November 22nd Market Overview

Happy Friday everyone. The weekend is here.

Trade volume continues shifting from tech into industrial and consumer companies. Small-caps keep showing strength this week, with semiconductor sales hitting new records.

Next week I'll be on vacation - the daily market brief will continue to come but it might not be around 3:30 - 4:00… I.E. some days could be at 2:30 - 3:00 ect.

Please bare with me while I'm working with caribbean wifi 🌴 and hopefully a margarita.


Let’s dig in….

Executive Summary

• Small-cap resurgence leads market breadth expansion, with Russell 2000 outperforming major indices
  

• Record-breaking semiconductor industry sales of $55.3B in September signals sector strength
  

• Major SEC leadership changes ahead as both Gensler and Lizarraga announce January departures
  

• Insider selling reaches two-decade high, marking significant shift in institutional positioning

Market Overview

Key Market Drivers

1. Sector rotation accelerates as investors reposition from growth to value
   

2. Small-cap Russell 2000 demonstrates exceptional strength, up over 4% for the week
   

3. Semiconductor industry momentum builds with unprecedented monthly sales figures
   

4. Political shifts driving market sentiment with notable divergence post-election

Stock Spotlight

• $SMCI: ▲ 11.2% and pacing toward record week after naming BDO as auditor and providing Nasdaq compliance plan
  

• $TPL: ▲ 14.6% on S&P 500 inclusion, replacing Marathon Oil in notable index adjustment
  

• $RDDT: Shares pressured as Advance Magazine Publishers seeks credit facility against 7.8M share stake
  

• $AFRM: BofA highlights superior GMV growth versus competitors Afterpay and Klarna in upgrade to Buy

Big Name Updates

• $GOOGL: Justice Department challenges Anthropic deal amid broader antitrust scrutiny; cancels Pixel Tablet 2 development
  

• $AAPL: Plans comprehensive Siri overhaul targeting 2026 launch for enhanced conversational capabilities
  

• $AMZN: Emerges as Truist’s top megacap pick for 2025, citing North American revenue strength
  

• $SCHW: CEO signals strategic pivot toward crypto market entry pending regulatory framework
  

• $META: Faces potential new Congressional legislation on app store age verification requirements

Other Notable Company News

• $ESTC: Baird recognizes significant turnaround with upgrade to outperform, citing strong Q2 commitments and GenAI adoption
  

• $SNOW: Citi elevates PT to $225 on accelerating bookings strength and new product momentum
  

• $CRWD: JPM sets $369 PT ahead of earnings, noting conservative guidance post-outage period
  

• $VKTX: B Riley initiates coverage with $109 PT, positioning VKt2735 as potential market disruptor

Sector Watch

Policy Watch

SEC prepares for significant transition as Chair Gensler and Commissioner Lizarraga announce January departures. The timing coincides with critical decisions on cryptocurrency regulation and tech sector oversight.

Congressional Republicans advance legislation targeting tech platforms, while Justice Department’s antitrust actions against Google take center stage.

What to Watch

1. Tech Sector Regulation Impact:

• Justice Department’s stance on $GOOGL-Anthropic deal

• Congressional progress on app store age verification

• Implications of new SEC leadership on tech oversight

2. Small Cap Momentum Drivers:

• Russell 2000 sustainability above recent highs

• Sector rotation patterns

• Economic sensitivity indicators

3. Semiconductor Industry Dynamics:

• Supply chain improvements

• Demand metrics following record sales

• Impact on related tech sector valuations

4. Consumer Behavior Trends:

• Post-election sentiment patterns

• Retail sector performance indicators

• Holiday season positioning

Thanks for reading 🙂

- John