Eksentricity

Tech

US Tech Company Earnings

• Dolby Labs Q3 2024 Performance: Dolby Labs (DLB) reported Q3 2024 revenue of $304.81 million, a 4.9% year-over-year increase. Earnings per share (EPS) were $0.81, exceeding estimates. Licensing revenue growth offset weaker product sales.
• Duos Technologies Q3 2024 Results: Duos Technologies (DUOT) reported a Q3 2024 net loss of $1.40 million, an improvement on Q3 2023. Revenue increased 112% year-over-year to $3.24 million.
• Software Stock Performance: Several high-growth software companies exceeded Q3 expectations. Five9 (FIVN), Fortinet (FTNT), and Toast (TOST) showed strong growth.
• Wix.com Q3 Results: Wix.com reported strong third-quarter results, demonstrating continued growth in the software sector.

Global Bioremediation Market

• Market Size and Growth: The global bioremediation market is projected to reach $31.91 billion by 2031, growing at a 9.93% CAGR. This growth is fueled by increasing pollution and stricter regulations.
• Market Segmentation: The in-situ bioremediation segment leads with a 56.63% market share. Oilfield bioremediation shows the fastest growth. North America dominates the market.
• Market Challenges: Challenges include limited applicability to some pollutants and a lack of standardization.

US AI Chip Market & Investments

• Nvidia’s Dominance: Nvidia (NVDA) is expected to benefit from increased AI capital expenditures. Wedbush predicts strong performance for Nvidia.
• Rain AI Funding Round: A $150 million funding round for Rain AI, an AI chip startup, is underway, led by Sam Altman.
• Waymo Spinoff Potential: A potential Waymo spinoff from Alphabet (GOOGL) could yield a $350 billion to $850 billion valuation by 2030.

US & International Tech Stock Activity

• Ark Invest Stock Trades: Ark Invest sold Tesla shares despite recent price increases, but purchased Intellia Therapeutics (NTLA) and Tempus AI (TEM). Other stocks were sold.
• Tesla Stock Sentiment: Differing opinions exist on Tesla stock, with some seeing it as a strong long-term investment despite Ark Invest’s sale.
• Other Notable Stock Activities: This includes news on Microsoft Bing’s growth, a lawsuit against Wolfspeed (WOLF), Palantir (PLTR) becoming a ‘Trump trade’, OKX’s activities, French tech provider Weezevent’s revenue, STMicroelectronics’ financial model, and various other company announcements and stock movements.

Global Tech Industry Trends

• Hollywood’s AI Disruption: The entertainment industry faces significant changes due to the integration of AI.
• Emerging Markets: This includes news on Nokia’s 5G deal in India, Xpeng’s plans despite tariffs, and DouYu International Holdings’ Q3 results.
• Cryptocurrency News: Coinbase plans to delist Wrapped Bitcoin (WBTC), while other cryptocurrency news such as GOAT and Keanu meme coin launches were announced.

Other Notable US Tech News

• Comcast Restructuring: Comcast plans to restructure its media empire, including a potential spinoff of cable television networks.
• Other Various Announcements: This includes news such as Elon Musk’s plans for SpaceX Starships and Mars, Izzy Englander’s stock trades, GameU’s partnership, and various other company announcements.

Finance

Bitcoin ETF Trading Activity

• BlackRock iShares Bitcoin Trust (IBIT) Options Debut: BlackRock’s iShares Bitcoin Trust ETF (IBIT) options saw over $1 billion in trading volume on its first day, largely call options, suggesting strong bullish sentiment and significant investor interest. This could massively expand Bitcoin’s market reach if derivatives follow the typical 20x growth pattern seen in traditional assets.
• Grayscale’s GBTC and BTC Options Plans: Following BlackRock, Grayscale plans to launch options trading on its GBTC and BTC spot Bitcoin ETFs. This rapid response demonstrates growing appetite for Bitcoin derivatives, particularly after their recent legal victory against the SEC.

US Class Action Lawsuits Against Public Companies

• Multiple Securities Lawsuits Filed: Numerous class-action lawsuits allege misrepresentation of financial information and corporate misconduct against companies including iLearningEngines (-53.3% share price drop), TD Bank (-10%+ drop), Edwards Lifesciences (-31.34% drop), Hasbro, and others, resulting in significant investor losses.
• Allegations of Financial Misconduct: Lawsuits cite undisclosed related-party transactions, misclassified income, undisclosed risks, and the concealment of material information as reasons for the significant share price drops.

European and US Company Financial Results

• ArrowMark Financial Corp. (BANX) NAV Estimate: ArrowMark Financial Corp. reported an estimated NAV of $22.02 as of October 31, 2024. This unaudited figure suggests a healthy portfolio and strong investment performance.
• Kaldvik AS Q3 2024 Performance: Kaldvik AS showed a dramatic increase in Q3 2024 operating income to EUR 24.5 million (from EUR 2.1 million in Q3 2023) and harvest volume to 3,798 tonnes (from 193 tonnes).

Share Repurchase Programs

• Sampo plc Share Buybacks (Finland): Sampo plc repurchased 94,380 A shares at an average price of €39.90, expanding its buyback program from €400 million to €475 million and increasing its share ownership to just over 2%.
• Equinor ASA Share Buybacks (Norway): Equinor ASA bought 552,227 shares at an average price of NOK 264.38 for employee incentive programs, using under 1.92% of their total share capital from the NOK 1,774,000,000 allocated budget.

UK and European Company Growth & Acquisitions

• True Potential’s Growth (UK): True Potential, a UK financial services firm, now manages over £31 billion for 539,000 clients, with revenue growing to £407 million in 2023 from £28 million in 2013. Growth was significantly boosted by Cinven’s acquisition in 2021.
• Crédit Agricole Assurances FDJ Share Sale (France): Crédit Agricole Assurances sold a 2.2% stake in Française des Jeux (FDJ), for €36.60 per share, retaining a 3.3% stake.

US Market Trends and Investor Sentiment

• US Mega-Cap ETF Launches in Europe: BlackRock and Amundi are launching US mega-cap ETFs in Europe, despite concentration risks and recent European investor preference for equal-weight funds.
• US Infrastructure Spending & Investment: Apollo Global Management CEO noted surging US capital demand due to government spending in infrastructure, semiconductors, and clean energy. Other firms are investing in data centers.
• Rising US Auto Loan Delinquencies: Cathie Wood highlighted rising US auto loan delinquencies exceeding 2009 crisis levels, despite strong investor demand for auto loan-backed bonds – presenting a market risk.
• Buffett’s Cautious Outlook: Warren Buffett’s stock selling, cash accumulation, and lack of Berkshire Hathaway buybacks signal a cautious market outlook, suggesting potential concerns about overvaluation.

Healthcare

Market Growth Projections

• Pyrogen Testing Market Expansion: The global pyrogen testing market, valued at $1.49 billion in 2023, is projected to reach $4.10 billion by 2031, exhibiting a 13.4% CAGR (2024-2031). Pharmaceutical and biotech sectors drive this growth.
• Tumor Profiling Market Expansion: The global tumor profiling market reached $11 billion in 2023 and is expected to grow at a 10.3% CAGR through 2030, fueled by rising cancer incidence and precision oncology.
• Revision Knee Replacement Market Growth: The revision knee replacement market is expected to reach $2 billion by 2032, growing at a 4.1% CAGR (2022-2032), driven by an aging population and improved technology.

Clinical Trial Progress

• Efgartigimod (argenx SE): argenx SE’s Phase 2/3 ALKIVIA trial of efgartigimod SC for idiopathic inflammatory myopathies (IIM) met its primary endpoint in Phase 2, showing significant treatment effects across three myositis subtypes.
• SEP-786 (Septerna): Septerna initiated a Phase 1 trial for SEP-786, an oral PTH1R agonist for hypoparathyroidism, with data expected mid-2025. Preclinical data showed efficacy in controlling serum calcium levels.
• Oncology Drug Development: Several companies are advancing oncology drug candidates through various clinical trial phases, targeting AML, MAPK pathway-driven tumors, and other cancers. These include tuspetinib (Aptose Biosciences), PAS-004 (Pasithea Therapeutics), and ziftomenib (Kura Oncology/Kyowa Kirin).

Industry Partnerships & Acquisitions

• Recursion & Exscientia Merger: Recursion and Exscientia merged, creating a large AI-driven drug discovery platform with over 10 clinical and preclinical programs and significant upfront and milestone payments.
• Strategic Acquisitions: Several acquisitions strengthened companies’ portfolios, such as BioStem Technologies’ acquisition of ProgenaCare’s wound care products and Bayer’s acquisition of aficamten rights in Japan (€50 million upfront, potential for €490 million more). Merit Medical Systems also acquired Cook Medical’s lead management portfolio.
• Collaborative Drug Development: Significant collaborations were announced, including Kura Oncology and Kyowa Kirin’s partnership on ziftomenib ($330 million upfront, potential for $1.161 billion more), and 23andMe and Mirador Therapeutics’ partnership using genetic data for drug discovery.

Company Financial Performance

• Strong Revenue Growth: Novo Nordisk experienced a 24% year-over-year revenue increase in the first nine months of 2024 ($29 billion), largely due to GLP-1 treatment sales (65% market share).
• Mixed Financial Results: Eli Lilly and Pfizer faced stock declines due to various factors such as lowered guidance (Lilly) and disappointing vaccine results (Pfizer). However, both companies maintain strong growth potential.
• Other Notable Performances: Septerna completed an IPO ($302.6 million net proceeds); BioSyent reported strong sales growth (8% year-over-year Q3, 13% year-to-date); Lantheus Holdings announced a $250 million share repurchase program; HealthEquity’s shares rallied significantly (54.6% year-to-date); Merit Medical Systems reported strong share growth (37.9% year-to-date).

Regulatory and Other Developments

• Avian Flu Concerns: Avian flu cases continue to be reported in the US (54 cases), raising concerns about potential mutations and the need for vaccine development.
• Regulatory Actions: The EMA granted orphan medicinal product designation to OCU410ST (Ocugen) and PRIME designation to NX-5948 (Nurix Therapeutics). The FDA approved a phase 2 trial for smoked medical cannabis.
• Legal Actions: Multiple law firms announced class action lawsuits against Acadia Healthcare for alleged securities fraud.

Global Healthcare Landscape

• International Expansion: Celularity and Genting Berhad are building a stem cell facility in Bali, Indonesia, and Avextra Portugal launched a cannabis breeding program. Hospital Da Luz in Portugal adopted Stereotaxis’ Genesis system.
• Other International Developments: News included updates from companies based in China (HUTCHMED), Portugal (Avextra, Hospital Da Luz), and several European countries. The EMA played a significant role with PRIME and orphan designations.

Economy & Real estate

US Inflation and Monetary Policy

• October Inflation Rise: October’s inflation unexpectedly climbed to 2.6% year-over-year, exceeding forecasts and potentially delaying further interest rate cuts.
• Trump Tariff Inflationary Impact: Proposed tariffs could significantly increase inflation, potentially reducing US growth and costing households thousands annually.
• Mortgage Rate Increase: Despite rate cuts, the 30-year mortgage rate rose to 6.79% in early November, then to 6.90% by November 20th, due to economic uncertainty.
• 2025 Social Security COLA: Social Security benefits will increase by 2.5% in 2025, resulting in an average monthly benefit of $1,976, but Medicare premium increases will offset some gains.

European Economic Performance

• Europe’s Economic Lag: Europe’s economy lags behind the US and China, with GDP per worker about 20% lower than in the US, due to factors like an aging workforce.
• High-Growth European Companies: Despite challenges, some European companies demonstrated strong revenue growth (2013-2023), notably in technology sectors, like Zalando (€1.8B to €10.1B).
• Volkswagen’s Transformation Challenges: Volkswagen faces challenges adapting to the electric vehicle market and competition from China, potentially leading to restructuring.
• Italian Family Business Resilience: Many Italian family businesses showed strong growth (e.g., Acetificio Andrea Milano, Giglio.com), highlighting adaptability but also the need for further capital.

US Commercial Real Estate Investment

• Positive Investor Sentiment: Colliers’ outlook shows renewed optimism in commercial real estate, driven by lower inflation and interest rates, but uncertainties remain.
• Realty Income’s Consistent Returns: Realty Income’s sale-leaseback strategy has yielded positive returns for 30 years, showcasing its resilience.
• La Rosa Holdings Revenue Surge: La Rosa Holdings experienced significant revenue growth (188% year-over-year in Q3 2024), reaching $19.6 million and projecting $100 million annually.
• Four Corners Property Trust Expansion: Four Corners Property Trust’s acquisitions and dividend increases (2.9% in Q4 2024) demonstrate a strong strategy.

US and UK Real Estate Transactions

• SL Green Realty Mortgage Extension: SL Green Realty extended its mortgage on 1515 Broadway, securing a 3.93% interest rate for three more years.
• Melcor REIT Plan of Arrangement: Melcor REIT’s plan of arrangement with Melcor Developments received positive recommendations, proposing a $4.95 per unit redemption price.
• LuxUrban Hotels Restructuring: LuxUrban Hotels reported significant losses ($30.7 million in Q3 2024) but announced a restructuring plan focusing on operational efficiency.
• Increased US Mortgage Demand: US weekly mortgage demand rose 1.7%, indicating continued activity despite higher interest rates, driven by refinancing and easing inventory.

Global Real Estate and Technology

• North Carolina Film Industry Growth: Dark Horse Stages’ new sound stages in Wilmington, NC boost the state’s film industry.
• AppFolio Adoption by Reedy & Company: Reedy & Company’s adoption of AppFolio highlights its value for large property management firms.
• Kimco Realty Sustainability Recognition: Kimco Realty’s third consecutive Nareit Leader in the Light Award highlights its sustainability efforts.
• JLL Asset Beacon Launch: JLL launched JLL Asset Beacon, a SaaS platform for commercial real estate asset management, integrating data and AI.

US Homebuilding and Other Economic News

• KB Home Earnings Expectations: KB Home’s Q4 2024 earnings are projected at $2.47 per share and $1.99 billion in revenue.
• Lennar’s Expansion through Acquisition: Lennar Corporation’s acquisition of Rausch Coleman Homes expands its market presence.
• Dovre Group Revised Guidance (UK): Dovre Group revised its 2024 guidance, increasing revenue expectations but lowering operating profit.
• Operation HOPE Global Forums: The Operation HOPE Global Forums will discuss financial literacy and economic empowerment, with 5,200+ delegates from 40+ countries.

Retail

US Retail Earnings: A Tale of Two Giants

• Target’s Q3 Miss: Target’s Q3 adjusted EPS of $1.85 missed expectations by $0.45, and revenue fell short at $25.67 billion. Comparable sales increased by only 0.3%, highlighting weakness in discretionary spending.
• Walmart’s Q3 Beat: Walmart exceeded expectations with adjusted EPS of $0.58 and sales of $169.6 billion. U.S. comparable sales rose 5.3%, fueled by increased spending from higher-income households.
• TJX’s Mixed Performance: TJX reported better-than-expected Q3 results but offered cautious Q4 guidance, reflecting consumer uncertainty. Comparable store sales grew 3% in Q3.
• Williams-Sonoma’s Strong Q3: Williams-Sonoma beat EPS expectations ($1.96 vs $1.76), despite lower comparable brand revenue, thanks to improved gross margins. A $1 billion buyback was announced.

Shifting Consumer Spending Patterns

• Discretionary Spending Slowdown: The divergence between Target and Walmart highlights a significant slowdown in discretionary spending, impacting retailers focusing on non-essential goods.
• Increased Value Focus: Consumers are increasingly price-sensitive, favoring value retailers and seeking deals, driving market share gains for discount chains.
• Experiential Spending Growth: A Deloitte survey suggests a 16% surge in holiday experience spending, potentially impacting gift purchases. United Airlines’ strong bookings support this trend.
• Inflationary Pressures: Persistent inflation continues to influence consumer behavior, impacting purchasing decisions across various retail categories.

Retailer Strategies and Adaptations

• Aggressive Price Reductions: Many retailers are responding to decreased consumer spending with significant price cuts to stimulate sales and maintain market share.
• Digital Transformation Acceleration: Retailers continue investing in e-commerce platforms, enhancing online shopping experiences and same-day delivery capabilities.
• Operational Efficiency Improvements: Companies are focusing on streamlining operations and supply chains to improve margins and profitability. This includes automation and AI-driven forecasting.
• Strategic Partnerships and Diversification: Meal kit companies are pursuing collaborations to expand reach and improve marketing efficiency, while other retailers are exploring similar initiatives.

Global Retail Trends

• Plant-Based Beverage Market Growth: The plant-based beverage market is booming, projected to reach $18.45 billion by 2024, driven by health and environmental awareness.
• Meal Kit Market Evolution: The global meal kit market is still anticipated to grow considerably, reaching $19.5 billion by 2028, though at a slower rate than previously anticipated.
• Sourdough Bread Market Expansion: The global sourdough bread market is expanding due to growing consumer interest in artisanal and health-conscious products, with projected growth to $6.31 billion by 2033.
• International Expansion and Market Dynamics: Several retailers are actively expanding their global footprint, while navigating challenges in specific regions like China.

Select Company Updates

• US Company Performances: CAVA Group exceeded Q3 expectations; The Honest Company shows strong performance in personal care; Bassett Furniture is restructuring; On Holding shows strong revenue but faces profitability concerns. Chipotle faces a lawsuit. Home Depot faces speculation of a stock split.
• International Company Updates: Reborn Coffee is expanding internationally; Yatsen’s Q3 revenue declined, Waldencast plc reported Q3 growth in its Obagi Medical and Milk Makeup brands.
• Other Notable Events: Bankruptcy filings (Spirit Airlines); BlackRock’s investment in Pandora A/S; various new product launches across multiple sectors; various partnerships (Logicbroker and Walmart, Mango Cannabis and Leafwell).

Other Retail News

• Retail Events and Initiatives: LA Fashion Week; Nordstrom Rack expansion; Dickey’s Barbecue holiday offerings; HAPPRUN’s Black Friday deals; American Eagle Outfitters’ upcoming earnings; Homestead Fair and Holiday Market expansion; Delta’s Shake Shack partnership; Huggies’ new app; Athletic Brewing’s Netflix collaboration. Hilton’s India expansion and challenges in China. Disney Cruise Line expansion. BellRing Brand’s Q4 beat and raised guidance. La-Z-Boy’s strong Q2 results. The Children’s Place Gymboree store opening. Disney’s box office plans. Lifeway’s rejection of Danone’s offer. Smucker’s potential earnings beat. Marriott’s EMEA expansion. Dickey’s Barbecue franchisee honor. Royal Farms’ Greenville expansion. Ulta Beauty’s options activity. Sadot Group’s stock surge. Keslow Camera auction. Allbirds conference participation. e.l.f. Beauty’s stock volatility. DELEÓN Tequila’s new campaign. Norwegian Cruise Line’s godfather.

Infrastructure

US Natural Gas Pipeline Acquisitions

• DT Midstream’s Midwest Expansion: DT Midstream acquired three pipelines from ONEOK for $1.2 billion, adding 1,300 miles across seven states. This significantly boosts its pipeline segment’s EBITDA contribution to ~70% by 2025.
• Acquisition Financing: The acquisition was financed via ~$900 million in debt and a ~$366 million equity offering, exceeding initial projections.
• Acquisition Strategic Rationale: This acquisition strengthens DT Midstream’s strategic position by adding assets connecting major supply basins to demand centers, supported by take-or-pay contracts.
• Pipeline Acquisition Details: The acquired pipelines—Guardian, Midwestern, and Viking—have a combined capacity exceeding 3.7 Bcf/d and serve primarily investment-grade customers.

North American Energy Infrastructure Growth

• TC Energy’s 2025 EBITDA Projections: TC Energy projects C$10.7-10.9 billion (~$7.63-7.78 billion USD) EBITDA for 2025, driven by increased natural gas demand.
• Key Projects Driving TC Energy Growth: Four key projects totaling C$1.5 billion in capital expenditures fuel this growth, including investments in coal-to-gas conversions and energy storage.
• TC Energy’s Revenue Stability: ~97% of TC Energy’s projected revenue is secured through rate regulation and long-term contracts, ensuring financial stability.
• TC Energy’s Diversification Strategy: The company aims to diversify its energy portfolio, investing in both traditional and renewable energy to meet future demands.

US Infrastructure Services and Contracting

• Dycom Industries’ Q3 2024 Performance: Dycom Industries reported a 12% increase in contract revenues to $1.272 billion in Q3 2024, with organic growth at 7.6%.
• Dycom Industries’ Q1 2025 Outlook: Dycom anticipates mid-to-high single-digit contract revenue growth and a 25 basis point increase in EBITDA margin for Q1 2025.
• Assertive Professionals’ MDA Contract Award: Assertive Professionals secured a $127.3 million contract with the Missile Defense Agency for critical support services.
• Saia Inc.’s Michigan Expansion: Saia Inc. opened a new terminal in Warren, Michigan, expanding its presence to six facilities and enhancing Midwest service.

South African Renewable Energy Infrastructure

• Scatec ASA’s Solar Plant Divestment: Scatec ASA sold parts of its South African solar plants to STANLIB for ZAR 921 million (USD 51 million), generating a significant accounting gain.

Canadian Agricultural Infrastructure Sale

• AGT Food and Ingredients’ Infrastructure Sale: AGT sold its shortline rail and bulk handling infrastructure to GCM Grosvenor, retaining a 20-year usage agreement.

US Naval Shipbuilding and Support

• Ingalls Shipbuilding’s Amphibious Warship Production: Ingalls Shipbuilding continues construction on several amphibious warships, including the Bougainville and Harrisburg, and has a contract to build additional vessels.
• Beacon Interactive Systems’ Navy Contract: Beacon Interactive Systems received a U.S. Navy contract to provide Operational Condition Based Maintenance, collaborating with the University of Massachusetts Lowell.

Commodities

Gold Mining Performance & Exploration

• Monument Mining AGM: Monument Mining’s AGM saw over 97% shareholder approval for all resolutions, including strong 2024 cash flow from Selinsing gold mine. Future plans for 2025 are outlined, acknowledging market risks.
• Plato Gold Exploration Projects: Plato Gold Corp. will present exploration projects in Ontario, Canada (four properties) and Argentina (9,672 hectares), focusing on gold and silver potential. It also holds niobium and platinum group metals projects.
• Newmont Asset Sales & Production: Newmont sold its Musselwhite mine in Ontario, Canada for up to $850 million, exceeding its $2 billion divestiture target. Q4 2024 gold production is anticipated at 1.8 million ounces.
• Minera Alamos Financing: Minera Alamos closed a C$8.5 million private placement to fund Santana mine expansion (Sonora, Mexico) and Cerro de Oro exploration (Zacatecas, Mexico).

Metals Exploration & Acquisitions (Canada & USA)

• CMC Metals & Coeur Mining Silverknife: CMC Metals granted Coeur Mining an option to acquire 75% of its Silverknife Property (British Columbia, Canada) through $4,050,000 and exploration expenditures. High-grade silver, lead, zinc, and copper intersections were previously reported.
• Nova Minerals Antimony Discovery: Nova Minerals discovered high-grade antimony (up to 54.1% Sb) at its Styx prospect in Alaska, USA. A 500kg sample is undergoing metallurgical testing.

Helium Exploration & Processing (USA)

• Pulsar Helium Gas Processing: Pulsar Helium partnered with Earthly Labs (Chart Industries) for gas processing technology at its Topaz helium project in Minnesota, USA, including carbon capture. The Jetstream #1 well will be deepened.

Global Commodity Market Outlook

• PET Strapping Market Growth: The global PET strapping market is projected to reach USD 1,443.7 million by 2033 (6.5% CAGR), driven by sustainable packaging and e-commerce. The 2023 market was valued at approximately USD 821.5 million.
• Marine Lubricants Market Growth: The global marine lubricants market is expected to reach US$ 7.53 billion by 2031 (4.17% CAGR), driven by bio-lubricants and Asia-Pacific growth. The 2020 market was valued at US$ 4.08 billion.
• Acrylic Epoxy Hybrid Market Growth: The global acrylic epoxy hybrid market is projected to reach US$ 1,714.6 million by 2034 (6.5% CAGR), driven by construction, automotive, and industrial coatings. The US market is projected to reach US$ 229.5 million in 2024.

Energy & Renewables (Chile & Vietnam)

• BHP Copper Investment (Chile): BHP plans a $14 billion investment in Chilean copper operations, aiming to stabilize output at 1.4 million tons per year by 2031.
• Comstock Fuels Renewable Fuels (Vietnam): Comstock Fuels secured exclusive marketing rights for its lignocellulosic biomass refining processes in Vietnam. Four refineries are planned (total construction cost over $4 billion).

Shipping & Logistics

• ZIM & Euroseas Q3 Results: ZIM Integrated Shipping Services reported Q3 2024 earnings of $9.34 per share and revenue of $2.77 billion, exceeding expectations. Euroseas Ltd. reported net income of $27.6 million and adjusted EBITDA of $36.1 million in Q3 2024. Both companies declared dividends.

Politics

US Presidential Election and Policy

• Trump’s Bitcoin Reserve Proposal: Senator Lummis supports President-elect Trump’s plan for a $1 trillion Bitcoin reserve, aiming for 5% of Bitcoin’s total supply over five years. Funding would involve revaluing Federal Reserve gold and using seized Bitcoin. Markets give this a 35% chance of success; Bitcoin trades at $92,425.03.
• Economic Impact of Trump’s Policies: Experts question Trump’s promises of high tariffs (60% on China, 10-20% elsewhere) and mass deportations. High tariffs could raise consumer prices by 1.2% (Goldman Sachs), while deportations could cost over $315 billion.
• Cannabis Clemency Push: The Last Prisoner Project urges President Biden to pardon 3,000 nonviolent cannabis offenders before his term ends. 84% of registered voters support this, yet federal action requires presidential intervention.
• Cryptocurrency Policy Under Trump: Uncertainty surrounds cryptocurrency policy under Trump. A “crypto czar” is considered, but potential appointees like Marc Rowan lack expertise, while Howard Lutnick’s Commerce role offers less direct policy influence.

Global Populism

• Global Populist Surge: Goldman Sachs notes over 80 elections in 2024, with rising populism amid economic challenges and democratic backsliding. Trump’s re-election embodies this conservative shift.
• Populism and Public Health: Research links declining public health to increased support for populism (e.g., 1918 influenza and Italian fascism). This correlation is seen in Trump’s 2016 win and the UK’s Brexit vote.

Global Economic Uncertainty and the Crossroads Summit 2024

• Summit Discussion Points: The Crossroads Summit addressed global economic uncertainty and the potential impact of Trump’s second term. Key discussion points include technological disruption, geopolitical tensions (like the Russia-Ukraine conflict), and the future of the US economy, including alternative assets like Bitcoin.

US Legal Challenges to Government Actions

• Marijuana Rescheduling Lawsuit: Village Farms and Hemp for Victory seek to disqualify the DEA from defending marijuana rescheduling, citing bias and lack of transparency in participant selection.
• Allegations of Government Censorship: The Association of American Physicians and Surgeons sues the Biden administration, alleging censorship violations of the Federal Advisory Committee Act (FACA) related to Meta and COVID-19 content.

Stock Picks

Tech Sector Performance

• Nvidia’s AI Growth: Nvidia’s stock surged 4.89%, closing at $147.01, driven by rising AI investment. Year-to-date gains stand at 196%, and 13% in the past three months. Analysts predict continued AI dominance.
• Strong Tech Earnings: Keysight Technologies exceeded Q4 expectations, reporting $1.65 EPS (vs. $1.57 consensus) and $1.287B revenue (vs. $1.258B). This spurred a 9.8% after-hours surge. Positive momentum is projected into Q1.
• Retail Sector Strength: Target and Walmart showed positive results, with Target up 9.5% in 2024 and Walmart raising guidance. Analysts anticipate Target’s Q3 earnings at $2.30 EPS on $25.90B revenue.
• Airline Industry Recovery: Delta Air Lines and United Airlines experienced significant gains. Delta is up 61% year-to-date and United reached its highest point since July 2019.

Other Sector Highlights

• Defense Spending Increase: Increased military spending, driven by global conflicts, is expected to boost defense contractors like RTX, Lockheed Martin, and Mitsubishi Heavy Industries (Japan).
• Utility Sector Strength: NiSource, Sempra, and Vistra reached all-time highs. NiSource and Sempra are up 15.5% in three months, while Vistra showed a remarkable 92% increase in three months.

Growth Stock Performance

• High-Growth Pullbacks: Celsius, MercadoLibre, and Wingstop experienced significant pullbacks. Celsius’s slowdown is attributed to Pepsi’s inventory adjustments, while MercadoLibre’s is linked to increased capital expenditures. Wingstop missed earnings but showed strong same-store sales growth.

Market Sentiment and Indicators

• Oversold and Overbought Stocks: BingEx, Brinks, and KBR (Industrials) are considered oversold. Energizer Holdings, Freshpet, and Cal-Maine Foods (Consumer Staples) are overbought, suggesting potential corrections.
• Analyst Ratings Changes: Equinor, AeroVironment, Energizer Holdings, AstraZeneca, and Chewy received analyst rating changes. Carpenter Technology received a Benchmark upgrade to Buy with a $175 price target.

Technical Analysis

• Positive Technical Signals: REZI, KAR, SW showed golden crosses, while DAL displayed a bullish engulfing pattern. STOK formed a hammer chart pattern, suggesting a potential bottom.
• Momentum Stocks: Urban Outfitters (URBN), Escalade (ESCA), Brookfield Asset Management (BAM), and Shopify (SHOP) showed strong momentum.

International Market Notes

• Japanese Defense: Mitsubishi Heavy Industries (Japan) saw increased stock value due to anticipated growth in anti-missile production spurred by global conflicts.