Market scorecard
Stocks opened in the red on Friday, and stayed that way for the whole session. Vaccine makers had a particularly bad day with Pfizer down 4.7% and Moderna down 7.3%, after Trump announced he wants Robert F. Kennedy Jr as the head of Department of Health and Human Services. According to Forbes, he is a vaccine skeptic but has stopped short of adopting the "anti-vaxx" label attributed to him by critics.
In company news, Palantir Technologies jumped 11.1% after announcing that it will move to the Nasdaq on the 26 November. It will likely join the Nasdaq 100, meaning that index trackers will have to start buying its shares. Elsewhere, Applied Materials, a semiconductor equipment manufacturer, dropped 9.2% on weak sales guidance for non-AI chips. Finally, Domino's Pizza rose 1.3% after reports that Warren Buffett was accumulating their shares. Imagine selling Apple stock and using the cash to buy into a company that heats up tomato and cheese?
In summary, the JSE All-share closed up 0.05%, but the S&P 500 flopped by 1.32%, and the Nasdaq nosedived 2.24% lower. Oof, that was not a great way to end the week.
Our 10c worth
One thing, from Paul
I've fielded queries from a few clients this weekend, anxious about Trump's cabinet picks. Some wanted to know if we should sell our portfolios and run for the exits, because it's a sign that America is "finished".
I think it is more a case of people projecting because they are upset by the outcome of the election. Let's take a deep breath and avoid overhyping this moment in history.
What if Trump's main goal was to get elected, and then have fun for a while, while playing more golf? I doubt that Trump wants to upset the stock market, or do anything that will dent his personal popularity. However, we will be cursed with "interesting times" for the next four years.
The journalists are going to have a field day reporting on his presidency. Here's an example from the Wall Street Journal:
"In naming a set of unconventional nominees to run federal departments, Donald Trump this past week took steps to push for a broader goal: realigning the balance of power among Washington's major institutions so that more authority flows from the White House."
The US government employs approximately 2.9 million civilian employees, and another 2.25 military personnel at the Federal level. The there are another 19.6 million state and local government workers. A few nutjobs at the top aren't going to change much. They have to get confirmed by the Senate first, and if they do, they probably won't last a full 4 years.
Byron's beats
Nvidia's exciting new Blackwell AI chip has its first official customer. The lucky buyer at the front of the very long queue was Softbank, run by long-time Nvidia fan, Masayoshi Son.
Softbank plans on building the world's most powerful AI supercomputer in Japan using the full suite of Nvidia hardware and software products. He wants researchers, startups and students in Japan to have an AI edge over the rest of the world.
Both Jensen Huang (Nvidia CEO) and Masayoshi Son (pictured together) were at a Japanese AI summit when the deal was announced. This will not be last collaboration between the two powerhouses.
Michael's musings
Every company has defining moments when leadership has a tough decision to make, putting their future on the line. Jaguar is at one of those points now. Starting this month, no new Jags will be sold in the UK, and soon in the US either.
In 2021, Jaguar decided to be an electric-only brand. The official launch of their new range is expected soon, but it will only be on sale sometime in 2026. The halt in new car sales is to allow their factories to retool and create an air gap between 'old style' Jags and the newly reinvented brand.
This is a bold move. In 2021 this shift probably seemed the obvious path to take. Since then, society and global governments have been pushing back against a rapid move to EVs. With Trump coming in to the White House, the EV transition will probably slow more.
A decade from now, we will look back and see whether Jaguar made the correct decision. Will they be found to have been prescient or delusional?
Linkfest, lap it up
Standard Bank's head office from 1970 to 1990 is a unique building. Pictures show how it was built from the top down - The famous Hanging Building at 78 Fox.
Here is Rolls-Royce's first effort at making an EV. Some say it's a superior product - What it's like to drive a quiet Rolls-Royce.
Signing off
Shares in Asia are mostly higher this morning. Samsung Electronics is a standout performer, up over 7% on news of a chunky $7 billion share buyback. The stock was also up 7% on Friday, ahead of the update.
On the local front, Barloworld rose 6% on the news of a buyout offer to take the company private from the Zahid group, a Saudi-based company which already owns around 19% of Barloworld shares. They are also a distributor of heavy-equipment machinery.
The US Dollar has calmed down a bit after surging last week on the news of Trump's victory. The $/R is now at 18.14. Gold is up this morning after having its worst week since 2021. Bitcoin is trading at $90 725.
This is a big week, with Nvidia results out on Wednesday. Given its size and connection to many other big names, their results will probably set the market's mood for the balance of the year.
Have a good week.