Hedge fund guru David Einhorn, with Greenlight Capital's impressive 27.7% gain in the first nine months of 2023, expresses market concerns. Expecting rising oil prices, Einhorn positions for undervalued stocks, his insights closely watched for investment trends.
In a Wednesday letter to Reuters, Einhorn and team highlight worry due to heightened geopolitical tensions, foreseeing a lasting impact and projecting downward pressure on stock prices beyond the short term.
Wednesday, November 15, 2023
Appaloosa Trims Holdings in QCOM, TSM, and INTC
The fund reduced its position in Qualcomm Inc. (QCOM) to 1.3 million shares from the previous 1.85 million. Additionally, it diminished its holdings in Taiwan Semiconductor Manufacturing Co. (TSM) to 1 million shares from 1.78 million, and trimmed its stake in Intel Corp. (INTC) to 6.25 million shares from the prior 6.78 million.
Appaloosa Management Adjusts Portfolio: Boosts Amazon, Drops Apple
In a recent filing with the Securities and Exchange Commission, Appaloosa Management, led by David Tepper, strategically adjusted its portfolio. Notably, the fund augmented its stake in Amazon.com Inc. (AMZN) while concurrently reducing its holdings in Apple Inc (AAPL).
The quarterly filing reveals nuanced adjustments, including increased positions in Google's (GOOGL) parent company, Alphabet Inc., and Meta Platforms Inc. (META), alongside additional investments in Microsoft Corp. (MSFT) and Caesars Entertainment Inc (CZR). On the flip side, the fund divested its Apple and Broadcom Inc. (AVGO) stakes, signaling a calculated reshaping of its investment portfolio.
Iron Ore Shortfall Forecast Despite China's Fiscal Boost
Goldman Sachs predicts a year-end iron ore shortfall due to low inventories and declining production, citing a potential deficit rather than a surplus. The report highlights Beijing's substantial fiscal spending as a positive indicator for domestic growth, potentially boosting demand for iron ore in construction. Despite caution regarding China's property sector challenges, the market outlook leans towards an iron ore deficit.
Target (TGT) Triumph: Profits Soar 15% with Operational Excellence in Q3
Target Corp. (TGT) shares surged following a strong third-quarter earnings report, showcasing enhanced operational efficiency. Improved inventory management and reduced markdowns contributed to profits surpassing estimates, despite a decline in sales.
Inventory dropped by 14% from the previous year, marking a consistent trend. The stock experienced its most significant rise since August 2019, soaring up to 15% in New York trading.
Post-Rally: Treasuries Decline, U.S. Retail Resilience, and Producer Prices Drop
In the aftermath of a rally, Treasuries experience a decline as astute traders meticulously assess data. Despite a tempered pace in U.S. retail sales preceding the holiday season, their resilience persists. Notably, producer prices exhibit their most substantial decline since April 2020, primarily attributed to a downturn in gasoline prices.
Inflation Eases: U.S. Producer Prices Fall Below Forecasts
Further indications of abating inflation are evident as U.S. Producer Prices experienced a 0.5% decline in October, with a mere 1.3% rise over the past year. These figures significantly deviated from consensus forecasts, which anticipated a 0.1% monthly increase and a 2.0% year-on-year upturn.
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