Eksentricity

Tech

AI Advancements

• Defense AI Partnerships: Palantir (PLTR) partners with L3Harris (LHX) to develop AI-driven targeting technologies for the U.S. military. This collaboration focuses on integrating software and hardware for more advanced defense capabilities, aiming to leverage American software expertise against China and Russia.
• AI Agent Competition: Salesforce (CRM) CEO Marc Benioff criticizes Microsoft (MSFT) for its AI tools, claiming they are overhyped and underperforming. Microsoft’s Dynamics 365 AI agents, directly competing with Salesforce’s Agentforce CRM lead, are viewed as a sign of “panic mode” due to Microsoft’s alleged lack of data and security models.
• Next-Gen AI Model Launch: OpenAI is gearing up to launch its latest AI model, Orion, in December. Initially available to select partners, including Microsoft, which will reportedly host it on Azure, Orion is expected to be significantly more powerful than GPT-4.
• AI Software Growth: Analysts predict solid growth for AI software stocks and ETFs due to increasing adoption across industries, cloud computing integration, and innovation in AI technologies. Cathie Wood (Ark Invest) invests in leading AI software startups, while publicly traded stocks like C3.ai (AI) and Microsoft are highlighted as growth opportunities.

Semiconductors & Cloud

• Nvidia’s Market Dominance: Nvidia’s (NVDA) market capitalization surpasses the combined totals of Germany and Italy, reflecting the company’s growth in the AI wave. Nvidia expands its global footprint in India and Thailand, aiming to develop domestic semiconductor supply chains.
• Nvidia Profit-Taking: Billionaire hedge fund managers like Ken Griffin, David Tepper, and Stanley Druckenmiller have reduced their Nvidia positions. This is likely driven by Nvidia’s valuation, competition from clients like Microsoft, Alphabet, Amazon, Tesla, and Meta, and a general market fear of a bubble burst.
• Strong Chip Demand: The semiconductor market is experiencing strong growth in 2024 and 2025, driven by AI, the smartphone market’s turnaround, and a recovery in the PC market. World Semiconductor Trade Statistics (WSTS) projects a 16% increase in revenue for 2024, followed by 12.5% growth in 2025.
• Micron’s Memory Boom: Memory is predicted to be the fastest-growing semiconductor segment in 2025, with Micron (MU) positioned to benefit from strong demand and improved pricing.
• AWS & Google Nuclear Investments: Amazon Web Services (AWS) and Google announce agreements to advance nuclear energy projects, aiming to generate clean energy for data centers. This reflects the growing adoption of nuclear energy for powering AI.

European Tech News

• Signify’s CFO Appointment: Signify (Euronext: LIGHT) confirms the appointment of Zeljko Kosanovic as Chief Financial Officer.
• Digitalist Group’s Cautious Optimism: Digitalist Group Plc reports a decrease in turnover and EBITDA for the third quarter of 2024, citing a weak Finnish economy, but sees improving market conditions in Sweden.
• Innofactor’s Managers’ Transactions: Innofactor Oyj discloses that Onni Bidco Oy, a closely associated person, acquired 1,838 shares in the company.
• Lleida.net’s Profitable Growth: Lleida.net, a technology services company, reports a 10% increase in sales in the first half of 2024, driven by a focus on increasing standard users and improving profitability.
• Anoto’s Capital Raises: Anoto Group AB plans to raise SEK 86 million through a directed share issue, rights issue, and set-off issue. The proceeds will be used for manufacturing, marketing, and general corporate purposes.

Cryptocurrency & Blockchain

• Microsoft’s Bitcoin Investment Consideration: Microsoft announces it will consider investing in Bitcoin BTC/USD during its upcoming shareholder meeting in December, with its board advising voting against the plan. The shareholders cite Bitcoin’s price gains and growing institutional interest in the cryptocurrency.
• Binance Blockchain Week 2024: Binance Blockchain Week 2024, under the theme “Momentum,” will focus on key topics such as technology, regulation, community, and the social impact of blockchain. It will feature notable speakers and an Innovation Stage showcasing cutting-edge platforms and trends.
• Ethereum & Solana’s Diverging Trajectories: Solana’s SOL/USD price surges over 13% in a week, outperforming Ethereum’s ETH/USD price, which declines by 4.63%. Analysts cite the AI meme coin trend, technical indicators, and Solana’s network strengths as reasons for the divergence.
• KuCoin’s Options Trading Upgrade: KuCoin introduces European-style options for sophisticated traders, allowing for exercises only at the expiration date. The service supports major cryptocurrencies like BTC and ETH.

Other Tech News

• Digital Realty’s Record Results: Digital Realty Trust (DLR) reports record results for the third quarter of 2024, with strong demand for data center capacity driven by AI-related use cases.
• Tech Boom Forces US Funds to Dump Shares: US mutual funds and exchange-traded funds are selling off stocks to avoid breaching a tax rule that limits passive income, impacting tech stocks, which have driven the recent bull market.
• Tesla’s Energy Growth: Tesla’s energy generation and storage business sees record growth in the third quarter, driven by strong demand for its Megapack and Powerwall products. Tesla also plans to build a new Megapack factory in Shanghai.
• Western Digital’s Strong Flash and HDD Performance: Western Digital delivers strong results in the first quarter of fiscal 2025 with revenue growth in both Flash and HDD segments, driven by the cloud and data center markets.
• Bitget Wallet’s ApeChain Integration: Bitget Wallet integrates with ApeChain, the native blockchain of the Bored Ape Yacht Club, simplifying access to decentralized exchanges and meme coin trading.
• OKX Wallet’s ‘Mantle TG Adventure’ Campaign: OKX Wallet partners with Mantle Network to introduce a campaign with a 100,000 MNT prize pool. Users can participate in Telegram mini-app games to explore the Mantle ecosystem.
• OKX Wallet’s ‘Smart Sync’ Enhancement: OKX Wallet enhances its Spot Copy Trading tool with a new ‘Smart Sync’ feature, enabling customers to automatically mirror a lead trader’s spot portfolio.
• Atos’ Litigation Update: Atos announces a new trial to determine compensatory damages related to a trade secret misappropriation and copyright infringement case involving Syntel, now part of Atos.
• Tonner Drones’ Debt Relief: Tonner Drones (formerly Delta Drone) lowers interest rates on its debt and terminates a high-interest product. The company expects to become profitable in 2025.
• Ripple’s Appeal: Ripple Labs files a cross-appeal in its legal battle with the Securities and Exchange Commission, contesting several elements of a key ruling regarding its XRP sales. This case highlights the ongoing uncertainty surrounding how securities laws apply to digital assets in the U.S.

Finance

Bank Performance

• Earnings and Revenue: Bank earnings were mixed in the third quarter of 2024. While some banks exceeded analysts’ expectations, others fell short. This reflects the varied performance of different banks in response to the changing economic landscape.
• Net Interest Income (NII): NII generally increased for most banks due to higher interest rates. This is a direct consequence of the Federal Reserve’s recent rate hikes, which boosted banks’ profitability on loans. However, a few banks experienced a decline in NII due to decreased loan balances or increased funding costs.
• Credit Quality: Provisions for loan losses were generally stable or decreased in the third quarter, suggesting an improved credit quality and an optimistic outlook on the overall economy. This indicates that banks are expecting a lower rate of loan defaults in the coming months.
• Non-Interest Income: Non-interest income performance varied across banks. While some companies experienced growth driven by increased fee income or wealth management activities, others saw a decline due to factors like reduced trading revenue or market volatility.

Asset Management

• Asset Under Management (AUM): Asset management companies saw robust AUM growth in the third quarter, driven by positive market performance and net inflows from investors. This indicates that investors are continuing to allocate capital to asset management firms, driven by the positive market environment.
• Earnings Performance: Earnings generally improved for asset managers, reflecting increased revenues from management fees and improved investment performance. This positive trend is a reflection of the strong market performance and the increasing demand for asset management services.
• Market Volatility and Investor Sentiment: Volatility in the markets and investor sentiment did have an impact on the performance of some asset managers. This is due to the fact that asset managers are heavily reliant on market conditions and investor sentiment, both of which can fluctuate significantly.

Investment Firms

• Mergers and Acquisitions (M&A): M&A activity within the finance sector was robust, with several notable deals completed during the quarter. This trend suggests that investment firms are actively seeking to expand their reach and market share through strategic acquisitions.
• Private Credit: Private credit markets continued to grow, with investment firms increasingly focused on expanding their lending businesses. This reflects the growing demand for alternative lending options, particularly in light of the recent increase in interest rates.
• Capital Returns: Many financial institutions continued to return capital to shareholders through share repurchases and dividend increases. This demonstrates the strong financial position of these firms and their commitment to rewarding shareholders.

Fintech and Insurance

• Financial Technology (Fintech): The fintech sector showed mixed performance, with some companies experiencing robust growth while others faced challenges. This suggests that the fintech industry is still in a period of rapid evolution and consolidation, with winners and losers emerging as the sector matures.
• Insurance: Insurance companies generally saw strong revenue growth, driven by higher premiums and investment income. However, underwriting profitability was impacted by increased catastrophe losses. This suggests that the insurance industry is facing significant challenges in managing risk and responding to climate change.

Healthcare

Drug Development & Approval

• New Drug Approvals & Generics: ANI Pharmaceuticals launched Estradiol Gel, 0.06%, a generic version of EstroGel, after receiving FDA approval. This limited-competition product is expected to generate $16.7 million in annual sales, demonstrating the continued growth in the generic drug market.
• Clinical Trial Progress & Cancer Treatment: Revolution Medicines presented positive preliminary safety and antitumor data for its RAS(ON) G12D-selective inhibitor, RMC-9805, in patients with previously treated pancreatic ductal adenocarcinoma. The data showed an encouraging safety profile, tolerability, and antitumor activity, potentially offering a new treatment option for this challenging cancer type.
• Emerging Biotech Companies & IPOs: Septerna, a clinical-stage biotechnology company, priced its upsized initial public offering of 16 million shares at $18 per share, raising $288 million. Septerna focuses on G protein-coupled receptor (GPCR) oral small molecule drug discovery, highlighting the ongoing interest in innovative drug development within the biotech sector.
• Antimicrobial Resistance & New Treatment Options: Iterum Therapeutics received FDA approval for ORLYNVAH™ (sulopenem etzadroxil and probenecid) for the treatment of uncomplicated urinary tract infections in adult women. This is the first FDA-approved product for Iterum and offers an alternative treatment option for patients with limited oral antibacterial treatment options, addressing the growing concern of antimicrobial resistance.

Pharmaceutical Company Performance

• Strong Q3 Performance & Growth Drivers: Sanofi reported a strong third quarter with 15.7% sales growth at CER, driven by Dupixent, pharma launches, vaccines, and Opella. Business EPS grew 12.2% to €2.86. Sanofi upgraded its 2024 business EPS guidance to at least a low single-digit percentage at CER due to strong underlying business performance, demonstrating confidence in its future growth prospects.
• Clinical Trial Success & Stock Market Response: Zai Lab Limited announced an objective response rate of 74% for its investigational candidate, ZL-1310, in patients with recurrent extensive-stage small cell lung cancer (SCLC). This encouraging Phase I data led to a 14.7% surge in ZLAB shares, showcasing the market’s positive response to promising clinical trial results.

International Healthcare Developments

• Cannabis Breathalyzer Development: Avalon GloboCare Corp. and Qi Diagnostics Limited entered into a memorandum of understanding to co-develop a VOC nanosensor-based point-of-care cannabis breathalyzer, reflecting the growing interest in developing technology to address the increasing use of cannabis.
• Supply Chain Diversification in India: Syngene International, a leading biopharmaceutical company, emphasized the urgent need for India to establish robust, China-independent supply chains. Syngene is making significant investments to reduce its reliance on Chinese suppliers, highlighting the global trend of supply chain diversification in the healthcare sector.

Healthcare Investment Landscape

• Biotech Investment Opportunities: While biotech stocks are volatile, several companies are positioned for success based on their strong pipelines, promising drug candidates, and recent approvals. Investors are showing continued interest in biotech companies with strong fundamentals and potential for future growth.
• Medical Device Companies & Strong Earnings: Several medical device companies reported strong earnings, demonstrating their ability to meet the growing demand for innovative healthcare solutions. This suggests a positive outlook for medical device companies, driven by technological advancements and the increasing focus on patient care.
• Healthcare REITs & Growing Demand: Healthcare real estate investment trusts continue to perform well, driven by the growing demand for healthcare facilities. This trend is expected to continue as the aging population and the increasing focus on healthcare infrastructure drive demand for healthcare real estate.

Economy & Real estate

Freebie Schemes in India

• Impact on Work Ethic and Corruption: The implementation of freebie schemes like Maazhi Laadki Bahin Yojana in Maharashtra and a similar scheme in Madhya Pradesh has raised concerns about their potential negative impact on the economy. The author, Amol Dethe, believes that these schemes could discourage work ethic and lead to increased corruption, ultimately hindering long-term economic growth.
• State Finances and Debt Burden: These schemes are placing a significant burden on state finances, contributing to a surge in debt levels. With over 1.12 crore women applying for the Maharashtra scheme and 1 crore 6 lakh approvals granted, the financial implications are substantial, raising concerns about the sustainability of these programs.
• Pressure on Banks: The influx of individuals opening bank accounts to receive these payments is putting pressure on banking systems, potentially leading to operational challenges. The author emphasizes the need for a shift in focus towards sustainable economic opportunities, promoting self-reliance, and providing targeted assistance rather than relying on freebies.
• Potential for Political Gain: Critics argue that these schemes are primarily driven by political motivations, seeking to secure votes rather than addressing underlying economic issues. The long-term consequences of this approach on economic development remain a subject of debate.

BRICS and De-Dollarization

• Putin’s Strategy: Russian President Vladimir Putin has advocated for an alternative to the US dollar, aiming to diminish its dominance as the world’s reserve currency. He has proposed the creation of a new international payment system that could reduce US influence in global finance.
• BRICS Expansion and Alternative Order: The BRICS bloc, comprising Brazil, Russia, India, China, and South Africa, has expanded to include Iran, Egypt, Ethiopia, the United Arab Emirates, and Saudi Arabia. This expanded bloc aims to promote an alternative economic and financial order, potentially challenging the US- and European-led system.
• Concerns from Europe: European officials have expressed concerns about the potential for a BRICS-led alternative to the US dollar, arguing that it could destabilize the global financial system. They worry about the impact on existing financial frameworks and the potential for increased volatility.
• Feasibility of De-Dollarization: Experts are skeptical about the feasibility of a BRICS-led de-dollarization, citing the bloc’s diverse economic and financial structures. The dollar’s dominance remains significant, holding a 58% share of global foreign reserves in 2022 compared to the euro’s 21%.

US Economy and Fed Policy

• Job Market Slowdown: Recent data suggests a potential slowdown in the US job market. While new applications for unemployment aid unexpectedly fell last week, the number of people receiving benefits remains high. The hurricanes and the Boeing strike have distorted employment data, but the Fed is expected to remain cautious about easing interest rates too quickly.
• Durable Goods Orders Moderate: Durable goods orders for September were mixed, with headline orders declining but non-defense, ex-aircraft orders remaining positive. This indicates a moderate pace of business spending growth, suggesting a cautious approach to investment amidst economic uncertainty.
• Housing Market Trends: New single-family home sales increased in September, but an increase in supply could make builders hesitant about new projects. Lower interest rates are expected to support housing demand, but the recent increase in mortgage rates may lead to a slowdown in future sales.

Global Real Estate Operations

• Office Leasing Growth: Cushman & Wakefield, KE Holdings, Colliers International, and Jones Lang LaSalle are experiencing continued growth in office leasing, driven by rising demand for high-quality office spaces. Despite increasing interest rates, the strong leasing market is expected to support these companies’ performance.
• Residential REIT Performance: UDR, a leading multifamily REIT, is set to announce its third-quarter 2024 results. While revenues are expected to grow, FFO per share may decline due to increased competition and rising interest expenses. Other residential REITs, like AvalonBay Communities and Independence Realty Trust, are expected to report strong results.
• Mortgage REIT Performance: NexPoint Real Estate Finance is projected to report improved revenues and earnings for the third quarter, driven by a positively sloped yield curve and increased refinancing activity. However, the company faces challenges from higher funding costs and asset impairment risks.
• Data Center Performance: Digital Realty Trust’s third-quarter results are expected to reflect strong leasing activity and increased rental rates. However, higher rental property expenses and interest expenses are anticipated to impact the bottom line. The company’s strong backlog indicates future growth potential.

Retail

E. coli Outbreak Impact

• McDonald’s Response: McDonald’s removed fresh onions from its menus due to an E. coli outbreak associated with the vegetable. The outbreak has caused 49 illnesses and one fatality, with Taylor Farms, the supplier for affected McDonald’s locations, recalling their product. The U.S. Food and Drug Administration (FDA) identified contaminated yellow onions from a Colorado facility as the source.
• Consumer Sentiment: The outbreak follows a recent report of E. coli cases linked to McDonald’s hamburgers, resulting in a drop in the company’s shares. The CDC has announced 49 cases across 10 states, with most sick individuals reporting eating Quarter Pounder hamburgers from McDonald’s. While analysts initially believed the impact on McDonald’s stock would be minimal, David Tarantino, an analyst at Baird Equity Research, downgraded McDonald’s shares to “neutral” due to consumer sentiment concerns.
• Stock Performance: On Thursday, McDonald’s stock traded 1% higher at $301.58 in the regular session and was largely flat in the after-hours trading.
• Future Impact: It is unclear how the outbreak will affect McDonald’s business, especially if case numbers increase. Investors are concerned about potential sales decline, as the company has been trying to rebound from lagging traffic. Investigations into multistate foodborne outbreaks can last from a few weeks to several months.

Skechers Q3 Performance

• Record Sales: Skechers achieved record third-quarter sales of $2.35 billion, a 16% increase, driven by strong international growth, continued momentum in domestic wholesale, and durable gross margins. Earnings per share reached $1.26, a 35% increase.
• International Growth: International sales increased 16%, representing 61% of total sales. EMEA saw a 30% growth due to increases across all markets, while the Americas experienced a 14% increase led by the United States and Canada. APAC saw a 7.4% increase, led by Japan, Korea, and India.
• China Challenges: Despite impressive international sales growth, Skechers faced challenges in certain markets, particularly in China, where consumer discretionary spending has been impacted. The company remains confident in its ability to withstand these short-term impacts.
• Future Outlook: For the full year 2024, Skechers expects sales between $8.925 billion and $8.975 billion and earnings per diluted share between $4.20 and $4.25, representing annual growth of 12% and 21%, respectively, at the midpoint. This implies fourth-quarter sales between $2.165 billion and $2.215 billion and earnings per diluted share between $0.70 and $0.75. The company remains committed to achieving $10 billion in sales by 2026 and delivering sustainable growth.

Restaurant Industry Performance

• Sales Growth: The U.S. restaurant industry experienced solid growth over the past two years despite challenges from higher borrowing and raw material costs. Higher personal income has contributed to increased spending on dining out. The Commerce Department reported impressive growth in restaurant sales in September, boosting overall retail sales.
• Value Focus: Budget-conscious consumers are seeking affordable dining options, making the value-focused segments increasingly competitive. Brands are intensifying their promotional efforts and offering deals to attract and keep customers.
• Fed Rate Cuts: The Federal Reserve cut interest rates by 50 basis points last month after inflation declined for months. The Fed’s first rate cut since March 2020 comes after it hiked rates by 525 basis points to combat inflation. Lower borrowing rates will benefit both restaurant owners and consumers. Market participants anticipate two more 25-basis-point rate cuts this year, further easing price pressures and boosting the restaurant industry.
• Restaurant Stock Picks: Dutch Bros Inc. ( BROS ), Brinker International, Inc. ( EAT ), Texas Roadhouse, Inc. ( TXRH ) and The ONE Group Hospitality, Inc. ( STKS ) are four restaurant stocks with solid growth potential for the rest of 2024, having seen positive earnings estimate revisions in the last 60 days. Each of these picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Kenvue’s Activist Investment

• Share Price Decline: Despite being spun off from Johnson & Johnson last May, Kenvue’s stock has fallen by about 15% since then.
• Stagnation: Kenvue’s stock has been pressured by stagnation. The company forecasts net sales growth of between 1% to 3% this year.
• Marketing Investment: Starboard Value, an activist investor, recently announced a stake in Kenvue and believes the company should spend more on marketing. Kenvue’s plan to improve profitability involved increasing marketing expenses by 20%, or $400 million this year.
• Wall Street Bullishness: Starboard isn’t the only one on Wall Street convinced Kenvue can outperform. Jeffries, an investment bank, named Kenvue a franchise pick, believing that increased investment in consumer health brands could lead to annual revenue growth in the mid-single-digit percentage and double-digit earnings growth by 2026.

Carter’s Q3 Earnings

• Earnings Beat: Carter’s (CRI) reported quarterly earnings of $1.64 per share, exceeding the Zacks Consensus Estimate of $1.29 per share.
• Revenue Beat: The children’s apparel and accessories maker posted revenues of $758.46 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 1.41%.
• Stock Performance: Carter’s shares have declined by about 12.3% since the beginning of the year, while the S&P 500 has gained 21.8%.
• Industry Outlook: The Shoes and Retail Apparel industry is currently in the bottom 20% of the 250 plus Zacks industries.

Destination XL Group Q3 Earnings

• Earnings Release: Destination XL Group, Inc. (NASDAQ: DXLG), the leading integrated commerce retailer of Big + Tall men’s clothing and shoes, will release its third-quarter fiscal 2024 financial results before the market opens on Friday, November 22, 2024.
• Conference Call: President and Chief Executive Officer Harvey Kanter and Executive Vice President, Chief Financial Officer, and Treasurer Peter Stratton will host a conference call the same morning at 9:00 a.m. ET to discuss the results.

Edible Garden Grants

• USDA Funding: Edible Garden AG Incorporated (“Edible Garden” or the “Company”) (Nasdaq: EDBL, EDBLW) has received grants from the United States Department of Agriculture Organic Certification Program administered by the Farm Service Agency. These funds will reimburse organic producers and handlers for costs associated with organic certification and processing/handling certifications.
• Organic Growth: These grants will help offset expenses tied to achieving and maintaining organic certification at Edible Garden’s facilities in Belvidere, New Jersey, and Grand Rapids, Michigan, as well as support research and development for new product innovation.

Abercrombie & Fitch Q3 Earnings

• Earnings Release: Abercrombie & Fitch Co. (NYSE: ANF) will host its quarterly earnings conference call on Tuesday, November 26, 2024, at 8:30 a.m. ET.
• Press Release: A press release detailing the company’s third-quarter results is expected to be issued shortly after 7:30 a.m. ET.

Chipotle Q3 Earnings

• Earnings Preview: Chipotle Mexican Grill, Inc. (CMG) is scheduled to report third-quarter 2024 results on Oct. 29, 2024, after the closing bell.
• Earnings Beat: Chipotle is likely to beat earnings expectations, based on a proven model.
• Sales Drivers: Chipotle’s third-quarter top line is expected to increase year over year, driven by digital initiatives, Chipotlane add-ons, and new restaurant openings.
• Cost Pressures: Elevated costs concerning avocados and wage pressures are likely to have impacted margins in the third quarter.

Winnebago Q4 Earnings

• Earnings Miss: Winnebago Industries (WGO) reported adjusted earnings of 28 cents per share for fourth-quarter fiscal 2024 (ended Aug. 31, 2024), missing the Zacks Consensus Estimate of 91 cents and declining 82.3% year over year.
• Revenue Miss: The recreational vehicle (RV) maker reported revenues of $720.9 million for the quarter, falling short of the Zacks Consensus Estimate of $726 million.
• Segmental Performance: Revenues in the Towable RV segment declined 7.2% year over year to $317 million amid lower average selling price per unit. Revenues in the Motorhome RV segment slid 3.1% year over year to $308 million due to a decline in unit volume. Revenues from the Marine segment totaled $80.5 million, down 16.6% year over year, primarily due to lower volume.

Colgate-Palmolive Q3 Earnings

• Earnings Beat: Colgate-Palmolive Company (CL) reported third-quarter adjusted earnings per share of 91 cents, beating the street view of 89 cents.
• Sales Beat: Quarterly sales of $5.033 billion (+2.4%) beat the street view of $5.003 billion, driven by volume growth and higher pricing.
• Gross Margin Expansion: Colgate achieved gross margin expansion for the sixth consecutive quarter, with increases in operating profit, net income, and earnings per share.
• Global Market Share: Colgate maintained its strength in the oral care arena, boasting a global market share of 41.6% in toothpaste and 32.3% in manual toothbrushes year to date.
• Outlook: Colgate anticipates net sales growth of 3% to 5% for 2024, up from the previous forecast of 2% to 5%, and expects organic sales growth of 7% to 8%, an increase from the earlier range of 6% to 8%.

AutoNation Q3 Earnings

• Earnings Miss: AutoNation reported Q3 adjusted EPS of $4.02, missing estimates, with sales of $6.586 billion below the expected $6.71 billion.
• CDK Outage Impact: AutoNation faced a $0.21 per share impact from the CDK outage in July, contributing to a 9% decline in gross profit year over year.

Sprouts Farmers Market

• Share Price High: Sprouts Farmers Market, Inc. (SFM) has hit a new 52-week high of $119.32 in the previous session.
• Earnings Performance: The company has a great record of positive earnings surprises, as it hasn’t missed our earnings consensus estimate in any of the last four quarters.
• Growth & Momentum: The stock’s Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.

Skechers Q3 Earnings

• Strong Performance: Skechers U.S.A., Inc. (SKX) reported impressive third-quarter 2024 results, with the top and the bottom line surpassing the Zacks Consensus Estimate.
• Sales Growth: The company achieved a record-breaking quarter with strong demand across all distribution channels, highlighted by growth in both Wholesale and Direct-to-Consumer (DTC) sales.
• International Expansion: International and domestic markets saw substantial increases, with notable expansion in Europe, the Middle East & Africa (“EMEA”), driven by broad growth across all countries, strong performance in the Americas, especially in the United States and Canada, and steady gains in Asia-Pacific.
• Future Growth: The widespread appeal of Skechers’ comfort technology, coupled with ongoing investments to enhance customer experience and operational capabilities, positions the brand for sustained growth and success globally.

PetIQ Acquisition

• Bansk Group Acquisition: PetIQ, Inc. (“PetIQ” or the “Company”) (Nasdaq: PETQ) has been acquired by Bansk Group (“Bansk”) in an all-cash transaction valued at approximately $1.5 billion.
• Stock Delisting: With the completion of the transaction, PetIQ shares no longer trade on and will be delisted from the Nasdaq stock exchange.
• Independent Operations: PetIQ is now a privately held company and continues to be operated independently by the Company’s executive team.

Infrastructure

Global Acquisitions

• ROCKWOOL Acquires Wetherby Building Systems (UK): ROCKWOOL Group, a Danish company specializing in stone wool insulation, expanded its presence in the UK market by acquiring Wetherby Building Systems Ltd. This acquisition bolsters ROCKWOOL’s commitment to sustainable and non-combustible facade solutions and positions the company as a leading supplier of external thermal insulation composite systems (ETICS) in the UK.

Financial Performance

• Saia Inc. Reports Third Quarter Results: Saia Inc., a less-than-truckload (LTL) freight carrier, reported diluted earnings per share of $3.46 in the third quarter of 2024, a slight decrease compared to the previous year. Revenue increased by 8.6% to $842.1 million, driven by Saia’s expansion into the Great Plains region through new terminal openings. These expansions enhance the company’s national service coverage and strengthen its value proposition for customers.

Defense Contracts

• Czech Republic Acquires Embraer C-390 Millennium: The Czech Republic signed a contract for the acquisition of two Embraer C-390 Millennium multi-mission transport aircraft, marking a significant modernization effort for the Czech Air Force. The aircraft will enhance the Air Force’s operational capabilities, providing versatility for tactical transport, medical evacuation, firefighting, and other missions.

Credit Facility Extension

• NACG Extends Credit Facility: North American Construction Group Ltd. (NACG) secured an extension and amendment of its senior secured credit facility, extending the maturity date to October 3, 2027 and increasing the lending capacity to $525 million. This move provides NACG with greater financial flexibility to operate its Australian and Canadian businesses.

Corporate Reorganization

• HII Restructures Mission Technologies Division: HII, a global defense provider, announced a reorganization of its Mission Technologies division. The division will consolidate its six operational groups into four: All-Domain Operations, Global Security, Warfare Systems, and Uncrewed Systems. This reorganization aims to enhance the division’s competitiveness and service quality for customers.

Stock Valuation

• Sterling Infrastructure’s High Valuation: Sterling Infrastructure, Inc. (STRL) stock is currently trading at a premium compared to its peers in the Engineering – R and D Services industry. The company’s strong demand, high-margin projects, and robust backlog support its current valuation. However, the anticipated deceleration in earnings growth from 2024 to 2025 raises concerns about the sustainability of its high P/E multiple.

Renewable Energy

• DTE Energy’s Sauk Solar Park Operational: DTE Energy, Michigan’s largest producer of and investor in renewable energy, announced that its largest solar park, Sauk Solar, is now operational. The 150-megawatt park generates enough clean energy to power approximately 40,000 homes, showcasing DTE’s commitment to achieving net zero carbon emissions and meeting Michigan’s new renewable energy standard.

Commodities

Graphite Mining

• Asbury Project Bulk Sample Results: Canada Carbon Inc. completed a bulk sample program at its Asbury Graphite Project in Quebec, Canada. The program aimed to analyze head assays, Bond Ball Work Index Analysis, and flowsheet optimization. The results showed a graphitic carbon (C(g)) concentration of 3.68%, exceeding the average C(g) in the initial resource estimate. This indicates strong potential for high-grade graphite extraction.
• Optimized Flowsheet for Battery Anode: Canada Carbon developed an optimized flowsheet for processing graphite concentrate, achieving a combined concentrate grade of over 98% C(t). This flowsheet prioritizes the production of a high-purity concentrate, ideal for battery anode applications, by utilizing increased primary grinding time and eliminating +48 mesh flake from the concentrate profile.
• Future Plans and Battery Cell Testing: Canada Carbon aims to complete the Asbury Pre-Feasibility Study by Q1 2025. The bulk sample program results will allow for battery cell testing on the concentrate through Polaris Labs. This testing aims to qualify the Asbury concentrate for various industry verticals, including battery anode applications.

Building Materials

• Sika’s Record Sales and Profitability: Sika reported record sales of CHF 8,914.9 million in the first nine months of 2024, representing a 9.1% increase in local currencies year-over-year. This growth was driven by increased market share and strong demand for infrastructure projects, reshoring activities, and semiconductor plants in the Americas.
• EMEA Region Growth: Sika experienced a 9.0% sales growth in local currencies in the EMEA region. This was fueled by increased infrastructure and commercial construction projects, supported by stabilized purchasing power, a recovery in real wages, and lower interest rates.
• Americas’ Sales Growth: Sika recorded a 12.2% increase in sales in local currencies in the Americas, driven by government-funded infrastructure projects and reshoring activities.
• Acquisition and Expansion: Sika acquired Kwik Bond, a US-based manufacturer of polymer systems for concrete infrastructure refurbishment, and Vinaldom in the Dominican Republic. They also commissioned a state-of-the-art plant in Lima, Peru, for producing macro-synthetic fibers for reinforcing concrete structures, strengthening its position in the mining industry.

Oil & Gas Services

• Industry Outlook: The Zacks Oil and Gas- Field Services industry faces challenges due to strict capital discipline among upstream energy companies, leading to reduced demand for oilfield services.
• Energy Transition Challenges: Oilfield services companies are facing the energy transition, as they strive to decarbonize oil and gas operations and adopt innovative, low-carbon technologies. Failure to achieve energy transition goals could affect cash flow.
• Archrock’s Acquisition: Archrock’s acquisition of TOPS expands its capacity and improves margins through a young, fully electric compression fleet, positioning the company as a leader in the shift toward electrified natural gas compression.
• Baker Hughes’ Growth in Gas Infrastructure: Baker Hughes is experiencing substantial growth in gas infrastructure projects, securing orders in strategic regions like the Middle East and Latin America. The company is also expanding its digital and artificial intelligence (AI) offerings.

Oil & Gas Exploration & Production

• US: Earnings Preview: Coterra Energy, Cheniere Energy, and ConocoPhillips are expected to report third-quarter earnings on Oct. 31. Coterra Energy may face headwinds from weak natural gas prices, but its strategic shift toward oil-rich assets in the Delaware Basin could help. Cheniere Energy is expected to benefit from robust LNG shipments for export from the United States and a decline in costs. ConocoPhillips is expected to have benefited from strong oil prices, but increased costs and expenses might have weighed on its performance.

Gold Mining

• Suncor Energy’s Transformation: Elliott Investment Management has doubled its stake in Suncor Energy Inc. (SU), highlighting its confidence in the company’s ongoing strategic transformation under CEO Rich Kruger. Suncor has seen improvements in its culture, safety practices, and investor trust, resulting in a rise in stock price.
• Kinross Gold’s Performance: Kinross Gold Corporation has seen strong performance, with a $1000 investment made in October 2014 being worth $3,966.79 today, excluding dividends. This outperforms both the S&P 500 and gold’s returns over the same time frame. The company is focused on organic growth through its Tasiast mine, Paracatu mine, and promising projects like Manh Choh and Great Bear.

Lithium and Uranium

• Foremost Clean Energy’s Private Placement: Foremost Clean Energy Ltd. announced a private placement offering of up to C$9.5 million, focusing on uranium exploration in the Athabasca Basin, Canada. The company is also pursuing lithium projects in Manitoba and Quebec, Canada.
• Uranium Demand Boosted by AI: The growing interest in nuclear energy, particularly from tech giants like Microsoft, Amazon, and Google, to power their AI data centers, is expected to boost demand for uranium. This, coupled with supply constraints, is expected to drive uranium prices higher.
• Uranium ETFs: Investors can gain exposure to the uranium market through uranium ETFs like Global X Uranium ETF (URA), Sprott Uranium Miners ETF (URNM), VanEck Uranium+Nuclear Energy ETF (NLR), and Sprott Junior Uranium Miners ETF (URNJ).

Politics

2024 US Presidential Election

• Trump’s Populist Outreach: Former President Donald Trump is targeting a broader audience by appearing on platforms like “The Joe Rogan Experience,” aiming to secure the presidency by appealing to young men and undecided voters.
• Harris’s Broader Appeal: Vice President Kamala Harris is seeking to expand her voter base beyond traditional Democratic strongholds by engaging in interviews with conservative and skeptical outlets like Fox News.
• Cryptocurrency in Campaign Discourse: Cryptocurrency is emerging as a key topic in the presidential race, with both Trump and Harris addressing its potential impact on voter preferences. Harris is specifically reaching out to Black voters with crypto-related messages, suggesting a shift towards a more tech-savvy political discourse.
• Tight Election Race: Polls show a close race between Trump and Harris, with Harris maintaining a slight national lead but Trump gaining ground in several swing states. The outcome of the election remains uncertain, and the focus remains on key swing states where the competition is fierce.

Digital Asset Regulation in the US

• SEC Leadership Under Scrutiny: Republican lawmakers are pushing for the removal of SEC Chairman Gary Gensler, criticizing his stance on cryptocurrency and his perceived lack of a clear regulatory framework for digital assets.
• Crypto Industry Concerns: The crypto industry is expressing concerns about the SEC’s approach to regulation, accusing it of “fear-mongering” and hindering innovation. They are advocating for more supportive policies and greater clarity on the regulatory landscape.
• Gensler’s Future at SEC: Gensler’s future at the SEC is uncertain, particularly with the upcoming presidential election. His position may be at risk depending on the outcome and the preferences of the new administration.

Canada’s Systemic Racism Lawsuit

• Black Public Service Workers’ Class Action: A significant lawsuit alleging systemic anti-Black racism in Canada’s federal public service is set to proceed, potentially affecting 45,000 workers.
• Government Opposition: The Canadian government is actively opposing the lawsuit, claiming workers have existing grievance options and questioning the need for a class action, despite acknowledging systemic discrimination.
• Damages and Equity Measures: The lawsuit seeks $2.5 billion in damages for Black employees who have experienced discrimination and aims to establish a Justice and Equity Promotion Plan to address ongoing discrimination.
• Government Resistance: The government’s resistance to this lawsuit, despite settling similar suits with other marginalized groups, highlights the ongoing challenges in addressing systemic racism and achieving equitable representation in the Canadian public service.

API Voter Engagement in Los Angeles

• API Get Out the Vote Fest: CAUSE, the Center for Asian Americans United for Self Empowerment, is hosting a multi-day festival to encourage voter participation in Los Angeles’ API neighborhoods, celebrating community and civic engagement while promoting voter registration and turnout.
• Mobile Vote Center at Haunted Little Tokyo: CAUSE is bringing a Mobile Vote Center to the Haunted Little Tokyo Block Party, a major community event, to enhance voting accessibility, particularly among younger voters.
• API Voter Turnout Importance: CAUSE emphasizes the importance of API voters in the upcoming election, highlighting that over 23% of eligible voters in Los Angeles County are API.
• Community Engagement: Through events and partnerships, CAUSE aims to foster community involvement and empower API voters to make their voices heard in the upcoming election.

Taiwan’s Security Under a Second Trump Administration

• Bolton’s Security Concerns: Former National Security Advisor John Bolton has expressed serious concerns about Taiwan’s security under a second Trump administration, suggesting a potential vulnerability to Chinese aggression.
• Trump’s Taiwan Defense Stance: Trump has previously criticized Taiwan’s dependence on the United States for defense, suggesting the island should pay for its own security. This stance has raised concerns about the U.S. commitment to Taiwan’s defense.
• Taiwanese Response: Taiwanese officials are emphasizing self-reliance in defense, but some lawmakers question the U.S. commitment under a second Trump administration.
• US Support Affirmation: Despite the uncertainties, U.S. officials have affirmed their commitment to Taiwan’s defense, highlighting its strategic importance in the Indo-Pacific region.

Stock Picks

Market Moves

• Monopar Therapeutics’ ALXN-1840 License Deal: Monopar Therapeutics Inc. (MNPR) surged 605.40% to close at $32.66 after securing an exclusive worldwide license from AstraZeneca Plc’s Alexion for ALXN-1840, a drug for Wilson’s disease.
• Intellia Therapeutics’ HAE Phase 2 Data: Intellia Therapeutics, Inc. (NTLA) saw a 20.51% drop to close at $15.85 following the release of Phase 2 data from its ongoing study of NTLA-2002 in patients with hereditary angioedema (HAE).
• Capri Holdings Merger Blocked: Capri Holdings Ltd (CPRI) experienced a slight 0.50% dip to close at $41.60 after a judge blocked its pending merger with Tapestry Inc.
• Western Digital Beats Earnings Estimates: Western Digital Corp. (WDC) saw a minimal 0.44% drop to close at $66.32 after reporting strong first-quarter results, exceeding analyst earnings expectations.

Analyst Actions

• Price Target Adjustments: Baird raised the price target for ServiceNow, Keybanc increased the target for Rocket Lab, while Piper Sandler cut the target for Synopsys.
• Outlook Changes: HC Wainwright raised the outlook for DBV Technologies and JP Morgan upgraded NextEra Energy, while BMO Capital cut the price target for CoStar Group.

Earnings Season Overview

• Third Quarter Earnings Season: The initial phase of the third-quarter 2024 earnings season has shown results aligning with expectations.
• “Magnificent 7” Reports: Six of the “Magnificent 7” stocks are scheduled to report their quarterly financial results next week.
• Old Economy Earnings: Several major old economy stocks are set to release earnings results next week, including Parker-Hannifin Corp. (PH), Curtiss-Wright Corp. (CW), Ingersoll Rand Inc. (IR), Leidos Holdings Inc. (LDOS), and Mastercard Inc. (MA).

Options Activity

• Williams-Sonoma Implied Volatility: Options traders are anticipating a significant move for Williams-Sonoma shares, evidenced by high implied volatility for the November 15, 2024 $70 Call.
• Civitas Resources Implied Volatility: Options traders are also expecting a substantial move for Civitas Resources shares, with the December 20, 2024 $35 Call exhibiting high implied volatility.

High-Yield Dividend Stocks

• Halloween Treats: Pfizer (PFE), Realty Income (O), and ExxonMobil (XOM) offer attractive dividend yields exceeding 3%.