Market Beats | U.S. Pending Home Sales Unexpectedly Rise; U.S. GDP Grows 2.8%; Two Major PC Giants’ Stocks Plunge; Pony AI Shares Surge 19% on First Trading Day

1. U.S. GDP Grows 2.8%

2. U.S. Pending Home Sales Unexpectedly Rise

3. Major PC Giants’ Stocks Plummet

4. U.S. Core Inflation Index Rises

5. China Continues to Import U.S. Soybeans

6. Pony AI Surges 19% on U.S. IPO Debut

7. Ken Griffin Sells Chicago Condos at 50% Discount

1. U.S. GDP Grows 2.8%

The U.S. Bureau of Economic Analysis released data today showing that U.S. GDP grew at an annualized rate of 2.8% in the third quarter, mainly driven by a significant increase in consumer spending and stable business investments.

During the same period, consumer spending, a key driver of GDP, saw its largest increase this year at 3.5%.

Although household spending remained strong, the adjusted figures were slightly lower than initial estimates, while corporate R&D investment was revised upward.

Despite high prices, high loan interest rates, and political uncertainty, the U.S. economy continues to expand.

Company Client Manager Ed O’Reilly stated that the alignment of employee and investor interests demonstrates the strength of corporate investments.

______

2. U.S. Pending Home Sales Unexpectedly Rise

According to the latest data from the National Association of Realtors (NAR), pending home sales in the U.S. unexpectedly surged to a seven-month high in October.

Mortgage rates briefly declined in September to their lowest level in two years before rising again. However, this short-lived drop created a brief home-buying window that extended into October, contributing to the stronger-than-expected index performance.

NAR Chief Economist Lawrence Yun noted that after two years of sluggish sales, the real estate market is finally gaining some momentum. Lower interest rates, a healthy job market, and increased housing inventory have allowed more buyers to enter the market.

The pending home sales index increased by 2% to 77.4, exceeding economists’ expectations of a 2% decline.

______

3. Major PC Giants’ Stocks Plummet

Computer giants Dell and HP saw their stock prices plunge after both companies reported disappointing earnings results.

In the third fiscal quarter, Dell’s personal computer revenue fell 1% to $12.1 billion, missing expectations. Meanwhile, HP’s PC revenue increased 2% to $9.59 billion but still fell short of analysts’ forecasts.

Dell’s CFO stated last night that the PC market’s upgrade cycle has been pushed to next year. HP’s CEO also noted that Microsoft’s new Windows software has not generated the expected level of enterprise demand.

Today, Dell and HP shares dropped by 14% and 10%, respectively.

______

4. U.S. Core Inflation Index Rises

The U.S. Bureau of Economic Analysis reported today that the Core Personal Consumption Expenditures Price Index (Core PCEPI) rose 2.8% year-over-year in October and increased 0.3% month-over-month.

The primary driver of this increase came from service-related costs, with portfolio management fees rising—likely linked to recent stock market gains.

The new data reinforces the Federal Reserve’s cautious stance on rate cuts, as the job market remains strong and economic growth is solid.

However, inflation’s path to normalization may become more challenging, given uncertainties around Trump’s potential tariff policies.

Additionally, many businesses are planning price hikes next year to offset tariff impacts.

______

5. China Continues to Import U.S. Soybeans

The U.S. Department of Agriculture announced today that a Chinese state-owned enterprise purchased at least eight cargo shipments of soybeans last week to replenish national reserves.

This purchase surprised traders, as a potential trade war between China and the U.S. could reignite if Trump wins the election.

The shipment faces significant risk, as the goods could still be in transit when Trump takes office on January 20, potentially subjecting them to changes in trade policies.

On Monday, Trump pledged to impose a 10% tariff on Chinese goods and a 25% tariff on products from Canada and Mexico, causing market and investor concerns about retaliatory measures from other countries.

China has been increasing soybean imports from Brazil but has not completely cut off purchases from the U.S.

______

6. Pony AI Surges 19% on U.S. IPO Debut

Chinese autonomous driving company Pony AI officially debuted on the U.S. stock market today, with its American Depositary Shares (ADS) surging 19% on the first day of trading. The company raised $413 million in its IPO.

Pony AI sold 20 million ADS at $13 per share, with prices reaching as high as $15.5 during trading.

Additionally, a group of investors agreed to privately purchase $153 million worth of the company’s ordinary shares. Pony AI’s current market valuation stands at $5.4 billion.

So far this year, Chinese firms have raised a total of $1.2 billion through U.S. IPOs, nearly double the amount raised during the same period in 2023.

______

7. Ken Griffin Sells Chicago Condos at 50% Discount

Sources revealed that Illinois Governor J.B. Pritzker purchased two penthouse apartments in Chicago from Citadel founder Ken Griffin.

According to public records, Griffin sold the two condos for a total of $19 million in November, a 53% discount from his original purchase price.

In 2022, Griffin relocated his family and company headquarters from Chicago to Miami, citing concerns over crime rates and political leadership.

Earlier this month, Griffin commented that the decline in Chicago real estate values is just one of the many consequences of electing ineffective leaders.

______

This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.