Good Morning. This is the Investor Lookout with the daily digest to make you a smarter investor. (Keep an eye on the Lookout Watch to see how we’re doing!)

Here’s what we got today:

• 🛒 Label Oversight Leads to Massive Costco Butter Recall in Texas

• ✖️ Mass X-odus: Bluesky Gains 1M Users in Election Aftermath

Label Oversight Leads to Massive Costco Butter Recall in Texas

Costco forgot the secret ingredient in butter: milk. Costco ($COST) is facing a Class II recall of approximately 80,000 pounds of its Kirkland Signature butter products due to the warning label not containing the legally required notice that it contains milk. A Class II recall is characterized as a situation where a product might pose health consequences, but the probability of severe issues is unlikely. The recall affects both salted and unsalted butter distributed throughout Texas. Costco was already facing another recall for ready-made meal kits due to potential listeria contamination.

• 1,300 cases of unsalted and 900 cases of salted Kirkland Signature butter recalled

• Products affected had an expiration date spanning from February 22 to March 29, 2025

Mass X-odus: Bluesky Gains 1M Users in Election Aftermath

X marks the spot...where users are leaving. X, formerly Twitter, has been hit with highs and lows after Trump's election victory. Elon Musk's social media platform hit a peak of 46.5 million U.S. visits on November 6, a 38% increase above recent averages. On the same day, more than 115,000 visitors deactivated their X accounts, exceeding any previous day since Musk's takeover, according to the digital market intelligence company Similarweb. The winner though was social media website Bluesky, which received an influx of 1 million new users since the U.S. presidential election, mainly from the U.S., Canada, and the U.K..

• Bluesky's web traffic surpassed Meta's rival, Threads, for several days around the election

• Bluesky users reported higher-quality engagement despite having more followers elsewhere

Markets

US Supreme Court rebuffs challenge to New York rent stabilization. The Supreme Court rejected landlord groups' challenge to NYC's rent stabilization laws, aimed at preventing homelessness and reducing tenant dislocation. [Read]

Trump's tax cuts could boost S&P 500 earnings by 20% over the next 2 years, Goldman Sachs says. Goldman Sachs analysts predict significant growth over the next two years if Trump implements his proposed tax cuts. [Read]

Leading China investor Fred Hu advises Beijing to ‘stay cool’ amid Trump tariff threat. Primavera Capital Group's CEO, Dr. Fred Hu, asks Beijing to avoid retaliatory strikes against Trump tariffs to avoid a new trade war. [Read]

Business

SoftBank is betting on AI and an IPO revival after swinging to a $7.7 billion profit. SoftBank ($SFT) reported a $7.7 billion quarterly profit, reversing last year's $6 billion loss. The company had gains from both Vision Fund Portfolios, Vision Fund 1 reporting $3 billion in profits. [Read]

23andMe is falling apart. The genetic testing company reported a 12% revenue drop to $44 million in Q3, a day after downsizing staff by 40%. Additionally, they are winding down their drug development business and ending ongoing trials. [Read]

AbbVie’s disappointing schizophrenia drug trial bodes well for rival Bristol Myers, analysts say. Abbvie's ($ABBV) Phase 2 trial for schizophrenia treatment emraclidine failed. This removed any major competition for Bristol Meyer's ($BMY) recently approved drug Cobenfy. [Read]

Trump could dial back some proposed policies to avoid upsetting the stock market. BI

Could Trump appoint a 'shadow Fed chair' to rival Powell? Investing.com

Japan's political lynchpin Tamaki aims to unleash Yellen-inspired boom. Reuters

Trump’s Mass Deportation Promise. WSJ

China’s biggest shopping event of the year exceeds low expectations. CNBC

Elon Musk is no Kissinger, but may help improve U.S.-China relations. CNBC

Super Micro Needs a New Auditor by This Weekend. Its Options Are Limited. Barron's

Trump hunkers down with Elon Musk as officials reportedly jockey for jobs. Fortune

Big changes are coming for dollar and emerging markets. FT

Spirit Airlines Moves Toward Bankruptcy Filing After Frontier Drops Merger Bid. WSJ

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.