The stock market closed relatively mixed on Wednesday ahead of the latest inflation data. Investors also contemplated on the possibility that the interest rates may be cut sooner. Fed Governor Christopher Waller sees no reason for interest rates to stay high if inflation continues to ease.
Meanwhile, the US third quarter GDP showed a 5.2% growth. This was driven by government spending and investments in nonresidential structures.
Overall, S&P 500 was down 0.1% to 4,551, while NASDAQ fell 0.2% to 14,258.
Tweet of the Day
2024 is a Presidential Election Year.
Since 1928, the $SPX has delivered a negative return in only 4 (out of 24) Election years.
The $SPX has finished green in 83% (20/24) of Election years for an average gain of +11%. pic.twitter.com/2KzmjBP693
— David Marlin (@Marlin_Capital) November 29, 2023
Chart of the Day
Here is the one-year chart of Fortinet (FTNT) as of November 8, 2023, when the stock was at $50.
Fortinet is a one-stop-shop that can handle all the cybersecurity needs of organizations. Many companies utilize multiple cybersecurity vendors to handle different tasks within the organization. The different systems then have to be patched together to work together. Fortinent delivers hardware, software, and technical support for a range of offerings for cybersecurity. Now, the company offers firewall-based Zero Trust Network Access. Zero Trust is a concept that verifies everyone (or everything) that tries to connect to the company network before given access.
Fortinet stock fell hard after the company released last quarter’s results as there was material weakness in cybersecurity firewall hardware. Network firewall appliances monitor network traffic and block hackers at an organization. However, the growth in cloud computing has caused less of a need for on-site equipment. During the past three quarters, hardware sales growth has fallen from +30% to +18% to -1%. Billings growth has also slowed during that time from +30% to +18% to +6%.
FTNT was sold from the Growth Portfolio.
