❗️NEW Investing Opportunities Emerge Despite Market Warning Signs...
While there are dark economic signs, there are also potential opportunities. Read on to find out why Chevron is making major moves and learn about Toyota's EV breakthrough.
Market Snapshot (Past Week)
S&P500: $4,224.16 (-2.72%)
Dow Jones Industrial Average: $33,127.28 (-2.08%)
Nasdaq Composite: $12,983.81 (-3.49%)
Russell 2000: $1,680.79 (-3.08%)
S&P/TSX Composite Index: $19,115.64 (-1.96%)
PHLX Gold and Silver Sector: $116.33 (+2.05%)
The Biggest Investing Stories From the Last 7 Days
It’s an anxious start to this new week, and it’s no wonder. Key stories from recent days include major job cuts and trouble in the housing market. However, there are always opportunities for investors. Chevron has announced a new takeover deal and could benefit from an improving situation in Venezuela, while Toyota has made a major EV breakthrough.
Read about it all in our roundup of the top stories…
🏦 Major Banks Cut 20,000 Jobs Amid Economic Uncertainty
The largest U.S. banks are quietly reducing their workforces after a hiring spree during the pandemic. Pressure from higher interest rates, lower mortgage business, and reduced Wall Street activity has led to the loss of around 20,000 banking jobs this year among the top five U.S. banks. There’s potential for worse to come, with some banks anticipating deeper cuts in 2024 due to rising loan defaults.
🏡 US Home Sales Hit Lowest Point Since 2010
In September, sales of previously owned homes declined by 2% compared to August, reaching an annualized rate of 3.96 million units, as reported by the National Association of Realtors (NAR). Compared to September 2022, sales were down by 15.4%. This marks the slowest sales pace since October 2010, during the Great Recession.
🤝 Chevron Targets Growth with Hess Takeover
In a monumental move, Chevron Corp. CVX 0.00%↑ has reached an agreement to acquire Hess Corp. HES 0.00%↑ for a staggering $53bn. Structured as an all-stock deal, Chevron will pay a 10% premium at $171 per Hess share. This strategic acquisition elevates Chevron's enterprise value to $60bn, factoring in debt. This follows closely on the heels of Exxon Mobil's $58bn acquisition of Pioneer Natural Resources, signalling a trend of major U.S. oil companies consolidating assets.
🇻🇪 Venezuelan Oil Industry Revives as US Sanctions Ease
Venezuela has recently seen a relaxation in U.S. sanctions, opening the door for global corporations to rejuvenate the nation's languishing oil industry. This shift comes after years of underinvestment and isolation that had led to the decline of Venezuela's most crucial economic sector. Companies with a history in the region, like Chevron CVX 0.00%↑, are well-positioned to capitalize on this development.
🔋 Toyota's EV Push Gains Momentum with Battery Breakthrough
Toyota is nearing the required stacking speed for mass production of solid-state batteries and conducting quality tests. Mass production of these solid-state batteries could potentially happen by 2027 or 2028, which could revolutionize the EV industry due to advantages like higher energy capacity and shorter charging times. However, they are currently very expensive to produce and purchase.
Investing Signals
📈Top 5 Gainers in the last 7 days
MMTec Inc (NASDAQ: MTC) - $1.44 (+144.11%) - This stock rocketed this week despite a lack of any clear newsflow. Its jump may remain a mystery until a shareholder meeting on 10 November.
ESSA Pharma Inc EPIX 0.00%↑ - $4.59 (+67.52%) - This clinical-stage pharma company soared upwards following an update on its prostate cancer treatment candidate.
Olink Holding AB OLK 0.00%↑ - $24.75 (+66.00%) - Takeover news led this stock higher, with a $3.1bn deal from Thermo Fisher Scientific delighting shareholders.
Harpoon Therapeutics, Inc HARP 0.00%↑ - $6.88 (+64.99%) - This pharma stock fought its way higher following positive tolerability and response data for its tumor treatment candidate.
Maison Solutions, Inc MSS 0.00%↑ - $8.26 (+63.89%) - This multi-channel grocery e-commerce outfit has bounced back and forth since its IPO two weeks ago.
Note: Figures from StockAnalysis.com - Settings: Market Cap > $100M, Stock Price > $1, Period last 7 Days. All prices are correct as of pre-market on 25 September.
📉Top 5 losers in the last 7 days
Bridger Aerospace Group Holdings, Inc BAER 0.00%↑ - $4.00 (-44.13%) - This stock dipped following the announcement of a $70m public placing to fund its acquisition of Bighorn Airways, along with other growth initiatives.
Monte Rosa Therapeutics, Inc GLUE 0.00%↑ - $2.74 (-43.27) - Ever heard of molecular glue? Well, Monte Rosa’s new molecular glue deal with pharma giant Roche appears to have left investors unimpressed.
MSP Recovery, Inc LIFW 0.00%↑ - $1.26 (-41.94%) - This stock continued the sharp downward trend it has followed across 2023, having now dropped by more than 93% across the year to date.
Ambrx Biopharma Inc AMAM 0.00%↑ - $8.43 (-40.00%) - This stock dropped following the release of safety and efficacy data from its ongoing Phase 1/2 trials.
Arcutis Biotherapeutics, Inc ARQT 0.00%↑ - $2.47 (-36.47%) - Finally, a $100m fundraising effort saw Arcutis lose significant value late in the week.
Note: Figures from StockAnalysis.com - Settings: Market Cap > $100M, Stock Price > $1, Period last 7 Days. All prices are correct as of pre-market on 25 September.
Stocks Trending on Google Search
Google Search trends are a good indicator of investor trends and interests and a good indicator of stocks you should research to see why they are popular and whether this is a good investment for you.
Netflix
NFLX 0.00%↑
Share Price: $400.96
Weekly Change: +12.51%
Google Search Interest: +350%
This streaming giant’s widely publicized crackdown on account sharing appears to have paid off. The business added 9 million subscribers in the period to reach record levels, despite price increases.
Lululemon Athletica Inc
LULU 0.00%↑
Share Price: $395.82
Weekly Change: -1.70%
Google Search Interest: +250%
Pricey sportswear brand Lululemon joined the benchmark S&P500 index, replacing Activision Blizzard following the videogame giant’s acquisition by Microsoft. The stock’s inclusion will likely boost its presence in institutional investors’ portfolios.
Morgan Stanley
MS 0.00%↑
Share Price: $73.13
Weekly Change: -7.20%
Google Search Interest: +200%
The banking giant saw its share price tumble following its third-quarter earnings release. Earnings per share declined against the comparable period last year, while investment banking revenues tumbled by 27%.
Ardelyx Inc
$TPST
Share Price: $3.56
Weekly Change: +4.71%
Google Search Interest: +100%
Ardelyx grabbed its share of Googlers after its chronic kidney disease treatment, Xphozah, received approval from the US Food and Drug Administration. It’s expected that the product will be commercially available in November.
United Airlines Holdings
UAL 0.00%↑
Share Price: $35.09
Weekly Change: -10.26%
Google Search Interest: +90%
This airline giant took a major hit over the last week after it warned that higher fuel prices, which have climbed by around a quarter at major US airports since summer began, will eat into its profits. Fourth-quarter earnings were far below analyst expectations.
Alternate Investing Signals
r/WallStreetBets
Tesla - TSLA 0.00%↑ - Mentions: 1270
Elon Musk’s EV behemoth was unsurprisingly the runaway topic of the week following an earnings letdown that saw the eccentric billionaire admit that the company’s bizarre “cybertruck” vehicle may have been a mistake.
NVIDIA - NVDA 0.00%↑ - Mentions: 586
This chipmaking stock has faced a fair deal of scrutiny this week, with forum users concerned that escalating chip wars between the US and China will significantly impact its selling opportunities and revenue.
Microsoft - MSFT 0.00%↑ - Mentions: 82
Software giant Microsoft has generated significant discussion, with many users betting that the stock will be “clobbered” this week due to its earnings and new restrictions on US-made tech.
Top Reads
🧸 Are active asset managers in deep trouble? Bloomberg’s Silla Brush and Loukia Gyftopoulou explore how an emerging bear market could spell disaster.
🦥 The US is on course for slowing economic growth, and that could be good news. Bryan Mena of CNN tells all here.
📦 Are we finally in the age of drone delivery? The Guardian’s Callum Jones finds out here.
🪀 Are so-called kidults powering toy and game manufacturers to new heights? Elisabeth Buchwald of CNN has the story.
Meme of the Week
