Group 1: Market Sentiment and Trends - Stocks are gaining momentum ahead of Thanksgiving, with bullish bets for 2026 increasing [1][2] - Kevin Hassett is emerging as the front-runner for the next Fed Chair, contributing to market optimism [16][19] - Investors are shifting towards more defensive corners of the equity markets amid ongoing competition [2] Group 2: Company Earnings and Performance - Deere's fiscal outlook for 2025 fell short of expectations, leading to a 4% drop in shares [3][11] - The company expects net income to decline over 10% next year, indicating a prolonged downturn in the North American agricultural sector [12] - NVIDIA shares have seen a significant decline of over 14% this month, but are experiencing a slight rebound [4][55] Group 3: Competitive Landscape in Technology - NVIDIA faces new competition from Google's TPU chips, raising concerns about its market share and investor sentiment [4][6] - Despite competition, many analysts still believe NVIDIA will remain a dominant player in the AI market [7][8] - Companies connected to Alphabet, like Broadcom, are performing well, while those tied to NVIDIA are struggling [9][10] Group 4: Economic Indicators and Consumer Behavior - The U.S. economy is expected to see moderate growth, with fiscal stimulus and a neutral Fed interest rate outlook [45] - Consumer confidence has dropped significantly, with 42 million Americans on food stamps, indicating a bifurcated consumer landscape [46][48] - Economic growth is primarily driven by middle and upper-income consumers, while lower-income consumers continue to face challenges [49][50] Group 5: Regulatory and Policy Implications - The potential nomination of Kevin Hassett as Fed Chair has raised questions about the independence of the Fed, but market reactions have been positive [18][22] - The U.S. has negotiated significant Medicare drug price cuts, which could impact pharmaceutical companies and overall healthcare costs [32] - The U.K. budget unveiling faced a premature release of information, revealing a fiscal cushion increase driven by new taxes [34][36]

Core Viewpoint - Deere's shares are experiencing a slight decline due to the company's announcement that tariffs and cost pressures will continue to be a "persistent challenge" in fiscal 2026 [1] Company Summary - The company is headquartered in Moline and is facing ongoing challenges related to tariffs and rising costs, which are expected to impact its financial performance in the upcoming fiscal year [1]

Group 1 - The S&P 500 is experiencing significant gains during the Thanksgiving week, with most sectors benefiting from the rally [1][2] - Enterprise software and health care stocks are notably underperforming, missing out on the broader market gains [1][2] - Workday is identified as the largest laggard in the S&P 500, alongside other companies like Deere, Intuit, Salesforce, and ServiceNow, which are also trading lower [2] Group 2 - Workday and Deere reported disappointing quarterly results, contributing to their stock declines [2] - Salesforce, another key player in the enterprise software sector, is set to report its quarterly results in a week [2]

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Core Viewpoint - Kingfisher plc emphasizes its commitment to improving homes and lives, positioning itself as a leader in the home improvement market with a focus on delivering better homes for customers [2]. Company Overview - Kingfisher holds leading positions (1 or 2) in its markets, which are collectively valued at GBP 160 billion, indicating significant market potential and structural growth drivers [2]. Financial Performance - The presentation includes an overview of Kingfisher's H1 results and Q3 data, highlighting the company's financial performance and outlook for the year [1]. Strategic Initiatives - The company aims to update stakeholders on key strategic initiatives that align with its investment story and medium-term financial priorities [1].

Market Overview - U.S. equities continued to rise, with major indexes extending a multi-day winning streak, driven by optimism for a Federal Reserve interest rate cut in December and dovish economic data releases [1][8] - The Nasdaq Composite led the gains, climbing 1%, while the S&P 500 and Dow Jones Industrial Average rose 0.9% each, marking their fourth consecutive day of gains [2][3] Economic Indicators - Expectations for a 25-basis-point rate cut by the Federal Reserve in December are high, with probabilities around 80-85%, supported by weaker-than-expected economic data [3][6] - Recent economic data included a decline in September retail sales, a softer Producer Price Index (PPI), decreased consumer confidence, and a drop in private payrolls [3] Sector Performance - Technology stocks were the primary drivers of the market rally, with the "Magnificent Seven" technology stocks significantly contributing to the overall market performance [4] - The Health Care Select Sector SPDR and Consumer Discretionary Select SPDR also performed well, gaining 2.3% and 2.1% respectively, while the housing sector benefited from a decline in Treasury yields [4] Corporate News and Stock Highlights - Apple shares rose about 1% as it is expected to surpass Samsung in global smartphone shipments for the first time in 14 years [7] - Dell Technologies surged 6-6.4% after announcing record orders for its AI servers, indicating strong demand in the AI infrastructure space [11] - Advanced Micro Devices (AMD) rose approximately 3.5%, while Broadcom gained about 3% [11] - Nvidia experienced a significant drop of 2.6-3.9% on Tuesday but rebounded slightly on Wednesday, facing increased competition in the AI chip market [11] - Urban Outfitters soared between 10% and 12.1% after reporting stronger-than-expected quarterly results, while Workday sank 9% despite positive earnings [11] - Petco surged 19.8% after raising its fiscal year earnings outlook, and Robinhood Markets jumped 10.7% following plans to launch a futures and derivatives exchange [11]

Core Insights - Deere & Company (NYSE:DE) is a leading manufacturer in the agricultural, construction, and forestry machinery sectors, recognized for its green and yellow equipment and strong global market presence [1] - The company reported earnings per share (EPS) of $3.93 for the fiscal fourth quarter, exceeding the estimated $3.85, indicating strong profitability despite a decline in stock price influenced by market factors [2][6] - Revenue for the fiscal fourth quarter reached approximately $12.4 billion, surpassing the estimated $11.8 billion, reflecting robust sales performance [3][6] Financial Metrics - The price-to-sales ratio is about 3.10, indicating that investors value each dollar of sales highly, reflecting confidence in the company's revenue-generating capabilities [3] - The enterprise value to sales ratio is around 4.44, showing the total valuation relative to sales, while the enterprise value to operating cash flow ratio is approximately 22.53, emphasizing operational efficiency [4] - The debt-to-equity ratio is approximately 2.65, indicating a higher reliance on debt for financing compared to equity, but the current ratio of around 2.31 suggests strong liquidity to cover short-term liabilities [5][6]

Core Insights - Deere & Company reported fourth-quarter fiscal 2025 earnings of $3.93 per share, missing the Zacks Consensus Estimate of $3.96, with a 14% decrease from the prior-year quarter due to higher production costs and tariff impacts offsetting gains from increased volumes [1][10] - Net sales of equipment operations reached $10.6 billion, up 14% year over year, exceeding the Zacks Consensus Estimate of $9.99 billion, while total net sales were $12.4 billion, an 11% increase year over year [2][10] Financial Performance - The cost of sales increased by 21% year over year to $7.94 billion, leading to a total gross profit decrease of 2.7% to $4.45 billion [3] - Selling, administrative, and general expenses rose by 3.6% to $1.28 billion compared to the prior-year period, resulting in total operating profit (including financial services) dipping 7% year over year to $1.35 billion [3] Segment Performance - Production & Precision Agriculture segment sales rose 10% year over year to $4.74 billion, beating estimates, but operating profit decreased 8% to $604 million due to higher production costs [4] - Small Agriculture & Turf sales increased 7% to $2.46 billion, with operating profit slumping 89% to $25 million due to higher warranty expenses and tariffs [5] - Construction & Forestry sales were $3.38 billion, up 27% year over year, with operating profit increasing 6% to $237 million despite increased production costs [6] Financial Services - Revenues in the Financial Services division were $1.55 billion, up 2% year over year, with net income rising to $293 million from $173 million in the prior-year quarter due to favorable financing spreads and lower provisions for credit losses [7] Cash and Debt Position - Cash and cash equivalents at the end of fiscal 2025 were $8.28 billion, up from $7.32 billion at the end of fiscal 2024, while cash flow from operating activities decreased to $7.5 billion from $9.23 billion [8] Fiscal Guidance - For fiscal 2026, Deere expects net income between $4.00 billion and $4.75 billion, with net sales for Production & Precision Agriculture projected to decrease by 5-10%, while Small Agriculture & Turf sales are expected to rise by 10% and Construction & Forestry sales by 10% [12] Stock Performance - Deere shares have gained 5.7% over the past year, outperforming the industry's growth of 4.5% [13]

Core Viewpoint - Deere & Co has indicated a significant increase in tariff impacts for 2026, forecasting annual profits below market expectations due to weaker margins on large tractors, resulting in a 5% drop in share prices [1] Financial Forecast - The company anticipates a pre-tax tariff impact of approximately $1.2 billion in fiscal 2026, up from nearly $600 million in 2025 [2] - Annual net income for fiscal 2026 is projected to be between $4.00 billion and $4.75 billion, which is below analysts' estimates of $5.33 billion [3] Quarterly Performance - For the latest quarter, Deere reported a net income of $1.06 billion, or $3.93 per share, down from $1.24 billion, or $4.55 per share, in the same period last year [4] - The fourth-quarter revenue increased by 11% to approximately $12.4 billion, exceeding estimates of $9.85 billion [4] Market Conditions - Lower crop prices and rising production costs have led farmers to postpone significant purchases, opting instead for rentals or pre-owned equipment [2] - The company is exploring production shifts, higher pricing, and expanding its used equipment portfolio to mitigate weak demand [3]

We're back on Morning Trade Live. Deer is moving lower this morning after beating earnings estimates on the top and bottom lines. The issue investors are having is with the guidance here.Deer is projecting weakness across multiple divisions next year as agriculture weakness continues. So, we are seeing shares getting hit right now. We're at 47 471 and change.Let's go inside out on this name deer after earnings. Joining us now is Jonathan Sraa, VP of equity research at CFR research. Thank you so much for joi ...