Eksentricity

Tech

AI Integration and Growth

• AI in Big Tech: Big Tech companies like Google, Microsoft, Meta Platforms, and Amazon are actively integrating AI into their products and services. Alphabet’s third-quarter results showed strong growth in Google Search, YouTube Ads, and Google Cloud, driven by AI Infrastructure and Generative AI solutions. Microsoft’s Azure and AI advancements continue to drive its growth, while Meta Platforms is leveraging AI to enhance user engagement. Amazon is also experiencing significant growth in its AI business.
• Apple’s AI Push: Apple introduced Apple Intelligence, a suite of generative AI tools integrated into its flagship products. Despite investors’ initial skepticism, Cook highlighted the high adoption rate of iOS 18.1 compared to iOS 17.1.
• AI in Telecom: VEON launched Hambi, an AI-powered super app in Uzbekistan, consolidating digital services and connectivity. This joins other super app offerings across VEON’s markets.

Semiconductor Industry Landscape

• Nvidia’s Dominance: Nvidia is leading the AI chip market, driven by high demand from large tech companies. Its data center GPU business is experiencing rapid growth, with strong demand for its next-generation AI GPU, Blackwell. Nvidia’s market cap has surpassed Apple’s, highlighting its dominance in the AI space.
• TSMC’s Continued Growth: Taiwan Semiconductor Manufacturing Company (TSMC), the largest semiconductor foundry, continues to grow thanks to its strong customer relationships and advanced technology. The company is witnessing triple-digit revenue growth from AI processors.
• Intel’s Challenges: Intel reported mixed third-quarter results, with strong revenue growth but pressure on margins. The company is focused on reducing costs and improving efficiency.

Cryptocurrency Landscape

• Bitcoin ETFs: U.S.-listed Bitcoin ETFs have attracted significant inflows, totaling $23.89 billion and $70 billion in total net assets. These assets have surpassed half the assets held by gold ETFs within 10 months.
• XRP ETF Filing: 21Shares filed an S-1 form with the SEC to launch a spot fund tracking the price of XRP, aiming to provide U.S. investors with exposure to the seventh-largest cryptocurrency.
• U.S. Cryptocurrency Regulation: The upcoming U.S. presidential election is likely to impact cryptocurrency regulations. Trump has stated his intention to remove Gensler from his position, while Harris has hinted at replacing him.
• Cryptocurrency Security Concerns: The DOJ indicted the founder and CEO of Gotbit on charges of wire fraud and conspiracy to commit market manipulation, highlighting ongoing efforts to combat fraud in the cryptocurrency space.

Other Tech Trends

• EV Market Dynamics: Ford reported that the Cybertruck has outsold the F-150 Lightning, signifying Tesla’s growing popularity in the EV market. Ford has paused production of the Lightning for six weeks, while Tesla also faces production challenges with the Cybertruck.
• Nuclear Energy Adoption: Microsoft, Amazon, and Alphabet are turning to nuclear energy to power their data centers, driven by increasing demand for AI and the need for clean energy.
• Metaverse Investment: Meta Platforms reported a $4.4 billion loss for its Reality Labs division, which focuses on augmented and virtual reality. Despite the losses, the company continues to invest heavily in the Metaverse and is integrating AI and wearables.
• Gaming Partnerships: Playtika’s Bingo Blitz is collaborating with Hallmark Channel to promote gaming during the holiday season. The company launched a new TV spot featuring Drew Barrymore.
• Tech Industry Consolidation: The Access Group acquired Paytronix, a leading provider of guest engagement solutions for restaurants and convenience stores.

Microcap Tech Developments

• Crown Crafts (CRWS): This microcap company has experienced revenue growth fueled by its acquisition of Baby Boom Consumer Products.
• Innofactor (INNOFACTOR): This microcap company has faced challenges in its core business but is witnessing growth in its Public Sector and U.S. markets.
• Super Micro Computer (SMCI): The company’s stock has experienced a significant decline due to the resignation of EY as its auditor, citing concerns about internal controls over financial reporting.

Finance

D&B Performance

• North America Revenue Growth: Dun & Bradstreet reported $609.10 million in revenue for North America, a year-over-year increase of +44.5%.
• Finance & Risk Revenue: Revenue for Finance & Risk in North America was $237.70 million, a +1.2% increase from the previous year.
• International Revenue: Dun & Bradstreet reported $176.60 million in revenue for the International segment, a year-over-year increase of +5.7%.
• International Finance & Risk: Revenue for International Finance & Risk reached $121.60 million, reflecting a +7% growth from the previous year.

Eagle Bancorp Investor Engagement

• Hovde Group Conference: Eagle Bancorp, Inc. announced that its President and CEO Susan G. Riel and Executive Vice President and CFO Eric R. Newell will participate in the 2024 Hovde Group Financial Services Conference.
• Investor Meetings: Management will hold a series of meetings with institutional investors.

Investment Highlights

• Hemlo Explorers Private Placement: Northfield Capital Corporation participated in a private placement of Hemlo Explorers Inc., investing $128,000 and acquiring 2,560,000 units.
• ActusRayPartners Japan Alpha Fund: Sun Hung Kai & Co. Limited and its licensed funds management arm, Sun Hung Kai Capital Partners Limited, have committed to the ActusRayPartners Japan Alpha Fund, which employs a Discretionary Probabilistic Investing process.

Merger & Acquisition Activity

• BAWAG Group Acquires Knab: BAWAG Group has completed the acquisition of Knab, a bank based in the Netherlands.
• Brown & Brown Acquires Quintes Holding B.V. : Brown & Brown, Inc. has completed the acquisition of the insurance operations of Quintes Holding B.V.
• TKO Group Acquisition: Wolf Haldenstein Adler Freeman & Herz LLP is investigating TKO Group Holdings, Inc. for potential breaches of fiduciary duty related to its acquisition of the Professional Bull Riders, On Location, and IMG businesses from Endeavor Group Holdings, Inc.

Market Sentiment & Outlook

• CNN Money Fear & Greed Index: The CNN Money Fear and Greed index moved to the “Fear” zone on Thursday, with a reading of 43.5, down from 54.
• Election Volatility: The Nasdaq 100 ETF (QQQ) declined more than 2% on Thursday, retracing early-week gains ahead of the U.S. presidential election, reflecting investor uncertainty.
• Post-Election Market Outlook: The October jobs report showed weak job growth, with only 12,000 jobs added, and economists expect the Federal Reserve to cut interest rates by 0.25% at its next meeting.

Healthcare

Pharmaceutical Performance & Outlook

• Keytruda Patent Expiration & Competition: Merck’s (MRK) blockbuster cancer drug, Keytruda, generates substantial revenue but faces patent expiration in 2028. This will likely lead to competition from biosimilars, potentially impacting Keytruda’s sales.
• R&D Pipeline Growth and Acquisitions: Merck maintains a robust R&D pipeline with over 30 programs in phase 3 clinical trials and 80 in phase 2 trials. The company, with a large cash balance and free cash flow, can pursue promising biotech acquisitions or collaborations.
• Mounjaro and Zepbound Sales Fluctuation: Eli Lilly (LLY) experienced lower-than-expected sales of Mounjaro and Zepbound in Q3 2024 due to temporary inventory adjustments by wholesalers. However, strong and growing demand persists, with U.S. prescription volume rising 25% from Q2 to Q3.
• Arikayce Expansion for MAC Lung Infection: Insmed (INSM) is seeking FDA approval to expand the label of its drug, Arikayce, to treat all patients with MAC lung infection. The company is conducting the phase III ENCORE study to evaluate Arikayce’s effectiveness in newly infected patients.

Medical Device & Technology

• International Expansion & New Product Launches: Boston Scientific (BSX) is witnessing strong momentum in international markets, particularly EMEA, driven by demand for its portfolio, new product launches, and commercial execution.
• Ultrasound Renal Denervation Reimbursement: Recor Medical’s Paradise Ultrasound Renal Denervation system received a Transitional Pass-through (TPT) payment from the CMS, offering incremental reimbursement for outpatient procedures performed with ultrasound renal denervation for Medicare fee-for-service beneficiaries.
• CompuFlo Epidural System Expansion: Milestone Scientific (MLSS) expanded its CompuFlo Epidural System to Hudson Specialty Care, a premier Northeast pain management clinic. This follows the system’s recent Medicare Part B Physician payment rate assignment, further accelerating the company’s growth trajectory.

Healthcare Services

• Ensign Group’s Senior Living Expansion: The Ensign Group, Inc. (ENSG) acquired three senior living facilities in Wisconsin, adding 125 units under its management. This move positions the company to better serve the state’s growing senior population.
• Centene Corporation’s FIDE SNP Expansion: Centene Corporation (CNC) secured a contract with the Ohio Department of Medicaid to provide Medicare and Medicaid services for dually eligible individuals through a Fully Integrated Dual Eligible Special Needs Plan (FIDE SNP), expanding its reach in the state.

Other Developments

• Nexalin Technology’s Nasdaq Compliance: Nexalin Technology, Inc. (NXL) regained compliance with Nasdaq’s minimum bid price requirement, demonstrating the company’s commitment to driving shareholder value.
• Abeona Therapeutics’ Talent Acquisition: Abeona Therapeutics Inc. (ABEO) granted restricted stock equity awards to nine new employees, highlighting its commitment to attracting and retaining top talent.
• Phibro Animal Health’s Acquisition: Phibro Animal Health Corporation (PAHC) completed the acquisition of Zoetis Inc.’s (ZTS) medicated feed additive (MFA) product portfolio and certain water-soluble products, expanding its species and product portfolios.

Economy & Real estate

U.S. Economic Trends

• Slowing Job Growth: The U.S. economy added only 12,000 jobs in October, the slowest pace since December 2020, indicating a slowdown in hiring activity. This slowdown was attributed to factors like strikes, hurricane disruptions, and election uncertainties. Despite the hiring freeze, the unemployment rate remained steady at 4.1%.
• Regional Economic Divergence: The recent flurry of economic data has consistently showed that some economies are doing better, notably the US, Canada, and Spain, while the likes of Germany, Italy, and Japan are struggling. However, demographic pressures can make headline growth rates a poor measure of underlying economic performance.
• Impact of Population Trends on GDP: Headline GDP growth can be misleading when population trends are not considered. For example, Spain’s strong GDP growth is largely driven by population increases, while Canada’s growth is affected by significant immigration. In contrast, population declines in Italy and Japan contribute to their slow GDP growth.
• GDP per Capita Growth: GDP per capita growth matters more for living standards than headline GDP growth. It reflects the volume of output per hour of work and allows firms to pay employees better in real terms, leading to higher living standards.

Global Economic Outlook

• ASEAN Region at Risk from Global Fragmentation: The IMF warned that the intensification of geopolitical pressures could harm the ASEAN region in the future. Global economic fragmentation is likely to reduce activity in the region’s major trading partners, such as the U.S. and China, and could lower external demand for goods from the heavily export-dependent region.

Real Estate Market Performance

• REITs Benefit from Falling Interest Rates: As interest rates continue to fall, real estate investment trusts (REITs) are expected to perform well. Lower rates reduce borrowing costs for REITs, making them more attractive to investors.
• Mixed Results for Shopping Mall REITs: Simon Property (SPG) reported a miss on FFO estimates for the third quarter, but its revenue exceeded expectations. The company raised its fourth-quarter 2024 dividend. SITE Centers Corp. (SITC) reported a decline in operating FFO per share, while Federal Realty Investment Trust (FRT) narrowly missed estimates but showed strong leasing activity and occupancy gains.
• Challenges in Office Real Estate: Vornado Realty Trust (VNO) is expected to report a year-over-year decrease in revenues and FFO per share for the third quarter, due to the challenging office real estate market. However, certain markets reported positive net absorption, driven by occupiers’ preference for high-quality office buildings. The national vacancy rate reached a record high of 20.9%, though rents are increasing.
• Industrial and Commercial Real Estate: Madison Pacific Properties Inc. (MPC) reported a net loss for the year ended August 31, 2024, driven by provisions for uncertain tax positions and losses on fair value adjustments. The company’s investment portfolio comprises 55 properties with approximately 1.9 million rentable sq. ft. of industrial and commercial space and a 50% interest in seven multi-family rental properties.
• Growth in Transitional Real Estate Financing: Timbercreek Capital Inc. announced the final close of Timbercreek Ireland Fund II at €123.5 million, which will seek to deploy €300m into middle market transitional real estate loans in Ireland. This strategy is well-timed to capitalize on opportunistic lending at reset real estate values.

Company Specifics

• Fang Holdings Limited (SFUNY): Fang Holdings Limited, a leading real estate Internet portal in China, announced changes in its board of directors, with Vincent Tianquan Mo appointed as a director and Executive Chairman of the Board.
• KH Group Plc (Finland): KH Group Plc reported a decline in pro forma net sales and operating profit year-on-year. The company is focused on becoming an industrial group built around the KH-Koneet business and divesting other business areas.
• Arco Vara (Estonia): Arco Vara plans to issue bonds in the maximum amount of 4 million euros with a maturity date no later than 12.12.2026. The proceeds of the bond issue will be used as own financing for the Arcojärve development project.
• Eurocastle Investment Limited: Eurocastle Investment Limited announced the retirement of Mr. Peter Smith as a non-independent director of the Company.
• Toll Brothers (TOL): Toll Brothers is a home builder with a Zacks Rank #2 (Buy), indicating potential for outperforming the broader market in the near term.
• Latham Group (SWIM): Latham Group has outperformed its sector and its industry in terms of year-to-date returns.
• Ingersoll Rand Inc. (IR): Ingersoll Rand Inc. reported third-quarter 2024 adjusted earnings that surpassed the Zacks Consensus Estimate, but revenues missed. The company lowered its 2024 revenue growth forecast.
• Pinnacle West Capital Corporation (PNW): Pinnacle West Capital Corporation is scheduled to release third-quarter 2024 results on Nov. 6.
• American Electric Power (AEP): American Electric Power Company, Inc. (AEP) is slated to release third-quarter 2024 results on Nov. 6.
• WEC Energy Group (WEC): WEC Energy Group reported a decline in revenue for the quarter ended September 2024, but EPS exceeded the Zacks Consensus Estimate.
• MGM Resorts International: MGM Resorts International is gearing up for the second lap of the Las Vegas Grand Prix with a robust roster of activations and events across The Strip designed to entertain fans leading up to and during race weekend.
• Dominion Energy (D): Dominion Energy reported quarterly earnings that beat the Zacks Consensus Estimate.
• PPL (PPL): PPL reported quarterly earnings that beat the Zacks Consensus Estimate.
• Avery Dennison Corporation (AVY): Avery Dennison Corporation delivered third-quarter adjusted earnings that beat the Zacks Consensus Estimate.
• John Bean Technologies Corporation (JBT): John Bean Technologies Corporation reported adjusted earnings that beat the Zacks Consensus Estimate.
• A. O. Smith Corporation (AOS): A. O. Smith Corporation reported third-quarter adjusted earnings that matched the Zacks Consensus Estimate.
• Vornado Realty Trust (VNO): Vornado Realty Trust is scheduled to report third-quarter 2024 results on Nov. 4.
• Ryman Hospitality Properties (RHP): Ryman Hospitality Properties is scheduled to release quarterly numbers on Nov. 4.
• AvalonBay Communities (AVB): AvalonBay Communities is scheduled to report quarterly numbers on Nov. 4.

Retail

Holiday Sales Outlook

• Thanksgiving Sales Surge: Ibotta, a leading digital promotion platform, is offering 100% cashback on Thanksgiving meal ingredients for SNAP recipients. This program has helped feed over 11 million Americans in the past four years, with a value of $25-27 in cashback rewards this year, potentially boosting holiday spending for SNAP recipients.
• Consumer Confidence Up: The Consumer Confidence Index jumped to 108.7 in October, the highest monthly gain since March 2021, indicating increased consumer optimism and a potential surge in holiday spending for retailers like Target, Boot Barn, Costco, and Abercrombie & Fitch.
• NRF Holiday Sales Forecast: The National Retail Federation projects holiday sales to increase between 2.5% and 3.5%, reaching $979.5 billion to $989 billion between November and December, suggesting a positive holiday season for the retail industry.

Company Performance and Trends

• Restaurant Sector Performance: Chipotle Mexican Grill (CMG) outperformed the Retail-Wholesale sector in 2024, with a year-to-date return of 21.9% compared to the sector average of 19.6%, driven by its strong earnings outlook. Cheesecake Factory (CAKE) also experienced growth, with its share price rising 32% year-to-date due to positive earnings prospects.
• International Expansion and Acquisitions: Kellanova (K) delivered strong third-quarter results, exceeding earnings estimates and achieving organic sales growth despite currency headwinds. The company’s deal with Mars, Incorporated is expected to close in the first half of 2025, indicating potential international growth.
• Mixed Performance in Restaurant Sector: BJ’s Restaurants (BJRI) reported mixed third-quarter results, exceeding revenue estimates but falling short on earnings, potentially due to higher restaurant costs. Wendy’s Company (WEN), on the other hand, met earnings estimates and exceeded revenue expectations, driven by strong same-restaurant sales and digital sales momentum.
• E-commerce Growth and Value Investing: Wayfair exceeded revenue estimates with a 2% year-over-year decline in sales, but reported a strong EPS beat of 46.67%, driven by strong repeat customer orders and international market growth. United Natural Foods (UNFI) is a potential value stock with a strong Zacks Rank (#2 Buy) and a Value grade of A, suggesting undervaluation based on its P/B and P/CF ratios.

Retail Industry Innovations

• Sustainable Transportation: NIU Technologies is offering significant discounts on electric scooters and bikes for the holiday season, making eco-friendly transportation more accessible and affordable, potentially attracting consumers seeking sustainable options.
• Health and Wellness: Safety Shot, Inc. is expanding its retail footprint with the launch of its Sure Shot beverages in select Chicagoland grocery stores. The beverage is designed to reduce BAC and boost mental clarity, providing a healthier alternative for consumers.
• Print-on-Demand (POD): Expert Consumers named Gelato as the top Shopify POD provider for 2024, highlighting its eco-friendly practices, high-quality products, and seamless Shopify integration, indicating potential growth in this sector.
• Franchising and M&A Activity: PopUp Bagels is expanding nationally with a new franchising strategy, appointing Tory Bartlett as CEO to lead the effort. The brand’s focus on fresh, high-quality bagels and simplified operations is expected to drive growth. Food and beverage companies are streamlining their portfolios, shedding brands that don’t align with their core strengths, while acquisitions are driven by consumer demand for convenient and healthier snacking options.

E-commerce and Retail Sector Trends

• E-commerce Partnerships: King of Christmas is partnering with TBS to bring its “All I Watch for Christmas” collection to viewers, offering premium holiday décor and providing a convenient way for consumers to create a festive atmosphere in their homes.
• Retail Sector Outlook: Analysts are bullish on the retail sector, with a strong focus on companies that leverage technology, offer value-based pricing, and cater to specific consumer needs. The holiday season is anticipated to be strong for retailers with strategies aligned with these trends.

Infrastructure

Company Performance and Earnings

• Kalmar’s Strong Q3: Kalmar Corporation reported a record-high comparable operating profit margin of 13.5% in Q3 2024, despite a 16% decline in sales. The company attributed this success to slower market activity and a reduced order book compared to the previous year. Kalmar expects to maintain a positive outlook for 2024, aiming for a comparable operating profit margin above 12%.
• Infortar Acquires Polish Gas Network: Aktsiaselts Infortar, through its subsidiary AS Eesti Gaas, successfully acquired 100% of the shares in EWE Polska, a Polish natural gas distribution network operator. This €120 million acquisition is projected to contribute over €100 million in additional revenue and provide steady cash flow for Infortar shareholders.
• Tallinna Vesi Reports Stable Performance: Estonia’s largest water utility, Tallinna Vesi, experienced stable performance in Q3 2024. Sales increased by 3.9% to €16.22 million, while net profit decreased slightly by €0.12 million due to higher interest costs. The company remains committed to investing in water and sewerage infrastructure, having completed €33.4 million in investments during Q3 2024.
• American Tower’s Dividend Remains Unchanged: American Tower (AMT) faced challenges in its Indian tower operations, leading to a slowdown in growth. The company decided to maintain its dividend at $1.62 per share, allowing for greater investments in data and communication infrastructure. American Tower expects to regain momentum in 2025 and beyond, despite current headwinds.

Infrastructure Investments and Developments

• American Tower Expands Data Center Capacity: American Tower is strategically investing in expanding its data center capacity within the United States. This segment saw a 10% revenue increase during Q3 2024, driven by rising rates and occupancy.
• Renewables Expansion Fuels MasTec Growth: MasTec, Inc. (MTZ) is actively investing in expanding its renewable energy projects, capitalizing on favorable market trends and high demand. As of September 30, 2024, the company’s 18-month backlog reached $13.9 billion, an increase of $1.4 billion from the previous quarter.

Industry Challenges and Trends

• Rising Energy Costs Impact Utilities: Utilities across the nation are facing increasing costs, particularly for natural gas. Avista (AVA) has requested an increase in Oregon’s natural gas base rates by 6.6%, citing rising costs and the need for infrastructure investments.
• Weather Challenges Impact Aggregates Sector: Severe weather conditions negatively impacted aggregates shipments, leading to lower earnings and revenue for Vulcan Materials Company (VMC) and Martin Marietta Materials, Inc. (MLM) during Q3 2024.

Strategic Acquisitions and Partnerships

• Parsons Acquires BCC Engineering: Parsons Corporation expanded its reach in the Southeastern United States by acquiring BCC Engineering, a leading transportation engineering firm in Florida, for $230 million. This acquisition aligns with Parsons’ strategy of acquiring high-growth companies.
• Coach USA Acquired by Renco Group: Coach USA completed a transaction with The Renco Group, Inc., selling its bus lines and certain assets. The transaction is expected to provide Coach USA with additional resources and strategic expertise for future growth and service improvements.
• DFDS Terminates Ekol Logistics Acquisition: DFDS A/S terminated its agreement to acquire the international transport network of Ekol Logistics due to certain contractual conditions not being met.

Sector Outlook

The Infrastructure sector continues to navigate a complex landscape influenced by rising energy costs, increased demand for data infrastructure, and weather-related challenges. However, ongoing investments in renewable energy projects, data center capacity expansion, and infrastructure upgrades offer opportunities for continued growth in the sector.

Commodities

Gold & Silver Mining

• Private Placement Financing: Eloro Resources Ltd. raised C$3,780,000 in a non-brokered private placement, with the proceeds allocated to exploration and development of the Iska Iska project in Bolivia.
• Hemlo Explorers Financing: Hemlo Explorers Inc. raised C$2,000,000 in a non-brokered private placement, with the proceeds used for exploration of its projects in Newfoundland and Ontario.
• Share Repurchase: Endeavour Mining plc repurchased 13,900 of its ordinary shares, part of its ongoing buy-back program announced in March 2024.
• Alamos Gold Earnings Preview: Alamos Gold Inc. is expected to report strong third-quarter earnings driven by higher gold prices and increased production.
  Oil & Gas
• Equinor Capital Return: Equinor is returning a record $44.7 billion to shareholders over three years through dividends and buybacks, but will reduce its capital return program in 2025.
• Energy Transfer Distribution: Energy Transfer LP raised its quarterly distribution payment to $0.3225 per unit, marking a 3.2% increase from the prior year.
• Chevron Earnings Beat: Chevron Corporation beat third-quarter earnings expectations with a 7% increase in production and returned a record $7.7 billion to shareholders.
• ExxonMobil Earnings Beat: Exxon Mobil Corporation beat third-quarter earnings expectations driven by record liquids production.
  Metals
• Blue Moon Management Changes: Blue Moon Metals Inc. appointed Christian Kargl-Simard as President and CEO, and Frances Kwong as CFO and Corporate Secretary.
• LyondellBasell Earnings: LyondellBasell Industries N.V. reported third-quarter earnings that missed analysts’ estimates due to higher feedstock costs and weaker demand.
• BHP’s Anglo American Bid: BHP Group is not formally withdrawing from its bid for Anglo American, despite comments from its chairman suggesting otherwise.
  Chemicals
• Balchem Presentation: Balchem Corporation will present at Baird’s 54th Annual Global Industrial Conference, highlighting its specialty ingredients for health and nutrition markets.
• Costamare Financial Results: Costamare Inc. reported strong third-quarter earnings with a fully employed containership fleet and a growing leasing platform.
  Agriculture
• ForFarmers Trading Update: ForFarmers N.V. reported strong third-quarter results with significant volume growth and robust profitability.
• Nutrien Earnings Preview: Nutrien Ltd. is expected to report mixed third-quarter earnings, with revenue expected to decline due to lower fertilizer prices.
• Corteva Earnings Preview: Corteva, Inc. is expected to report a third-quarter loss, with revenue growth driven by strong demand for crop protection products.
  Other
• Avance Gas Sale: Avance Gas Holding Ltd. completed the sale of its VLGC fleet to BW LPG Ltd., receiving cash, debt novation, and shares in BW LPG.
• The Manitowoc Company: The Manitowoc Company, Inc. reported revenue growth but missed earnings estimates.
• Stardust Power Earnings: Stardust Power Inc. will release third-quarter financial results and host a conference call to discuss performance.
  Macroeconomic Environment
• Global Markets: U.S. markets closed lower on Thursday, with Microsoft and Meta highlighting rising AI-related costs. European markets closed higher on Friday.
• Commodities: Oil prices rose over +2% on reports of Iran preparing a retaliatory strike on Israel. Gold traded higher on expectations of interest rate cuts.
• Currency: The U.S. dollar index rose after its strongest month in two years. The yen softened ahead of Japan’s three-day weekend.

Politics

2024 US Presidential Election

• Harris and Trump’s Campaign Strategies for Latino Voters: With the 2024 election looming, both campaigns are focusing on securing the Latino vote, particularly in battleground states like Arizona and Nevada. While Democrats traditionally hold an advantage with Latino voters, this has narrowed in recent years as Trump gains ground with Latino men. Inflation and the cost of living are key issues for Latino voters, on which Trump holds an edge.
• Harris’s Abortion Rights Campaign Strategy: Vice President Kamala Harris has made abortion a central issue in her campaign, promising to expand and protect women’s access to abortion if elected. This strategy aims to mobilize a key demographic: female voters, who are significantly more likely to support Harris than her Republican opponent, Donald Trump.
• Battle for Black Male Voters: Both campaigns are actively seeking to win over Black male voters, who are a key demographic in several swing states. Harris has highlighted policies aimed at economic empowerment in the Black community, while Trump’s campaign claims it is reaching out directly to Black business owners and voters.
• Trump’s Legal Battles Against Media Outlets: Trump’s campaign has filed lawsuits against The Washington Post and CBS Broadcasting, alleging biased coverage in favor of Harris. Legal experts, however, view these lawsuits as frivolous and unlikely to be successful, as the claims are based on allegations of unfair editing and promotional strategies.

Social Security Changes for 2025

• Benefit Increase and Earnings Test Adjustments: Social Security benefits will increase by 2.5% in 2025, a smaller increase compared to the 3.2% rise in 2024. However, seniors can earn more money without risking having their benefits withheld, as the earnings-test limits will be adjusted, with a higher threshold for those reaching full retirement age during the year.
• Higher Wage Cap for Social Security Taxes: The wage cap for Social Security taxes will rise to $176,100 in 2025, meaning higher earners will pay more in Social Security taxes. This could result in larger monthly benefits for them in retirement.

Election Impact on US Financial Markets

• Pre-Election Market Volatility: Investors may reduce exposure to stocks, particularly in sectors vulnerable to policy changes, leading up to the election. Defensive sectors, such as utilities and consumer staples, might see an increase in investment.
• Election Night Market Reactions: The futures markets will be the first to react to initial results. A Trump victory could initially lead to a rise in equity markets, particularly in sectors like defense and energy. Harris’s victory could result in an initial decline as markets adjust to potential changes in tax and regulatory policies.
• Post-Election Market Repositioning: The weeks following the election will be crucial for market positioning. A decisive outcome could lead to a rally in the market. A second Trump term might favor sectors like energy and financials, while Harris’s policies could benefit renewable energy and healthcare.
• Market Uncertainty from Contested Election Results: A contested election result could lead to heightened market volatility and a significant sell-off.

Stock Picks

Boeing Strike

• Contract Proposal Vote: Striking employees at Boeing Co. BA are set to vote on a new contract proposal on Monday, which includes a 38% wage increase over four years and a larger signing bonus.
• Union Backing: The workers’ union, the International Association of Machinists and Aerospace Workers (IAM), has endorsed the proposal, stating it achieved the best possible terms.
• Financial Stabilization: The offer comes as Boeing attempts to stabilize its finances after a seven-week strike by over 33,000 workers halted production of key aircraft models.
• Estimated Strike Cost: The strike has cost Boeing an estimated $2 billion over the last five weeks.
  S&P 500 Stock Picks
• Short-Term Price Appreciation: Five S&P 500 stocks with favorable Zacks Ranks are identified as having potential for short-term price appreciation.
• Progressive Corp. (PGR): PGR continues to gain on higher premiums and has an expected revenue and earnings growth rate of 20.5% and more than 100%, respectively, for the current year.
• QUALCOMM Inc. (QCOM): QCOM is benefiting from accelerated 5G technology rollout and has an expected revenue and earnings growth rate of 8.2% and 8.4%, respectively, for the current year.
• GE Aerospace (GE): GE Aerospace is experiencing strength in its businesses and has an expected revenue and earnings growth rate of 12.8% and 23.3%, respectively, for next year.
• S&P Global Inc. (SPGI): SPGI is seeing growing demand for business information services and has an expected revenue and earnings growth rate of 12% and 19.5%, respectively, for the current year.
• Boston Scientific Corp. (BSX): BSX is seeing strength across its target markets and has an expected revenue and earnings growth rate of 16.4% and 20%, respectively, for the current year.
  VF Corp. (VFC) Rebound?
• Second-Quarter Results: VF Corp’s second-quarter revenue fell by 6% year over year, but the decline was less steep than in previous quarters, suggesting improvement.
• Earnings Beat: The company surpassed analysts’ earnings expectations, with non-GAAP net income per share falling from $0.63 to $0.60, while analysts predicted a much steeper decline.
• Bullish Outlook: Management made bullish pronouncements at the investor day event, including a pledge to clean the balance sheet and improve key metrics.
• Cautionary Note: While the recent results are positive, a single quarter does not guarantee a turnaround, so investors should remain cautious.
  Nuclear Energy Stocks
• Hot Area for Investors: Nuclear energy stocks have become one of the hottest areas on Wall Street due to their potential in the energy transition and the AI age.
• BWX Technologies, Inc. (BWXT): BWXT is a top supplier of nuclear technologies and is expanding its commercial nuclear power segment, leading to an 110% stock climb in the past two years.
• Constellation Energy (CEG): CEG is the largest U.S. nuclear power plant operator and is poised to play a major role in the AI nuclear power age, with a 125% stock surge in 2024.
• Industry Growth: The U.S. government is supporting the expansion of the domestic nuclear power industry, providing a price floor for nuclear power.
  Driehaus Momentum Strategy
• Buy High, Sell Higher: Richard Driehaus’s “buy high and sell higher” strategy advocates for investing in stocks with robust price strength, particularly during market uptrends.
• Momentum Stocks: Stocks like Stride, Inc. (LRN), Brinker International, Inc. (EAT), and Arista Networks, Inc. (ANET) are identified as potential momentum picks.
• Key Criteria: The strategy considers factors like positive relative strength, strong earnings growth rates, and a history of beating estimates.
  Implied Volatility in Options
• High Implied Volatility: The options market is indicating high implied volatility for Hershey (HSY) and Northrop Grumman (NOC), suggesting potential big moves in either direction.
• Analyst Sentiment: While analysts are bullish on Northrop Grumman, they are less optimistic about Hershey.
• Potential Trade Strategy: Options traders may look to sell premium on options with high implied volatility.
  Earnings Beat Potential
• Earnings Surprise Importance: Earnings surprises can significantly impact stock prices, with big beats often driving stocks higher.
• Screening Parameters: A screener identified stocks like Tenet Healthcare (THC), Fortinet (FTNT), Leidos (LDOS), and American Airlines (AAL) as likely winners based on their earnings surprise history and other metrics.
• Zacks Rank: Only stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) rating were considered.
  Disney’s November Outlook
• Stock Performance: Disney (DIS) shares have risen in back-to-back months after a five-month decline.
• Upcoming Events: Disney will report its fiscal fourth-quarter results in mid-November and has two theatrical releases scheduled for the month, including the highly anticipated “Moana 2.”
• Earnings Expectations: Analysts predict modest revenue growth with substantial bottom-line improvement.
• Studio Business: Disney’s movie studios have recovered in 2024, and “Moana 2” is expected to be a blockbuster release.
  Pre-Market Trading
• Charter Communications (CHTR): Shares rose sharply after the company reported better-than-expected third-quarter EPS and revenues.
• Gainers: Globalstar, Inc. (GSAT), Theriva Biologics, Inc. (TOVX), Athira Pharma, Inc. (ATHA), VS MEDIA Holdings Limited (VSME), Atlassian Corporation (TEAM), Nuburu, Inc. (BURU), Proto Labs, Inc. (PRLB), comScore, Inc. (SCOR), and Halozyme Therapeutics, Inc. (HALO) all saw significant gains.
• Losers: ESSA Pharma Inc. (EPIX), Lexicon Pharmaceuticals, Inc. (LXRX), Elevai Labs Inc. (ELAB), MultiMetaVerse Holdings Limited (MMV), Arbe Robotics Ltd. (ARBE), Advent Technologies Holdings, Inc. (ADN), ASP Isotopes Inc. (ASPI), BJ’s Restaurants, Inc. (BJRI), nVent Electric plc (NVT), and DigitalBridge Group, Inc. (DBRG) all experienced declines.
  Analyst Ratings
• Brokerage Recommendations: Brokerage recommendations can be helpful, but investors should use them cautiously, as they can be biased.
• Target (TGT): The average brokerage recommendation (ABR) for Target is 1.87, indicating a buy, but investors should consider other factors.
• Zacks Rank: The Zacks Rank is a more objective rating system based on earnings estimate revisions.
• Leidos (LDOS): The ABR for Leidos is 1.31, also suggesting a buy, but investors should consider the Zacks Rank and estimate revisions.
  Oversold Stocks
• RSI Indicator: The RSI is a momentum indicator used to identify oversold stocks, which may be poised for a rebound.
• UDR (UDR): UDR is in oversold territory and has seen an upward trend in earnings estimate revisions, suggesting a potential turnaround.
• SPX Technologies (SPXC): SPXC is also oversold and has experienced a recent increase in earnings estimates, suggesting a potential trend reversal.
  Recent Price Strength
• Identifying Stocks with Momentum: A screen for stocks with recent price strength identifies companies with potential to maintain their upward momentum.
• Quad/Graphics (QUAD): QUAD has seen a solid price increase over the past 12 weeks and is currently trading at 85.7% of its 52-week high-low range.
• Zacks Rank: QUAD holds a Zacks Rank #2 (Buy), suggesting potential for continued price gains.
  Earnings ESP Filter
• Zacks Earnings ESP: The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, indicating the potential for a surprise.
• Positive ESP: Stocks with a positive Earnings ESP and a Zacks Rank #3 (Hold) or better have a high probability of beating earnings estimates.
• Jack In The Box (JACK): JACK has a positive Earnings ESP and a Zacks Rank #3 (Hold), suggesting the possibility of a positive surprise.
  Fast-Paced Momentum at a Bargain
• Momentum Investing Strategy: A screen for stocks with fast-paced momentum at a bargain identifies companies with recent price momentum and attractive valuations.
• Deutsche Lufthansa AG (DLAKY): DLAKY has a Momentum Score of A and is trading at a reasonable valuation.
• Cheesecake Factory (CAKE): CAKE also has a Momentum Score of A and is trading at a reasonable valuation.
  Vital Farms (VITL) Stock
• Recent Performance: Shares have returned -2.3% over the past month.
• Earnings Estimates: Analysts expect strong earnings growth for the current quarter and fiscal year.
• Zacks Rank: VITL holds a Zacks Rank #1 (Strong Buy), suggesting potential for outperformance.
  AMC Entertainment (AMC) Stock
• Recent Performance: Shares have returned -0.9% over the past month.
• Earnings Estimates: Analysts expect a loss for the current quarter but positive growth for the fiscal year.
• Zacks Rank: AMC has a Zacks Rank #3 (Hold), suggesting performance in line with the market.
  Ford Motor Company (F) Stock
• Recent Performance: Shares have returned -1.5% over the past month.
• Earnings Estimates: Analysts are less optimistic about earnings growth, particularly for the next fiscal year.
• Zacks Rank: F has a Zacks Rank #5 (Strong Sell), suggesting potential for underperformance.
  Top Income Stocks
• American Assets Trust (AAT): A Zacks Rank #1 (Strong Buy) with a dividend yield of 5%.
• Swedbank (SWDBY): A Zacks Rank #1 (Strong Buy) with a dividend yield of 4.8%.
• Farmers & Merchants Bancorp (FMAO): A Zacks Rank #1 (Strong Buy) with a dividend yield of 3.3%.
  Stocks with Strong Momentum
• Sprouts Farmers Market (SFM): A Zacks Rank #1 (Strong Buy) with a Momentum Score of A.
• First Savings Financial Group (FSFG): A Zacks Rank #1 (Strong Buy) with a Momentum Score of A.
• Leidos (LDOS): A Zacks Rank #1 (Strong Buy) with a Momentum Score of A.
  Stocks with Strong Growth Characteristics
• BRF (BRFS): A Zacks Rank #1 (Strong Buy) with a Growth Score of A.
• The Greenbrier Companies (GBX): A Zacks Rank #1 (Strong Buy) with a Growth Score of A.
• ZIM Integrated Shipping Services (ZIM): A Zacks Rank #1 (Strong Buy) with a Growth Score of B.
  Stocks with Strong Value Characteristics
• Pilgrim’s Pride (PPC): A Zacks Rank #2 (Buy) with a Value Score of A.
• Gap (GAP): A Zacks Rank #2 (Buy) with a Value Score of A.
• Allison Transmission (ALSN): A Zacks Rank #3 (Hold) with a Value Score of B.
  Stocks Outperforming Peers
• Cintas (CTAS): A Zacks Rank #2 (Buy) outperforming its peers in the Industrial Products sector.
• DXP Enterprises (DXPE): A Zacks Rank #1 (Strong Buy) outperforming its peers in the Industrial Products sector.
  Stocks with Strong Earnings Outlooks
• Teleflex (TFX): A Zacks Rank #3 (Hold) with a Value Score of B and a positive earnings estimate revision.
• Costco (COST): A Zacks Rank #2 (Buy) with a Growth Score of B and positive earnings estimate revisions.
• Embraer (ERJ): A Zacks Rank #3 (Hold) with a Momentum Score of B and positive earnings estimate revisions.
• Brinker International (EAT): A Zacks Rank #1 (Strong Buy) with a Growth Score of A and positive earnings estimate revisions.
  Stocks Likely to Rebound
• UDR (UDR): An oversold stock with an upward trend in earnings estimate revisions.
• SPX Technologies (SPXC): An oversold stock with an upward trend in earnings estimate revisions.
• Hawkins, Inc. (HWKN): An oversold stock with an upward trend in earnings estimate revisions.
• SharkNinja, Inc. (SN): An oversold stock with an upward trend in earnings estimate revisions.
• Heico Corporation (HEI): An oversold stock with an upward trend in earnings estimate revisions.
  Stocks with Strong Momentum and Valuation
• Deutsche Lufthansa AG (DLAKY): A Momentum Score of A and a favorable valuation.
• Cheesecake Factory (CAKE): A Momentum Score of A and a favorable valuation.
  Stocks with Positive Earnings ESP
• Jack In The Box (JACK): A positive Earnings ESP and a Zacks Rank #3 (Hold).
• Booking Holdings (BKNG): A positive Earnings ESP and a Zacks Rank #3 (Hold).
  Stocks with Strong Growth Characteristics
• CBIZ (CBZ): A Growth Score of A and a Zacks Rank #2 (Buy).
• Chefs’ Warehouse (CHEF): A Growth Score of A and a Zacks Rank #2 (Buy).
• Ecolab (ECL): A Growth Score of B and a Zacks Rank #2 (Buy).
  Stocks with Strong Value Characteristics
• Pilgrim’s Pride (PPC): A Zacks Rank #2 (Buy) with a Value Score of A.
• DXP Enterprises (DXPE): A Zacks Rank #1 (Strong Buy) with a Value Score of A.
• TOPGOLF CALLAWY (MODG): A Zacks Rank #1 (Strong Buy) with a Value Score of A.
• Iamgold (IAG): A Zacks Rank #1 (Strong Buy) with a Value Score of A.
• New Gold (NGD): A Zacks Rank #2 (Buy) with a Value Score of A.
• Pampa Energia (PAM): A Zacks Rank #2 (Buy) with a Value Score of A.
• Deutsche Lufthansa (DLAKY): A Zacks Rank #2 (Buy) with a Value Score of A.
• International Consolidated Airlines Group (ICAGY): A Zacks Rank #2 (Buy) with a Value Score of A.
  Stocks with Potential for Upside
• AngioDynamics (ANGO): A Zacks Rank #2 (Buy) with an average price target indicating a 94.3% upside.
  Stocks Likely to Rebound Based on Chart Patterns
• Berkeley Group Holdings PLC Unsponsored ADR (BKGFY): A hammer chart pattern suggests a potential trend reversal.
• Comfort Systems (FIX): A Zacks Rank #1 (Strong Buy) with an upward trend in earnings estimate revisions.
• Compass, Inc. (COMP): A Zacks Rank #1 (Strong Buy) with an upward trend in earnings estimate revisions.
• Marcus (MCS): A Zacks Rank #1 (Strong Buy) with an upward trend in earnings estimate revisions.
• Blachem (BCPC): A Zacks Rank #1 (Strong Buy) with an upward trend in earnings estimate revisions.
  Stocks with Strong Earnings Beat Potential
• Deere (DE): A Zacks Rank #3 (Hold) with a positive Earnings ESP.
• Triple Flag Precious Metals (TFPM): A Zacks Rank #2 (Buy) with a positive Earnings ESP.
  Stocks with Strong Momentum
• Philip Morris (PM): A Zacks Rank #2 (Buy) with a Momentum Score of B and strong recent price performance.
  Stocks with Positive Earnings Estimate Revisions
• Potlatch (PCH): A Zacks Rank #2 (Buy) with an upward trend in earnings estimate revisions.
• Comfort Systems (FIX): A Zacks Rank #1 (Strong Buy) with an upward trend in earnings estimate revisions.
• Compass, Inc. (COMP): A Zacks Rank #1 (Strong Buy) with an upward trend in earnings estimate revisions.
• Marcus (MCS): A Zacks Rank #1 (Strong Buy) with an upward trend in earnings estimate revisions.
• Blachem (BCPC): A Zacks Rank #1 (Strong Buy) with an upward trend in earnings estimate revisions.
  Stocks with Strong Price Performance
• ZIM Integrated Shipping Services (ZIM): A Zacks Rank #1 (Strong Buy) with a strong upward trend in earnings estimate revisions.
  Top Trending Tickers on Stocktwits
• Amazon.com, Inc. (AMZN): Shares surged following strong earnings results.
• Trump Media & Technology Group Corp. (DJT): Stock took a breather after a recent rally.
• Intel Corp. (INTC): Shares rebounded after better-than-expected third-quarter revenue.
• Apple, Inc. (AAPL): Shares declined after weak December sales guidance and a downturn in sales in China.
• Super Micro Computer, Inc. (SMCI): Shares dropped following the resignation of its accounting firm.
  Stocks with Potential for Upside
• Avis Budget Group (CAR): Shares rose despite missing earnings estimates, as investors anticipate strong earnings growth in the future.
  Stocks with Strong Growth Potential
• CBIZ (CBZ): A Growth Score of A and a Zacks Rank #2 (Buy).
• Chefs’ Warehouse (CHEF): A Growth Score of A and a Zacks Rank #2 (Buy).
• Ecolab (ECL): A Growth Score of B and a Zacks Rank #2 (Buy).
  Stocks with Strong Value Characteristics
• Swire Pacific (SWRAY): A Zacks Rank #1 (Strong Buy) with a Value Score of A.
• Toll Brothers (TOL): A Zacks Rank #2 (Buy) with a Value Score of B.
• OSI Systems (OSIS): A Zacks Rank #2 (Buy) with a Value Score of B.
• Corning (GLW): A Zacks Rank #2 (Buy) with a Value Score of B.
• DTE Energy (DTE): A Zacks Rank #2 (Buy) with a Value Score of B.
• Cognizant (CTSH): A Zacks Rank #2 (Buy) with a Value Score of B.
• Alpine Income (PINE): A Zacks Rank #2 (Buy) with a Value Score of B.
  Stocks with Analyst Initiated Coverage
• Penguin Solutions, Inc. (PENG): Goldman Sachs initiated coverage with a Buy rating and a price target of $21.
• Boise Cascade Company (BCC): Loop Capital initiated coverage with a Buy rating and a price target of $155.
  Stocks with Declining Short Interest
• Howmet Aerospace (HWM): Short interest has fallen 4.76% since the last report.
• Nucor (NUE): Short interest has fallen 5.9% since the last report.
• Fluor (FLR): Short interest has fallen 13.64% since the last report.
• Murphy USA (MUSA): Short interest has fallen 4.02% since the last report.
  Stocks with Increasing Short Interest
• Agilent Technologies (A): Short interest has risen 4.07% since the last report.