GOOD MORNING

Here’s everything you need to know today: There are currently 14,157 publicly traded companies in the United States and over 1000+ articles released about S&P500 companies alone every single day. Today we will be showing you the top 3 events that you need to know today:

Market Performance (1 month)

1. Dow - 0.40%

2. S&P 500 - 1.61%%

3. Nasdaq - 3.01%

4. Bitcoin - 14.53%

Today (Here’s 3 things you need to know)  

1. Inflation on the rise again

We just got the PPI inflation report and it's much worse than expected.

The headline PPI inflation is up 3% year over year, much higher than the 2.6% expected by analysts, and up compared to last month's 2.6%.

The Producer Price Index represents inflation at the wholesale level. For example, it's inflation companies like Walmart and target see on the goods they sell, not inflation the end consumers see.

What's even worse is the headline PPI is now up for two months in a row after the feds started to lower interest rates in September 2nd.

The core PPI, which excludes food and energy to get a better look at the long-term inflation, is up 3.4%. 

With yesterday's CPI up and today's PPI up, the market is predicting a 93% chance of one rate cut for next week's Fed meeting on December 18th.

2. ServiceNow Riding the AI Wave with Expanding Growth Prospects

1 Year Performance (NOW): +60.30%

ServiceNow (NOW) has significantly outperformed its peers, with a 60.3% stock appreciation over the past year, driven by its cutting-edge Generative AI (GenAI) capabilities, expanding clientele, and strong partnerships with major tech players like Amazon, Microsoft, and NVIDIA.

The company’s latest Xanadu update showcases AI-powered solutions targeting industries such as telecom, financial services, and public sectors, solidifying its position as a leader in AI-driven enterprise solutions.

With a total addressable market expected to reach $275 billion by 2026, ServiceNow continues to innovate, adding over 150 GenAI advancements, including AI governance features to ensure responsible and secure AI adoption.

Financially, ServiceNow is well-positioned with $5.295 billion in cash as of September 2024 and a robust 31% free cash flow margin. It has raised its 2024 subscription revenue guidance to $10.66 billion, representing a 23% year-over-year growth, while continuing share repurchases to enhance shareholder value.

Strategic alliances with AWS, Microsoft, NVIDIA, and others bolster its AI offerings and market expansion. Although trading at a premium valuation, ServiceNow’s innovative portfolio, financial strength, and sustained growth justify its position as a strong investment opportunity.

3. Adobe posts strong earnings, stock falls 12%

1 Year Performance (ADBE): -24.46%

Adobe (ADBE) delivered strong fourth-quarter fiscal 2024 results, with non-GAAP earnings per share of $4.81, up 12.6% year-over-year, and total revenue of $5.61 billion, an 11.1% increase.

Both figures surpassed analyst expectations, driven by robust growth in the Digital Media and Digital Experience segments.

Creative Cloud saw solid demand, aided by advancements in Generative AI tools like Firefly, while Document Cloud also performed well, growing 17% year-over-year.

The company’s partnerships with tech leaders like Microsoft, Amazon, and Google further bolstered its portfolio and customer adoption.

Despite these achievements, Adobe's fiscal 2025 outlook fell short of market expectations, with projected revenue of $23.3–$23.55 billion and earnings of $20.20–$20.50 per share, below consensus estimates.

The conservative guidance, attributed to unfavorable currency impacts and a shift to subscription-based models, overshadowed Adobe’s strong quarterly results, leading to a significant decline with the stock down over 12% on the day.

Investors remain cautious about the company’s ability to sustain growth amid macroeconomic uncertainties.

Market Memes Of The Day

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