Nvidia reported its Q3 earnings on Wednesday, surpassing analysts' expectations once again.

Here are a few key highlights:

1. Revenue reached $33.28 billion, up 84% year-over-year, exceeding the anticipated growth of 81%.
2. Data center revenue, driven by AI chip demand, surged 200% to $29.5 billion.
3. Gaming and AI PC revenue grew 16% to $2.9 billion.

But Nvidia's impressive earnings could actually complicate Trump's presidency…

As Nvidia heavily influences the performance of the three major U.S. indexes — it’s now listed on the Dow, S&P 500 and Nasdaq — everyday Americans often conflate stock market success with economic health.

To be clear: The market is stocks. The economy is what you talk about around the dinner table. (Nothing could be truer considering around 40% of Americans do not even own stocks.)

In terms of the economy that Trump will inherit, Paradigm’s macro authority Jim Rickards says: “There are ample signs that the economy is headed for a recession — or may already be in one — including higher unemployment, declining oil prices and lower interest rates.”

It’s that last variable that took me off guard. “Low rates don't mean stimulus,” Jim explains. “Hell, we had super low rates during the Great Depression.”

The big question isn't whether the Fed will cut rates, according to Jim. That's just theater.

• The real question is whether banks will start lending again. And whether businesses will start borrowing again to fund growth, manage cash flow and hire new employees.

Getting back to NVDA’s strength-to-strength performance…

Will the Trump administration convince Americans that the market/economy is thriving? It would be an intoxicating cocktail for any politician to exploit.

Or will Team Trump strengthen the economy by reversing Biden's policies? That’s our topic today…

Your Rundown for Friday, November 22, 2024...

Illegal Immigration: A National Emergency?

Donald Trump is poised to implement a series of executive orders immediately upon taking office on January 20th.

His transition team indicates these changes will occur at an unprecedented pace and will unwind some of President Biden’s pet policies.

On his first day in office, for instance, Trump plans to reverse several Biden-era policies, including ending travel reimbursements for abortions and access to sex-reassignment procedures among military personnel.

Not only will Trump’s administration address these culture war issues, his primary focus will be on immigration, arguably the centerpiece of Trump's campaign.

Trump has already signaled he will sign up to five executive orders specifically targeting illegal immigration shortly after his inauguration:

1. Mandatory Detention: Enforcing mandatory detention for undocumented immigrants, eliminating the practice of releasing them pending hearings
2. Expanded Detention Facilities: Increasing the number of detention centers to accommodate a surge in detentions
3. “Remain in Mexico” Policy: Reviving the policy requiring asylum seekers to wait in Mexico during their U.S. immigration proceedings
4. Revised Asylum Rules: Tightening asylum eligibility criteria
5. Increased Enforcement: Enhancing ICE's authority and resources for interior enforcement operations

Then there’s Trump’s pet project…

“Just hours after President Joe Biden took office in January 2021, he signed [an] order to immediately halt construction on former President Donald Trump’s signature border wall,” says U.S. News & World Report.

But immediately after his inauguration: “Trump intends to send National Guard troops to the border and declare illegal immigration a national emergency to unlock funds for border wall construction,” Reuters says.

How does any of this impact the economy? Just ask overburdened “sanctuary cities” including New York, Chicago and Denver.

With about 11 million noncitizens living in the U.S., deporting even a fraction of that number could free up funding, jobs and services to benefit American citizens.

But as Trump prepares for his second term, he’s aware of the urgency to enact his agenda before potential midterm election challenges in 2026 jeopardize Republican control.

His advisors stress that he must act decisively to make substantial changes — particularly in immigration enforcement — which remains a cornerstone of his political identity.

Market Rundown for Friday, Nov. 22, 2024

S&P 500 futures are down about 0.10% to 5,965.

Oil is down about 1% to $69.40 for a barrel of WTI.

Gold’s up about 1% to $2,700 per ounce.

And Bitcoin’s pulled back 0.25%... but at $98K, it’s well on its way to $100K.