volcano Engine, now holds about 38% of China's model as a service market, which is the largest share in the country and ByteDance's emergence has forced Alibaba to cut prices to keep customers. Now this model as a service market is still relatively small, worth around $182 million. And Alibaba is still the dominant player when it comes to the overall cloud infrastructure market in China, holding around 33%. But with the emergence of AI, ByteDance is starting to make moves. So this is kind of like China's version of Amazon AWS versus like Google Cloud if you're an Alibaba investor is definitely something to keep an eye on. Overall though, it's been a good year for Alibaba stock, which has nearly doubled in value this year. Let's talk about some stocks making moves today. Shares of Synopsys are rallying this morning after Nvidia announced a $2 billion investment into the chip design software company, giving Nvidia a 2.66% stake. This is yet another strategic investment by Nvidia. Now Nvidia actually uses Synopsys software to help design their own AI chips, but this fits a pattern that we've seen from Nvidia all year. They're investing their money into other AI related companies. Some of their investments include core weave, Intel, OpenAI and Anthropic, and that's obviously raised concerns around circular financing. Now this investment seems to be more about expanding the partnership between Nvidia and Synopsys, which is have a long standing relationship. Nvidia wants to excel accelerate AI engineering solutions. @ least that's what Jensen said in a CNBC interview this morning. Either way, the markets like this news for synopsis, their Stock is up around 4% this morning and Nvidia stock is up nearly 2% as well. Now on the flip side, shares of Moderna are sliding this morning after a newly surfaced FDA memo linked the death of 10 children to Moderna's COVID 19 vaccine. The memo says that the FDA will be imposing new stricter oversights on all vaccine trials. These restrictions include larger studies required especially for high risk subgroups like pregnant women. New safety data is going to be required for flu vaccines and also stricter evidence requirements for pneumonia and combination vaccines. As a result, shares of Moderna are down more than 5% at the Open and other vaccine makers like Biontech and Novaks are also down this morning. Let's wrap the show with the fun fact Zootopia 2 had one of the biggest Thanksgiving box offices in history. The movie brought in $156 million in the US from Wednesday to Sunday. And if you add in the international numbers, it made about $556 million worldwide in its first five day of release. Analysts expect Zootopia 2 to have legs during the holidays, with the movie now projected to hit a billion dollars at the box office. You know, I said last week there was a good chance that Zootopia 2 was going to crush it because it checks two critical boxes. It's a kids movie and it's a sequel. You know, we saw this happen last year with Moana 2, which currently holds the record for the Thanksgiving box office, Even though Moana 2 wasn't even a good. I think kids movies are going to be critical for the future of movie theaters because it's become a relatively cheap way for parents to keep their kids entertained for a few hours. It's probably a big reason why Wicked 2 was a big hit at the box office last week. So, yeah, the future of movie theaters might depend on kids movies and I guess superhero movies, all the other kinds of movies like rom coms and comedies. People are just going to wait for them to come out on streaming. There's no reason to go watch a rom com at a movie theater, you know. So yeah, expect a lot more kids movies at the movie theaters. I mean, that's pretty much the only reason I go to the theaters at this point. I wonder if Netflix is going to release the K Pop Demon Hunters sequel in movie theaters because that movie is going to make so much money. Well, all right guys, that's the rundown for today. Hope you guys enjoyed today's episode. If you did and you have like five extra seconds, consider giving us a five star rating on Apple, Spotify, YouTube, wherever you listen to your podcast. If you are listening on Spotify, don't forget to vote in today's video Spotify poll. Leave us a comment on Spotify. All that engagement really does help us out and helps other people find the show. I hope everyone had a great long weekend. As a reminder, we did post a Deep Dive episode over the weekend. It was about Eli Lilly's path to becoming the first one trillion dollar healthcare company. And we also posted a fantastic interview on Sunday with Adam Kobesi, the founder of the Kobesi Letter. We talked Nvidia, we talked Google, we talked overall market. So if you guys missed that one, definitely go check that out. Thank you guys again for listening, watching and commenting. Shout out to Mike and Connor for all the work behind the scenes and we'll see you guys back here tomorrow.