1. $6.9 Billion Flows into Value Stock ETFs
2. U.S. Retail Sales Unexpectedly Rise
3. Microsoft Launches $60 Billion Share Buyback
4. Bitcoin Posts Largest Gain in 3 Months
5. Newmont to Raise $2 Billion Through Asset Sales
6. Point72 Founder Steps Away from Trading
7. JPMorgan in Talks to Take Over Apple Card
1. $6.9 Billion Flows into Value Stock ETFs
Amid a broad sector rotation triggered by expectations of a Fed rate cut, value stock ETFs have attracted $6.9 billion in inflows since early September. Value stocks are typically those trading below their book value.
In contrast, growth stocks — including major tech giants — saw $13 million in outflows during the same period.
This year’s U.S. stock rally has been largely driven by a few large-cap tech names, supported by optimism about the U.S. economy and anticipated rate cuts by the Federal Reserve.
The Fed is widely expected to cut interest rates by 50 basis points tomorrow.
______
2. U.S. Retail Sales Unexpectedly Rise
Data released today by the U.S. Commerce Department shows retail sales rose 0.1% in August, driven by a 1.4% increase in online sales that offset declines in other categories.
Out of 13 retail categories, 5 posted gains. Declining categories included electronics, major appliances, apparel, and furniture.
Experts say the latest retail sales figures are unlikely to change the Fed’s decision to cut rates, although a 25-basis-point cut now appears more likely than 50.
Sales at restaurants and bars remained largely unchanged compared to last month.
______
3. Microsoft Launches $60 Billion Share Buyback
Microsoft announced today that shareholders who own stock by November 21 will receive a dividend of $0.83 per share — up from $0.75.
The company also unveiled plans to repurchase $60 billion worth of shares, matching a buyback of the same size in 2021.
Although $60 billion is a massive number, it represents less than 2% of Microsoft’s market cap. The stock has soared 31% over the past 12 months and now boasts a market value exceeding $3.2 trillion.
Recent investor optimism about Microsoft’s position in AI has helped boost its stock significantly.
______
4. Bitcoin Posts Largest Gain in 3 Months
Bitcoin surged 6.4% to $61,337 today, its biggest one-day gain since August 8, amid expectations that Fed rate cuts will increase demand for crypto assets.
The market currently prices in a 55% chance of a 50-basis-point Fed cut, and many traders already fully expect a 25-basis-point cut.
Since hitting an all-time high near $74,000 in March, Bitcoin has been trading in a relatively narrow range.
______
5. Newmont to Raise $2 Billion Through Asset Sales
Newmont, the world’s largest gold miner, said it plans to raise at least $2 billion through the sale of mines and development projects, according to its COO on Tuesday.
After acquiring Newcrest in 2023, Newmont announced plans to divest certain assets. The current sales are aimed at streamlining the business around its most profitable gold operations and boosting copper output.
Earlier this month, Newmont agreed to sell two Australian assets for $475 million.
______
6. Point72 Founder Steps Away from Trading
Hedge fund Point72 Asset Management announced via email that its founder, Steve Cohen, will no longer personally trade client capital. However, he will remain as co-Chief Investment Officer.
Over the past three decades, Cohen has been one of the most influential figures in hedge fund investing and played a key role in rebuilding Point72’s reputation after a prior insider trading scandal.
Going forward, Cohen will focus on growing the firm and mentoring the next generation of traders.
______
7. JPMorgan in Talks to Take Over Apple Card
Sources say JPMorgan is in talks with Apple about taking over the Apple Card business, which Goldman Sachs is reportedly looking to exit.
Earlier this month, Bloomberg reported that Goldman sold its $2 billion GM credit card portfolio to Barclays at a discount.
Apple launched the Apple Card in partnership with Goldman five years ago to expand its footprint in financial services.
Apple has also held talks with Synchrony and Capital One as potential successors for the credit card program.
______
This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.