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Overall asset performance remains mixed ahead of Powell’s speech tomorrow and a slew of economic data the rest of this week — let’s see what you missed today. 👀

Today’s issue covers U.S. housing, CrowdStrike’s earnings, and more news from China. 📰

Check out today’s heat map:

6 of 11 sectors closed green. Real estate (+1.72%) led, and technology (-0.98%) lagged. 💚

HSBC will sell its Canada business to the Royal Bank of Canada for $10 billion. 🏦

In crypto news, another exchange bites the dust as Bitfront shuts down. Fidelity has begun opening retail bitcoin trading accounts. And Coinbase Wallet axes support for several cryptocurrencies. ₿

Other symbols active on the streams included: $HLBZ (+6.05%), $DWAC (-3.41%), $MMTLP (-2.23%), $MULN (+4.14%), $AAPL (-2.12%), $DBGI (-34.17%), $COSM (+33.19%), and $DOGE.X (+7.19%). 🔥

P.S. Our annual Chips for Charity is on Saturday. Have you secured your seat at the table? 🃏

Here are the closing prices: 

S&P 500 3,958 -0.16%
Nasdaq 10,984 -0.59%
Russell 2000 1,837 +0.31%
Dow Jones 33,853 +0.01%

CrowdStrike Misses Its Mark Featured Image

Wall Street continues to punish software stocks that don’t blow expectations out of the water. And today’s victim was CrowdStrike. 😱

The cybersecurity company reported Q3 adjusted earnings of $0.40 per share vs. the $0.31 expected. Revenues of $581 million also topped the $574 million expected. Additionally, its annual recurring revenue (ARR) of $2.34 billion rose 54% YoY, with $198 million in net new ARR added in Q3.

However, ARR growth was below expectations. CEO George Kurtz said, “Increased macroeconomic headwinds elongated sales cycles with smaller customers and caused some larger customers to pursue multi-phase subscription start dates, which delays ARR recognition until future quarters.”  💬

In other words, its customers feel skittish about the economy, reducing or delaying demand. And with the economy expected to remain vulnerable, many expect those headwinds to persist.

As a result, investors sent $CRWD shares down 17% to their lowest level since August 2020. 👍



A U.S. Housing Update Featured Image

It’s no secret that the housing market is in bad shape. Higher interest rates and record-high prices have crushed the demand side of the equation, and supply remains tight.

With that said, we got some additional data today so let’s take a look… 👀

First is the S&P CoreLogic Case Shiller national home price index. It dropped for the third straight month in September (-0.80%), with YoY price growth slowing to +10.80%. While the yearly change is still very high, seeing prices cool for several consecutive months is a positive sign for the Fed, which has been trying to bring prices down. 🧊

Meanwhile, Fannie Mae and Freddie Mac will raise the limits of government-backed loans to a new record level in 2023. The maximum loan limit in some high-cost areas will be over $1 million. Some argue that this does nothing to solve the real driver of the housing crisis, record-high prices, and simply allows borrowers to take on more debt than they might be able to handle.

Last week existing home sales fell for the ninth straight month, dropping 5.80% MoM and 28.4% YoY. The median price of an existing sold home was $379,100, a 6.60% increase YoY. 🏘️

So while it’s not happening quickly at the national level, the Fed’s tightening is having a slow but steady effect on housing. Certain markets that boomed during the pandemic have seen significant drops as some froth comes out of the system. And others are simply leveling off as demand dries up.

Lastly, Bank of America’s CEO is predicting two years of pain ahead for the housing market before activity returns to normal. 🔮

Tomorrow we’ll hear October’s pending home sales data, which will give us another piece of the puzzle. But overall, housing continues to correct to the downside. 📉


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Some Un-Bili-vable China News Featured Image

Okay, you probably will believe today’s China news. But that title was too good not to use, so let us have this one. 🤷

With unrest among China’s citizens continuing, there’s a lot to keep up with. 📰

The broader news item is that the protests and disruption to its economy have gotten the government’s attention. As a result, speculation is that many of the harsh covid-19 containment measures implemented will be relaxed.

That sent Chinese stocks soaring today. However, many remain skeptical because these rumors have been flying back and forth for weeks, saying they’ll believe it when they see it.

Video-sharing website Bilibili reported earnings and revenues that topped estimates. 💪

Average daily active users rose 25% YoY to 90.3 million, with monthly active users increasing 25% to 332.6 million. Average monthly paying users rose 19% to 28.5 million. 

Like other tech companies, it’s rationalizing its costs and is taking initiatives to accelerate its monetization. The earnings beat and rumors of lockdown rules easing sent $BILI shares rising 22%.

Meanwhile, e-commerce solutions provider Baozun dropped despite beating earnings and revenue expectations.

The company reported adjusted earnings of $0.03 per share vs. the $0.02 expected. And revenues of $244.8 million beat estimates of $244 million. 👍

Like its peers, the company is prioritizing cost optimization and efficiency. These efforts drove higher product sales gross margin, lower operating expenses, and better operating cash flows.

With that said, $BZUN shares faded after an initial pop, closing down 3.60%. 🔻


Bullets

Bullets From The Day:

📺 AMC Networks faces significant layoffs ahead. Just three months after becoming CEO, Christina Spade is stepping down from her role, with the company looking internally for a replacement. Additionally, it announced widespread layoffs, where an insider says roughly 20% of its U.S. staff will be let go in the coming days. AMC Networks continues to find a place in the TV industry where the linear TV bundle loses share to streaming services quarter after quarter. As its price bleeds, many analysts see it as an acquisition target for its larger competitors. CNBC has more.

👋 Mozilla wants you to host meetings in their mini metaverse. Mozilla’s Hubs offering has been around since 2018 and offered a low-key way to hang out with your friends. It has since expanded to host virtual events, classrooms, art galleries, and several other events. Today it’s introducing a new subscription service where users can customize their Hubs and collaborate for personal or work reasons. This comes as more companies continue their expansion into the metaverse…despite the space’s lackluster results so far. More from TechCrunch.

🛢️ Oil prices steady as the market speculates over OPEC+ cut. With oil sliding on reduced demand expectations, several firms expect OPEC+ to cut production when they meet on December 4th to decide on the next phase of production policy. The group has cut its oil demand forecast several times this year and continues to face pressure from the U.S. and other western countries, desperate to fill the energy gap left by Russia’s war in Ukraine. However, the group recently hinted that it could output to help oil prices recover. CNBC has more.

🛒 Black Friday weekend sales hit a record high. The National Retail Federation said 196.7 million shoppers went to stores from Thanksgiving Day to Cyber Monday, topping last year’s 179 million. That, combined with record online sales, indicates a stronger-than-expected holiday shopping season is upon us. With that said, many retailers offered steep promotions and began advertising sales earlier this month to entice shoppers who have been hit by inflation and other macroeconomic uncertainty. Despite that, the average shopper spent $325 on holiday-related purchases this weekend, up from $301 last year. More from CNBC.

🤔 Yahoo Finance is considering expanding into stock trading. Apollo Global Management-owned Yahoo is looking to reinvent its core businesses to spur growth. Those include publishing, Yahoo Finance, Yahoo Mail, and Yahoo Sports. As part of that, executives are looking to build a retail trading platform within Yahoo Finance, allowing retail traders to use its data as part of a full suite of end-to-end trading and execution tools. Internally, the idea is being called a “Bloomberg for retail trading,” though that’s been a tough nut to crack for many of its competitors. Axios has more.