Monday's Scoop: Buoyant☀️

Hey friend - hope you had a nice weekend.

Insiders, catch up with the Weekly Scoop.

Here’s what you need to know today to inform your work, spending, and investments:

1. Cryptocurrencies are surging.

2. Corporate profits are growing but losing steam.

3. Global leaders are negotiating climate action this week.

Global Energy Emissions: 37.4 billion tonnes of CO₂
^{An all-time high, up 1.1% from 2022. (IEA)}

Global leaders are convening this week at the world’s most important climate conference. Nearly 200 nations are gathering at COP29 in Baku to discuss how to finance climate efforts in developing countries. According to reports from the United Nations climate summit, wealthy countries are trying to agree on a new annual funding target to replace the current $100 billion pledge that expires this year. Developing nations need more support to cope with climate-related challenges like extreme weather and rising sea levels. However, unfulfilled promises of financial support from wealthier nations have eroded trust and optimism in realistic action. This financial aid is crucial for projects that help communities adapt to climate change, such as building stronger infrastructure and improving disaster response. The decisions made at COP29 could influence how quickly these countries can implement measures to protect their environments and economies, affecting global efforts to address climate change.

The Market: ⬆️ +0.1%
S&P 500: 6,001.35
1Mo: +2% | 1Yr: +36% | 5Yr: +92%

The market floated to another record high on Monday, closing above 6,000 for the first time ever. Investors are still carrying the optimism around a Trump and Republican government for deregulation and tax cuts. There are some concerns about proposed policies reigniting inflation and worsening the US debt problem, but those are on the back burner for now.

Corporate profits are still growing but losing momentum. According to FactSet, with 91% of S&P 500 companies reporting third-quarter results, 75% have reported higher profits than investors expected, which is on par with the 10-year average but slightly below the 5-year average. However, companies have exceeded expectations by a smaller margin—only 4.3% above estimates versus the usual 6.8% over the past decade. Earnings have grown by 5.3% compared to the same quarter last year, marking the fifth consecutive quarter of profit growth for America’s largest companies. Sectors like Communication Services and Health Care are doing the best, while Energy and Materials have reported shrinking profits. Corporate profit growth drives the stock market, so weaker earnings could potentially drag on your investments and retirement savings.

Cryptocurrency markets are surging. Bitcoin's value hit a new record high on Monday, surpassing $85,000 on continued excitement around the election of Donald Trump to President and more crypto-friendly lawmakers into Congress. According to Coin Metrics, the cryptocurrency reached this milestone as investors grew excited about Trump's promises to make the US the "crypto capital of the planet." His campaign proposals, including creating a crypto advisory council and promoting US-based Bitcoin mining, have boosted confidence in a more supportive regulatory environment for digital currencies. Government support for digital assets could open access to a new range of potential investment opportunities and financial services.