🛎Uncle Powell: Winner Woot⚖️

The nomination of Uncle Powell sent a strong signal to the market that inflation was both a political and economic problem for the administration. Uncle Powell will have another four-year term as moderate Democrats cheer for Powell. On a side note, progressive Democrats had wished for Brainard to lead the Feds instead.

Continuity is a primary concern for the government as it faces multiple headwinds ahead. The debt ceiling fight is one and, most importantly, the recovery progress of the country from the pandemic. Uncle Powell nomination is also likely to be easier to pass through Senate confirmation as he had stronger credibility to fight inflation.

There is a little surprise for the market, which had seen the odds of Uncle Powell being nominated as a high odds. Economists and market strategists had favoured Uncle Powell as he had been the ideal candidate to navigate inflation and the US economy’s employment engine.

There is little doubt that Uncle Powell had bipartisan support and was mainly praised for handling the pandemic crisis mode for monetary affairs, which includes reducing the interest rate to zero and purchasing large sums of debt and, most critically, the set up of backstops for businesses and local government. He had also called for fiscal stimulus lifting, which is unusual for a Fed chairman. Collectively, this gives life to the US ailing economy at the height of the pandemic and jumpstart the economy.

💻Zoom: A fallen star of Pika World💣

The company has been a mini laggard as a Pika World favourite. The shares had risen for a moment and slowly gave up their gain as the earnings results were primarily expected. It has been a challenging year for Zoom as it seeks to exceed the high bar set by investors.

During the pandemic, demand for Zoom services hit the roof, and investors have been looking for the next great thing to propel the stocks higher. On a bright note, the company registered a revenue of $1.05 billion which is 35% higher than a year ago.

While the January quarter guidance is sound, the slowing growth deters investors from betting more of its future. So Pika World will be at the sideline.

🚘Tesla: Welcome the Model S Plaid in China🚖

Another good news for Tesla Bull is the possible arrival of the Model S Plaid version into China by March 2022. It has been Tesla most swift produced car, and it has a superb performance given that it took just under two seconds to accelerate the vehicle to 60mph from 0.

Tesla is now facing fierce competition from Chinese competitors such as Nio and Xpeng. The new launch will help it secure a strong presence and meet the demand of the rising affluence in a burgeoning middle class in China.

Pika World maintains and mildly increase positions in Tesla.

📮What’s on the menu today?

At 9.30 pm, we will receive the Core Durable Goods Order, which we expect to remain stable at 0.5%.

At the same time, GDP for Q3 based on QoQ is expected to rise by 2.2% compared to the prior period.

Initial Jobless Claims will also be announced concurrently, and we expect improvement to 260K from 268K in the prior period.

At 11 pm, we will get the Michigan Consumer Sentiments for Nov, which we expect a modest rise to 66.9 from 66.8.

New Home Sales is expected to remain at 800K when released at the same time.

Crude Oil Inventories will arrive at 11.30 pm, and we expect a drawdown of 0.95M, lower than the 2.10M in the prior period.

It is 24 Nov, Wednesday, at 7.40 am in Singapore and 7.40 pm in New York. Markets have been on a weaker note and Pika World wishes everyone a safe landing.