✈️ Air Freight’s Big Moment

Plus, a cheeseburger twist is on the horizon—dare to take a bite?

October 02, 2024

Happy Wednesday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

  • 🟩 | US stocks rose only slightly on Wednesday. The S&P 500 remained flat as the market rally paused due to Middle East tensions, while the Nasdaq and Dow Jones each rose 0.1%.

  • 📈 | One Notable Gainer: Chinese stocks rallied further as sweeping stimulus measures boosted the market, with JD.com rising 4.4%, marking its fifth consecutive day of gains.

  • 📉 | One Notable Decliner: Humana shares tumbled more than 12% after the health insurer warned that a steep drop in the federal government’s quality ratings of its Medicare plans could hit its results in 2026.

  • ✈️ | Tomorrow's Trade: Air Freight’s Big Moment. Scroll down for more.

GO DEEPER

Get Access to Private Investments: Looking for access to private investment opportunities including direct real estate investments and venture capital investments? Click here to fill out this form.

Grow Your Business: Do you work in the financial services industry? Do you need help with email and content marketing to generate new leads, retain clients, and grow your bottom line? We work with companies ranging from J.P. Morgan to independent financial advisors to help them do exactly that. Click here to fill out this form and schedule a call.

TOGETHER WITH NATIVEPATH

Keeping hydrated in the summer heat shouldn't be a hassle – that's where NativePath Hydrate comes in. Unlike other commercial hydration products, Native Hydrate contains high-quality amino acids that are proven to be the optimal way to hydrate, along with subtle yet effective amounts of electrolytes.

Most other hydration products contain way more sodium than you need, unless you’re working out for multiple hours every day. Native Hydrate contains the equivalent of a quarter teaspoon of salt for optimal hydration delivery without disrupting your health. It doesn’t undergo massive processing like most hydration supplements do, or have any added sugars.

With its unique blend of essential amino acids, branched-chain amino acids, electrolytes, and additional nutrients (like Calcium Carbonate, Choline Bitartrate, Riboflavin, Niacin, B6, Folate, B12, Biotin, Pantothenic Acid, Choline, and Zinc) Native Hydrate makes getting proper hydration easy and enjoyable all year long. 

S&P 500 Heatmap. Credit: Finviz

All Stock Heatmap. Credit: Finviz

Global ADR snapshot. Credit: Finviz

MARKET MOVERS

TSLA (-3.5%) Tesla stock slips after EV maker misses estimates on deliveries (CNBC)

NKE (-6.4%) Nike stock slides as company withdraws guidance amid CEO change (YF)

HOG (-4.1%) Harley-Davidson Stock Downgraded on Dismal Outlook (SIR)

CAG (-8%) Duncan Hines Owner Conagra Brands Stock Sinks as Consumers Pull Back on Spending (Investopedia)

OVERHEARD ON THE STREET

TechCrunch: OpenAI raised $6.6B in a funding round led by Thrive Capital, valuing the company at $157B, making it the largest VC round ever.

CNBC: Eli Lilly is investing $4.5 billion to build the Lilly Medicine Foundry, enhancing drug production and expanding its pipeline for obesity and brain disease treatments.

QZ: The U.S. labor board accused Apple of illegally violating workers' rights and fostering a hostile work environment, which Apple denies.

Axios: Toyota invests $500M in Joby Aviation to advance electric air taxis and collaborate on eVTOL aircraft manufacturing.

Reuters: Boeing's largest union urged new CEO Kelly Ortberg to engage in contract talks amid a strike of 33,000 workers and healthcare cuts.

TOMORROW’S TRADE IDEA, TODAY

With US Ports Grounded, These Companies Could Soar

The Strike Has Begun

The dockworker strike has begun and billions of dollars of goods is currently sitting stranded near US ports across the country. 36 ports in total will be effected with some 45,000 workers on strike.

According to the supply chain logistics platform Flexport, shippers who typically utilize boats to transport goods should consider airplanes as an alternative.

Air Freight’s Time to Shine

Flexport believes that this could lead to a surge in air freight prices, and Barron’s thinks UPS (UPS) and FedEx (FDX) could be major beneficiaries.

According to Stifel Transportation & Logistics analyst Bruce Chan, utilizing their transportation networks may be the only means to transport goods and bypass the ports. How much they benefit will largely depend on how long the strike lasts.

The Longer the Better for UPS and FedEx

Both stocks are up less than 1% over the past five days of trading, and UPS has been down around 8% over the past month. Given these price movements, it seems that their values do not yet reflect their potential for gains in the near term.

ILA President Harold Dagget has vowed to continue fighting for as long as it takes to get what he feels his workers deserve. The longer this strike continues the more valuable UPS and FedEx’s services will become.

Are you bullish or bearish on UPS (UPS) and FedEx (FDX) over the next 12 months?

Login or Subscribe to participate in polls.

TOGETHER WITH NATIVEPATH

Keeping hydrated in the summer heat shouldn't be a hassle – that's where NativePath Hydrate comes in. Unlike other commercial hydration products, Native Hydrate contains high-quality amino acids that are proven to be the optimal way to hydrate, along with subtle yet effective amounts of electrolytes.

Most other hydration products contain way more sodium than you need, unless you’re working out for multiple hours every day. Native Hydrate contains the equivalent of a quarter teaspoon of salt for optimal hydration delivery without disrupting your health. It doesn’t undergo massive processing like most hydration supplements do, or have any added sugars.

With its unique blend of essential amino acids, branched-chain amino acids, electrolytes, and additional nutrients (like Calcium Carbonate, Choline Bitartrate, Riboflavin, Niacin, B6, Folate, B12, Biotin, Pantothenic Acid, Choline, and Zinc) Native Hydrate makes getting proper hydration easy and enjoyable all year long. 

ON OUR RADAR

WSJ: U.S. auto sales remain below prepandemic levels due to high prices and borrowing costs, indicating another weak year for automakers.

AP: The student loan grace period ended on Sept. 30, aiding borrowers in avoiding default and credit score damage.

CNN: Wendy’s honors SpongeBob’s 25th anniversary with a "Krabby Patty Kollab" cheeseburger and "Pineapple Under the Sea" Frosty, starting October 8.

BI: If Congress doesn't extend ACA premium tax credit subsidies expiring in 2025, millions may lose over $700 in healthcare benefits.

The Verge: Microsoft's major redesign of Copilot introduces voice and vision capabilities, enhancing it into a more personalized AI assistant.

YESTERDAY’S POLL RESULTS

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨🟨⬜️⬜️⬜️⬜️ 🐻 Bearish

Reply

or to participate.