Longhorn Investment Team Weekly Insight: November 22nd, 2019

Thanksgiving is around the corner, and it looks like the markets are responding positively this week. As our students gear up for finals and work on additional market research for the Longhorn Investment Team portfolio, we thought it would be best to recap the market this week and give you a brief highlight for you to navigate through the news this week and stay up to date on what’s happening. Here’s this week’s market snapshot:

S&P 500 (^GSPC): +0.22%, or 6.75 points

Dow (^DJI): +0.39%, or 109.33 points

Nasdaq (^IXIC): +0.16%, or 13.67 points

10-year Treasury yield (^TNX): -0.1 at 1.771%

Biggest political news for the market?

The Trade Deal Continues to Develop

Although there may be US-China trade uncertainty, Chinese leader Xi Jinping said during a meeting Friday that he wants to reach a Phase One trade agreement that is on the “basis of mutual respect and equality.” Despite ongoing trade uncertainty, Chinese officials have insisted for weeks that a trade deal is on the way, which has assured many investors and explains why the markets continue to be on the rise despite any uncertainty.

In more news, there are three big stories we’d like to discuss…

This Week in Stonks

1. The All-American Dream: Trucks, Trucks, and Trucks

  • Ford announced the new Mustang Mach-E this week
  • Meanwhile, Tesla announced its new truck, the Cybertruck
    • The new truck made Tesla’s stock drop more than 6% after the design raised questions and the demonstration of the truck’s supposedly bulletproof windows failed
    • Ford announced that despite Musk’s words, they are not afraid of the competition as they remain the #1 truck company in terms of owners and they are working on a hybrid and eventual all-electric truck that will be released in the next few years
  • GM stock fell since it recalled 600k trucks

2. The Retail Shake-Up

  • Victoria’s Secret’s parent company L Brands suffered another poor quarter
  • TJ Maxx and UO made large discounts last quarter, one slipped 2% and the other 15%
  • Paypal is acquiring online coupon company Honey for $4B
  • Kylie Cosmetics sold 51% to Coty for $600M
  • Macy’s stock fell 3.2% after it faced a data breach and after it missed sales expectations
  • Louis Vuitton announced that it would be buying Tiffany and Co.
  • Disney stock up after a successful Frozen 2 release

3. The Tech World Continues to Evolve

  • Microsoft announced that its user base for Microsoft Teams has outpaced its competitor, Slack, by 8M+ users (20M users vs. Slack’s 12M)
  • Spotify stock dropped as Amazon announced its music service would allow users to stream music for free
  • Home Depot’s stock lost 5% due to failed website job targeted at those experienced in construction
  • Charles Schwab announced that it plans to acquire TD Ameritrade

 That’s all for now! Thank you so much for reading this week’s weekly insight, and make sure to subscribe for more weekly updates and follow us on Facebook, Instagram, or LinkedIn.