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Banks on the Brink
Financial stocks flashed warning signs, threatening to break key support levels.
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🎯 In this issue:
Banana Bits: Finance headlines that actually matter
Market Summary: Stocks slide as valuation worries hit tech and AI names
What’s Ripe / Rotten: The tastiest and most disgusting stocks
Technical Trip: Interview Question with PJT
Lesson from the Library: Master dashboards, visuals, and insights that make your data actually talk.
Deal Dispatch: M&A, IPOs, and other transactions
Market Snapshot
📉 Banana Bits
London stocks sank amid a global selloff driven by rate-cut and valuation fears.
The FTSE 100 logged its biggest drop since April as the rout deepened.
Tech volatility spiked as shaken markets fueled choppy trading.
Financial stocks flashed warning signs, threatening to break key support levels.
U.S. tech slid as traders worried AI valuations had gotten too frothy.
Lloyds’ head of capital markets is exiting as part of a reshuffle.
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Market Recap
U.S. Stocks Fall Again due to Valuation Concerns
U.S. stocks went down again on Tuesday, marking a fourth straight day of losses for the S&P 500, which dropped about 0.8%.
The DOW Jones Industrial Average fell around 1.1% and the Nasdaq Composite dropped about 1.2% as investors weighed down technology and high-valuation names.
Concerns about overextended valuations, particularly in the AI sector, and disappointments, such as Home Depot's weaker outlook, helped fuel this mood.
Global markets also reflected this caution, with major European and Asian indices falling as investors awaited key U.S. economic data and monitored the Federal Reserve's potential interest rate cuts.
Gold saw renewed interest amid the risk-off stance, while some sectors, such as small-cap stocks, held up slightly better. Company-specific earnings remained solid overall.
What's Ripe
Merck & Co Inc(MRK) 3.8%
They gained 3.84 after it posted better-than-expected earnings and reinforced its guidance, boosting investor confidence.
They received inflows as investors rotated into more defensive and stable sectors across broader market risk-off sentiment.
Amgen (AMGN) 0.7%
Amgen rose as its earnings beat estimates and its future looked positive.
They benefited from the day’s theme of moving away from high-beta tech names into more durable companies.
What's Rotten
Micron Technology (MU) 5.6%
MU fell 5.6% after issuing softer-than-expected demand guidance for memory and highlighting concerns about inventory build-up.
Amazon (AMZN) 4.4%
AMZN dropped around 4% in part because the tech and consumer tech space is under pressure from valuation concerns and slowing growth expectations.
It was also impacted by weaker sector sentiment overall and a flight to stability.
🧠 Technical Trip
Interview Question with PJT
👉 Want 1-on-1 recruiting help from PJT bankers & 2,000+ top mentors? Apply to WSO Academy
📚 Lesson from the Library
🎥 Power BI: Turning Data Into Decisions
Master dashboards, visuals, and insights that make your data actually talk.
🌟 WSO Academy Q4 Update
Boutique Investment Banking Internship
We’ve now placed 5 students in various boutique IB roles. As a reminder, we’ve partnered with our banking network to provide students with the opportunity to apply for an internship at one of our boutique investment banks.
🦈 Deal Dispatch
M&A, IPOs, And Other Notable Transactions
Mexico’s ASUR is buying Motiva’s Latin American airports in a $2.2B deal.
Dream Residential REIT closed its acquisition by Morgan Properties.
Salesforce completed its purchase of Informatica.
ASUR also signed a deal to acquire Motiva’s stakes across Brazil, Ecuador, Costa Rica, and Curaçao.
Topgolf Callaway will sell a majority stake in Topgolf to Leonard Green & Partners.
Banana Brain Teaser
Previous
In the xy-plane, what is the slope of the line with equation 3x + 7y = 9?
Answer: -3/7
Today
On a certain day, orangeade was made by mixing a certain amount of orange juice with an equal amount of water. The next day, orangeade was made by mixing he same amount of orange juice with twice the amount of water. On both days, all the orangeade that was made was sold. If the revenue from selling the orangeade was the same for both days, and if the orangeade was sold at $0.60 per glass on the first day, what was the price per glass on the second day?
Bet big only when you have the edge; otherwise, fold.
How Would You Rate Today's Peel?
Happy Investing,
Chris, Vyom, Ankit, Mitchell, Fernanda, & Patrick