Eksentricity

Tech

Quantum Computing

• IonQ Secures Major Air Force Contract: IonQ, a leading quantum computing company, secured a four-year, $54.5 million contract with the U.S. Air Force Research Lab (AFRL), marking IonQ’s largest contract in 2024. This agreement signifies a significant step forward for the quantum computing industry, particularly in integrating quantum systems with existing digital infrastructure.
• IonQ’s Financial Performance: While the AFRL contract is a positive development, IonQ reported a $49 million operating loss in the second quarter of 2024 on $11 million in revenue. Its cash reserves of $370 million, largely from its 2021 IPO, are rapidly being depleted at a rate of $124 million annually.

Digital Signage Growth

• Global Digital Signage Market Expansion: The global digital signage market is projected to grow from USD 20.1 Billion in 2024 to USD 27.3 billion by 2029, registering a CAGR of 6.3% during the forecast period. Increased adoption across various sectors, particularly in retail and hospitality, is driving this growth.
• North America’s Market Leadership: North America is expected to hold the highest market share in the global digital signage market in 2023. The region’s dominance is attributed to the presence of several digital signage software suppliers and increased use of advanced technologies.
• Opportunities and Challenges: The increasing adoption of digital signage in the industrial sector presents a significant opportunity. However, security concerns related to digital signage systems pose a challenge for the industry’s growth.

AI Expansion

• OpenAI’s Funding Round: OpenAI, the company behind ChatGPT, secured a $6.6 billion funding round, valuing the AI startup at nearly $157 billion. This funding will be used to bolster its liquidity and invest in high-cost computing capacity.
• AI Spending Surge: Analysts anticipate a “tidal wave” of AI spending, with OpenAI’s latest valuation serving as a catalyst for this growth stage. This signifies the substantial investment being poured into AI development and deployment across various industries.

Cryptocurrency and Binance’s Dominance

• Binance’s Market Share Decline: Crypto exchange Binance is losing its lead over competitors, facing regulatory headwinds across the globe. While Binance still holds the highest market share for spot and derivatives trading, its dominance has fallen to its lowest level since September 2020.
• Shrinking Trading Volumes: The narrowing of Binance’s lead coincides with a broader shrinking of spot and derivatives trading on centralized crypto exchanges. This indicates a cautious sentiment among investors in the crypto market.

Green Energy Partnerships

• Kazakhstan and Singapore’s Green Power Collaboration: AQGroup, Kazakhstan’s leading green electricity producer, and MVGX Group, a Singapore-based digital green fintech group, have announced a strategic partnership to build a hybrid green power plant in Kazakhstan.
• Carbon Credit Exchange: This collaboration also aims to establish a joint carbon credit trading exchange in Kazakhstan, utilizing tokenized real-world assets (RWA) to attract investors. This initiative highlights the growing importance of carbon credit markets and the role of blockchain technology in facilitating sustainable finance.

Fintech Battles Fraud and Regulations

• Revolut’s Call for Meta’s Assistance: U.K.-based fintech company Revolut has called on Meta Platforms to contribute to the costs of reimbursing victims of fraud. Revolut states that 69% of scams reported by U.K. customers in the first half of 2024 originated from Meta platforms.
• Meta’s Regulatory Scrutiny: Meta has faced criticism for its role in fraud cases, including potential sanctions from South Korea’s antitrust watchdog for alleged shortcomings in consumer protection. These regulatory challenges highlight the growing focus on consumer protection and cybersecurity on social media platforms.

Finance

Securities Class Actions

• Kaspi.kz (KSPI) Misleading Investors: Culper Research alleged that Kaspi.kz, a NASDAQ-listed fintech company, misled investors about its exposure to Russia, leading to a 16.1% drop in its ADSs on September 19, 2024. The Rosen Law Firm is investigating potential securities claims on behalf of shareholders who purchased Kaspi.kz securities.
• Starbucks (SBUX) Reinvention Strategy Lawsuit: A class action lawsuit was filed against Starbucks, alleging that the company misled investors about the success of its Reinvention strategy, particularly its global expansion plans. The Rosen Law Firm reminded Starbucks investors of the October 28, 2024 deadline to serve as lead plaintiff.
• DexCom (DXCM) Sales Force Misrepresentation: A class action lawsuit was filed against DexCom, alleging that the company misled investors about its salesforce’s ability to execute on its growth strategy. The Rosen Law Firm reminded DexCom investors of the October 21, 2024 deadline to serve as lead plaintiff.
• WM Technology (MAPS) Misleading Metrics: The SEC charged WM Technology with making negligent misrepresentations in its public reporting of monthly active users, leading to a 1.9% drop in the company’s stock price on September 25, 2024. The Rosen Law Firm is investigating potential securities claims on behalf of shareholders who purchased WM Technology securities.

New Stock Exchange – TXSE

• TXSE Listing Standards: Backed by Citadel Securities and BlackRock, the Texas Stock Exchange (TXSE) aims to disrupt the duopoly of Nasdaq and NYSE. It plans to implement stricter listing standards, potentially excluding over 3,000 companies currently listed on its rivals. The TXSE will file for registration with the SEC on December 1, 2024, with its first trades expected in December 2025.

Active vs. Passive ETFs – US

• Active ETFs Gaining Popularity: Actively managed ETFs captured 72% of the management fee income from net inflows into US-listed ETFs in 2024, indicating their growing popularity among investors seeking higher returns. This surge in popularity follows a period of dominance by passive ETFs, driven by lower fees and the commoditization of index-based investing.

Share Buybacks

• Global Share Buybacks: Several companies, including Arcadis (ARCAD), Sampo plc (SAMPO), Jyske Bank (JYKE), ICG Enterprise Trust (ICGT), and PayPoint plc (PAY), announced or completed share buyback programs. These programs are often used to return capital to shareholders, repurchase shares under employee incentive plans, or manage capital structure.

Dividend Stocks

• McCormick (MKC) Dividend Milestone: McCormick, a spice company, declared a quarterly dividend of $0.42 per share, marking the 100th year of consecutive dividend payments. The company is focusing on improving gross margins and higher-growth products.
• Stanley Black & Decker (SWK) Cost Cutting & Dividend: The global leader in tools and outdoor products is cutting costs, expanding margins, and repurchased $1.2 billion in debt during the second quarter. Its dividend yield currently stands at 3%.

Healthcare

Onco-Hematology Molecular Testing

• Hematological Cancer Incidence Rise: The global onco-hematology molecular testing market is experiencing rapid growth, fueled by a significant increase in hematological cancer cases worldwide. The American Cancer Society reported 59,610 new leukemia cases and 20,380 new acute myeloid leukemia cases in the U.S. in 2023 alone.
• Advanced Molecular Diagnostics: Advancements in molecular diagnostic technologies, such as next-generation sequencing (NGS) and polymerase chain reaction (PCR), are enabling faster and more accurate testing, further driving market growth.
• Personalized Medicine Adoption: The rising adoption of personalized medicine approaches, which tailor treatments to individual patient needs, is significantly increasing the demand for molecular testing to identify genetic mutations and biomarkers specific to each patient’s cancer.
• Regulatory Support: Regulatory approvals and government support for precision oncology testing, including investments in cancer research and diagnostic infrastructure, are contributing to market expansion, particularly in developed regions.

Immunotherapies

• LAG-3 Inhibitors Market Growth: The global market for LAG-3 inhibitor therapy is poised for significant growth. Opdualag, the first commercially available LAG-3 inhibitor, was approved in 2022 for melanoma and is projected to generate US$ 4 Billion in sales by 2029.
• Diverse Applications of LAG-3 Inhibitors: LAG-3 inhibitors are being explored for various applications, including combinations with other immunotherapies and chemotherapy, as well as potential use in combination with therapeutic vaccines, oncolytic virus immunotherapy, radiotherapy, and targeted therapies.
• Clinical Trial Pipeline: A robust pipeline of LAG-3 inhibitor candidates in late-stage clinical trials indicates a strong momentum in this therapeutic area.
• Key Players in LAG-3 Inhibitors: Major pharmaceutical companies, including Bristol Myers Squibb, Symphogen A/S, Hoffmann-La Roche, Immutep, invoX Pharma, Incyte Corporation, Regeneron Pharmaceuticals, and Merck, are actively involved in developing LAG-3 inhibitors. The U.S. market currently dominates this field, but China and Europe are also experiencing significant growth.

Rare Disease Therapies

• Pompe Disease Treatment Advancements: Amicus Therapeutics is advancing its development program for Pompe disease, a rare genetic disorder that affects muscle function. The company is presenting data at the World Muscle Society’s annual congress, showcasing the potential of its therapies in late-onset Pompe disease.
• New Treatments for Glioblastoma: Biodexa Pharmaceuticals is exploring MTX110, a potential treatment for recurrent glioblastoma (rGBM), a highly aggressive brain cancer. The company is conducting a Phase 1 study to evaluate the safety and efficacy of MTX110.
• Enjaymo Acquisition: Recordati is acquiring Enjaymo (sutimlimab), the only approved treatment for cold agglutinin disease (CAD), a rare autoimmune disorder. This transaction reflects the growing interest in developing therapies for rare diseases.

Emerging Therapies

• mRNA Vaccines for Cancer: The use of mRNA vaccines in cancer treatment is a rapidly evolving field. Over 60 mRNA cancer vaccines are currently in clinical trials, with the first commercial approval expected by 2029. The U.S. and China are leading the charge in this area, with over 45 vaccines currently in clinical trials.
• Tumor-Activated Cell Engagers: Xilio Therapeutics is developing tumor-activated cell engagers, a novel immunotherapy approach that aims to improve outcomes for cancer patients without the side effects of traditional immunotherapies. The company is presenting preclinical data at the SITC annual meeting, highlighting the potential of its technology.

Pharmaceutical Industry Trends

• Private Placements and Funding: Several pharmaceutical and biotechnology companies are raising capital through private placements to fund research and development efforts.
• Mergers and Acquisitions: The healthcare industry is experiencing a wave of mergers and acquisitions, with companies seeking to expand their product portfolios and market reach.
• Company Developments:
  • Molecular Partners AG: This clinical-stage biotech company is developing a new class of custom-built protein drugs known as DARPin therapeutics. The company plans to present data from its Phase 1 study of MP0317 in patients with advanced solid tumors at the Society for Immunotherapy of Cancer (SITC) annual meeting.
  • Immuron: Immuron is evaluating a new oral therapeutic targeting Campylobacter and Enterotoxigenic Escherichia coli (ETEC), the causative agents of traveler’s diarrhea, in collaboration with the US Naval Medical Research Command (NMRC).
  • Lifecore Biomedical: This contract development and manufacturing organization (CDMO) is expanding its capabilities, including the installation of a new 5-head isolator filler that will more than double its capacity. The company recently completed a $24.3 million private placement to support its growth strategy.

Challenges and Opportunities in Healthcare

• Cost Pressures: Pharmaceutical and biotechnology companies are facing increasing costs, including rising raw material prices, labor shortages, and regulatory hurdles.
• Competition: The healthcare sector is highly competitive, with companies vying for market share and funding.
• Regulation: The FDA and other regulatory agencies are carefully scrutinizing new drug applications, leading to longer approval timelines and increased costs for companies.
• Innovation: The healthcare industry is characterized by rapid innovation, with new technologies and therapies constantly emerging, creating opportunities for growth and disruption.

Economy & Real estate

US Economic Outlook

• Strong Labor Market: The US economy added 254,000 nonfarm payroll jobs in September, surpassing expectations and signaling a resilient labor market. The unemployment rate unexpectedly dropped to 4.1%, while average hourly earnings increased by 0.4%.
• Inflationary Pressures: Despite the strong jobs report, the Federal Reserve faces challenges in curbing inflation. Higher wages could fuel consumer demand and potentially slow disinflation efforts, leading to a delay or scaling back of anticipated interest rate cuts.

US Real Estate Development

• Improving Market Sentiment: The Federal Reserve’s recent interest rate cut has boosted buyer sentiment, encouraging real estate development as companies can borrow at lower costs.
• Supply Constraints and Demand: The elevated interest rate environment has slowed down new construction deliveries, leading to a shortage of new homes and contributing to favorable industry fundamentals. Demand for retail, industrial and logistics, and office real estate is growing due to factors like the resurgence of in-person shopping and the return of tenants to offices.
• Macroeconomic Uncertainty: Despite improving sentiment, macroeconomic uncertainty and geopolitical unrest continue to disrupt the supply chain, potentially affecting sales activity and keeping transaction volumes on the lower side.

China’s Economic Stimulus

• Deflationary Pressures: China faced looming deflationary pressures due to a prolonged real estate downturn and weakening consumer confidence, potentially leading to a Japan-style “lost decade” of stagnation.
• Stimulus Measures: To combat deflation, the People’s Bank of China implemented measures like a 50 basis-point cut to its reserve requirement ratio, a benchmark policy rate cut, cuts to existing mortgage rates, and reduced minimum down payment requirements for second homes.
• Market Response and Potential Risks: China’s stock market has responded with a significant rally. However, the sudden influx of capital into the economy could lead to stock market bubbles and potentially sow the seeds for another financial crisis.

Global Real Estate: Blackstone’s Investment Strategy

• Shifting Course: Blackstone Group, the world’s biggest private equity firm, has shifted its investment strategy, moving from selling a large chunk of its US commercial real estate portfolio to embarking on a spending spree, investing $60 billion in real estate this year.
• Market Rebound and Big Bets: Blackstone believes that the market is on the cusp of a rebound, driven by declining interest rates, a cooling economy, and robust demand for commercial real estate. The company is targeting office buildings, malls, and hotels, betting that a rebound in the economy will fuel demand for such spaces.
• Risk of Market Turmoil: Blackstone faces potential risks from the US economy’s headwinds, including high inflation, rising interest rates, and the possibility of a recession.

Ras El Hekma Megacity: Egypt

• Master Developer: Modon Holding PSC has been appointed as the master developer for the Ras El Hekma megaproject, a 170 million square meter urban community on Egypt’s Mediterranean coast.
• Development Plans: The project is envisioned as a fully functional, smart, sustainable, and inclusive city, with a focus on tourism, hospitality, residential areas, office spaces, retail, and leisure facilities.
• Economic Impact: Ras El Hekma is expected to become a major economic engine, generating a cumulative investment of US$110 billion by 2045, an annual GDP contribution of around US$25 billion, and approximately 750,000 jobs.
• Strategic Partnerships: Modon Holding is collaborating with key partners to realize the project’s vision.

Retail

Global Retail Performance

• Walmart’s Stock Surge: Walmart’s stock has experienced a significant increase in 2024, driven by resilient global macroeconomic conditions. Easing inflationary pressures and a focus on financial efficiency have led to strong earnings momentum. Walmart reported a 9.8% increase in adjusted earnings per share (EPS) in the second quarter, with comparable sales in the U.S. increasing by 4.2%. The company’s omnichannel strategy, including investments in technology and e-commerce, has also contributed to growth.
• Costco’s Membership Model: Costco, a leader in the membership-based club retail model, continues to see strong performance, with comparable sales growth of 6.9% in the last reported fiscal fourth quarter. Costco’s e-commerce segment experienced a notable acceleration, with comparable sales climbing 19.5%. The company’s membership loop, where loyal customers shop within its ecosystem, drives consistent cash flow and earnings quality. However, investors are paying a premium for this, with Costco shares trading at 50 times its consensus 2025 EPS.

Nike’s Struggles

• Revenue Decline & Leadership Change: Nike has reported several quarters of weak growth, including a double-digit decline in revenue in the most recent quarter. This decline comes despite high-profile sports events that typically drive spending on sports apparel and footwear. Nike’s revenue fell 10% to $11.6 billion in the first quarter, with Nike Direct revenue down 13%. The company’s decision to shift away from classic sneaker styles and tighten supply to support demand has contributed to the decline. Amidst this challenging period, Nike ousted its CEO, John Donahoe, who will be replaced by longtime company executive Elliott Hill.
• Potential Turnaround: While Nike’s stock is down roughly 50% from its peak, investors are hoping for a turnaround under the new leadership. However, the company’s earnings per share continue to fall, and a recovery is not guaranteed. Nike’s price-to-earnings ratio of 23 suggests it may not be as cheap as it appears.

US Retail Industry Outlook

• Consumer Cautiousness: Consumer confidence has dropped sharply in recent months, impacting the Zacks Retail-Home Furnishings industry. Consumers are becoming more cautious about jobs and business conditions, leading to a decline in furniture and home furnishing store sales.
• Fierce Competition: The home furnishing industry faces stiff competition from interior design trade, specialty stores, online retailers, and department stores.
• Digital Platform & Product Reinvention: Companies in the industry are focusing on digital platforms, product innovation, and enhanced marketing techniques to maintain competitiveness.

Apparel Stocks & Holiday Season

• Strong Holiday Outlook: The apparel industry is poised for robust growth this holiday season, fueled by a burgeoning millennial population and steady wage gains.
• Key Apparel Stocks to Invest In: Abercrombie & Fitch’s omnichannel capabilities, strategic marketing initiatives, and global expansion strategy position it for success. Genesco’s strong Journeys Group division, fueled by product enhancements and marketing initiatives, is driving growth. Gap is redefining its product offerings and investing in technology and digital channels to enhance customer experience. Boot Barn Holdings’ diverse product portfolio, omnichannel capabilities, and targeted marketing campaigns cater to a broad customer base.

Emerging Retail Trends

• Natural Grocers’ Ethical Focus: Natural Grocers, a leading natural and organic retailer, continues to promote its “Meet Your Farmer” film series, which highlights ethical and environmentally responsible food production practices. The newest film in the series, “Field to Can,” focuses on the growing and production practices of Natural Grocers’ Brand Canned Tomatoes’ supply partner, showcasing their environmentally friendly and zero-waste commitment.
• Cold Plunge Pool Market Growth: Compact cold plunge pools designed for small living spaces are gaining traction in urban areas, catering to residents seeking convenient wellness solutions. Rising temperatures due to climate change are increasing demand for cold plunge pools as people seek ways to cool off and combat heat stress. Cold plunge pools are becoming increasingly popular in medical tourism, rehabilitation centers, and corporate wellness programs due to their therapeutic benefits for post-workout recovery and stress relief. Medium-sized cold plunge pools (6-8 users) are leading the market, offering a balance between space efficiency and accommodating capacity.

Infrastructure

Sidewalk Repair in LA

• Safer-Sidewalks Initiative: Los Angeles is launching a new initiative, Safer-Sidewalks, to address the widespread sidewalk disrepair issue. This program aims to expedite repair processes and provide comprehensive support to property owners, including rebate applications, permit navigation, and direct sidewalk repairs.
• Addressing City Program Deficiencies: The existing Safe Sidewalks LA program, offering up to $12,000 in rebates, faces significant delays and covers only a portion of repair costs. This disparity often discourages property owners from participating due to the high overall cost of repairs, which can exceed $25,000.
• Impact on Property Owners and Repair Rates: As a result, approximately 80-90% of property owners choose not to utilize the city’s rebate program, leaving many sidewalks in a state of disrepair.
• Funding Allocation Concerns: Concerns remain regarding the effectiveness of the city’s funding allocation, prompting questions about where the funds are directed while numerous sidewalks remain broken.

Transmission Line Development in the US

• DOE Funding for Grid Enhancement: The U.S. Department of Energy has allocated $1.5 billion to four transmission projects, aiming to improve grid reliability and resilience. These projects will contribute to the development of over 1,000 miles of transmission lines and support the integration of 7,100 MW of new clean energy generation.
• Avangrid’s Aroostook Renewable Project: Avangrid secured a $425 million contract from the DOE for the construction of high-voltage transmission lines for the Aroostook Renewable Project in Maine. This project will connect 1,200 MW of renewable energy to the New England power grid, addressing transmission constraints hindering the development of renewable resources in Northern Maine.
• Utility Investment in Grid Infrastructure: Utility companies like Exelon Corporation and American Electric Power Company are investing heavily in their transmission and distribution networks. Exelon plans to invest $9.7 billion from 2024-2027 to strengthen its grid, while American Electric Power aims to invest $27.3 billion from 2024-2028 to improve grid efficiency and provide customized energy solutions.

Global Aerospace Valves Market

• Market Growth and Projections: The global aerospace valves market is projected to reach US$ 5.2 billion by 2031, growing at a CAGR of 4.9% from 2023.
• Technological Advancements in Aerospace Valves: The market is being driven by technological advancements, including the integration of digital technologies and sensors, the use of additive manufacturing, and the adoption of electro-hydraulic actuation systems. These innovations contribute to enhanced aircraft safety, efficiency, and maintenance practices.
• Competitive Landscape of Aerospace Valve Companies: The market is characterized by intense competition among leading players such as Honeywell International Inc., Parker Hannifin Corporation, Eaton Corporation, Moog Inc., Woodward Inc., Triumph Group, Inc., and Crane Aerospace & Electronics.
• Market Drivers for Aerospace Valves: Growth in the market is driven by factors such as the increasing demand for fuel-efficient aircraft, advancements in valve materials and design, expansion of the commercial aviation sector, rising investments in defense aerospace programs, and a focus on sustainability and environmental regulations.

CCUS Program in the UK

• Jacobs Support for UK CCUS Program: Jacobs Solutions Inc. has been chosen by the U.K. Department for Energy Security & Net Zero to provide technical project management support for the CCUS program. This program aims to decarbonize industry, generate low-carbon energy, and enable large-scale low-carbon hydrogen production.
• Jacobs Backlog Growth: Jacobs currently has a backlog of $30.6 billion, reflecting the company’s consistent contract wins and the growing demand for its consulting services in infrastructure, water, environment, space, broadband, cybersecurity, and life sciences.

Nuclear Research in Canada

• CNRI Program Expansion: Canadian Nuclear Laboratories (CNL) has expanded its collaborative research program, the Canadian Nuclear Research Initiative (CNRI), to include fusion-based research and development.
• Program Objectives for CNRI: CNRI seeks to accelerate the development of new reactor technologies, including SMRs and ARs, by connecting reactor vendors with CNL’s facilities and expertise.
• Program Benefits for Participants: Participants gain access to optimized resources, shared technical knowledge, and CNL experts, contributing to the commercialization of new nuclear and fusion-based technologies.
• Recent Program Achievements: Recent CNRI projects involve collaborations with Westinghouse Electric Company, Kairos Power, and Ultra Safe Nuclear, focusing on exploring and developing new reactor technologies.

Commodities

Oil Market Volatility

• Middle East Tensions Fuel Oil Price Surge: Oil prices surged this week as the escalating conflict between Israel and Iran raised concerns about potential disruptions to global crude oil supplies. WTI crude oil climbed 2.44% to $69.83 per barrel, while Brent crude saw a 2.6% increase, settling at $73.56 per barrel.
• Strait of Hormuz Concerns: Iran, a key oil supplier, controls the Strait of Hormuz, through which a significant portion of global oil trade flows. Any prolonged conflict could disrupt these shipments, potentially leading to severe consequences for energy markets.
• Impact of Potential Israeli Strikes: Analysts believe that Israeli retaliatory strikes on Iranian oil infrastructure could significantly impact global supply. If this occurs, oil prices could soar towards $100 per barrel.
• OPEC+ Output Increase: The Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) plan to increase output by 180,000 barrels per day (bpd) starting in December. However, these increases might not be enough to offset the potential impact of supply disruptions in the Middle East.

Natural Gas Market Outlook

• Limited Supply and Hurricane Risks: Natural gas futures continued their upward trajectory this week, rising 6.7% to $2.90 per million British thermal units (MMBtu) due to a combination of factors. The lower-than-expected increase in supplies coupled with the potential for hurricane-related production disruptions supported the upward trend.
• Demand Concerns: The demand for natural gas remains strong, but there are growing concerns over slowing global economic growth, which could weigh on demand in the future.

Uranium Market Resurgence

• Uranium Prices Surge on Nuclear Power Demand: Uranium prices have surged to their highest levels in over 15 years, driven by increased demand for nuclear power and efforts by the U.S. to secure domestic uranium supplies.
• U.S. Uranium Production Expansion: The U.S. has banned imports of Russian uranium, driving renewed interest in domestic production and bolstering the uranium market. Uranium Energy Corp. (UEC) is strategically expanding its U.S. uranium production capacity through the acquisition of Rio Tinto Plc.’s (RIO) Sweetwater Plant and associated Wyoming uranium assets.

Gold as a Safe Haven

• Gold Prices Hit Record Highs: Gold prices have been on a tear in recent months, reaching a new record high of $2,685.42 per ounce on Sept. 26, 2024. The Federal Reserve’s interest rate cuts and geopolitical tensions have driven safe-haven demand for the precious metal.
• Central Bank Gold Purchases: Central banks worldwide are actively purchasing gold, further bolstering demand and supporting prices.

Politics

US Political Landscape

• Port Workers Strike Ends with Record Wage Increase: The strike by 50,000 port workers on the East and Gulf coasts ended with a tentative agreement, averting a potential supply chain disruption. The agreement, including a 62% wage increase over six years and improved working conditions, addresses the International Longshoremen’s Association’s key demands.
• Liz Cheney Endorses Kamala Harris: Former Wyoming Representative Liz Cheney, ousted from the Republican party for criticizing former President Trump, endorsed Democratic presidential nominee Kamala Harris. This move is seen as a strategic effort by the Harris campaign to attract disillusioned Republican voters.
• Trump’s Social Security Tax Plan: Former President Trump proposed ending federal taxation of Social Security benefits, potentially popular with retirees. However, this could worsen the program’s financial stability. Taxation of benefits contributes significantly to the program’s revenue, and removing it could lead to benefit cuts.
• Immigration Debate Continues: A heated exchange between economist Justin Wolfers and Sen. J.D. Vance (R-Ohio) reignited the debate over immigration’s economic impact. Vance cited studies suggesting immigration increases housing costs, while Wolfers countered with the Congressional Budget Office’s (CBO) more positive overall economic assessment. The controversy reflects ongoing national discussions about immigration policy, housing affordability, and fiscal responsibility.

International Relations

• Germany Opposes EU Tariffs on Chinese EVs: Following pressure from industry leaders, Germany is poised to vote against the European Union’s proposed tariffs on Chinese electric vehicles. German carmakers fear retaliatory actions from China and potential trade conflicts. The EU’s decision on tariffs for Chinese electric vehicles has potential repercussions for international trade, with the EU aiming to protect its automobile industry from cheaper Chinese EVs.
• North Korea’s Nuclear Threats: Kim Jong Un issued a stark warning to South Korea, threatening nuclear retaliation if North Korea’s sovereignty is compromised. This warning comes amid heightened tensions between the two Koreas, with North Korea conducting missile tests and South Korea increasing military exercises with the United States.
• Allegations of Israeli Surveillance: Former UK Prime Minister Boris Johnson alleged that Israeli Prime Minister Benjamin Netanyahu’s visit to the UK in 2017 included the placement of a listening device in Johnson’s personal bathroom. This incident comes amidst escalating tensions in the Middle East.

US-China Tensions

• China and Russia Conduct Joint Military Exercises: North Korea’s recent missile tests, coinciding with joint military exercises by China and Russia, indicate a shift away from diplomatic negotiations with the United States. Analysts interpret these tests as a demonstration of North Korea’s commitment to expanding its nuclear and conventional arsenal.
• India Restricts Multi-Brand Retailing: India’s Commerce and Industry Minister Piyush Goyal ruled out the entry of multi-brand retailing in India, citing concerns about the impact on small businesses. This stance contrasts with the situation in the US, where large retailers and big tech have led to the decline of mom-and-pop stores.

Cryptocurrency Regulation

• Waters’ Shifting Stance on Crypto: Rep. Maxine Waters (D-Calif.), a vocal critic of the crypto industry, has recently acknowledged the inevitability of cryptocurrency. While she remains focused on investor protection, her comments suggest a potential shift in strategy towards a more nuanced approach to crypto regulation.

Stock Picks

Chinese Stocks

• Correction and Profit-Taking: After a strong rally spurred by the Chinese government’s economic stimulus package, Chinese stocks saw a slight correction. This correction is attributed to profit-taking by short-term investors. However, despite this downturn, most stocks remained in positive territory compared to last week’s closing prices.
• Stimulus Package: The Chinese government has unveiled a stimulus package aimed at boosting economic growth. This package, which is yet to be implemented, focuses on sectors such as real estate and financial services.
• Bilibili, Tencent Music, and Studio City: Bilibili (BILI), a Chinese video-sharing website, experienced a week-to-date gain of 18% as of Thursday. Other notable performers included Tencent Music Entertainment Group (TME) and Studio City International Holdings (MSC), which rose 10% and 11.6%, respectively, week-to-date.

Earnings and Dividends

• Apogee Enterprises Earnings: Apogee Enterprises (APOG) is anticipated to report quarterly earnings of $1.23 per share on revenue of $335.29 million. The company’s shares rose 0.1% to $68.50 in after-hours trading.
• Smart Sand Dividend: Smart Sand (SND) announced a special cash dividend of 10 cents per share and authorized a $10 million stock buyback. This news boosted Smart Sand shares by 14% to $2.28 in after-hours trading.
• Lifecore Biomedical Earnings: Lifecore Biomedical (LFCR) is expected to report a quarterly loss of 47 cents per share on revenue of $23.18 million. The company will release earnings after the market closes.
• Martin Midstream Partners Acquisition: Martin Midstream Partners (MMLP) has agreed to be acquired by Martin Resource Management. This news caused Martin Midstream Partners shares to jump 9.7% to $3.95 in after-hours trading.

Deckers Outdoor Performance

• S&P 500 Inclusion: Deckers Outdoor (DECK) was recently added to the S&P 500, marking one of only 11 companies to join the index this year.
• Forward Stock Split: The company also completed a 6-for-1 forward stock split, highlighting a history of strong business performance.
• Financial Results: Deckers reported record sales and profitability in fiscal 2024, ending March 31. The company’s first-quarter fiscal 2025 results, ending June 30, showed a 22% year-over-year increase in revenue to $825 million and an 87% surge in diluted EPS to $4.52.
• Analyst Sentiment: Analysts are bullish on Deckers, with 16 of 22 analysts rating it a buy or strong buy. The average price target suggests a 15% upside potential.

Growth Stocks

• BRF S.A, JD.com, and Sinclair, Inc. : BRF S.A (BRFS), a meat processing company, has a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for its current year earnings has increased 62.1% over the last 60 days. JD.com, Inc. (JD), a supply chain-based technology company, also boasts a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for its current year earnings has increased 17.1% over the last 60 days. Sinclair, Inc. (SBGI), a media company, also has a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for its current year earnings has increased 21.9% over the last 60 days.

Healthcare and Streaming

• Vertex Pharmaceuticals: Vertex Pharmaceuticals (VRTX), a healthcare company, is on the verge of receiving approval for several disruptive drugs. These include a new triple-combination cystic fibrosis therapy and a drug to treat moderate-to-severe acute pain ailments.
• Netflix: Netflix (NFLX), a streaming giant, has bounced back with healthy double-digit subscription growth and consistent profitability. The company’s recent changes, such as introducing an ad-based tier and cracking down on password sharing, have proven beneficial.