Transcript:
Conway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
A stronger-than-expected retail sales report is letting some air out of the stock market’s post-election rally. October retail sales grew by 0.4 percent and September’s number was upwardly revised. Investors see this as a sign of economic strength, which now calls into question whether the Federal Reserve will need to lower interest rates in December.
Related: Veteran investor connects with Taiwan Semiconductor after sales
In other headlines, The Biden Administration is rushing to close business deals with only a few weeks left to go before it hands over the reins.
The Commerce Department put the final touches on a binding contract that awards a $6.6 billion government subsidy to Taiwan Semiconductor (TSMWF) . The money is to be used for semiconductor manufacturing in Arizona.
As part of the deal, TSMC agreed to invest about $65 billion to expand operations in Phoenix, in order to build its most advanced chips. It also agreed to limit stock buybacks for five years and share excess profits with U.S. taxpayers.
The money used for the subsidy is part of the Biden Administration’s $52.7 billion Chips and Science Act passed by Congress in 2022, which was designed to encourage more manufacturing of the crucial tech component here in the U.S. $36 billion of that money is earmarked for projects involving Samsung, Intel, and Micron Technology.
The Biden Administration says the investment is necessary to keep America competitive in the tech world and to prevent any supply chain disruptions if tensions escalate between Taiwan and China. President-Elect Donald Trump is a vociferous opponent of the subsidy.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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