“Wait and See!”

Hi There! Well, whaddayaknow... this past week, the Rhoda Report celebrated another big milestone—its 2-year anniversary! As I reflect on the journey so far, it’s amazing to see how much this weekly financial newsletter has grown right along with me. Writing 105 issues has been a journey of learning, adapting, and finding joy in the excitement of the markets. Every geopolitical twist, every shift in the economy, and every new piece of news keeps me just as motivated to keep on writing.

It’s an exciting time, too, as we head into a week full of action in the markets, with the U.S. Presidential and Congressional Elections on Tuesday and the Fed’s Interest Rate Decision on Thursday. Milestones like these remind me why I’m here—to make the complex simple and accessible for you, so you can make confident, informed decisions.

As I’ve gained a deeper understanding of market analysis, I’m even more excited to uncover hidden gems that will help you on your investing and trading journeys. Thank you for being here with me, for reading, and for your support over these two incredible years.

Here’s to keeping things simple, insightful, and empowering as we brace ourselves for another exciting week together!

Alright, let’s dig in!

Last Week’s Market Overview (October 27 - November 2, 2024)

Last week, U.S. stocks ended mixed as earnings season continued, delivering varying results from the “Magnificent Seven” companies. Investors were focused on a slate of macroeconomic data, analyzing its implications for the Federal Reserve’s potential rate-cut path. The international scene also kept markets on their toes, with significant announcements from the Bank of Japan (BoJ) and the U.K.’s Labour Party budget adding to the week’s volatility. Treasury yields rose, while oil prices fluctuated amid tensions in the Middle East.

U.S. Markets Recap

Despite last Friday’s rally, major indexes closed slightly lower. The S&P 500 dropped 1.37%, the Nasdaq fell 1.5%, and the Dow had a modest decline of 0.15%. Earnings season was in full swing, with 169 S&P 500 companies, including Amazon, Apple, and Meta Platforms, reporting results.

• Magnificent Seven Highlights:

  • Alphabet (GOOG) started strong with upbeat cloud earnings, sending its shares higher.

  • Meta (META) and Microsoft (MSFT) both topped earnings estimates but saw declines due to AI spending concerns and cloud revenue growth misses, respectively.

  • Amazon (AMZN) closed the week with a boost, beating earnings estimates, while Apple (AAPL) dipped on weaker China sales.

With the U.S. presidential election and Fed decision approaching, investors are cautious, balancing strong Q3 economic growth against recent job market data.

• Fixed Income: Treasury yields climbed further, with the 10-year yield up 12.9 basis points to 4.386% and the two-year yield reaching 4.201%, its highest since July. The bond market remained cautious, responding to mixed signals from economic data and global developments, including the U.K.’s budget plan and global debt concerns. 

• Commodities: The Bloomberg Commodities Index shed over 2%, driven by fluctuations in oil prices and gold. West Texas Intermediate (WTI) crude closed the week 3% lower, pressured by Middle Eastern tensions and changing demand forecasts. Gold briefly pulled back after hitting new highs, while silver fell by nearly 4%. Copper saw modest declines despite robust manufacturing data from China.

Currencies:

The U.S. dollar index ended largely unchanged, as markets awaited the Fed's November policy decision. Meanwhile, the Japanese yen strengthened, though it faced volatility amid Japan’s post-election uncertainties.

U.S. Economic Recap (October 27 - November 2, 2024)

Key data releases provided a mixed picture for investors:

• Labour Market: Storms on the U.S. East Coast disrupted data collection, causing a distorted jobs report. Long-term unemployment rose to 22% of total unemployed, while permanent job losses increased to 1.8 million. The unemployment rate held steady at 4.1%, and the employment-to-population ratio for prime-age workers edged down to pre-pandemic levels.

• Inflation: Health care and airfare prices rose in September, contributing to a mild increase in services inflation. Goods prices fell by 1.2%, driven by durable goods and energy price drops, hinting at a steady path toward lower inflation rates.

With inflation easing and the labour market cooling, the Fed is likely on track to cut rates before year-end.

Global Markets Recap (October 27 - November 2, 2024)

• Europe: European markets fell, with the STOXX 600 down 1.5%. The U.K.’s new budget—its largest tax increase since 1993—sparked inflation concerns as it raised borrowing to stimulate growth. Elsewhere, Eurozone inflation ticked up slightly to 2.7% year-over-year, while positive GDP reports for France and Germany boosted confidence in the region’s strength. European Central Bank (ECB) officials suggested a more measured approach to rate cuts ahead. 

• Asia: In Asia, Japanese stocks advanced, buoyed by BoJ’s rate decision and lower unemployment. China’s markets closed the week lower amid tepid investor sentiment and expectations for upcoming stimulus. Taiwan, South Korea, and other regional markets also saw modest declines. 

Crypto Recap (October 27 - November 2, 2024)

• Bitcoin reached a high of $73,000 before retreating, likely due to pre-election volatility. Analysts expect more price spikes in the coming weeks, with potential U.S. election outcomes seen as bullish.

• Bitcoin ETFs now hold over 1 million BTC, surpassing $24 billion in inflows since January, putting institutional investors on pace to soon surpass Satoshi Nakamoto’s holdings.

• Shiba Inu Ecosystem Expansion: Shiba Inu announced ShibaSwap 2.0 and major updates for its NFT collection, fueling excitement as its ecosystem grows.

• Last Week’s Top Crypto Gainers: KCS, SUI, TRX

Here are other key highlights from last week:

• Google Cloud teamed with Mantra ($OM) on infrastructure and RWA accelerator.

• Chainlink unveiled modular architecture in latest upgrade.

• Pudgy Penguins Game ‘Pudgy Party’ revealed for iOS and Android.

• Major League Soccer launched ‘MLS Quest’ collectibles on Sui.

• Coinbase ($COIN) expanded staff headcount in Q3, highest levels in 2 years.

Expect heightened volatility across markets this week!

Key U.S. Economic Releases This Week:

• Tuesday: ISM Services PMI

• Thursday: Jobless Claims, Fed Interest Rate Decision, Fed Chair Powell Speaks

• Friday: Consumer Sentiment

Events to Watch:

U.S. Presidential Election (Tuesday, November 5): Voters will elect a new president, members of Congress, and various state and local officials. The outcome may influence market dynamics, depending on policy implications.

Earnings:

Big tech and industrial players report earnings this week, likely impacting market sentiment significantly:

• Monday: Palantir (PLTR), Super Micro Computer (SMCI)

• Wednesday: Qualcomm (QCOM), CVS (CVS), Arm Holdings (ARM)

Watch for updates on Arm’s legal case with Qualcomm.

Global Economic Events This Week:

• Monday: Reserve Bank of Australia (RBA) Interest Rate Decision

• Tuesday: U.K. Monetary Policy Report Hearings, New Zealand Unemployment Rate

• Wednesday: U.K. Construction PMI, Canada Ivey PMI

• Thursday: Bank of England (BoE) Interest Rate Decision

• Friday: Canada Unemployment Rate, China CPI and PPI

Trading Tip:

There are many ways to pick stocks and crypto. Pick a strategy and stick with it !

Week 10/27/24 - 11/02/24 Recap

Special Tools and Strategies

Choosing the Right Broker for You

With your knowledge from Issues 102, 103, and 104, you're now equipped to choose the best brokerage firm to support your investment journey. Selecting the right broker is essential for aligning with your financial goals, investment style, and overall strategy. Let’s walk through what to consider.

Key Factors for Choosing a Broker

1. Regulation: Start by verifying that the broker is regulated by a trusted financial authority. This ensures a baseline of security and helps protect your investments from fraud.

2. Investment Choices: Look at the range of investment options a broker offers, like stocks, ETFs, mutual funds, or international assets. Ensure they provide access to the markets and assets that match your interests and strategy.

3. Platforms and Tools: Brokers offer different platforms with varying tools and resources. Active traders may want advanced charting tools, while long-term investors may prefer a simple, user-friendly interface.

4. Fees: Even small fees can add up, especially if you trade frequently. Compare transaction fees, account maintenance charges, and other costs to find a broker with a structure that aligns with your strategy.

5. Research and Education: Look for brokers that offer robust research tools and educational content, especially if you’re new to investing. Resources like market analysis, webinars, and tutorials can enhance your understanding.

6. Ease of Account Opening: Most brokers make it easy to open accounts online. However, some may have stricter requirements or higher minimum deposits, so review these before choosing.

7. Customer Service: A broker with responsive and helpful customer service can make your investing experience smoother, especially if you encounter technical issues or have questions about your investments.

Broker List by Region

Here are some brokers to kickstart your research:

U.S.: Charles Schwab, Fidelity, E*Trade, Robinhood, WeBull, Ally Invest

Canada: Questrade, Interactive Brokers, QTrade, CIBC Investor’s Edge, Wealthsimple

U.K.: Interactive Investor, Trading 212, eToro, Vanguard UK, Charles Schwab UK

Caribbean

• Eastern Caribbean: Brokers via Eastern Caribbean Securities Exchange (ECSE)

• Jamaica: Use brokers listed by the Jamaica Stock Exchange (JSE)

• Barbados: Find approved brokers through the Barbados Stock Exchange.

• Trinidad & Tobago: Brokers via Trinidad & Tobago Stock Exchange (TTSE).

• Prospuh: Allows non-U.S. residents to invest in U.S. stocks.

Think about your investment style, risk tolerance, and goals. For example, if you’re a hands-on trader, look for platforms with robust trading tools. If you’re more passive, a broker with low fees and automated options may be ideal.

Reflecting on your own investor profile is important for selecting a broker that aligns with your financial strategy. Choosing the right brokerage is a foundational step toward achieving long-term success in the markets.

Disclaimer: This newsletter is strictly educational. The information this report provides does not constitute investment, financial, trading, or any other advice. You should not treat any of the report’s content as such. Please be careful and do your research.