“من غشنا فليس منا”
The Prophet (ﷺ) said: “Whoever cheats is not one of us.” (Sahih Muslim, #102)
Market Snapshot
▲ S&P 500 +1.60%
▲ SPUS +1.17%
▲ MSCI World Islamic +2.46%
*Market data for last week ending Friday
Last Week’s Review
NVIDIA Earnings Fail to Move Markets: NVIDIA reported a 94% year-over-year revenue increase, reaffirming its dominance in AI technology. However, the results weren’t enough to shift market sentiment as concerns about sustaining growth lingered, leaving broader tech stocks largely unchanged.
Retail Earnings Show Diverging Trends: Walmart delivered strong results, driven by robust e-commerce growth and an upbeat holiday outlook, while Lowe’s impressed by exceeding expectations and raising its full-year guidance. In contrast, Target disappointed with weak earnings and signs of strained consumer spending, and Home Depot narrowly beat forecasts but reported declining same-store sales, reflecting slowdown in home improvement demand.
This Week’s Outlook
PCE Price Index (November 27): The Fed’s preferred inflation measure is expected to show a 2.3% year-over-year increase. Any deviation from this expectation could significantly influence market sentiment and Fed policy projections.
Dell Technologies Earnings (November 26): Dell’s earnings will provide critical insights into enterprise spending and tech sector trends, particularly around hardware and cloud services. The results could set the tone for broader market sentiment in technology.
Curated Reads
Markets Rally as Trump Picks Scott Bessent for Treasury Secretary
President-elect Donald Trump’s selection of Wall Street veteran Scott Bessent as Treasury Secretary drove Dow futures up nearly 300 points and weakened the dollar. Known for his measured economic stance, Bessent supports extending tax cuts and backs cryptocurrency, aligning with Trump’s economic agenda. Markets have embraced the news, signaling optimism for growth and stability under the incoming administration. [Read]
24-Hour Stock Trading Gains Momentum
Brokerages are expanding trading hours to meet growing demand for round-the-clock access to U.S. stocks. Platforms like Robinhood and Interactive Brokers now offer overnight trading, with the NYSE planning to extend hours to 22 per day. The rise in 24-hour trading reflects the increasing globalization of markets and the influence of remote work, giving individual investors greater flexibility, but it comes at a cost. [Read]
Chart of the Week
Market Momentum Across the Board
Noble Corporation (NYSE: NE) is well-positioned to benefit from the energy sector’s anticipated high-growth phase, driven by increasing global demand and supportive policies under the next administration. Offshore drilling is set to be an early beneficiary of this recovery, as deepwater projects gain traction, and Noble’s strategic focus on this segment places it at the forefront of the market’s resurgence.
The company has demonstrated financial stability and strategic foresight, bolstered by recent acquisitions that have enhanced its market presence and operational efficiency. Notably, their cash position is strong relative to long term debt, which is unique among peers in energy. Volume profiles since 2023 indicate the strongest investor interest around $45, suggesting that even without potential growth, a reversion to this level alone could deliver substantial returns.
Disclaimer: This information is accurate as of the date of publishing and is not intended as investment advice.
Your Questions
Is trading Options permissible?
AAOIFI does not permit trading any type of Options. (Answered by Faraz Omar, AAOIFI Certified Shariah Advisor and Auditor)
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