Eksentricity

Tech

AI Advancements and Adoption

• AI Chip Demand and Adoption: Nvidia (NVDA) continues to dominate the AI chip market, with its GPUs powering data centers for companies like Alphabet (GOOGL), Microsoft (MSFT), and Amazon (AMZN). However, these tech giants are developing their own custom chips, potentially impacting Nvidia’s future growth.
• AI in the Cloud: Google Cloud saw improved margins due to revenue growth from its AI-powered services. Its in-house chips, second only to Nvidia in performance, are driving this growth. Microsoft’s accusations of Google’s lobbying campaigns against its cloud business highlight the intense competition in the sector.
• AI for Customer Service: Companies like Snap (SNAP) are integrating AI chatbots into their platforms, enhancing user experience, increasing customer engagement, and potentially driving future revenue growth.
• AI-Driven Product Development: Companies are utilizing AI platforms to develop innovative products previously deemed impossible. For example, Snap’s AI platform facilitated the “Simple Snapchat” redesign.

Semiconductors and Chipmaking

• TSMC’s Expansion and Leadership: Taiwan Semiconductor Manufacturing (TSM) is seeing significant growth in AI-related markets. Its new Arizona plant, with production yields exceeding those in Taiwan, aims to reduce the company’s reliance on its facilities in Taiwan, addressing potential geopolitical risks.
• AMD’s AI Momentum: AMD’s data center segment experienced a 122% revenue increase due to strong sales of its Instinct MI300X GPUs, used by cloud providers and AI companies like Microsoft and Meta. AMD projects its data center GPU revenue to surpass $5 billion in 2024.
• Memory Chip Demand: Micron Technology (MU) is poised to benefit from the rising demand for memory solutions as businesses invest in data center infrastructure for AI workloads.

Blockchain and Crypto

• Bitcoin ETF Inflows: The Bitcoin ETF market has witnessed substantial inflows, with some predicting Bitcoin could reach $100,000 in 2025. Institutions like BlackRock’s embrace of Bitcoin signals mainstream acceptance.
• Blockchain in Africa: Telegram-based crypto communities are rapidly expanding in Africa, with Nigeria and South Africa leading the charge. The report predicts 54 million users in Africa by 2025.
• Stablecoin Adoption: Coinbase’s revenue from stablecoins grew 43% year-over-year, highlighting the increasing demand for these fiat-pegged digital currencies.

Cybersecurity and Other Tech Trends

• Cybersecurity: CrowdStrike (CRWD) maintains its leadership position in the cybersecurity industry, with its holistic platform and AI capabilities. A major outage in July led to a stock price decline, however.
• EV Charging: Blink Charging (BLNK) secured a $2 million grant to install EV chargers in Illinois, showcasing the company’s commitment to expanding its infrastructure and offering innovative charging solutions.
• Gaming and VR: GameStop (GME) is transitioning to a digital-centric business model, focusing on e-commerce and digital gaming. The company faces fierce competition from other gaming companies. Canon is introducing new lenses designed for creating 3D and VR content, highlighting the growing demand for immersive experiences.

Finance

US Credit Card Debt

• High Interest Rates & Wealth Building: Billionaire entrepreneur Mark Cuban and other financial experts believe paying off credit card debt is essential for financial success. They argue that credit card debt’s high interest rates hinder wealth accumulation. Cuban and Ramsey recommend prioritizing debt repayment over other investments due to the guaranteed returns of avoiding interest.
• Credit Card Debt in the US: The Federal Reserve Bank of New York reported that Americans collectively held $1.14 trillion in credit card debt as of the second quarter of 2024.

Shareholder Lawsuits

• Misleading Statements: Several companies faced class action lawsuits alleging they misled investors about their business operations and prospects. These include Iris Energy, Terran Orbital, AMMO, Inc., Metagenomi, Inc., Paragon 28, Inc., New Fortress Energy Inc., Acadia Healthcare Company, Inc., WM Technology, Inc., Xiao-I Corporation, Ford Motor Company, CSX Corporation, Stride, Inc., and SIGA Technologies, Inc.
• Financial Misstatements: Other lawsuits claimed companies misstated their financial statements, lacked adequate internal controls, or failed to accurately disclose related party transactions.

European Finance

• Equal-Weight Funds: European equal-weight products gathered record net flows of €2.9 billion in September, according to Morningstar data. This surge in inflows has led to increased competition among asset managers.
• Strong Bank Earnings: Several European banks reported strong third-quarter earnings, including Standard Chartered, UBS, and Amundi. Standard Chartered’s profit before tax increased significantly due to strong performance in Wealth Solutions and Global Markets. UBS posted a large profit beat after completing its integration of Credit Suisse. Amundi reported record assets under management and dynamic inflows.

US Financial News

• SoFi Technologies: SoFi Technologies reported a strong third quarter with updates on key metrics, showing relief about the better-than-feared macroeconomic growth in 2024.
• Chubb: Chubb reported a strong third quarter with revenue of $15.01 billion, representing a year-over-year increase of 6.6%.
• Warren Buffett: The billionaire investor sold 26% of Berkshire’s stake in Bank of America and is piling into Chubb, a financial juggernaut that has soared 33,000% since its IPO.
• BlackRock Inc.: The CEO of BlackRock Inc. forecasted only one rate reduction by the end of 2024, citing high “embedded inflation.”
• Capital One Financial: The company is one of the largest consumer credit card issuers in the U.S., and despite rising charge-offs, the stock has surged 67% during the past year.

Global Finance News

• Rexel: The company was fined €124 million by the French Competition Authority for its anti-competitive pricing practices.
• Florida’s Crypto Investment: Florida’s Chief Financial Officer requested a feasibility report on the potential for the state to invest a portion of its retirement funds in Bitcoin.
• L’Oréal: The company announced a €1.25 billion public bond offering, with net proceeds to be used for general corporate purposes.
• Invesco Ltd.: The firm offers a wide range of financial services and manages diverse investment vehicles across equity, fixed-income, and alternative asset classes.
• Melco Resorts & Entertainment Limited: The developer, owner, and operator of integrated resort facilities in Asia and Europe will release its unaudited financial results for the third quarter of 2024 on Tuesday, November 5, 2024.
• Studio City International Holdings Limited: The world-class integrated resort located in Cotai, Macau will release its unaudited financial results for the third quarter of 2024 on Tuesday, November 5, 2024.

Healthcare

GLP-1 Drug Market

• Market Domination and Expansion: Eli Lilly (LLY) and Novo Nordisk (NVO) continue to dominate the GLP-1 drug market for weight loss and diabetes. Eli Lilly’s Mounjaro (tirzepatide) and Novo Nordisk’s Wegovy (semaglutide) are leading the charge, with Eli Lilly investing billions to expand production capabilities. Novo Nordisk is also increasing production to meet demand, aiming to end the shortage of Wegovy and Ozempic (semaglutide) in the coming months.
• FDA Actions and Legal Challenges: The FDA’s removal of tirzepatide from its drug shortage list has sparked legal action from compounding pharmacies. Eli Lilly and Novo Nordisk are pursuing legal action against these pharmacies, as the FDA closely monitors the situation.
• Alzheimer’s Disease Market: Eli Lilly’s Kisunla (donanemab) gained FDA approval for treating early symptomatic Alzheimer’s disease, positioning it for blockbuster status. Biogen (BIIB) and Eisai’s Leqembi (lecanemab) are also gaining traction, competing to become the standard of care for Alzheimer’s patients.

Medical Device Innovation

• Technological Advancements: Companies are developing cutting-edge medical devices to improve patient outcomes. Stryker (SYK) is expanding its portfolio through acquisitions and focusing on advancements like AI-powered surgical instruments.
• New Product Launches and Expansion: Inspire Medical (INSP) has received FDA approval for its Optune Lua neurostimulation device for treating post-platinum metastatic non-small cell lung cancer. VitalHub (VHI) is expanding its global reach by acquiring Strata Health, a leading provider of patient flow solutions.

Digital Health Transformation

• Growth and Performance: Telehealth platforms are continuing to evolve and gain popularity. Teladoc (TDOC) is focused on improving performance and shareholder value as it expands its presence in the digital health space.

Addressing Healthcare Challenges

• Workforce Shortage: The healthcare industry is facing a workforce shortage. Comprehensive Healthcare is launching a new recruitment campaign to attract qualified professionals to the community behavioral health field.
• Cost Management and Profitability: Companies are implementing cost-saving measures to improve profitability. DaVita (DVA) is streamlining operations and expanding its international presence to address volume and labor pressures.

Patient Education and Awareness

• Health Literacy and Support: Healthcare companies are prioritizing patient education and awareness. Dr. Scott McMahon’s “Medicine and Miracles” podcast provides insights into mold illness, chronic inflammatory response syndrome, and health literacy, fostering a supportive community for those seeking healing and recovery.

Economy & Real estate

US Economic Indicators

• Private Sector Job Growth: The US economy added 233,000 jobs in October, exceeding expectations and marking the strongest month for job creation since July 2023. This strong job growth signals a healthy economy with robust labor demand.
• GDP Growth: The US economy expanded at an annualized rate of 2.8% in the third quarter, slightly slower than the 3% growth observed in the second quarter. This slowdown reflects a cooling economy, but growth remains positive.
• Inflation Moderation: The personal consumption expenditures price index (PCE) increased by 1.5% in the third quarter, below the Federal Reserve’s 2% target and down from the 2.5% increase in the second quarter. This suggests that inflationary pressures are easing.
• Consumer Spending Strength: Personal consumption expenditures (PCE) increased 3.7% for the quarter, the strongest performance since Q1 of 2023. This significant increase in consumer spending contributed nearly 2.5 percentage points to overall economic growth.

US Housing Market Dynamics

• Mortgage Rate Volatility: Mortgage rates rose for the fourth time in five weeks, reaching 6.73% for a 30-year fixed-rate mortgage, the highest level since July 2024. This volatility is causing a pullback in refinancing activity, impacting the housing market.
• Homebuilder Acquisitions: Meritage Homes (MTH) is expanding into the Gulf Coast market through the acquisition of Elliott Homes, a top five Gulf Coast homebuilder. This acquisition will add over 5,500 lots to Meritage’s portfolio, signaling growth in the region.
• Pending Home Sales Increase: The Pending Home Sales Index (PHSI) rose 7.4% in September, reaching its highest level since March 2024. This increase indicates potential growth in home sales in the coming months.

Global Economic Trends

• EU Tariffs on Chinese EVs: The European Union (EU) imposed tariffs on Chinese electric vehicles (EVs) ranging from 7.8% to 35.3%, in addition to the existing 10% import duty. This move has been met with criticism from China, which views it as protectionist.
• BRICS+ Trade Growth: The BRICS+ group, which includes Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE, is projected to surpass the G7 in global merchandise exports by 2026. China and India are driving this trend, with China contributing 62.5% to BRICS+ exports in 2023.

European Economy

• German Economic Recovery: The German economy returned to growth in the third quarter, expanding by 0.2% after a contraction in the second quarter. Despite this recovery, the economy remains weak due to ongoing economic headwinds.
• German Inflation Spike: Inflation in Germany accelerated to 2.4% in October, exceeding the European Central Bank’s 2% target. This rise was driven by higher food and energy prices.

Other Real Estate News

• Lead Real Estate Investor Relations: Lead Real Estate (LRE), a Japanese developer of luxury residential properties, participated in the Radio NIKKEI IR Seminar in Sapporo. This event aimed to increase LRE’s visibility among Japanese retail investors.
• Faymonville Group US Expansion: The Faymonville Group, a specialized transport vehicle manufacturer, announced its first US production facility in Little Rock, Arkansas. This facility is expected to create 500 jobs and contribute $239 million to the local economy.

Retail

Chipotle’s AI Implementation

• AI Hiring Process: Chipotle has successfully implemented an AI hiring tool that has reduced the time required to complete the hiring process by 75%, leading to a surge in applications. This has resulted in significant revenue growth, allowing the company to quickly fill positions during peak seasons.
• New Roles & Automation: To improve efficiency and streamline operations, Chipotle has invested in automation and created new roles, including the use of AI. The company expects these changes to lead to a more streamlined customer experience.
• Focus on Consumers: Despite technological advancements, Chipotle remains committed to providing high-quality culinary experiences and delivering exceptional customer service. This focus is evident in the company’s investments in technology and its efforts to improve service times.

CarParts.com’s Turnaround Strategy

• Margin Improvement: CarParts.com is prioritizing gross and net margin improvement by focusing on a higher-value customer base. This strategy has resulted in an increase in pre-freight margins to 54.6% in the third quarter.
• Digital Transformation: The company has implemented a cloud-based infrastructure, which has enabled faster rollout of new features and marketing technology enhancements. These initiatives are aimed at increasing order patterns, conversion rates, and basket size.
• Expanding Assortment: CarParts.com is expanding its product categories with attractive margins, including OE premium brands and European brands. These initiatives are expected to drive rapid growth and attract a more affluent customer base.
• Logistics Optimization: CarParts.com is optimizing its logistics network by capturing efficiency gains and upgrading its infrastructure. The company expects to enhance operating leverage, improve process efficiencies, and boost customer conversion. Full savings from the new Las Vegas facility are expected to begin in 2025.

Grocery Outlet’s Leadership Change

• New Interim CEO: Eric Lindberg has been appointed Interim President and CEO of Grocery Outlet, replacing RJ Sheedy who has stepped down. Lindberg is a long-time veteran of Grocery Outlet and is expected to provide a smooth transition during the search for a permanent CEO.
• Financial Update: Grocery Outlet expects net sales for the third quarter to reach $1.1 billion, a 10.4% increase compared to the previous year. Comparable store sales increased by 1.2%. The company is reassessing its full-year guidance, expecting to exceed its net sales guidance but reduce its full-year adjusted EBITDA guidance.

Amazon India’s Performance

• Moderate Growth & Reduced Losses: Amazon India’s units have experienced moderate growth in fiscal year 2024, indicating continued expansion within the market. The company has also significantly reduced its losses, demonstrating a commitment to profitability through operational streamlining and efficiency improvements.
• Focus on Key Units: Amazon Transportation Services, Amazon Wholesale, and Amazon Pay are the key units showing growth and reduced losses, highlighting Amazon India’s strategic focus on these core areas.

Costco vs. Amazon: Investment Comparison

• Costco’s Slower Growth: Costco is a successful business, but its earnings growth is somewhat tied to its membership base growth, which is expected to slow down in the future.
• Amazon’s Rapid Growth: Amazon is growing at a faster rate than Costco due to its dominance in online retail, its cloud computing platform (Amazon Web Services), and its fast-growing media and advertising business.
• Valuation: Amazon stock is currently trading at a lower price-to-earnings ratio compared to Costco, despite its higher earnings growth.

Infrastructure

Global Infrastructure Performance

• Strong Electrification Growth: Nexans, a global leader in cable and energy solutions, reported robust organic sales growth of +4.0% in the first nine months of 2024, driven by strong performance in its Electrification businesses. The Electrification businesses saw an organic increase of +7.9% in the third quarter of 2024, reflecting the benefits of strategic investments in the Generation & Transmission segment.
• Backlog Expansion and Capacity Growth: Nexans reported a strong adjusted backlog for Generation & Transmission, primarily driven by subsea projects, reaching €6.2 billion, a +19% increase compared to September 2023. The company also expanded its manufacturing capacities through investments in onshore high-voltage and the production of low-carbon medium-voltage cables in France.
• Strategic Investments in Europe: Nexans made a strategic investment agreement in France to increase copper production and recycling capacity across Europe.

Tank Storage Industry Trends

• Improved Profitability and Capacity Expansion: Vopak, a leading global provider of tank storage services, reported improved net profit, including exceptional items, reaching EUR 312 million year-to-date in Q3 2024. Proportional EBITDA, excluding exceptional items, increased by EUR 22 million to EUR 894 million year-to-date in Q3 2024. Vopak also strengthened its position in Kandla, India, with an expansion of 94,000 cbm of chemical storage and commissioned 560,000 cbm of industrial-connected capacity in Huizhou, China.
• Green Energy Investments and Stable Demand: Vopak announced its next steps for its Vopak Energy Park Antwerp for the development of green methanol and ammonia storage. It also signed a memorandum of understanding in Australia to develop common-user infrastructure including a CO2 import terminal. Demand for Vopak’s infrastructure services remained strong, reflected in a stable high proportional occupancy rate of 92%, increased proportional EBITDA, and a strong operating cash return of 16.2% year to date.

US Infrastructure Performance

• Record Revenue and Organic Growth: Parsons Corporation, a leading disruptive technology provider in national security and global infrastructure markets, reported record third-quarter results for total revenue, organic revenue growth, net income, adjusted EBITDA, operating cash flow, and contract awards. Parsons achieved over 20% organic growth for the sixth consecutive quarter, driven by increased activity in its critical infrastructure protection and cyber and intelligence markets.
• Profitability and Acquisition Strategy: Adjusted EBITDA margin expanded 20 basis points to 9.2% in the third quarter of 2024, compared to 9.0% in the third quarter of 2023. Parsons continues to leverage its strong balance sheet to invest in software and integrated solutions, as well as execute accretive acquisitions that provide distinguished defense capabilities or strengthen its engineering expertise and expand its geographical footprint in high-growth infrastructure markets.

Global Offshore Wind Developments

• Farm-Down Program in the UK: Ørsted, a leading offshore wind player, signed a partnership agreement with Brookfield to acquire 12.45% minority stakes in four of its operational U.K. offshore wind farms, representing a combined total capacity of approximately 3.5 GW. The transaction, with an enterprise value of $2.3 billion, is expected to close by the end of 2024.
• Expansion into Offshore Wind: The investment provides Brookfield with the opportunity to partner with Ørsted and invest in a scaled, fully operational offshore wind portfolio. This marks another step in Brookfield’s expansion into the offshore wind sector, which is a mature technology complementary to solar PV and onshore wind.
• Continued Control and Call Option: Ørsted will retain a 37.55% ownership interest in the four assets and will continue to exercise a similar level of control and governance as before the transaction. It will also continue to oversee the operations and maintenance of the wind farms. The agreement includes a call option, providing Ørsted with the opportunity, but no obligation, to repurchase the assets from Brookfield between two and seven years from the closing of the transaction.

Finnish Grid Development

• High Transmission Reliability and Electricity Consumption: Fingrid, Finland’s transmission system operator, reported a high transmission reliability rate of 99.99930% in January-September 2024. Electricity consumption in Finland grew to 60.5 terawatt hours in January–September 2024, an 8% increase compared to the same period last year.
• Investments and Renewable Connections: Fingrid’s investments were higher than in the previous year. The company estimates that its gross capital expenditure in 2024–2027 will amount to roughly EUR 2 billion. 1139 MW in renewable production capacity was connected to the main grid in January-September 2024.

Commodities

Gold Price Surge

• Record Investor Demand: Global gold demand surpassed $100 billion in Q3 2024, the first time ever, fueled by investor purchases. This surge pushed gold prices to a record high of $2,788 per ounce.
• Fear of Missing Out (FOMO): Investors, particularly institutional and professional investors, actively bought gold, driving strong demand for investment products like ETFs and gold coins. This was driven by a “fear of missing out” sentiment.
• Central Bank Slowdown: Central banks reduced their gold purchases in late summer, with year-on-year buying declining by 49% to 186 tonnes, marking the lowest quarterly level in two years.
• Lower Interest Rates: Declining interest rates in western economies are expected to continue supporting gold prices, as gold traditionally benefits from lower rates due to the reduced opportunity cost of holding it.

Lithium Demand and Expansion

• Global Lithium Market Growth: The global lithium market is projected to reach US$ 14.17 billion by 2031, driven by the booming electric vehicle market and the rising demand for energy storage solutions.
• American Salars Acquires Lac Simard South Project: American Salars Lithium Inc. signed an agreement to secure full ownership of the Lac Simard South project in Quebec, a 3,672.75-hectare lithium property. This move strengthens the company’s position in the lithium market.
• Increased Investment in Argentina: Mining giant Rio Tinto acquired Argentine lithium producer Arcadium Lithium for US$6.7 billion, making Rio Tinto the world’s third-largest lithium miner.
• Expanding Portfolio: American Salars, with existing lithium deposits in Argentina, is actively building a strategic portfolio of hard rock lithium projects to complement its lithium brine assets.

Natural Gas Market Movements

• Diversified Energy’s LNG Supply Agreement: Diversified Energy Company PLC (DEC) signed a three-year LNG supply agreement with a Gulf Coast LNG export facility, signifying a significant step towards global energy security.
• NYMEX Hedge Portfolio: DEC is utilizing the positive natural gas price trend to construct a hedge portfolio, aiming to secure stable cash flows and mitigate commodity price risk.
• Global Demand: This agreement underscores the rising global demand for natural gas, driven by geopolitical tensions, supply disruptions, and increasing consumer needs.

Uranium Market Trends

• Uranium Prices: Uranium prices have experienced a surge this year, driven by factors like increasing demand for nuclear power and heightened geopolitical tensions.
• Cameco’s Performance: Cameco Corp., a leading uranium producer, is expected to report enhanced revenue and earnings in Q3 2024, reflecting the favorable environment for uranium prices.
• Idaho Strategic Resources: Idaho Strategic Resources (IDR), a uranium mining company, is anticipated to register improvements in revenues and earnings in Q3 2024, fueled by higher gold prices and increased production levels.
• Rising Demand for REEs: Demand for REEs (Rare Earth Elements) is rising due to their critical role in clean energy technologies, and IDR is poised to capitalize on this opportunity.

Cocoa Market Dynamics

• Cocoa Price Surge: Cocoa prices have more than doubled since the beginning of the year, reaching record highs due to production shortfalls caused by adverse weather conditions.
• Production Shortfall: Global cocoa production is projected to decline by 14.2% this season, with the impact expected to persist until at least September 2025.
• Impact on Hershey’s: Hershey, a major chocolate manufacturer, is expected to pass on some of the rising cocoa costs to consumers, potentially leading to higher prices for chocolate products.
• Shrinkflation: Consumers may see smaller chocolate bars and a shift towards non-chocolate treats as companies adjust to higher cocoa prices.

Politics

US Presidential Election

• Harris’ Focus on Healthcare & Economy: Vice President Kamala Harris’s presidential campaign prioritizes healthcare, reproductive rights, and economic recovery. Her strategy emphasizes moving beyond the Trump era and addresses concerns surrounding the January 6th Capitol riot.
• Trump’s Economic & Cultural Focus: Former President Donald Trump continues to emphasize his economic policies, including tax cuts and support for American manufacturing. He also leverages cultural issues such as cannabis legalization and abortion rights.
• Cannabis Legalization Debate: While both candidates support federal cannabis reform, their stances differ on state-level approaches. Harris supports full legalization, while Trump’s position remains less clear.
• Potential Market Impact: A Trump victory could initially boost the stock market, particularly benefiting oil companies like Chevron and ExxonMobil. However, potential tariffs and inflation might negatively impact the market long-term.

Election Predictions & Betting Markets

• Trump Favored in Betting Markets: Betting markets currently favor Trump, offering alternative predictions to traditional polls. However, these markets are susceptible to biases, such as herd behavior and large bets by influential individuals.
• Pollster Herding Concerns: Concerns exist regarding potential “herding” among pollsters, which could skew election forecasts.
• Trump Media & Technology Stock Volatility: Shares of Trump Media & Technology Group have surged recently, likely driven by Trump’s increasing election odds. The stock remains volatile, acting as a proxy for the election and potentially experiencing a short squeeze if Trump wins.

International Politics

• Ontario Criminal Code Changes: Civil society organizations in Ontario criticize the government’s proposed Criminal Code amendments, arguing they will exacerbate existing justice system issues and increase incarceration rates.
• Florida Ballot Measures & DeSantis Opposition: A Florida Atlantic University poll indicates that proposed amendments to legalize recreational marijuana and enshrine abortion rights in the state constitution have a chance of passing. However, Governor Ron DeSantis is leading the opposition, using state funds to campaign against them.

Political Commentary & Advocacy

• “American Compassion” Podcast: Findhelp, a social care software company, and the LBJ School of Public Affairs have launched a podcast series called “American Compassion,” focusing on the social safety net.
• Cardone’s Speech at Trump Rally: Real estate mogul Grant Cardone delivered a speech at a Trump rally, criticizing Democratic policies and Vice President Kamala Harris’s economic proposals.
• Sanders’ Criticism of Trump’s Tax Plan: Senator Bernie Sanders criticized Donald Trump’s proposal to eliminate all income taxes, calling it “insane economics” that would benefit the wealthy at the expense of the poor.

Stock Picks

Trump Media

• DJT Market Cap Surpasses NYT: The market capitalization of Trump Media & Technology Group (DJT) has surpassed that of The New York Times, reaching $10.3 billion compared to $9.2 billion.
• DJT Share Performance: DJT shares have surged nearly 50% over the past five trading sessions and 32% in just two days. However, they remain 35% below their March peak.
• Tesla and Bitcoin Rise: Tesla shares have risen approximately 20% in a week, but have recently stalled. Bitcoin has also witnessed an upward trend, reaching its highest level since March, surpassing $73,000.

Treasury Yields and Bond ETFs

• Rising 10-Year Treasury Yield: The 10-year Treasury yield currently sits at 4.25%, indicating rising interest rates.
• Short-Term Yields Climbing: The two-year note yields 4.09%, the one-year Treasury bill yields 4.28%, the six-month T-bill yields 4.49%, the three-month T-bill yields 4.61%, and the one-month T-bill yields 4.77%.
• Inverse Bond ETFs Gain: ProShares Short 20+ Yr Treasury (TBF) has gained nearly 7% in October, while ProShares Short 7-10 Year Treasury (TBX) is up almost 4% for the month.
• High-Yield Bond ETF Yields: The SPDR Bloomberg High Yield Bond ETF (JNK) yields 6.51%, the iShares iBoxx High Yield Corporate Bond ETF (HYG) yields 5.87%, and the iShares 0-5 Year High Yield Corporate Bond ETF (SHYG) yields 6.68%. Fidelity’s Corporate Bond ETF (FCOR) yields 4.12% but has declined 2.44% in October.

Tech Earnings

• Microsoft Mixed Performance: Microsoft shares are up 1.2% in the past three months but remain 7.77% from their July high.
• Meta Platforms Surge: Meta Platforms shares have surged 27% in the past three months, doubling in the last 12 months. The stock hit a high on Oct. 7 and is currently down 1.6% from that level.

Chipmaker Earnings

• AMD Strong Earnings, Stock Dip: Advanced Micro Devices (AMD) reported strong third-quarter earnings, exceeding revenue expectations and meeting earnings estimates. However, the stock dropped 7% in after-hours trading, despite a recent surge of nearly 8% in the past week.

Industrial Earnings

• Caterpillar Earnings Preview: Caterpillar (CAT) is scheduled to report earnings on Wednesday morning. The stock is up 12.5% in the past three months.
• Brunswick Outlook Stagnant: Despite being a leading recreational marine products manufacturer, Brunswick’s future sales and earnings are projected to stagnate. This has resulted in a Zacks Rank #5 (Strong Sell) rating, indicating a poor stock outlook and high valuation risk. Earnings estimates for the current and next fiscal year have been significantly revised downward.

Pharma and Biotech Earnings

• Eli Lilly and AbbVie Earnings: Eli Lilly (LLY) is expected to report earnings before the market opens on Wednesday. The stock is up approximately 12% in the past three months, gaining 55% year-to-date. AbbVie (ABBV) shares are up 4.1% in the past three months.
• Biogen, GSK, and Amgen Earnings: Biogen (BIIB) shares are down 14% in the past three months. GSK shares are down 4.6% in the past three months. Amgen (AMGN) is scheduled to report earnings after the market closes on Wednesday. The stock is down about 5% in the past three months.

Homebuilder Declines

• Homebuilder Sentiment Weakens: Homebuilders are experiencing declines as Treasury yields rise.
• SPDR S&P Homebuilders ETF (XHB) Drops: The SPDR S&P Homebuilders ETF (XHB) has dropped 8.6% since its peak on Oct. 18.
• Homebuilder Stock Performance: D.R. Horton (DHI), PulteGroup (PHM), Lennar (LEN), Toll Brothers (TOL), and KB Home (KBH) have all seen significant declines in October.