Good morning! EV startup Rivian snagged $6.6 billion in funding from the U.S. government. Citi denied a report by the Financial Times that it’s cutting its promotion pool by 75%. Airlines are under Senate investigation after raking in $12.4 billion from seat selection fees over six years.

The Fed signaled gradual rate cuts if inflation stalls, consumer confidence reached its highest level since July 2023, and Kohl’s has a new CEO.

Plus, data centers powering AI could soon use more energy than entire cities, and AI interviews are set to become the norm.

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_{SQUEEZ OF THE DAY}

The New Zoom

Zoom was once one of the pandemic darlings of the stock market. But the stock has tumbled almost 90% from its 2020 highs… and the company is trying to reinvent itself and chart a new way forward.

Zoom wants to be known as an “AI-first work platform.” As part of this pivot, it’s officially dropping the “Video” from its name. From this day on, "Zoom Video Communications Inc." will simply be "Zoom Communications Inc." Groundbreaking, right?

They don’t want you to just know them for their video calls - they’re launching a full Zoom Workplace suite, business email, and even AI-powered productivity tools.

Zoom is also dropping Zoom AI Companion 2.0, which includes features like summarizing meetings so you can skip them entirely (and finally live your dream of being “present” without actually being present).

Zoom isn’t alone in rethinking its strategy amid the AI boom. Big Tech giants like Amazon, Google, Meta, and Microsoft are set to invest nearly $300 billion in AI-related initiatives next year.

Like other pandemic stars, such as Peloton, Zoom has struggled to stay relevant as the world returned to the office. But Zoom will forever hold a special place in our hearts—along with sourdough bread and Tiger King—when we think of those early Covid days.

Takeaway: Name changes are indeed a trend among big companies. Meta, formerly Facebook, rebranded itself to focus on the metaverse, and Salesforce’s CEO, Marc Benioff, has reportedly considered a name change to reflect the company’s AI focus. AI-first or not, we all know the first thing people associate with Zoom is 'You’re on mute.’

_{PRESENTED BY OPTIFINO}

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_HEADLINES

Top Reads

• US makes a $6.6B bet on Rivian (YF)

• Fed officials keep options open on rate cuts (CNBC)

• Citigroup calls Financial Times report ‘false’ on LinkedIn (Linkedin)

• Senate report slams airlines for raking in billions in seat fees (Axios)

• Consumer confidence rises to highest level since July 2023 (YF)

• Data centers powering AI could use more electricity than entire cities (CNBC)

• Donald Trump lays down his first marker on tariffs (YF)

• Disney agrees to pay $43M to settle gender pay lawsuit (CNN)

• Jamie Dimon says the next generation of employees will work 3.5 days a week (YF)

• Kohl's gets a new CEO (CNBC)

• DEI rollback reaches Walmart as backlash mounts (YF)

• Databricks closes in on multibillion funding round at $55B valuation (CNBC)

_{CAPITAL PULSE}

Markets Rundown

Mega-Cap Stocks Lead Wall Street to Record Highs
Wall Street extended its winning streak to seven sessions, hitting fresh record highs as mega-cap stocks like Apple, Meta Platforms, Alphabet, and Microsoft rebounded strongly. Nvidia joined the late-session rally despite recent profit-taking. While mega-cap strength supported the major indexes, broader market sentiment was less upbeat, with two-thirds of NYSE stocks trading lower at midday.

Tariff concerns briefly resurfaced after President-elect Trump announced plans for higher tariffs on imports from Mexico, Canada, and China. This news initially lifted the U.S. dollar and pushed Treasury yields higher, with the 10-year note climbing to 4.3%. However, dovish interpretations of the Federal Reserve's latest minutes and anticipation of today's inflation data kept rate fears subdued.

Key Sector and Stock Moves
Cyclical and international trade-exposed stocks like Micron, ExxonMobil, and Ford faced pressure amid tariff worries, dragging the materials sector lower. Energy stocks also fell as crude oil prices dipped on reports of a ceasefire in Lebanon. On the flip side, utilities surged, buoyed by falling yields, while mega-cap-dominated sectors like information technology and communication services led gains.

Retailers saw mixed fortunes. Best Buy dropped nearly 5% after reporting weaker-than-expected sales, while Kohl’s plunged 17% on a disappointing holiday forecast. Amgen tumbled over 6% despite positive weight-loss drug trial results, which failed to exceed expectations set by competitor Eli Lilly.

Upcoming Inflation Data in Focus
Market attention now turns to today's Personal Consumption Expenditure price index (set to be released at 10am ET), the Fed’s preferred inflation gauge. Analysts expect core PCE inflation to rise 0.3% month-over-month, with annualized rates climbing to 2.8% from 2.7%. Persistent inflation could complicate the Fed’s goal of a 2% target, but markets are pricing in a 63% chance of a 25-basis-point rate cut at the December FOMC meeting, up from 52% yesterday.

Consumer Confidence and Housing Data
The Conference Board’s Consumer Confidence Index rose to 111.7, signaling robust consumer sentiment heading into the holiday season. However, October new home sales fell sharply to an annualized pace of 610,000, a 17.3% monthly decline, raising concerns about the housing market. Homebuilder stocks like KB Home and Toll Brothers slumped in response.

Looking Ahead
The Federal Reserve's minutes highlighted a gradual approach to rate cuts, with policymakers expressing optimism about inflation moving toward target levels. However, persistent inflation risks and tariff uncertainties could test the market’s resilience as investors navigate a packed economic calendar and holiday-shortened trading weeks.

Movers & Shakers

• (+) Semtech Corp ($SMTC) +18% after the semiconductor company raised its guidance.

• (–) Abercrombie & Fitch ($ANF) -5% after the retailer’s revenue missed Wall Street’s expectations.

• (–) Kohl’s ($KSS) -17% after weak results; the company’s CEO will resign.

Private Dealmaking

• Affinity Equity Partners bought Yupi for $1.2 billion

• Berry Global sold its specialty tapes business to Nautic Partners for $540 million

• Affinity Equity Partners bought Golden Fresh for $450 million

• Cradle, an AI software provider, raised $73 million

• OneRail, an omnichannel fulfillment startup, raised $42 million

• Federato, an insurance underwriting platform, raised $40 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

_{BOOK OF THE DAY}

The Hidden Habits of Genius

Einstein. Beethoven. Picasso. Jobs. The word genius evokes these iconic figures, whose cultural contributions have irreversibly shaped society.

Yet Beethoven could not multiply. Picasso couldn’t pass a 4th grade math test. And Jobs left high school with a 2.65 GPA. What does this say about our metrics for measuring success and achievement today? Why do we teach children to behave and play by the rules, when the transformative geniuses of Western culture have done just the opposite? And what is genius, really?

Professor Craig Wright, creator of Yale University’s popular “Genius Course,” has devoted more than two decades to exploring these questions and probing the nature of this term, which is deeply embedded in our culture. In The Hidden Habits of Genius, he reveals what we can learn from the lives of those we have dubbed “geniuses,” past and present.

Examining the lives of transformative individuals ranging from Charles Darwin and Marie Curie to Leonardo Da Vinci and Andy Warhol to Toni Morrison and Elon Musk, Wright identifies more than a dozen drivers of genius—characteristics and patterns of behavior common to great minds throughout history.

He argues that genius is about more than intellect and work ethic—it is far more complex—and that the famed “eureka” moment is a Hollywood fiction.

Brilliant insights that change the world are never sudden, but rather, they are the result of unique modes of thinking and lengthy gestation. Most importantly, the habits of mind that produce great thinking and discovery can be actively learned and cultivated, and Wright shows us how.

This book won’t make you a genius. But embracing the hidden habits of these transformative individuals will make you more strategic, creative, and successful, and, ultimately, happier.

“A person of talent hits a target that no one else can hit; a person of genius hits a target that no one else can see.”

_{DAILY VISUAL}

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_{DAILY ACUMEN}

Over-diversification

You’ve probably heard the saying, “Don’t put all your eggs in one basket.” Diversification reduces risk, but over-diversification—holding too many assets that are only marginally distinct—has its costs.

Many investors think more diversification automatically means lower risk, but at a certain point, it becomes counterproductive.

Once you hold 30 to 40 stocks, adding more doesn't significantly reduce risk—especially if those companies move in similar directions.

Worse, it dilutes your potential gains because only a handful of investments are likely to be big winners.

Instead of creating a sprawling portfolio, smart investors focus on a manageable number of high-conviction bets that offer both diversification and the potential for outsized returns.

It's less about having every basket and more about choosing the right ones to carry.

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Short Squeez Picks

• Interactive AI interviews are going to become a new norm

• Boost your team’s productivity by hiring force multipliers

• How to develop a growth mindset

• All good leaders have this mindset, no matter the background

• Self-confident men who make an impact usually display these behaviors 

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Memes of the Day