1. Target Earnings Beat Lifts Stock Market
2. Miami Could Become the Next Global Financial Hub
3. Two Major Hedge Funds End Partnership Talks
4. US Retail Sales Show Resilience
5. Starlink May Spin Off and Go Public
6. Two Billionaires Sell Nvidia Shares
7. Buffett Dumps Large-Cap Stocks
1. Target Earnings Beat Lifts Stock Market
Retail giant Target reported a 4.9% drop in same-store sales for Q3 — its steepest decline since 2009 — but still better than analysts had expected.
Encouragingly, inventory levels fell 14% year-over-year, easing overstock concerns. Hot-selling beauty brands like Fenty Beauty and Ulta Beauty helped soften the sales decline.
Target’s earnings per share (EPS) significantly exceeded forecasts, and the stock surged 15% pre-market. Despite this, it remains down 26% year-to-date.
Since Target’s performance reflects broader consumer sentiment, the entire stock market saw gains.
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2. Miami Could Become the Next Global Financial Hub
Citadel founder Ken Griffin told Bloomberg that Miami’s Brickell Bay North could potentially replace New York City as the world’s financial capital in 50 years.
Attracted by warm weather and zero state income tax, many Wall Street firms have recently relocated to South Florida.
Griffin moved to Miami last year, spending $1 billion to build Citadel’s new waterfront headquarters, while also making major political and charitable contributions.
Despite the shift, Griffin said Citadel still values New York and plans to construct a 51-story, 411-meter tower there.
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3. Two Major Hedge Funds End Partnership Talks
Sources report that $60 billion hedge fund Millennium Management has ended merger talks with Schonfeld Strategic Advisors.
The two multistrategy hedge funds had been in advanced discussions, with Schonfeld set to manage part of Millennium’s capital. But after Schonfeld’s investors pledged an additional $3 billion, the firm opted to remain independent.
Schonfeld has underperformed peers, with its main fund up just 1% year-to-date versus Millennium’s 8.3%. The new funding comes as Schonfeld faced $2 billion in redemptions earlier this year.
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4. US Retail Sales Show Resilience
The US Commerce Department reported October retail sales fell 0.1% month-over-month, but excluding gasoline and autos, sales rose 0.1%.
Seven out of 13 retail categories declined, led by furniture and autos. Gasoline price drops had limited impact. Sales of personal care items and groceries increased.
Consumer spending, the backbone of the US economy, remains strong in October, leading economists to reassess the risk of recession.
The job market and broader economy remain healthy, and inflation is easing.
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5. Starlink May Spin Off and Go Public
Sources say SpaceX is considering spinning off its satellite business Starlink and taking it public as early as late 2024, amid booming demand for commercial satellites.
Preparations have begun, with Starlink assets moved to a wholly owned subsidiary.
However, SpaceX has not made a final decision — the IPO could be delayed to 2025 or shelved entirely.
Starlink is expected to generate $10 billion in revenue next year, making up two-thirds of SpaceX’s total income.
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6. Two Billionaires Sell Nvidia Shares
In Q3, billionaire Stanley Druckenmiller’s Duquesne Family Office sold 75,000 Nvidia shares worth $37.2 million.
George Soros’ family office, Stonehage Fleming, also reduced its Nvidia stake during the same period.
Nvidia’s stock has soared 240% year-to-date, leading all S&P 500 companies. Investors have smartly taken profits near record highs.
Druckenmiller’s firm also bought $110 million worth of Google stock in the same quarter.
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7. Buffett Dumps Large-Cap Stocks
In Q3, Warren Buffett’s Berkshire Hathaway sold several blue-chip stocks and raised its cash holdings.
According to filings, Berkshire exited its entire stake in General Motors, worth $850 million last quarter.
It also sold 59,400 shares of UPS and trimmed its holdings in HP and Chevron by 15% and 10%, respectively.
Other selloffs included Amazon, Mondelez, insurance firms Markel and Global Life, Activision Blizzard, Johnson & Johnson, and Procter & Gamble.
While US equities remain near highs, economic uncertainty looms.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.