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Port Problems, Rail Gains
Plus, this carmaker's bold new strategy for EV buyers is turning heads.
Happy Monday 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 on Monday. The S&P 500 and NASDAQ both rose by 0.4%. The Dow made a recovery, ultimately ending flat, despite earlier dropping nearly 400 points. Stocks recovered from initial losses after Fed Chair Jerome Powell indicated potential future rate cuts, depending on economic conditions.
📈 | One Notable Gainer: Nio's U.S.-listed shares surged 2.5% after announcing a 13.3 billion yuan cash injection into its Nio China business.
📉 | One Notable Decliner: Stellantis stock dropped over 12.5% to a 52-week low after issuing a profit warning, citing a weakening global market and rising competition from China.
🚢 | Tomorrow's Trade: Port Problems, Rail Gains. Scroll down for more.
Plus, old wells leak methane, but one company grows rapidly by plugging them. Click here to get your free report.
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TOGETHER WITH THE INVESTMENT JOURNAL
Old wells leak methane, but one company grows rapidly by plugging them.
S&P 500 Heatmap. Credit: Finviz
All Stock Heatmap. Credit: Finviz
Global ADR snapshot. Credit: Finviz
MARKET MOVERS
CVS (+2.4%) CVS Health Stock Is Today's Biggest S&P 500 Gainer. Here's Why (Investopedia)
MRNA (+1.6%) Moderna begins pivotal norovirus vaccine trial (Investing.com)
SATS (-11.5%) EchoStar to sell Dish to DirecTV, combining major pay-TV providers (CNBC)
CCL (-0.3%) Carnival Stock Slips After Record-Setting Quarter Offset by Weak Outlook (Investopedia)
GM (-3.5%) Stellantis’ Guidance Was So Bad, Ford and GM Stocks Are Getting Crushed (Barron’s)
OVERHEARD ON THE STREET
Axios: Ford will offer free EV charging units and installation to new buyers or lessees in Q4, aiming to ease concerns over home charging convenience.
Ars Technica: Apple has reportedly abandoned plans to invest in OpenAI, ending talks to join a funding round expected to raise up to $6.5 billion.
QZ: Tesla has begun rolling out Full Self-Driving software to Cybertrucks, finally enabling a feature that early buyers could purchase but not use.
WSJ: Verizon has signed a $3.3 billion prepaid lease deal with Vertical Bridge to manage 6,339 wireless towers for at least 10 years.
QZ: Boeing's machinists' strike negotiations are stalled over the union's push to restore a pension benefit lost in 2014, which the company refuses to reinstate.
TOMORROW’S TRADE IDEA, TODAY
How To Play the Port Strike
Bad Timing
With negotiations still at an impasse, a dockworker strike at ports on East and Gulf Coasts is looming large. Should it occur, it would likely cause a huge disruption in the supply chain headed into the busy holiday season.
However, some analysts believe that this potential problem may also be a potential opportunity.
Back on the Rails
Any cargo that can’t dock at ports impacted by the strike will have to be diverted somewhere else. This could be a boon for West Coast ports, as well as other modes of transportation such as railroads.
Railroad operators across the Western US are already seeing shipping container numbers shoot up, according to Susquehanna Financial Group. Both Union Pacific (UNP) and Warren Buffett-owned BNSF have seen their demand increase as shippers attempt to get out in front of the strike.
JPM Stock Picks
JPMorgan (JPM) analyst Brian Ossenbeck believes that a strike could breathe life back into a struggling freight market. In recent years, a number of “freight recessions” have been reversed due to extraordinary events such as weather and regulatory changes, and this strike could have the same effect.
Ossenbeck highlighted several stocks, including Knight-Swift Transportation (KNX) and JB Hunt Transport Services (JBHT) as potential beneficiaries. If the strike is short-lived, he likes RXO (RXO), CH Robinson (CHRW), and Expeditors International of Washington (EXPD) as well.
Are you bullish or bearish on the freight industry over the next 12 months? |
TOGETHER WITH THE INVESTMENT JOURNAL
Old wells leak methane, but one company grows rapidly by plugging them.
ON OUR RADAR
Reuters: California Governor Gavin Newsom vetoed a controversial AI safety bill after tech industry concerns, urging experts to help create science-based safeguards.
CNBC: The Palisades nuclear plant in Michigan has secured a $1.5 billion federal loan to restart as the first U.S. reactor in history.
WSJ: Luxury brands like Burberry and Gucci are launching $1,000 micro handbags to attract middle-income shoppers and counter declining sales.
Reuters: Epic Games has sued Samsung and Google, alleging they conspired to block competition by using Samsung's Auto Blocker to deter app downloads.
WSJ: Companies are moving from fixed salaries to bonus-based pay to control costs and motivate employees, risking uncertainty and long-term growth.
FRIDAY’S POLL RESULTS
🟩🟩🟩🟩🟩🟩 🐂 Bullish
⬜️⬜️⬜️⬜️⬜️⬜️ 🐻 Bearish
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