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Highlights from the past week

Market / Macro Economic Summary

Markets continued their streak of weekly positive closes despite having a rough start.  The S&P500 ended the week up .41%, the Dow Jones was up .36% and the Nasdaq closed up .7%. From an economic perspective, we saw the November jobs number come in with 199,000 nonfarm jobs having been added.  Wall Street analysts estimated closer towards 180,000 jobs would be added. I want to reiterate once again that I believe the Federal Reserve will be able to engineer or navigate us towards a “soft landing.”  This means we don’t have to worry about recession fears and our economy should provide decent returns into 2024.  Expectations for rate decreases in 2024 are starting to be adjusted closer towards the earlier part of next year (March/April) instead of the previously expected September/October. All this bodes well for us long term equity owners.

Company Specific / Macro Economic Summary

Restoration Hardware (RH)

Shares plunged nearly 14% after the upscale home furnishings company disappointed investors with its Q3 earnings report. The results included a 14% year-over-year sales drop, owing in part to high mortgage rates that are keeping people from moving. Earnings per share came in at a loss of $0.42 per share on revenue of $751.23 million. Wall Street analysts had expected $0.91 per share on revenue of $756.49 million

Broadcom (AVGO)

Shares jumped 2.6% as the company provided a top and bottom-line beat.  Earnings per share of $11.06 per share on revenue of $9.30 billion were higher than the estimates of $10.96 per share on revenue of $9.28 billion. CEO Hock Tan said investments in accelerators and network connectivity for AI by hyperscalers caused the great quarter.

MongoDB (MDB)

Shares of the cloud-based data storage company fell 7% despite a strong report. Earnings per share of $0.96 per share were better than the estimates of $0.51 cents most were looking for.  Revenue of $432.94 million also exceeded the estimates of $403.65 million. Total revenue for the third quarter was an increase of 30% year-over-year. Subscription revenue was $418.3 million, an increase of 30% year-over-year, and services revenue was $14.6 million, an increase of 13% year-over-year.

Parting Thoughts

We welcome an opportunity to discuss the above detail and wish you much success in the rest of your week!

Regards,

E.Palacios

Erick J.  Palacios, MBA

Fiduciary Advisor

Plan to Prosper Wealth Management’s clients & employees will from time-to-time hold securities mentioned above. Commentary is not endorsements or recommendations of any securities.