It Girl Identity: Issue 22

It Girl Identity Newsletter

It’s tiiiiiiiime…Halloween is officially over so grab your peppermint mocha and dive into this week’s market movers, how to write an earnings report, and check out our curated recommendations from It Girl Identity!

What’s Moving Markets

This week brings a series of high-stakes events that could heavily influence markets. With the U.S. Presidential Election and the Federal Reserve’s interest rate decision on the agenda, here are the key stocks to keep an eye on:

Election-Related Stocks

• Defense & Infrastructure: Lockheed Martin (LMT), Raytheon Technologies (RTX)

• Clean Energy & EVs: Tesla (TSLA), NextEra Energy (NEE)

• Healthcare: UnitedHealth Group (UNH), CVS Health (CVS)

2. Federal Reserve Interest Rate Decision

• Banks & Financials: JPMorgan Chase (JPM), Goldman Sachs (GS)

• Real Estate & REITs: Simon Property Group (SPG), Prologis (PLD)

3. Earnings Spotlights

• Monday, Nov. 4: Vertex Pharmaceuticals (VRTX), Palantir Technologies (PLTR), Marriott International (MAR)

• Tuesday, Nov. 5: Ferrari (RACE), Apollo Global Management (APO), Yum! Brands (YUM)

• Wednesday, Nov. 6: Qualcomm (QCOM), Arm Holdings (ARM), CVS Health (CVS)

• Thursday, Nov. 7: Airbnb (ABNB), Fortinet (FTNT), Block (SQ)

• Friday, Nov. 8: NRG Energy (NRG), Baxter International (BAX), Paramount Global (PARA)

4. Key Tech & AI Players

• Chips & Semiconductors: Nvidia (NVDA), Advanced Micro Devices (AMD)

• AI & Cloud: Palantir Technologies (PLTR), Microsoft (MSFT)

Markets & Economy

• Global Market Movements: Global stock markets saw mixed performance last week as the Nasdaq reached an all-time high, largely driven by Big Tech earnings announcements. This week also saw heightened anticipation for the upcoming U.S. Presidential election, which has brought uncertainty to markets.

  • EU-China Tariff Disputes: The EU imposed tariffs on Chinese EVs, aiming to protect European automakers from perceived unfair competition. This escalation adds strain to global trade dynamics, potentially impacting the auto industry.

  • Middle East Oil Concerns: Rising tensions around the Strait of Hormuz could disrupt oil flows, heightening volatility in energy markets.

• Big Tech Earnings & Sector Impact

  • Alphabet: Q3 2024 earnings exceeded expectations with a 37% year-over-year EPS increase, lifting the tech sector. The Magnificent 7 stocks continued to influence market sentiment, with Alphabet leading through successful cost control and diversification. Meanwhile, Meta outperformed estimates, though it faces challenges due to increasing AI infrastructure spending.

    • GICS Sectors: The communication services sector led the week, fueled by Alphabet’s performance, while the energy sector struggled due to stable oil prices and oversupply.

  • Growth vs. Value: Growth stocks, especially in tech, continued to outperform value stocks. Advances in AI and cloud services have cemented tech’s leadership in the market.

  • Kraken Appoints New CFO: Kraken named Stephanie Lemmerman as CFO amid ongoing challenges with the SEC, marking a significant leadership shift in the crypto space.

• U.S. Economic Indicators

  • Core PCE & Fed Outlook: Core Personal Consumption Expenditures (PCE) aligned with expectations, and the September jobs report painted a mixed picture, contributing to expectations that the Fed may cut rates soon.

  • Treasury Yields: The 10-year Treasury yield reached a high of 4.35%, spurred by strong labor data, hinting at economic resilience.

This Week's Major U.S. Economic Reports & Fed Speakers

Here is a quick breakdown of this week’s Fed Speaker events and economic indicators, what they mean, and their forecasts!

Monday, Nov. 4

• 10:00 am – Factory Orders (Sept)
  Forecast: -0.5%
  Previous: -0.2%

Tuesday, Nov. 5

• 8:30 am – U.S. Trade Deficit (Sept)
  Forecast: -$84.0B
  Previous: -$70.4B

• 10:00 am – ISM Services (Oct)
  Forecast: 53.7%
  Previous: 54.9%

Wednesday, Nov. 6

• 9:45 am – S&P Final U.S. Services PMI (Oct)
  Forecast: 55.3

Thursday, Nov. 7

• 8:30 am – Initial Jobless Claims (Nov. 2)
  Forecast: 220,000
  Previous: 216,000

• 8:30 am – U.S. Productivity (Prelim, Q3)
  Forecast: 2.5%

• 10:00 am – Wholesale Inventories (Sept)
  Forecast: -0.1%
  Previous: 0.1%

• 2:00 pm – FOMC Interest Rate Decision

• 2:30 pm – Fed Chair Powell Press Conference

• 3:00 pm – Consumer Credit (Sept)
  Forecast: $14.0B
  Previous: $8.9B

Friday, Nov. 8

• 10:00 am – Consumer Sentiment (Prelim, Nov)
  Forecast: 71.0
  Previous: 70.5

• 11:00 am – Fed Governor Michelle Bowman speaks on banking regulation

• 2:30 pm – St. Louis Fed President Alberto Musalem, welcoming remarks

Sources: Nasdaq, Markets Insider, WSJ, Market Watch

How to Write an Earnings Report

Learn the essentials of crafting a powerful earnings report, from breaking down financial highlights to analyzing strategic moves. Discover how these reports can guide investment decisions based on company performance, market trends, and growth potential!

Purpose of an Earnings Write-Up: An earnings write-up provides a snapshot of a company's financial performance, strategic progress, and future outlook after a quarterly earnings release. It helps investors assess a company's health, growth potential, and how effectively it's managing capital.

Sample Structure

1. Brief Commentary
   Start with a summary of key achievements and how they fit into the company’s strategy. Mention any market-moving results, like higher-than-expected revenue or new innovations.

   • Example: "ON Semiconductor Corp (Nasdaq: ON) exceeded Q3 2024 expectations, with $1.76 billion in revenue and a 41% rise in free cash flow, driven by innovations in power-demand solutions for automotive, industrial, and AI data centers."

2. Financial Highlights
   Highlight the most critical financial metrics, comparing them to market expectations if possible. Include:

   • Revenue and margins (both GAAP and Non-GAAP)

   • Earnings Per Share (EPS)

   • Free Cash Flow and other shareholder returns.

   • Example: "Revenue hit $1.76 billion, surpassing projections. GAAP Gross Margin was 45.4%, while Non-GAAP Operating Margin reached 28.2%. EPS came in at $0.93 GAAP and $0.99 Non-GAAP."

3. Strategic Developments
   Outline any new products, partnerships, or technology upgrades that could affect future growth.

   • Example: "ON Semiconductor launched EliteSiC M3e MOSFETs, designed to meet higher power demands in automotive and AI data centers, enhancing efficiency and positioning the company for growth in these sectors."

4. Management Commentary
   Include relevant comments from executives to provide insight into the company’s direction and focus.

   • Example: "CEO Hassane El-Khoury highlighted strong Q3 performance and noted the company’s strategic focus on automotive and AI data centers to address the rising power efficiency needs in these markets."

5. Investment Implications
   Summarize how these results impact the company’s positioning within the industry and its attractiveness to investors.

   • Example: "With innovations like the EliteSiC M3e MOSFETs, ON Semiconductor is well-placed to expand its footprint in the data center market, supporting demand for AI."

6. Future Outlook
   Outline the company’s projections and goals, especially in high-growth areas.

   • Example: "ON Semiconductor anticipates tripling its revenue growth in automotive and industrial sectors, projecting a 35-40% market share in Silicon Carbide (SiC) products and a gross margin increase to 53%."

Key Takeaways for an Effective Earnings Write-Up

• Focus on financials, strategic moves, and management insights.

• Link financial results to broader market trends or company goals.

• Use clear, concise language—this makes it easy for readers to quickly understand performance and implications.

• Earnings write-ups are valuable for assessing a company's strengths, guiding investment decisions, and tracking industry competitiveness.

Sources: FactSet, MarketWatch, Bloomberg, Forbes, Investopedia

Disclaimer: Information shared here is for educational purposes only. Consult a financial advisor for personalized advice.

It Girl Recommendations

It Girl Winter Essentials: November Picks

Stay cozy, chic, and inspired this winter with our top picks for the colder months ahead! Perfect for gifting or a little self-care treat as we embrace the season.

• Wellness Boost: Superfood Hot Chocolate – Cozy up with antioxidant-packed hot cocoa for a health boost.

• Skincare Savior: Hydrating Overnight Mask – Lock in moisture with ingredients like hyaluronic acid.

• Fashion Staple: Chunky Knit Sweater – A timeless, cozy piece perfect for layering all winter.

• Home Vibes: Electric Candle Warmer – Melt your favorite scents for that warm, cozy glow.

Finance Books

Hey It Girls! Dive into these must-read finance books that will elevate your money game and empower your financial journey. Whether you're just starting out or looking to refine your strategy, these books offer insights and practical wisdom to guide you.

• "Smart Women Finish Rich" by David Bach
  Discover simple yet powerful strategies to take control of your finances and create a secure future, tailored specifically for women.

• "You Are a Badass at Making Money" by Jen Sincero
  A bold, no-nonsense guide that helps you reframe your money mindset, overcome financial fears, and start earning what you’re worth.

• "Financially Fearless" by Alexa von Tobel
  Learn how to take charge of your finances with actionable steps and personalized plans from the founder of LearnVest, a company dedicated to financial literacy for women.

• "Boss Up!" by Lindsay Teague Moreno
  A motivational read that combines financial guidance with entrepreneurial advice to help you build your wealth and succeed on your terms.

Follow Our Other Socials

• TikTok

• Instagram

• LinkedIn

• Benable

• Amazon Storefront

See you next Monday, It Girls!

With Love,

It Girl Identity