Show Notes
US stock futures are little changed as fresh economic data shows a pullback in consumer spending and moderating wholesale inflation — a combination that strengthens the case for a December Fed rate cut. September retail sales rose just 0.2%, down sharply from August’s 0.6% jump, while core wholesale inflation (PPI excluding food and energy) cooled to 0.1%, its softest reading since spring . Markets remain volatile as investors debate whether the Fed will resume cutting rates in the coming weeks.
Nvidia (NVDA) is under pressure after a report that Meta (META) is in talks to spend billions on Google’s TPU AI chips, signaling rising competition for Nvidia’s GPU dominance. Alphabet (GOOG) shares are surging, up 35% since mid-October, and have added more than $1.5 trillion in market cap. Analysts now say Alphabet could hit a $4 trillion valuation as early as next week if momentum continues — rivaling Nvidia’s 2023–2024 trajectory . Broadcom (AVGO) is also ripping higher as investors pile into alternative AI plays.
Retail earnings remain mixed. Dick’s Sporting Goods (DKS) beat on core results but is sinking as investors worry about its costly turnaround of Foot Locker after the $2.5 billion acquisition. The company expects $500–$700 million in charges tied to store closures and write-downs . Best Buy (BBY) delivered its strongest same-store sales growth in nearly three years — up 2.7% — driven by upgrades in computing, gaming, and mobile, enough for the retailer to raise its full-year outlook for the second straight quarter.
Meanwhile, investors are parsing broader retail signals as control-group sales (excluding autos and gas) rose just 0.1%, pointing to uneven consumer momentum heading into Q4. Still, major retailers like Walmart (WMT) and Gap (GPS) have turned in stronger Q3 results, underscoring a resilient — but highly selective — consumer.
Takeaways:
Retail spending cools; PPI softens — boosting odds of a December Fed cut
Alphabet surges toward a $4T valuation as investors rotate into Google’s AI ecosystem
Nvidia falls as Meta explores Google’s TPU chips; Broadcom rallies as another AI alternative
Best Buy posts strongest comps in 3 years and raises guidance
Dick’s Sporting Goods warns of $500–$700M in Foot Locker-related charges
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