This week ahead || Dec 4th - Dec 8th 2023
Al Gore slams COP28 climate summit host UAE, says its emissions soared
Former U.S. Vice President Al Gore criticized the UAE, the host of the COP28 climate summit, stating that its position overseeing international climate negotiations was an abuse of public trust. Gore specifically targeted COP28 President Sultan al-Jaber, who heads the UAE's national oil company ADNOC. He accused the UAE of abuse by appointing the CEO of one of the largest and least responsible oil companies in the world to lead COP28. Gore presented data at the conference showing a 7.5% increase in the UAE's greenhouse gas emissions in 2022, compared to a global rise of 1.5%. Gore also criticized the presence of oil and gas companies at the summit, urging delegates to prioritize the phase-out of fossil fuels in the final text without caveats or mentions of carbon capture technology. Exxon Mobil CEO Darren Woods' participation was also questioned by Gore, who accused him of prioritizing profits over the survival of human civilization.
Investors look to labor market for more soft landing evidence: What to know this week
The November jobs report, scheduled for release Friday, is anticipated to be a key factor in shaping market sentiment on the Federal Reserve's future policy decisions. Investors are closely watching for signs of a cooling labor market, and a report showing moderate job growth could support the idea of a "soft landing," where inflation returns to 2% without a significant economic downturn. After weaker-than-expected job growth in October, economists project an increase in job additions in November. The outcome will be crucial in determining whether the recent sentiment that the Fed is done hiking interest rates and could even cut rates is reinforced or contradicted.
This week in EVs: Tesla holds Cybertruck launch event
Tesla CEO Elon Musk has officially unveiled the company's long-awaited electric pickup truck, the Cybertruck, at an event in Austin, Texas. The Cybertruck is designed to be bulletproof, "rockproof," and has an 11,000-pound towing capacity. Musk described it as a "better truck than a truck" and a "better sports car than a sports car" in the same package. The truck comes in three versions with prices ranging from $60,990 to $99,990. Deliveries of the all-wheel-drive version and the high-end version are scheduled to begin in 2024, while deliveries of the base model are expected to start in 2025. Tesla's stock rose following the announcement.
Tax-loss selling, 'Santa rally' could sway U.S. stocks after November melt-up
As the year-end approaches, U.S. investors are closely monitoring various factors that could influence equities in the remaining weeks of 2023. Key catalysts include the trajectory of the Federal Reserve's monetary policy, potential tax loss selling, and the traditional "Santa Claus rally." The market has seen significant gains in 2023, driven by expectations of a potential rate cut by the Federal Reserve and favorable seasonal trends. The upcoming U.S. employment data on December 8 will be closely watched for indications of economic growth. December historically tends to be a strong month for stocks, with a potential Santa Claus rally contributing to market gains. However, tax loss selling could put pressure on underperforming stocks, with some rebound potential later in the month and into January. Despite the overall market rise, concerns about investor exuberance have been raised, particularly after significant moves in speculative names during November's rally. Analysts are also monitoring indicators like BofA's Bull & Bear indicator, which recently moved out of the "buy" zone for the first time since mid-October.