Stocks finished the week on a high note, with the Dow Jones Industrial Average rising 391 points, or 1.2%, and the S&P 500 gaining 1.6%. Chip stocks were among the biggest gainers in the index, particularly producers of chip-making equipment: KLA, Lam Research and Applied Materials ended the day up 5.5%, 5.4% and 5.3% respectively. The immediate trigger appeared to be a report in the South Korean press that memory chip-maker SK Hynix is planning a big increase in capital expenditures. But technology companies generally were in a mood to party: Apple, Microsoft and Meta Platforms rose 2.3%, 2.5% and 2.6%. The Nasdaq Composite finished the session up 2.1%. One company not celebrating was Diageo. Investors in the maker of Guiness beer and Johnnie Walker whisky might have needed a drink after its shares tanked 12% in London trading. In a profit warning, the company cited falling sales in Latin America. Here’s what else Heard on the Street was watching:
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Goldman Sachs Asset Management: The Tide Goes Out: Assessing Private Market GP Stability
A more challenging environment for private market fundraising requires many GPs to recalibrate and rethink resource allocation. Read More
Your Money Needs to Go on a Vacation By Spencer Jakab
A record number of Americans have been planning a foreign vacation. They should take their stock portfolios along with them. Keeping too much of your money where you live is a classic financial error called home-country bias—but it has been a lucky mistake lately. Not diversifying has paid off. Doing the wrong thing and getting the right result is no reason to keep doing it, though. In fact, it makes this an especially good time to diversify and look at the other three-quarters of the world’s economy. Foreign stocks look like a bargain. Read More
Private Equity, Now Featuring Less Equity By Telis Demos
Giants like Apollo, Blackstone and KKR made their names in the business of private equity. But today, the thing that investors seem most excited about is growth in their private credit businesses. Recent flows of money into what are now known as alternative-asset managers have often tilted toward alternative forms of lending and away from classic private-equity buyouts. Read More
In Brief
Swiss watchmaker Richemont is slowing down, writes Carol Ryan.
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Next week will feature the latest readings on the consumer price index, as well as earnings from major retailers including Target, Walmart, Macy's and Home Depot.
You Heard It Here First
Commercials can definitely have some value. The same apparently holds true for an announcement about a commercial. Take-Two Interactive saw its share price jump more than 5% on Wednesday after its Rockstar Games studio announced that it will release the first trailer for its next “Grand Theft Auto” video game in early December. That boosted Take-Two’s market cap by more than $1.2 billion, which may seem excessive for such a seemingly mundane announcement that didn’t even include a hint on when that game is actually coming. But Heard’s Dan Gallagher pointed out in August that pre-release hype for the long-awaited sequel to one of the world’s biggest game franchise is likely to be profitable for Take-Two’s investors. But the trick is not buying on the news, but ahead of the news: Waiting for the official announcement of “Grand Theft Auto VI” could cost some upside. Buying Take-Two’s stock on the day the company formally announced the last sequel in late 2011 would have resulted in a gain of 12% by the time of the game’s release, compared with a 45% gain if the shares were bought two months before the announcement. — Dan Gallagher
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