Market scorecard
US markets rose sharply yesterday after strong retail spending data was released, easing concerns about an economic slowdown. Despite marginally disappointing unemployment numbers the S&P 500 continued its rally, and has now gained 6.6% in the last six days. What a difference a week can make.
In company news, Walmart reported splendid sales numbers for the latest quarter and made positive comments about the outlook for the rest of the year, pushing the shares up 6.5%. Elsewhere, chip maker Applied Materials boosted its sales forecast but its shares dipped 3.1% after-hours. Finally, Pilgrim's Pride dropped 3.3% because some of its shareholders chickened out.
In summary, the JSE All-share closed up 1.01%, the S&P 500 rose 1.61%, and the Nasdaq goosestepped 2.34% higher. Neat!
Our 10c worth
One thing, from Paul
Here's some advice for a Friday - always take money seriously.
If you are very young, start saving. Develop a lifetime habit of spending less than you earn (or are given by your parents). Keep things simple, and maintain good records.
Once you are a qualified adult and find a job, keep your spending in check, and start investing in high-quality assets. Don't take on too much debt. Work hard to get a raise and sock away as much as you can.
Good outcomes depend on healthy habits. It's not enough to have vaguely positive intentions, you need rock-solid competence.
If you are approaching the end of your career, or are actually retired, find a way to keep working, bringing in some money to help cover your living costs.
We have no idea how long we will live, what our priorities will be later in life, but the larger our savings, the more options we'll have as we grow older.
Michael's musings
Imagine needing R36 million to buy a typical home in the city where you live. That is the case for people in the San Jose-Sunnyvale-Santa Clara metro in California, which has a median house price of $2 million, the first time a US metro area has crossed that mark. Second place goes to neighbouring San Francisco, with median house prices of only $1.45 million.
San Jose is the heart of Silicon Valley. Wikipedia tells me that around a million people live there, and that between 1821 and 1847 it was part of Mexico.
Generally, housing supply should increase to accommodate a growing population, particularly when those people are rich. In the case of San Jose, the city is surrounded by mountains, so it can't expand outwards. The city also places limits on tall buildings, so house prices have gone higher and higher.
In response to unaffordable housing and remote working, 4% of the San Jose population moved away in 2022. If that trend continues, Silicon Valley companies will struggle to find their next generation software of developers.
Bright's banter
Norway's sovereign wealth fund is managed by Norges Bank Investment Management, and has seen impressive gains. In its first-half update, the $1.7 trillion Government Pension Fund Global reported $138 billion in profits, driven largely by tech investments.
With Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta, TSMC, and ASML as its top holdings, the fund achieved an 8.6% overall return, with a 12.5% gain in its equity portfolio. The fund also invests in bonds, real estate, and clean energy, but 72% of its investments are in equities, with tech stocks making up 26% of that portfolio.
The fund was established in 1990 to invest Norway's surplus oil and gas revenue. It now holds stakes in over 8 700 companies across more than 70 countries.
Linkfest, lap it up
Are you prone to severe allergic reactions? Anaphylactic shocks are usually dealt with by injecting yourself with a bulky epipen - FDA approves nasal spray alternative.
The Porsche 911 is the signature high-performance car. Two families control the company, as well as Volkswagen - The story of Porsche.
Signing off
Asian markets rallied this morning as traders flocked back into risk assets with the MSCI Asia-Pacific index on track for its best week in over a year.
In local company news, higher education operator Stadio is set to report up to a 25.2% increase in earnings for the interim period, driven by an 8% boost in student enrolments. On the other hand, Exxaro saw an 11.7% drop in coal sales volumes for the half-year, primarily due to lower offtake from the Medupi and Matimba power stations, resulting in a 38% decline in earnings.
The Rand is trading at around R17.99 to the US Dollar.
US equity futures are in the green pre-market. One last push and our portfolios will be setting new records.
Have a top weekend!