Eksentricity


XRP Futures Soar as Retail Sales Climb and Stocks Tumble

XRP futures open interest neared $2 billion.

Bitcoin and Ethereum corrected, losing <1%.

Super Micro Computer stock dropped 24.2%.

Sensus Healthcare Q3 revenue surged 127%.

US October retail sales rose 0.4%.

Tech

Crypto Gaming’s Ascent

  • Dogecoin Game Integration: The launch of Super Doginals, a Dogecoin-based beat ’em up game, showcases cryptocurrency integration in gaming. Players can inscribe data onto the Dogecoin blockchain, highlighting the growing appeal of blockchain gaming.
  • Play-to-Earn Token Launch: The Major mobile game launched its token on TON, attracting users anticipating an airdrop. This exemplifies play-to-earn models driving token adoption within gaming.
  • Battle Royale Prize Pools: Off the Grid offers daily $3,000 prizes and a $600,000 tournament pool, showcasing the use of financial incentives to boost engagement.

XRP Market Rally and Regulatory Uncertainty

  • Record XRP Futures Open Interest: XRP futures open interest hit near $2 billion, reflecting bullish sentiment and speculative trading. This surge coincides with XRP reaching a three-year high of $1.06, a weekly increase of over 80%.
  • Impact of Potential SEC Chair Change: Speculation surrounding SEC Chair Gary Gensler’s potential replacement has fueled XRP’s rally, reflecting hopes for reduced regulatory pressure.
  • Ripple CEO’s Potential Advisory Role: Rumors of Ripple CEO Brad Garlinghouse advising President-elect Trump on crypto policy further boosted XRP’s price, anticipating positive legislative changes.

Cryptocurrency Market Fluctuations

  • Bitcoin and Ethereum Correction: Bitcoin and Ethereum experienced minor corrections, losing 0.76% and 0.88% respectively, following the Federal Reserve’s stance on rate cuts. $373 million in liquidations occurred over 24 hours.
  • Altcoin Market Prediction: Analysts predict a decline in Bitcoin’s dominance, forecasting a shift towards altcoins by late November. Several altcoins gained over 10% in the past week.
  • Altcoin Performance: Several altcoins significantly outperformed Bitcoin and Ethereum, with MANTRA leading at +50.55%. This highlights altcoin market volatility.

Semiconductor Industry Headwinds

  • Super Micro Computer Stock Drop: Super Micro Computer (SMCI) stock plummeted 24.2% due to missed filing deadlines and increased competition in the AI server market. Its year-to-date decline is 35%.
  • ASML’s Bookings Decline: ASML Holding N.V. reported a 53% decline in quarterly bookings (€2.63 billion), facing a class-action lawsuit and highlighting industry challenges.

Global Tech Developments

  • Tencent Cloud’s WeChat Integration: Tencent leverages its WeChat ecosystem (1.3 billion monthly active users) to differentiate its cloud services, targeting finance and government clients.
  • TwyAe Exchange Expansion: TwyAe Exchange focuses on ecosystem upgrades, global ambassador recruitment, and enhanced security features to expand its cryptocurrency platform.
  • SILEGX Exchange Initiatives: SILEGX focuses on user experience enhancements, global expansion, and startup incubation strategies to grow its cryptocurrency exchange platform.
  • Dell’s AI Server Deployment: Dell shipped liquid-cooled PowerEdge XE9712 AI servers to CoreWeave, signaling advancements in high-performance computing for AI.
  • Samsung Stock Buyback: Samsung Electronics initiated a $7.19 billion stock buyback, aiming to boost shareholder value after disappointing profit guidance.
  • Naver’s Saudi Arabia Joint Venture: Naver is creating a joint venture in Saudi Arabia focused on digital twin platforms and smart city development.

Diverse Tech News

  • Innofactor Plc Share Acquisitions: Innofactor Plc’s insiders acquired over 3.6 million shares, indicating internal confidence.
  • Advantest’s Wave Scale RF20ex: Advantest launched the Wave Scale RF20ex instrument, enhancing RF device testing capabilities.
  • Himax Technologies’ Automotive Display ICs: Himax commenced mass production of its third-generation automotive display ICs, holding over 50% market share.
  • Elbit Systems’ Defense Contracts: Elbit Systems secured $335 million in defense contracts from a European country.
  • Trifork’s Framework Agreement: Trifork obtained a €27 million, four-year agreement with the Danish Road Directorate for IT development.
  • Exosens’ Noxant Acquisition: Exosens is acquiring Noxant, expanding its infrared camera offerings with an expected €12 million in revenue.
  • Hexagon Purus Cancels Offering: Hexagon Purus cancelled a share offering due to its share price being below the subscription price.
  • SingSing Token Launch: SingSing raised over 85% of its target funding in an IDO, showcasing interest in Web3 gaming.
  • OKX’s Singapore Enhancements: OKX enhanced its Singapore services with instant, zero-fee SGD deposits and withdrawals.

Finance

Global Investment Firm Expansion

  • Apollo Global Management’s South Korea Expansion: Apollo Global Management, with $733 billion in AUM (September 30, 2024), opened a Seoul office, appointing Jay Hyun Lee as Partner and Head of Korea. This expands their Asia-Pacific presence, focusing on Korean institutional investors.
  • Janus Henderson’s European ETF Launch: Janus Henderson, managing $12.6 billion (September 30, 2024), filed to register a CLO ETF in Luxembourg. This follows their Tabula acquisition and targets the growing European CLO market. The fund aims for at least 90% AAA-rated CLOs.

Share Buyback Programs in Europe and the US

  • Significant European Buybacks: Several European firms executed substantial share buyback programs. Arcadis spent €25.87 million, Sampo plc a EUR 475 million program, and Danske Bank A/S spent DKK 4,545,908,835.
  • Additional European Buybacks: Other notable buyback programs included ICG Enterprise Trust plc (15,000 shares), OSB Group plc (6,474 shares), Sydbank A/S (DKK 984,889,190), Ringkjøbing Landbobank (DKK 775 million program), Pandora (DKK 3,209,670,744), and Scandinavian Tobacco Group (DKK 850 million program).

Cryptocurrency Market Volatility

  • Global Regulatory Uncertainty and Price Fluctuations: The cryptocurrency market experienced volatility due to the US presidential election, regulatory uncertainty in Europe and Australia, and contrasting views on Bitcoin’s economic role. Bitcoin reached over $90,000 following Robert F. Kennedy Jr.’s endorsement.
  • Contrasting Views on Bitcoin’s Role: While Bitcoin saw substantial price increases, the RBA Governor expressed skepticism towards its economic significance. This highlights the impact of political factors and varied regulatory approaches on cryptocurrency valuations.

US Market Sentiment and Economic Indicators

  • Federal Reserve Policy and Market Corrections: The Federal Reserve’s less dovish stance on interest rates caused market corrections. The Dow Jones fell over 300 points, the S&P 500 lost 1.3%, and the Nasdaq dropped 2.2%.
  • October Economic Data: Despite market corrections, October retail sales rose 0.4%, while industrial production contracted 0.3%. The CNN Money Fear and Greed index reached “Neutral,” indicating reduced investor optimism but not extreme pessimism.

US Company Financial Performance and Legal Actions

  • Mixed Earnings Reports: Companies showed varied financial results. Netfonds AG reported strong growth (16.1% revenue, 21.1% earnings), while others, including Alibaba Group and Spectrum Brands Holdings, underperformed.
  • Significant Lawsuits Filed: Several lawsuits alleging misleading statements were filed against Domino’s Pizza, Inc. (stock down 13.57%), Edwards Lifesciences Corporation (stock down over 31%), and PACS Group, Inc. (stock down over 66%).

Overall Market Outlook

  • Investor Confidence and Long-Term Growth: Despite short-term market corrections, investors demonstrated confidence in long-term growth prospects, with major indices closing higher than pre-election levels. This suggests a prevailing belief in the overall strength of the economy despite current volatility.
  • Impact of Political and Economic Factors: The interplay between Federal Reserve policy, election outcomes, and fluctuating economic indicators highlights the complex factors influencing market sentiment and investor behavior.

Healthcare

US Healthcare Company Financial Results

  • Sensus Healthcare Q3 2024 Revenue Growth: Sensus Healthcare’s Q3 2024 revenue surged 127% year-over-year to $8.8 million, exceeding Q3 2023’s $3.9 million. This follows a similarly strong Q2. Net income reached $1.2 million.
  • Sensus Healthcare Nine-Month Performance: Nine-month revenue reached $28.7 million (143% year-over-year growth), with net income of $5.1 million. This contrasts sharply with 2023’s losses.
  • Sensus Healthcare Strategic Initiatives: Success is attributed to Sentinel IT software and the large non-melanoma skin cancer market. The company ended Q3 with $22.6 million in cash and no debt.
  • Sensus Healthcare Market Positioning: A sale to Providence Swedish Hospital and participation in the ASTRO meeting bolstered their market position and brand awareness.

Biosimilar Approvals (Europe & US)

  • Formycon’s FYB203 Biosimilar Approval: The CHMP recommended approval of Formycon’s FYB203 (aflibercept biosimilar) in Europe, following FDA approval. This biosimilar competes with Eylea®, generating ~$9 billion in 2023 global sales.
  • Global Biosimilars Market Growth: The global biosimilars market is expected to grow from $21 billion to over $74 billion by 2030, driven by expiring patent protections.

Rare Liver Disease Treatment Progress

  • Bylvay® Long-Term Efficacy in PFIC: Ipsen’s Bylvay® showed positive long-term data in PFIC patients. In PEDFIC 2, 42% of patients <18 achieved a 1-point pruritus score reduction at 72 weeks.
  • Bylvay® Long-Term Efficacy in ALGS: In ASSERT-EXT, 93% of continuously treated ALGS patients achieved a clinically meaningful pruritus score reduction at 72 weeks. Diarrhea was a common side effect.

Hereditary Angioedema (HAE) Treatment Access

  • ORLADEYO® Recommendation in Ireland: BioCryst’s ORLADEYO® received a recommendation from the HSE in Ireland for HAE prevention. It is now licensed in 44 countries. Common side effects included abdominal pain and diarrhea.
  • ORLADEYO® Side Effects: Increased QT prolongation was observed at doses exceeding 150mg.

Obesity Treatment Market Dynamics

  • Viking Therapeutics’ VK2735 Development: Viking Therapeutics is developing VK2735, with an injected form entering Phase 3 and an oral pill starting Phase 2. Early data shows potential for up to 8.2% weight loss in 28 days.
  • Major Players in Obesity Treatment: Eli Lilly and Novo Nordisk dominate the market with Wegovy and Mounjaro, respectively, projecting strong future growth.

Other Global Healthcare Developments

  • ExeVir Bio New CEO: ExeVir Bio appointed a new CEO, Michael Garrett, effective December 1, 2024. They are developing a COVID-19 antibody.
  • Umecrine Cognition’s Golexanolone: Umecrine presented interim data for golexanolone in PBC, showing good tolerability.
  • Greenwich LifeSciences’ GLSI-100 Trial: Greenwich LifeSciences is conducting a Phase III trial (FLAMINGO-01) for GLSI-100 in HER2-positive breast cancer.
  • Prenetics’ IM8 Launch & BridgeBio’s Infigratinib: Prenetics launched IM8 health supplements; BridgeBio announced positive 18-month results for infigratinib in children with achondroplasia.
  • Vitamin D Testing Market Growth: The global vitamin D testing market is projected to grow at a CAGR of 8.54% from $921.31 million in 2023 to $1774.70 million by 2031.

Economy & Real estate

US Economic Outlook & Policy

  • Trump’s Return and Tariff Implications: President Trump’s return and Republican control could lead to lower corporate taxes, but proposed tariffs on Chinese imports (potentially 60%) threaten economic growth. The impact remains uncertain, with economists debating the extent of potential damage.
  • Government Spending and Fiscal Reforms: Proposals for stricter government spending limits (10% of GDP) and a sovereign wealth fund are debated. Proponents suggest this could lead to lower taxes and higher GDP growth.
  • Social Security Adjustments 2025: Benefits rise 2.5% in 2025 ($39 average increase), with adjusted earnings test limits ($23,400/$62,160) and maximum taxable earnings ($176,100). The average monthly benefit for a 67-year-old is $1,883.50.
  • Market Responses to Policy Shifts: The US dollar strengthened, anticipating inflation under Trump; European markets lagged due to tariff concerns. Bitcoin, the dollar, and Tesla saw gains interpreted as a “Trump trade.”

US Real Estate Market Dynamics

  • REIT Mergers and Acquisitions Activity: Melcor REIT’s plan to redeem units for $4.95 cash is recommended by ISS and Glass Lewis, highlighting potential risks of failure.
  • REIT Investment Strategies and Growth: Realty Income ($58 billion in real estate) plans a new open-end fund for institutional investors to expand its market and further growth, having increased dividends for 108 quarters.
  • Office Market Performance and Investment: SL Green Realty ($0.25 dividend) and Highwoods Properties (37.9% YTD stock increase due to Sun Belt leasing) show varied performances. MCB Real Estate’s Whitestone REIT acquisition failed.
  • Housing Market Sentiment and Performance: The NAHB/Wells Fargo Housing Market Index hit 46 in November (7-month high). KB Home’s stock underperformed (-7.9% in a month) despite positive earnings.

Global Economic Indicators

  • International Market Performance and Trade: US markets showed mixed results, with losses in tech and gains in utilities. Asian and European markets were mixed. October saw US export prices rise 0.8% and import prices 0.3%; the Eurozone had a €12.5 billion trade surplus in September.
  • Commodity Price Fluctuations: Oil prices increased due to the Russia-Ukraine conflict, while gold rose due to a slowing dollar. Silver and copper prices also increased.

Corporate Developments in the US

  • Target Hospitality’s Government Contracts: Target Hospitality secured a $168 million minimum annual lease revenue contract extension and hired a strategic advisor for government services.
  • Corporate Tax Policy Concerns: Concerns exist about US tax laws potentially driving companies overseas, impacting global competitiveness. Tax reform under Trump could affect domestic production.

Select Company Performance Highlights

  • Construction and Materials Companies: Armstrong World Industries (AWI) had a 55.9% YTD return. Republic Services (RSG) shows strong growth projections. Weyerhaeuser invested $500 million in Arkansas, creating 200 jobs.
  • Real Estate Investment Trusts (REITs): OUTFRONT Media (OUT) gained 21.9% in six months. SmartCentres REIT declared a $0.15417 per unit distribution. Armada Hoffler appointed a new CEO.

Other Significant News

  • Wynn Resorts Legal Settlement: Wynn Resorts settled lawsuits for $70 million related to sexual misconduct allegations.
  • US Holiday Spending Projections: Increased holiday spending is anticipated in 2024 compared to 2023, driven by positive economic outlook and healthy household finances, despite rising debt levels.

Retail

Financial Performance

  • Strong European & US Growth (Lexibook): Lexibook’s H1 2024 sales reached €24.6 million, an 11% increase year-on-year. French sales surged 16%, while US sales jumped 60%. Gross margin improved to €15 million despite higher advertising costs. Net income decreased to €2.4 million due to increased costs and accounting changes.
  • Walmart’s Q3 Projections: Walmart projects Q3 2025 revenue of $167.6 billion (4.2% growth) and EPS of $0.53 (3.9% growth). This reflects success with its omnichannel strategy and value pricing. Sam’s Club also expects sales and membership increases.
  • Ross Stores’ Moderate Growth: Ross Stores forecasts 3-5% total sales growth and 2-3% comparable sales growth in Q3 2024. EPS is projected to slightly increase ($1.35-$1.41), despite inflationary pressures.
  • Tofutti Brands’ Sales Decline: Tofutti Brands reported significant net sales decreases for the thirteen and thirty-nine weeks ended September 28, 2024. This is due to increased competition, reduced exports, and lower frozen dessert sales, resulting in net losses.

Consumer Spending & Economic Conditions

  • Robust US October Retail Sales: US October retail sales rose 0.4%, exceeding expectations, with September sales revised upward to 0.8%. This suggests positive holiday season prospects, with projected sales of $1 trillion and 10.1% online sales growth.
  • Consumer Shift Towards Essentials: Target’s underperformance versus Walmart highlights a consumer shift toward essential goods due to inflation and prioritizing services over goods.

Retail Strategies & Initiatives

  • Increased Advertising & Global Expansion (Lexibook): Lexibook’s increased advertising spend reflects its strategy for US market growth.
  • Walmart’s Omnichannel Strategy: Walmart’s investments in omnichannel, including in-store pickup and same-day delivery, aim to boost sales and loyalty. Expansion into advertising and memberships diversifies revenue.
  • Nordstrom Rack Expansion: Nordstrom expands its Nordstrom Rack off-price stores and online presence to target value-conscious customers.
  • Choice Hotels’ Diversity Initiative: Choice Hotels’ SOAR program, aiding underrepresented entrepreneurs, signed 17 contracts in 2024, promoting diversity in hotel ownership.

Industry Challenges

  • Persistent Inflationary Pressures: Inflation and rising interest rates continue to impact consumer spending and discretionary purchases, creating challenges across the retail sector.

International Retail News

  • Mao Geping Cosmetics IPO (Hong Kong): Mao Geping Cosmetics aims for a Hong Kong IPO, seeking to raise up to $300 million. Strong H1 2024 performance supports this despite market slowdown.

Other Notable News

  • Spirit Airlines Bankruptcy (USA): Spirit Airlines filed for bankruptcy, citing an engine recall, post-pandemic cost surges, and a failed merger attempt.
  • AMC Theatres’ Financial Difficulties (USA): AMC Theatres, despite box office recovery, struggles with significant debt. It is investing in premium screens to boost revenue.
  • Under Armour’s Resurgence (USA): Under Armour’s stock surge is attributed to operational efficiencies, full-price sales, improved brand image, and strong marketing.
  • El Pollo Loco’s Value Menu (USA): El Pollo Loco introduced value-driven promotions, such as a two-for-$5 taco deal, to attract budget-conscious customers.

Infrastructure

US Infrastructure Investment

  • Federal Funding for Roads & Bridges: The US government’s infrastructure plan allocates billions to rebuild roads and bridges, creating thousands of jobs and improving transport. This investment aims to modernize aging infrastructure.
  • Green Infrastructure Initiatives: Significant funding targets sustainable projects like water systems and renewable energy grids, promoting environmental sustainability and public health.
  • Broadband Expansion Funding: Investment in broadband infrastructure aims to increase internet access across the US, bridging the digital divide and boosting economic opportunity.
  • Economic Impact of Infrastructure Spending: The plan is expected to stimulate economic growth, generating employment and boosting related industries. However, rising material costs pose a challenge.

European Infrastructure Developments

  • Germany’s Green Hydrogen Push: Uniper and Electric Hydrogen’s Wilhelmshaven project aims to produce 200 MW of green hydrogen using renewable energy, supporting Germany’s energy transition.
  • Estonia’s LNG Terminal Expansion: Tallinna Sadam and JetGas are building a new LNG terminal in Muuga Harbour to increase cargo volume and improve fuel supply security by 2030.

Water Infrastructure Projects (US)

  • California’s Desalination Expansion: The Torrance Groundwater Desalter expansion will add 9 million gallons per day of drinking water capacity using reverse osmosis, improving water security for 88,000 residents at a cost of $160 million.

US Navy Shipyard Upgrades

  • Navy Vessel Modernization Contracts: BAE Systems secured $202 million in contracts to modernize the USS Laboon and USS Wasp, potentially reaching $221 million with options, covering hull maintenance and system repairs.

Sustainable Transportation (Europe & US)

  • Italian Sustainable Transport R&D: Politecnico di Torino’s research centers focus on electric vehicles, autonomous driving, and innovative components, driving innovation in sustainable transportation.
  • US Logistics and Transportation Growth: Companies like Scotlynn are expanding their operations, increasing job creation and improving logistics efficiency.

Infrastructure Company Performance

  • Construction Sector Financial Results: MasTec, EMCOR, and Granite Construction showed varied financial performances. While some showed strong growth, others faced revenue declines or challenges. The Building Products – Heavy Construction industry outperformed the broader sector and the S&P 500 according to Zacks.
  • Dredging Industry Innovation: Great Lakes Dredge & Dock’s new vessels won a Boat of the Year award for safety and environmental efficiency improvements in dredging.
  • Global Gas Meter Market Growth: The global gas meter market is projected to reach USD 5.14 billion by 2031, growing at a 4.70% CAGR, driven by increased natural gas demand and smart meter adoption, with North America leading the expansion.

Commodities

Salmon Farming – Norway & Iceland

  • SalMar Q3 2024 Performance: SalMar ASA reported strong Q3 2024 results (NOK 1,041 million operational EBIT, 60,300 tonnes harvested), despite biological challenges in Norway. The acquisition of AS Knutshaugfisk boosts 2025 volume guidance.
  • Icelandic Salmon Q3 2024 Challenges: Icelandic Salmon faced low harvest volume (1,750 tonnes) and high costs, resulting in negative EBIT (EUR -3 million). High prices in North America partially offset this.
  • Scottish Sea Farms Q3 2024 Results: Scottish Sea Farms contributed positively to SalMar’s overall Q3 results with increased harvest volume and good biological health.

European Energy Sector Performance

  • KN Energies 9-Month 2024 Profits: KN Energies AB reported a consolidated net profit of EUR 11.9 million for the first nine months of 2024, a significant increase from EUR 5.5 million in 2023. Revenue reached EUR 68.0 million.

Gold & Antimony Exploration

  • Calibre Mining’s Nicaraguan Gold Discoveries: Calibre Mining Corp. announced high-grade gold drill results from its Limon Mine Complex in Nicaragua (e.g., 14.22 g/t Au over 37 meters). A resource estimate is expected in early 2025.
  • G2 Goldfields’ Guyanese Gold Exploration: G2 Goldfields Inc. reported ongoing exploration at its OKO-Aremu project in Guyana, with significant gold discoveries expanding existing zones (e.g., 8.6 g/t Au over 6.3 meters).
  • Liberty Gold’s Utah Discovery: Liberty Gold Corp. found high-grade antimony and gold mineralization in Utah (up to 5.7% antimony and 3.94 g/t gold).

North American Oil & Gas Activity

  • ConocoPhillips & Devon Energy Shareholder Returns: ConocoPhillips aims for $9 billion in shareholder returns in 2024, while Devon Energy plans quarterly share repurchases and dividends.
  • Ovintiv’s Asset Portfolio Restructuring: Ovintiv Inc. executed a $2.4 billion acquisition and a $2.0 billion sale, aiming to enhance portfolio focus and increase cash flow.
  • Prairie Operating Co.’s Midstream Partnerships: Prairie Operating secured midstream solutions for its DJ Basin assets via agreements with Rimrock, NGL Energy Partners, and Taproot Energy Partners.

Rare Earth Exploration – Brazil

  • Verde AgriTech’s Brazilian Rare Earth Findings: Verde AgriTech Ltd. reported significant rare earth element drilling results from its Man of War project in Brazil, with high concentrations of TREO and MREO.

Global Company Financing & Actions

  • Global Company Financing & Acquisitions: Several companies secured financing, including Hi-View Resources Inc., Ascot Resources Ltd., and TGS ASA, demonstrating ongoing investment and debt management in the sector.
  • Global Share Repurchases: International Petroleum Corporation, Eramet, and Teck Resources executed or announced share repurchase programs, signaling confidence in their future prospects.

Politics

US-Iran Relations

  • Iranian Oil Export Surge: Under President Biden, Iranian oil exports quadrupled to over 1.5 million barrels daily in 2024, mainly to China, due to lax sanctions enforcement.
  • Trump’s Renewed Sanctions Pressure: President-elect Trump aims to reinstate a “maximum pressure” policy, potentially slashing Iranian oil exports to a few hundred thousand barrels daily through increased sanctions.
  • Heightened Regional Tensions: Iranian attacks on Israel and an alleged assassination plot against Trump have significantly escalated US-Iran tensions.
  • Future of the Nuclear Deal: The potential for a renewed nuclear deal remains uncertain, depending on Trump’s approach and Iran’s willingness to comply with restrictions.

US-China Trade Relations

  • Trump’s Proposed Tariffs on China: President-elect Trump’s proposed 60% tariff on Chinese goods could negatively impact Chinese companies and shift manufacturing to Vietnam, mildly impacting American consumers.
  • Market Response to Trump’s Win: Following Trump’s victory, China-linked ETFs like KWEB (-2.01%), MCHI (-2.70%), and FXI (-2.94%) saw sharp declines on November 6th, 2024, reflecting investor anxieties.

FCC Leadership and Policy Shift

  • Carr’s Appointment as FCC Chair: President-elect Trump appointed Brendan Carr, a critic of big tech, as FCC chairman. He intends to curtail DEI initiatives.
  • End of DEI Initiatives at FCC: Carr’s opposition to Diversity, Equity, Inclusion, and Accessibility (DEI) aligns with Elon Musk’s views, potentially altering FCC priorities.

Cryptocurrency’s Political Rise

  • Poland’s Bitcoin Reserve Proposal: Polish presidential candidate Sławomir Mentzen proposed a Bitcoin reserve, showcasing growing cryptocurrency interest in politics.
  • Trump’s Resurfaced Bitcoin Stance: President-elect Trump’s past support for a Bitcoin stockpile has re-emerged, emphasizing cryptocurrency’s increasing political relevance. Bitcoin traded at $91,779.08 at report time.

US Attorney General Nomination Controversy

  • Gaetz Nomination and Ethical Concerns: President-elect Trump’s nomination of Matt Gaetz, amid sexual misconduct and drug allegations, has sparked considerable controversy.
  • Cannabis Industry’s Divided Reaction: The cannabis industry is largely supportive due to Gaetz’s past advocacy, though Senate confirmation remains uncertain.

Ukraine Conflict and US Involvement

  • US Authorization of Long-Range Strikes: The US authorized Ukraine to use long-range weapons against Russian targets, a policy shift ahead of President Biden’s departure and a move that has garnered criticism from Russia.
  • International Responses to US Actions: International responses are mixed, with some expressing hope and others, including Russia, viewing it as escalation. The conflict’s trajectory remains uncertain.

Stock Picks

Q3 Earnings: US Market Preview

  • Brady Corporation (BRC) Q3 Earnings: Wall Street projects $1.10 EPS and $365.88 million revenue. Shares rose 0.2% to $74.38 after-hours.
  • AECOM (ACM) Q3 Earnings: Analysts predict $1.24 EPS and $4.14 billion revenue. Shares closed at $106.99, up 0.1% after-hours.
  • IT Tech Packaging (ITP) Q3 Results: Reported a $0.20 EPS loss (unchanged YoY), despite a 59% sales increase to $25.08 million. Shares fell 0.6% to $0.2495 after-hours.
  • Bitdeer Technologies (BTDR) Q3 Earnings: Projected Q3 loss of $0.10 EPS on $78.85 million revenue. Shares increased 1.1% to $11.21 after-hours.
  • Trip.com Group (TCOM) Q3 Earnings: Analysts expect $0.91 EPS and $2.20 billion revenue. Shares closed slightly down at $59.48 after-hours.

Strong Buy Stocks: US Market

  • Brinker International (EAT) Analysis: Zacks Rank #1 (Strong Buy), with a 19% current-year EPS estimate increase in 60 days. PEG ratio of 1.30 vs. industry 9.53; Growth Score A.
  • Interface (TILE) Analysis: Zacks Rank #1, 7% current-year EPS estimate increase in 60 days. PEG ratio of 1.22 vs. industry 1.29; Growth Score A.
  • Vertiv Holdings (VRT) Analysis: Zacks Rank #1, 4.3% current-year EPS estimate increase in 60 days. PEG ratio of 1.31 vs. industry 12.46; Growth Score B.

Newly Upgraded Zacks Rank #1 Stocks: US Market

  • New Strong Buys: Five stocks received Zacks Rank #1 upgrades: Upland Software (UPLD), Controladora Vuela (VLRS), Under Armour (UAA), Flushing Financial (FFIC), and Angi (ANGI). Current-year EPS estimates increased 8.5% to 300% in 60 days.

Analyst Rating Upgrades: US Market

  • Positive Ratings Changes: Robinhood (HOOD) upgraded to Buy ($40 target, Friday close $32.32). Amylyx Pharmaceuticals (AMLX) upgraded to Outperform ($11 target, Friday close $4.76). Monolithic Power Systems (MPWR) upgraded to Buy ($660 target, Friday close $573.38). Roku (ROKU) upgraded to Outperform ($90 target, Friday close $68.87). Bright Horizons (BFAM) upgraded to Outperform, target lowered to $125 from $137 (Friday close $104.00).

Short Interest Changes: US Market

  • Phunware (PHUN) Short Interest: Increased 12.5% to 12.6% of float, exceeding the 5.42% peer average.
  • Dillard’s (DDS) Short Interest: Decreased 5.26% to 31.33% of float, still above the 8.61% peer average.

Value Stock Comparison: US Market

  • Value Stock Analysis: Compared several pairs using Zacks Rank and Style Scores: Dream Finders Homes (DFH) vs. NVR (NVR), ZIM Integrated Shipping Services (ZIM) vs. Kirby (KEX), Flex (FLEX) vs. Rockwell Automation (ROK), OSI Systems (OSIS) vs. nVent Electric (NVT), Alpine Income (PINE) vs. EastGroup Properties (EGP), and Flexsteel Industries (FLXS) vs. SharkNinja (SN). Analysis focused on forward P/E, PEG, and P/B ratios. DFH, for instance, outperformed NVR across metrics.