Eksentricity

Tech

AI Adoption

• AI in Enterprise Operations: Companies are adopting AI to improve efficiency and drive growth. For example, a global insurance firm reduced underwriting response times from over two weeks to just three hours using Palantir’s AI platform. Associated Materials increased its on-time delivery rates from 40% to 90% using the platform.
• AI in Cloud Infrastructure: Public cloud computing revenue is expected to reach $2 trillion in spending by 2030. Companies are investing heavily in AI infrastructure to support the growth of AI-powered applications.
• AI in Cybersecurity: AI is enhancing cybersecurity. VMware vDefend offers AI-based assistance for IT security teams to proactively triage threats and recommend remediation options.
• AI in Data Services: AI workloads require robust data services. VMware Tanzu Data Services for VMware Cloud Foundation is a new offering designed to streamline data services and enable faster application delivery.

Semiconductor Industry

• AI Chip Demand: Demand for advanced semiconductors, particularly AI chips, is high. This is driving growth for chipmakers like Nvidia and equipment manufacturers like ASML Holding.
• Chip Supply Constraints: Chip supply constraints are still a major challenge due to delays in the delivery of Nvidia’s Blackwell GPUs. This has impacted major cloud providers like Amazon Web Services and Microsoft Azure in meeting the demand for their AI services.
• Global Competition: The U.S. government is attempting to prevent Western companies from selling advanced equipment to China. This could impact the industry’s growth prospects as China represents a significant portion of some semiconductor companies’ revenues.
• Taiwan’s Energy Challenges: TSMC is facing increased energy costs in Taiwan, which could impact its production expansion plans. Taiwan’s reliance on imported fossil fuels and delayed investment in renewable energy is creating challenges for the company’s operations.

Financial Technology

• FinTech Expansion: Companies like JazzCash are using technology to improve financial inclusion in emerging markets, particularly for underserved populations. JazzCash is partnering with the Benazir Income Support Programme to distribute cash support to women in Pakistan.
• Cryptocurrency Exchange Growth: The global cryptocurrency market is expanding despite regulatory challenges. Exchanges like DIGZAX are expanding into emerging markets and investing in technologies to improve security and compliance.
• Payments Technology: Marqeta is developing payment processing platforms for businesses. The company’s strong growth is being driven by the increasing adoption of digital payments.
• Neobanking: Neobanks are gaining popularity as they offer alternative banking solutions to traditional institutions. Dave, Inc. is an example of a neobank that has recently experienced strong growth due to its focus on providing financial services at a lower cost than traditional banks.

Cloud and Streaming

• Streaming: Streaming continues to grow in popularity, as evidenced by the strong performance of companies like Netflix, Roku, and Amazon Prime Video. The rise of ad-supported streaming services is also driving growth in the sector.
• Cloud Infrastructure: Companies are moving to the cloud at an increasing rate. This is creating opportunities for companies like Broadcom, which is developing software and services to help businesses manage their private cloud environments.
• Data Center Solutions: Data centers are expanding rapidly to support the growth of AI and cloud computing. Companies like Vertiv are providing solutions to help businesses manage their data centers, including power, cooling, and IT infrastructure.
• Subscription Services: Subscription services are becoming increasingly popular, driving growth for companies like Bango, which helps businesses manage their subscription businesses.

Finance

Earnings Reports

• Corebridge Financial (CRBG) Q3 2024 Performance: Corebridge Financial reported $4.53 billion in revenue for Q3 2024, up 11.1% year-over-year. EPS was $1.38, exceeding the Zacks Consensus Estimate of $1.17 by 17.95%. Key metrics include Premiums of $618 million, Total Corebridge- Advisory fee and other income of $300 million, Policy fees of $728 million, and Total Corebridge- Net investment income of $2.83 billion.
• Sun Life (SLF) Q3 2024 Earnings: Sun Life reported quarterly earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.25 per share. However, revenues of $6.29 billion missed the Zacks Consensus Estimate by 5.19%.
• MGIC Investment (MTG) Q3 2024 Earnings: MGIC Investment reported $306.07 million in revenue for Q3 2024, a 3% increase year-over-year. EPS of $0.77 exceeded the Zacks Consensus Estimate of $0.67 by 14.93%. Key metrics include GAAP underwriting expense ratio of 22.4% and GAAP loss ratio of -4%.
• Wynn Resorts (WYNN) Q3 2024 Earnings: Wynn Resorts reported $1.69 billion in revenue for Q3 2024, a 1.3% increase year-over-year. EPS of $0.90 missed the Zacks Consensus Estimate. Key metrics include Room occupancy rate of 89%, Table Drop of $580.80 million, Average daily room rate of $495, and Slot Machine Handle of $1.70 billion.
• Voya Financial (VOYA) Q3 2024 Earnings: Voya Financial reported $289 million in revenue for Q3 2024, a 2.9% increase year-over-year. EPS of $2.12 beat the Zacks Consensus Estimate of $2.05 by 3.41%. Key metrics include Total AUM and AUA – Wealth Solutions of $608.49 billion, Client Assets – Wealth Solutions – Full Service of $208.98 billion, Client Assets – Wealth Solutions – Recordkeeping of $335.77 billion, and Client Assets – Wealth Solutions – Defined Contribution Investment-only SV of $34.74 billion.
• Equitable Holdings, Inc. (EQH) Q3 2024 Earnings: Equitable Holdings, Inc. reported revenue of $3.78 billion, up 9.1% year-over-year. EPS came in at $1.53, exceeding the Zacks Consensus Estimate of $1.52 by 0.66%. Key metrics include Individual Retirement – Account Values – Total – Net flows of $1.91 billion and Individual Retirement – Account Values – General Account – Balance as of end of period of $66.47 billion.
• Otter Tail (OTTR) Q3 2024 Earnings: Otter Tail reported quarterly earnings of $2.03 per share, beating the Zacks Consensus Estimate of $1.97 per share. However, revenues of $338.03 million missed the Zacks Consensus Estimate by 6.67%.
• Patria (PAX) Q3 2024 Earnings and Dividends: Patria reported $34.9 million in Distributable Earnings in Q3 2024, or $0.23 per share. The company declared a quarterly dividend of $0.15 per share.
• Apollo Global Management, Inc. (APO) Q3 2024 Earnings and Dividends: Apollo Global Management, Inc. reported revenue of $926 million, up 11% year-over-year, and EPS of $1.81. The company declared a dividend of $0.4625 per share of its Common Stock and $0.8438 per share of its Mandatory Convertible Preferred Stock.
• DuPont de Nemours (DD) Q3 2024 Earnings: DuPont de Nemours reported $3.19 billion in revenue for Q3 2024, up 4.4% year over year. EPS came in at $1.18, exceeding the Zacks Consensus Estimate of $1.04 by 13.46%.
• CorVel Corporation (CRVL) Q3 2024 Earnings: CorVel Corporation reported $224 million in revenue for Q3 2024, an increase from $196 million in Q3 2023. Earnings per share for the quarter were $1.35, compared to $1.15 in Q3 2023.
• Onity Group (ONIT) Q3 2024 Earnings: Onity Group reported $4.33 per share in earnings, exceeding the Zacks Consensus Estimate of $1.60 per share. Revenues of $265.7 million surpassed the Zacks Consensus Estimate by 4.72%.
• Eversource Energy (ES) Q3 2024 Earnings: Eversource Energy reported third-quarter 2024 adjusted earnings of $1.13 per share, surpassing the Zacks Consensus Estimate of $1.04 per share. Total Revenues of $3.06 billion beat the Zacks Consensus Estimate.
• Fortis (FTS) Q3 2024 Earnings: Fortis reported quarterly earnings of $0.62 per share, beating the Zacks Consensus Estimate of $0.59 per share. Revenues of $2.03 billion surpassed the Zacks Consensus Estimate.
• OGE Energy (OGE) Q3 2024 Earnings: OGE Energy reported quarterly earnings of $1.09 per share, missing the Zacks Consensus Estimate of $1.12 per share. Revenues of $965.4 million missed the Zacks Consensus Estimate by 13.42%.
• Hillman Solutions Corp. (HLMN) Q3 2024 Earnings: Hillman Solutions Corp. reported quarterly earnings of $0.16 per share, in line with the Zacks Consensus Estimate. Revenues of $393.3 million surpassed the Zacks Consensus Estimate.
• Air Transport Services (ATSG) Q3 2024 Earnings Expectations: Air Transport Services is expected to post quarterly earnings of $0.19 per share.
• FedEx (FDX) Q3 2024 Earnings Expectations: FedEx is expected to post quarterly earnings of $3.88 per share.
• Abacus Life, Inc. (ABL) Q3 2024 Earnings Expectations: This company is expected to post quarterly earnings of $0.14 per share.

Market & Industry Trends

• U.S. Stock Market Performance: US stocks closed mostly higher on Tuesday, with the Dow Jones index gaining around 300 points.
• Consumer Loan Industry: The Zacks Consumer Loans industry is facing challenges due to weakening asset quality, inflation, higher rates, and a difficult macroeconomic environment.
• REIT & Equity Trust Industry: The Zacks REIT and Equity Trust industry is experiencing volatility in mortgage rates. The Fed’s rate cuts are expected to gradually decrease mortgage rates, which could improve purchase originations and refinancing activities.
• Communication Services Sector: The Communication Services sector has been performing well in 2024, with several companies poised to benefit from advancements in generative AI.
• Finance Sector Performance: The Finance sector has outperformed the overall market in the last 12 months.
• Insurance Industry: The Insurance industry is seeing strong demand and growth in some segments due to a recovering economy and the positive effects of the Fed’s rate cuts.
• Oil and Gas Industry: The oil and gas industry is experiencing a resurgence in demand for energy. Oil prices have rebounded, driven by high demand.
• Aviation Leasing Market: The aviation leasing market is seeing strong demand. Airlines are looking to lease more airplanes and engines, driving revenue growth for the industry.

Mergers and Acquisitions

• Air Transport Services (ATSG) Acquisition: Air Transport Services is being acquired by Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets. The all-cash transaction is valued at $3.1 billion.
• Flagstar Financial (FLG) Sale: Flagstar Bank, N.A., has completed the sale of its residential mortgage servicing, mortgage servicing rights, and the third-party origination platform to Mr. Cooper Group Inc. for $1.3 billion in cash.
• Prime Drink Group Corp. (PRME) Acquisition: Prime Drink Group Corp. announced the acquisition of Triani Canada.
• Enstar Group (ESGR) Acquisition: Enstar’s subsidiary, Cavello Bay Reinsurance Limited, has acquired a Bermuda-domiciled Class 3B insurer and segregated accounts company.
• Vista Outdoor (VSTO) Merger: Vista Outdoor Inc. is merging with Czechoslovak Group a.s. (CSG).

Whistleblower & Lawsuits

• Unisys Corporation (UIS): The Securities and Exchange Commission charged four companies, including Unisys, with making misleading disclosures about cybersecurity risks and intrusions.
• PACS Group, Inc. (PACS): Hindenburg Research published a report alleging that PACS’ turnaround strategy involves defrauding taxpayer-funded healthcare programs.
• WM Technology, Inc. (MAPS): A class action lawsuit alleges that the company inflated its monthly average user metrics for years.
• Flux Power Holdings, Inc. (FLUX): A class action lawsuit alleges that the company’s financial statements included overstated inventory, gross profit, current assets, and total assets.
• CSX Corporation (CSX): The company received a subpoena from the U.S. Securities and Exchange Commission.
• Coinbase Global, Inc. (COIN): A lawsuit claims that Coinbase’s British unit breached an agreement with the Financial Conduct Authority.
• MediaAlpha Inc. (MAX): Reports indicate the FTC may file a complaint against the company for alleged violations related to advertising, marketing, and data practices.
• The Toronto-Dominion Bank (TD): The company disclosed resolutions reached from investigations into its anti-money laundering program compliance.
• EngageSmart, Inc. (ESMT): A class action lawsuit alleges that the company concealed the conflicted sales process leading to its take-private acquisition.
• Paragon 28, Inc. (FNA): A class action lawsuit alleges that the company’s financial statements were misstated.
• Edwards Lifesciences Corporation (EW): A lawsuit alleges that Edwards misled investors about the growth of its core product.
• Franklin Resources, Inc. (BEN): An investigation is underway concerning potential violations of federal securities laws.
• Metagenomi Inc. (MGX): A lawsuit alleges that Metagenomi misled investors regarding its prospects, including its relationship with Moderna.
• AMC Entertainment Holdings (AMC): The company is facing a lawsuit alleging that it violated federal securities laws by issuing false or misleading statements.

Other News

• Vanguard surpassed BlackRock as the manager of the world’s second-largest ETF.
• The Federal Reserve started lowering rates.
• Capital Southwest Corporation announced the pricing of $200,000,000 principal amount of 5.125% Convertible Notes due 2029.
• Syensqo SA announced the first tranche of its €300 million Share Buyback Program.
• Sampo plc announced its share buyback program, increasing it to EUR 475 million.
• ISS A/S announced that it is increasing its share buyback program by DKK 250 million.
• ICG Enterprise Trust plc announced that it bought back 15,000 of its own shares.
• ING announced that it repurchased 4,016,274 shares as part of its €2.0 billion share buyback program.
• PayPoint plc announced that it purchased 10,288 of its ordinary shares.
• VEON announced that JazzCash, its fintech platform in Pakistan, has partnered with the Benazir Income Support Programme to distribute cash support to women beneficiaries.
• Michigan Retirement System began diversifying its crypto holdings, buying $10 million worth of shares from Grayscale’s Ethereum Trust.
• The Financial Times reports that global markets have reined in their bets on a victory for Donald Trump in the US presidential election.
• Spain’s prime minister is facing political backlash over the country’s historic flooding.
• The CNN Money Fear and Greed index showed a decline in the overall market sentiment.

Healthcare

Drug Development

• Huntington’s Disease: uniQure (QURE) presented positive long-term follow-up data for AMT-130, showing a dose-dependent slowdown in Huntington’s disease progression. The company is seeking an expedited development pathway from the FDA.
• Sickle Cell Disease & Beta-thalassemia: Vertex Pharmaceuticals (VRTX) is preparing for the potential approval of vanzacaftor triple for sickle cell disease and CASGEVY for beta-thalassemia in early 2025. CASGEVY has already been approved in Switzerland and Canada.
• Obesity: Viking Therapeutics (VKTX) is developing VK2735, a dual GLP-1/GIP agonist, with promising results for both injectable and oral formulations. The company reported significant weight loss in patients.

Commercialization & Market Trends

• Opioid Crisis: Vertex Pharmaceuticals (VRTX) is preparing to launch suzetrigine in the U.S. to provide a non-opioid alternative for moderate-to-severe acute pain, addressing the opioid crisis.
• Precision Oncology: Kura Oncology (KURA) is advancing ziftomenib, a menin inhibitor, in combination with standard treatments for acute myeloid leukemia (AML).
• Gene Therapy: uniQure (QURE) has initiated new Phase I/II clinical studies for AMT-191 (Fabry disease), AMT-162 (SOD1-ALS), and AMT-260 (refractory mesial temporal lobe epilepsy).
• Antibody-Drug Conjugates: Zymeworks (ZYME) is advancing ZW191, an antibody-drug conjugate targeting folate receptor-⍺ (FR⍺), into Phase 1 clinical trials for advanced FR⍺-expressing solid tumors.

Company Performance & Earnings

• Coloplast A/S (COLP): Coloplast reported FY 2023/24 organic growth of 8% and a 27% EBIT margin. Growth was driven by new product launches, such as Luja™ in Continence Care, and acquisitions like Atos Medical and Kerecis.
• Supernus Pharmaceuticals (SUPN): Supernus reported strong third-quarter results with revenue of $175.69 million, up 14.2% year-over-year. EPS was $1.06, compared to -$0.29 in the year-ago quarter. This growth is attributed to increasing demand for products like Qelbree and GOCOVRI.
• The Oncology Institute, LLC (TOI): The Oncology Institute will release its third-quarter 2024 financial results on Wednesday, November 13, 2024. The company provides value-based cancer care in community settings with a network of 70 clinic locations.
• Aquestive Therapeutics (AQST): Aquestive Therapeutics reported third-quarter revenue of $13.54 million, a 4.2% increase year-over-year. This growth was driven by increased demand for its key products in the U.S. market.

Global Developments

• EU Health Data Space (EHDS): BC Platforms launched its EHDS-Ready Trusted Research Environment (TRE) to support EU healthcare institutions complying with EHDS regulations.
• Sweden: Osteogenesis Imperfecta (OI): Karolinska Development AB announced that BOOST Pharma, a portfolio company, successfully completed a pre-IND meeting with the FDA for its cell therapy aimed at treating children with Osteogenesis Imperfecta (OI).

Earnings & Events

• Moderna (MRNA): Moderna is set to report third-quarter 2024 earnings on Nov. 7, before the opening bell. Revenue is expected to be lower than the year-ago quarter due to decreased demand for its COVID-19 vaccine, but its new RSV vaccine, mResvia, is expected to contribute to sales.
• DENTSPLY SIRONA Inc. (XRAY): DENTSPLY SIRONA is scheduled to release third-quarter 2024 results on Nov. 7, before the opening bell. The company is expected to report lower organic sales year-over-year, but sequential growth is expected due to seasonality.
• Henry Schein (HSIC): Henry Schein reported third-quarter 2024 adjusted EPS of $1.22, beating the Zacks Consensus Estimate by 5.2%. However, sales missed the estimate due to lower PPE sales and ongoing recovery from a cyber incident last year.
• Jefferies London Healthcare Conference: Verona Pharma plc (VRNA) and Pharming Group N.V. (PHAR) will present company overviews at the Jefferies London Healthcare Conference on November 19, 2024.
• Nxera Pharma (4565): Nxera Pharma partnered with Antiverse to design antibodies for G-protein coupled receptors (GPCRs). This collaboration combines Antiverse’s generative AI antibody design expertise with Nxera’s NxWave™ platform.

Economy & Real estate

US Economy: Inflation & Social Security

• Social Security COLA: A Modest Raise Amid Inflation: The Social Security Administration announced a 2.5% cost-of-living adjustment (COLA) for 2025. While this is a modest increase, it is a positive sign as inflation has slowed down compared to recent years. However, the COLA is still unlikely to fully offset the rising cost of living, especially for healthcare.
• Tariffs and Consumer Spending: The National Retail Federation (NRF) warned that Donald Trump’s proposed tariffs could significantly impact American consumers, potentially reducing annual spending by $78 billion. These tariffs could lead to increased prices on essential items such as apparel, toys, and appliances, affecting consumer spending habits.

Global Economy: China’s Fiscal Stimulus

• China’s Fiscal Stimulus: China’s lawmakers are considering a major fiscal package to revive the country’s economy, with a focus on alleviating the vast debt burdens impacting local governments. The proposed package could reach around 10 trillion yuan (about $1.4 trillion) over the next three years.
• PBOC Maintains Supportive Monetary Policy: The head of the People’s Bank of China said Tuesday that the central bank planned to maintain supportive monetary policy. The central bank intends to “increase the intensity of counter-cyclical monetary policy.”

Real Estate Sector: Earnings & Acquisitions

• REIT Earnings Performance: Several Real Estate Investment Trusts (REITs) reported their third-quarter earnings, showcasing a mixed picture. Some companies saw strong results driven by acquisitions and a rebound in the housing market. Others faced challenges, particularly in the office sector, due to higher interest rates and a sluggish economic environment.
• REIT Acquisitions: Some REITs are actively acquiring new properties, particularly in the industrial sector, which is experiencing strong demand. These acquisitions aim to diversify portfolios and generate stable cash flows in a volatile market.
• Homebuilding Sector Recovery: The homebuilding sector is showing signs of recovery as mortgage rates have declined. Homebuilder confidence is increasing, and construction spending is on the rise.

Real Estate Technology: SKYX Platforms at The Real Deal Miami Experience

• SKYX Platforms at The Real Deal Miami Experience: SKYX Platforms Corp. will be a main event at The Real Deal Miami Experience, showcasing its game-changing smart home technology platform and products. The company’s technology is designed to make homes and buildings smart and safer, enhancing real estate value for both developers and homeowners.

Real Estate Brokerage: Opportunities in a Slowing Market

• RE/MAX and Anywhere Real Estate: Opportunities in a Slowing Market: Despite a challenging housing market, RE/MAX Holdings (RMAX) and Anywhere Real Estate (HOUS) are well-positioned for growth due to their strong brands, technology investments, and resilient business models.

Retail

Pet Health E-commerce

• Chewy’s Pet Health Expansion: Chewy, a leading online pet retailer, generated over $3 billion in revenue from pet health services in 2023. The company estimates the U.S. pet health market to be worth $47 billion and expects online pet medication sales to reach 30% by 2025.
• Tractor Supply’s Allivet Acquisition: Tractor Supply, a major retailer with a strong pet product segment, acquired Allivet, an online pet medicine platform, for an undisclosed cash sum. This acquisition is expected to increase Tractor Supply’s addressable market by $15 billion.
• Tractor Supply’s Loyal Customer Base: Tractor Supply boasts a loyal customer base with 77% of its sales coming from loyalty club members, 75% of whom own pets. The acquisition of Allivet aims to capture a larger share of their overall pet spending.

Home Furnishings Recovery

• Wayfair’s Revenue Decline: Wayfair, an online home furnishings retailer, has experienced significant revenue declines since the pandemic due to a slowdown in the housing market.
• Potential Recovery Drivers: Potential tailwinds for Wayfair include falling mortgage rates, a housing shortage, and potential government incentives for new home construction.
• Wayfair’s Business Initiatives: Wayfair has streamlined its business and launched a new rewards program, Wayfair Rewards, to boost sales growth and improve profitability.

Global Nutraceutical Market Growth

• Market Expansion: The global nutraceutical products market size is expected to grow from USD 267.4 billion in 2019 to USD 404.8 billion by 2025, driven by an aging population, rising chronic disease prevalence, and increased consumer awareness.
• Food Segment Dominance: The food segment, specifically snacks, is projected to be the largest nutraceutical market segment, fueled by demand for on-the-go snacks and nutritional food products.
• Asia Pacific Growth: The Asia Pacific region is expected to witness the fastest growth in the nutraceutical sector, driven by busy lifestyles, economic development, and rising demand for fortified food products.

Redcare Pharmacy Growth (Germany)

• Strong Q3 Growth: Redcare Pharmacy reported a 21% increase in total sales in Q3 2024, reaching EUR 575M, and a 34% year-to-date increase, reaching EUR 1.7bn.
• German Rx Momentum: Redcare Pharmacy’s Rx sales in Germany grew by over 130% in October 2024, further fueled by the nationwide adoption of the e-prescription.
• E-Prescription Adoption Boost: The adoption of the e-prescription in Germany has boosted Redcare Pharmacy’s share of the prescription market, doubling to 0.55% by the end of Q3 2024.

Container Store Group Challenges

• Revenue Decline: The Container Store Group has experienced a significant revenue decline in recent years, with projections for further declines in fiscal years 2024 and 2025.
• Financial Investment: The Container Store Group received a $40 million investment from Beyond, Inc., the owner of Bed Bath & Beyond, following a strategic review of its business.
• Challenging Market: The company faces a challenging environment, leading to an adjusted Q2 loss of $3.23 per share and a Zacks Rank #5 (Strong Sell).

Infrastructure

Transmission & Distribution

• Grid Expansion & Market Integration: Avista Corporation and Grid United are developing a 420-mile high-voltage direct-current (HVDC) transmission line called the North Plains Connector. The project will connect three regional U.S. electric energy markets, enhancing grid flexibility and resource sharing. Avista’s 10% ownership stake will provide them with 300 megawatts of transfer capacity, improving market access and reducing transmission congestion. The project is expected to become operational in 2032.

Compression & Energy Transition

• Burckhardt Compression Growth in Energy Transition: Burckhardt Compression reported strong growth in order intake (CHF 615.2 million), sales (CHF 436.8 million), and operating profit (CHF 51.7 million) in the first half of fiscal year 2024. The company attributed this growth to the increasing global need for energy driven by GDP growth and the transition towards new energies. The Systems Division achieved strong order intake, particularly in the Hyper Compressor market, driven by rising solar panel demand in Asia.

Port Operations & Logistics

• Tallinna Sadam Q3 2024 Earnings: Estonian Port Performance: Tallinna Sadam, one of the largest cargo and passenger port complexes in the Baltic Sea region, will host an investor conference webinar on November 11, 2024, to present its unaudited Q3 2024 results. The webinar will be available in both Estonian and English, with the management board chairman and CFO answering questions.

Energy & Utility

• Fortis Inc. Q3 2024 Earnings: Growth in Regulated Utilities: Fortis Inc., a diversified North American regulated electric and gas utility company, reported Q3 2024 net earnings of $420 million, up from $394 million in the same period last year. The increase was driven by rate base growth across its utilities and strong earnings in Arizona, reflecting new customer rates at Tucson Electric Power. Capital expenditures for 2024 are expected to be approximately $5.2 billion, driven by investments in the Eagle Mountain Pipeline project at FortisBC Energy. Fortis reaffirms its long-term dividend growth guidance of 4-6% annually through 2029.

Solar & Battery Energy Storage

• Emeren Group & Arpinge BESS Development in Italy: Emeren Group, a global solar project developer, and Arpinge, a sustainable infrastructure investor in Italy, have signed a co-development agreement to jointly develop a 300 MW Battery Energy Storage System (BESS) portfolio in Southern Italy. This partnership strengthens Emeren’s presence in Italy’s BESS market and aligns with the country’s clean energy goals, accelerating the permitting and development process.

Water & Wastewater

• Consolidated Water Co. Ltd. Q3 2024 Earnings: Desalination Expansion: Consolidated Water Co. Ltd. will host a conference call on November 15, 2024, to discuss its Q3 2024 results. The company, a leading designer, builder, and operator of advanced water supply and treatment plants, recently entered the U.S. desalination market with a contract for a seawater desalination plant in Hawaii.

Commodities

Natural Gas

• ONE Gas Earnings Decline: ONE Gas (OGS) reported a decline in third-quarter earnings per share (EPS) to $0.34, missing analysts’ estimates of $0.41. The company also experienced a decrease in total natural gas volumes delivered.
• Teck Resources Copper Expansion: Teck Resources is implementing a strategic plan to increase copper production to 800,000 tonnes per year by the end of the decade. The company intends to invest between $3.2 billion and $3.9 billion over four years to develop four key copper projects.
• International Petroleum Corporation Production: International Petroleum Corporation (IPC) announced its financial and operational results for the three and nine months ended September 30, 2024, reporting an average net daily production of 45,000 barrels of oil equivalent per day (boepd) in the third quarter.
• Aramco Profits Dip: Saudi state oil giant Aramco saw a 15.4% decrease in net profit during the third quarter due to lower crude oil prices and weakening refining margins. Despite the decline, the company maintained its 31.05 billion dividend.

Lithium

• Volt Lithium DLE Optimization: Volt Lithium Corp. made significant improvements to the operating capacity of its proprietary Direct Lithium Extraction (DLE) technology, reducing future capital requirements.
• Sigma Lithium Earnings Expectations: Sigma Lithium Corporation (SGML) is anticipated to report a decline in earnings for the third quarter due to lower revenues. Analysts forecast a decrease in both production and revenues.
• Lithium Americas Argentina Production Increase: Lithium Americas (Argentina) Corp. (LAAC) announced its third-quarter results, reporting a 21% increase in production volumes at the Caucharí-Olaroz project, reaching 6,800 tonnes.

Oil & Gas Equipment & Services

• Liberty Energy Earnings Miss: Liberty Energy (LBRT) announced a lower-than-expected adjusted net income of 45 cents per share, primarily attributed to poor equipment and services execution and lower activity in the quarter.
• Schlumberger Earnings Beat: Schlumberger Limited (SLB) reported a third-quarter earnings beat driven by broad-based earnings growth and margin expansion, particularly in the Middle East, Asia, and offshore North America.

Coal

• Arch Resources Earnings Miss: Arch Resources (ARCH) missed analysts’ earnings estimates for the third quarter, reporting a decline in EPS to $0.41.

Metals

• Anglo American Coal Divestiture: Anglo American has agreed to sell its 33.3% stake in the Jellinbah Group to Zashvin for $1.1 billion. The company is shifting its focus to copper, iron ore, and crop nutrients.
• Probe Gold Exploration Success: Probe Gold Inc. (PRB) announced significant gold intercepts at the Bussiere and Southeast deposits on its 100%-owned Novador property near Val-d’Or, Quebec.
• Michelin Plant Closures in France: The Michelin Group announced its intention to close the CHOLET and VANNES sites in France, committing to support impacted employees and job creation in the affected communities.
• Taseko Mines Upgrade: Taseko Mines (TGB) has been upgraded to a Zacks Rank #2 (Buy), indicating an upward trend in earnings estimates.

Global Market Trends

• Metal Roofing Market Growth: The global metal roofing market is projected to expand at a CAGR of 5.3% from 2023 to 2031. Key drivers include the growing focus on circular economy principles, changes in insurance industry practices, and evolving regulatory frameworks.
• Metal Roofing Market Competition: The metal roofing market is characterized by intense competition among key players such as NCI Building Systems, CertainTeed Corporation, and Owens Corning.
• Steel Prices Decline: Steel prices have experienced a sharp decline in the United States and globally this year. Soft demand in China amidst an economic slowdown is also a concern.
• Food Prices Surge: Food prices are rising at unprecedented rates, driven by factors such as climate change, geopolitical tensions, transportation costs, and labor shortages.
• Hurricane Season Impacts: Tropical Storm Rafael is expected to shortly form into a hurricane in the Caribbean, potentially impacting oil and refining operations and spurring infrastructure spending.
• Cannabis Industry Potential in Argentina: Argentina has the potential to unlock a $1.697 billion economic boost if it implements comprehensive cannabis regulations.

Politics

US Presidential Election

• Trump’s Lead Shrinking: Prediction markets, which are typically more accurate than traditional polls, indicate a slight lead for Vice President Kamala Harris over President Donald Trump. However, recent polls suggest Harris’s lead is narrowing, hinting at a tight race and a possible surprise outcome.
• Big Bets on Trump: A French trader, self-proclaimed as the world’s largest political bettor, has wagered $40 million on a Trump victory. He justifies this bet by citing the “shy Trump voter” effect and potential inaccuracies in polls.
• Impact on Tech: Wedbush analysts predict that a Trump victory could be advantageous for Tesla, as he is anticipated to be less supportive of electric vehicle tax credits, giving Tesla a competitive edge. Conversely, a Harris victory would likely maintain these tax credits.
• Economic Outlook: Experts anticipate that the election outcome will significantly impact the economy, particularly in sectors like technology and electric vehicles.

Cannabis Legalization

• Florida Referendum: Florida voters will decide on a ballot initiative to legalize marijuana for both recreational and medical use. Governor Ron DeSantis, however, opposes the initiative, comparing it to drug cartel activity.
• Harris’s Position: Vice President Harris has taken a significant step in the campaign by explicitly committing to legalizing recreational marijuana at the federal level.

Ukraine Aid

• Concerns over Funding: Ukrainian officials closely monitor the election, fearing that a Trump victory could lead to a decrease in U.S. aid.
• G7 Loan: The G7 leaders have agreed on a $50 billion loan to Ukraine, backed by frozen Russian assets. The loan is expected to be disbursed before the year’s end.

Election Integrity

• Legal Challenges: Several election-related legal battles have reached the Supreme Court, raising concerns about the court’s potential influence on the election outcome.
• Poll Watchers: The Election Integrity Team, led by Lara Trump, is deploying poll watchers in key states to ensure a fair election.

Trump Media and Cryptocurrency

• Trump Media Stock Volatility: Trump Media & Technology Group Corp’s stock has experienced significant volatility during the election season, with shares surging on Election Day.
• Trump Media Financial Performance: The company reported third-quarter net sales of $1.01 million, representing a 6% decrease year-over-year.
• Trump-Themed Crypto Surge: Cryptocurrencies and NFTs inspired by Donald Trump have seen a surge in anticipation of his victory.
• Harris’s Coin: A coin themed around Vice President Kamala Harris has experienced a substantial drop in price.
• Crypto Regulation: Elizabeth Warren’s re-election to the Senate suggests continued pressure for stricter crypto regulations.

International Relations

• Israel’s War Effort: Israeli Prime Minister Benjamin Netanyahu dismissed defense minister Yoav Gallant due to a crisis of trust over the management of Israel’s war efforts in Gaza.

Stock Picks

China Stimulus

• Tepper’s China Call: David Tepper, a renowned investor, publicly recommended buying China on September 26, 2023. This recommendation led to gains in several China-focused ETFs, including the KraneShares CSI China Internet ETF (KWEB), which rose 11%, the iShares China Large-Cap ETF (FXI) up 7.8%, and the iShares MSCI China ETF (MCHI) up 8.2%.
• Recent Market Correction: Despite initial gains, these ETFs have experienced a significant downturn since October 7, 2023. KWEB is down 17%, FXI is down 15%, and MCHI is down 16.6%, indicating a reversal of the bullish trend.

Cannabis Legalization

• U.S. Ballot Initiatives: Cannabis stocks are attracting investor attention due to potential legalization votes in four U.S. states: Florida, Nebraska, North Dakota, and South Dakota. The outcome of these votes could significantly impact the cannabis industry’s growth trajectory.
• Recent Gains in Cannabis Stocks: Several major cannabis companies have seen price increases in the past month, reflecting investor optimism surrounding the potential legalization initiatives. Canopy Growth is up 24%, Aurora is up 8.7%, Scotts Miracle-Gro (a beneficiary of cannabis growth) is up nearly 10%, Trulieve is up nearly 5%, and GrowGeneration is up 6.3%.

Water Stocks

• New York Drought Impact: The ongoing drought in New York, the worst since 1869, has fueled interest in water-related stocks. The severity of the drought highlights the importance of water resources and is driving demand for companies involved in water management and infrastructure.
• Recent Performance of Water Stocks: Several water-focused companies have seen recent gains. Energy Recovery is up 9.6% in a month and 13.7% in three months, reflecting strong investor interest in this sector. Global Water Resources has seen a 16% increase in stock price over the past year, and American States Water Company has risen 12% in the past six months. Water ETFs such as the Invesco Water Resources ETF (PHO) and the First Trust Water ETF (FIW) are also showing positive returns.

Earnings Season

• Upcoming Earnings Reports: Several companies are set to release their earnings reports this week, including DuPont, Yum Brands, and Apollo Global Management. Investors are closely monitoring these reports to gauge corporate performance and its impact on the broader market.
• Recent Stock Performance: DuPont’s stock is up 3.5% over the past three months. Yum Brands, however, has declined 1.8% in the past three months. Apollo Global Management has seen a significant 35% increase in stock price over the past three months.

Pre-Market Stock Movements

• Notable Gains: Palantir Technologies, Simpple Ltd, Bionomics Limited, Avalon GloboCare Corp, QuinStreet, Astera Labs, Zyversa Therapeutics, Vimeo, Kingsoft Cloud Holdings, and Alarum Technologies all experienced significant gains in pre-market trading. These gains suggest positive sentiment surrounding these companies, potentially driven by strong earnings or positive news developments.
• Notable Losses: Marqeta, Verrica Pharmaceuticals, Trio Petroleum Corp, Navitas Semiconductor, Lattice Semiconductor, Nft Ltd, Vast Renewables, Celanese Corporation, Altice USA, and Tactile Systems Technology all experienced declines in pre-market trading. These losses indicate negative sentiment surrounding these companies, potentially stemming from disappointing earnings, negative news, or market concerns.