Good morning. Happy Friday.
The Asian/Pacific markets were mixed. Taiwan, Australia and Indonesia did well; China, Hong Kong and New Zealand were weak. Europe, Africa and the Middle East are mostly doing well. The UAE, Greece, Switzerland, Norway, Hungary, Spain, Italy, Portugal, and the Czech Republic are leading. Futures in the States point to moderate positive open for the cash market.
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The dollar is down. Oil is up; copper is down. Gold and silver are down. Bonds are up. Bitcoin is up.
Stories/News from Seeking Alpha…
Personalized therapy
A big breakthrough is being hailed in the world of gene editing, with the first custom-designed treatment using CRISPR technology (CRSP). The therapy was developed for an infant named KJ Muldoon, who was born with a rare genetic disorder called carbamoyl-phosphate synthetase 1 (CPS 1). The condition prevents liver cells from breaking down proteins properly, resulting in an ammonia buildup that can lead to irreversible brain damage and possibly even death.
Snapshot: CPS 1 is typically treated with conventional methods, like protein restriction, nitrogen scavengers, and drugs to reduce ammonia, but the treatment may only be partially effective. A liver transplant can also be a solution, but patients have to be at least a year old and a donor has to be found. As a result, an experimental alternative was pursued, which delivered the CRISPR base-editing therapy using lipid nanoparticles.
A low dose was first given when KJ was only six months old, which was followed up by a higher intravenous infusion after careful monitoring. He just finished his third and final dose and seems to be responding well, with reduced blood ammonia concentrations and better tolerance to dietary protein. No serious adverse effects despite concurrent viral infections, and while it’s still early to know the full extent of things, doctors were able to halve the medication he receives to reduce ammonia in his body.
Watershed moment? While CRISPR (CRSP) is currently approved by the FDA to treat sickle-cell anemia and beta thalassemia, the treatments for those diseases rely on a one-size-fits-all approach. In contrast, KJ’s treatment was custom-tailored to his genetic makeup and brings hope that “on-demand” therapies of the future could be designed to fit an individual patient’s needs. The price tag for any gene editing therapy is still prohibitive (personalized therapy even more so), but the hope is that will change down the line as things move towards a platform-based approach. “As we get better at doing this, economies of scale will kick in, and you can expect the cost to come down orders of magnitude,” said lead researcher Dr. Kiran Musunuru of the University of Pennsylvania and the Children’s Hospital of Philadelphia.
What else is happening…
Walmart (WMT) warns of higher prices despite reduced tariffs.
Big UAE deals include Boeing plane order and AI campus.
Check out the latest 13F filing from Berkshire Hathaway (BRK.B).
Tesla (TSLA) adds well-known restaurant veteran to its board.
Is a $30 minimum wage coming to cities like Los Angeles?
Increasing calls for countries to ‘pay more’ for U.S. innovation.
Oil prices slide as Trump says U.S. close to deal with Iran.
SA Asks: Can pharmacy benefit managers be eliminated?
Japan to seek better U.S. trade deal amid political pressure.
JPMorgan’s (JPM) Dimon still sees recession risk from tariffs.
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Good morning. Happy Thursday.
The Asian/Pacific markets leaned to the downside. India, New Zealand and Indonesia did well; Japan, China, Hong Kong, South Korea, Malaysia, Thailand and the Philippines were weak. Europe, Africa and the Middle East are mixed. Denmark, Norway and Sweden are up; Poland, Turkey and Austria are down. Futures in the States point to a negative open for the cash market.
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The dollar is down. Oil and copper are down. Gold and silver are down. Bonds are up. Bitcoin is down.
Stories/News from Seeking Alpha…
A bellwether reports
A better picture of the U.S. consumer, along with the retail industry at large, will come into focus today as Walmart (WMT) releases its latest earnings report before the market opens. It’s been quite a ride over the past few months due to the uncertainty from the Trump administration’s tariffs, which were raised to exorbitant levels before being pulled back for trade talks. A third of what Walmart sells is brought in from outside the U.S., with China and Mexico noted as the “most significant” import markets.
By the numbers: Analysts expect Walmart to disclose revenue of $164.5B and earnings per share of $0.58, which falls into the company’s Q1 guidance of $0.57 to $0.58 EPS. U.S. comparable store sales are seen rising 3.6% amid the general trend of consumers stocking up on household goods due to prior fears of higher tariff-related prices. Guidance is also expected to be broad enough to encompass a wide range of outcomes. Walmart previously guided for full-year net sales growth of 3% to 4% and adjusted operating income growth of 3.5% to 5.5%, even as the company integrates its VIZIO acquisition and navigates a less favorable category mix.
Investors will be watching for updates on Walmart’s ability to sustain momentum amid ongoing macroeconomic challenges. Other key areas of focus on the conference call will include Walmart’s advertising business, e-commerce performance, inventory management, automation, and supply chain and sourcing strategies. Walmart’s report is seen as holding more weight than normal, as analysts dive into the implications of growing market share by holding back on price increases vs. protecting margins.
Outlook: Options trading implies a 6% move in Walmart’s (WMT) share price after the earnings report is released, which is more implied volatility than usual. Costco (COST), PriceSmart (PSMT), and Five Below (FIVE) are the stocks that closely correlate with Walmart on earnings day, as well as major suppliers like Fabrinet (FN), Kontoor Brands (KTB), and Cal-Maine Foods (CALM), which could additionally see share price reactions. As of Wednesday’s close, WMT shares are up about 7% YTD, compared to the flat performance of the S&P 500 (SP500).
What else is happening…
Warren Buffett reveals why he handed over Berkshire’s reins.
UnitedHealth faces DOJ probe; Is a turnaround possible?
Dick’s (DKS) may get a good deal for Foot Locker (FL).
Monopoly ETF – a new SEC filing that targets market titans.
Apple (AAPL) supplier Foxconn cleared to build fab in India.
U.S. renewable risks? Rogue communication devices found.
Boeing’s (BA) $96B deal with Qatar Airways caps strong week.
EU threatens fresh Russia sanctions; Putin won’t attend latest talks.
Here’s how many subs Netflix now has for ad-supported service.
eToro (ETOR) shares see double-digit gains in market debut.
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Good morning. Happy Wednesday.
Several Asian/Pacific markets posted big gains. China, Hong Kong, South Korea, Taiwan and Indonesia did great. Europe, Africa and the Middle East are currently very quiet. Denmark and Hungary are up. Futures in the States point to a positive open for the cash market.
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The dollar is down. Oil and copper are down. Gold and silver are down. Bonds are up. Bitcoin is down slightly.
Stories/News from Seeking Alpha…
New proverb
There is a famous adage on Wall Street called “Sell in May and go away.” The investment approach posits that stocks tend to underperform in the six months through October, so investors should convert to cash at the start of May and then buy into a dip later in the fall. The origins of the saying go back quite a while, with reasons ranging from vacation cycles to bonuses, and others noting that the worst market crashes of 1929 and Black Monday in 1987 occurred during this period.
Not this year: Stocks are continuing to recover from a tariff-induced selloff, posting outsized gains since the end of April and the first half of May. The S&P 500 (SP500) is even up a whopping 6% over the past two weeks, and a surprise trade truce and soft inflation data have only added to the market magic. The S&P on Tuesday even closed with YTD gains for the first time since February, following bouts of volatility in the current news-driven cycle. Here are the best and worst performers
What about other years? Many academic papers and market research have been written on “Sell in May,” with breakdowns by stock class or periods of time. While seasonal patterns do exist, and equities could face some increased risk in the summer months, they still tend to go up over the long term despite additional volatility. Staying fully invested could prove safer than trying to time the market in any given year, and there are countless indicators out there for better portfolio decisions, such as earnings, valuations, the macro landscape and the direction of interest rates. Look at the S&P 500’s wild ride since ‘Liberation Day’
SA commentary: “Hold your investments and hedge instead of selling in May; the market’s resilience suggests potential gains, despite tariff concerns and recession fears,” Investing Group Leader David Lerner wrote at the beginning of the month. “Panic selling created buying opportunities in tech and communication big-caps; disciplined buying at support levels yielded over 20% returns.”
What else is happening…
There’s a new (old) CEO at UnitedHealth (UNH); stock plunges 18%.
Trump to lift sanctions against Syria to give ‘a chance at peace.’
On deck: eToro (ETOR) upsizes IPO ahead of market debut.
Baidu (BIDU) eyes Europe as next stop for its robotaxi service.
End of cable? ‘ESPN’ (DIS) is launching a fresh streaming app.
Nvidia to sell AI chips to the Saudis; OpenAI mulls UAE data center.
How much is Jensen Huang making amid AI-driven growth?
Boeing (BA) boosts jet deliveries in April, but still trails Airbus.
EU weighs higher tariffs on Ukrainian imports to protect its farmers.
Goldman: Trump’s tweets suggest he favors oil at $40-$50 a barrel.
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Good morning. Happy Tuesday.
The Asian/Pacific markets leaned to the upside. Japan, Taiwan, New Zealand, Malaysia and the Philippines did well; Hong Kong and India were weak. Europe, Africa and the Middle East are currently very quiet. Denmark, Spain and Portugal are up; Israel is down. Futures in the States point to a positive open for the cash market.
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The dollar is down. Oil and copper are up. Gold and silver are up. Bonds are mixed. Bitcoin is up.
Stories/News from Seeking Alpha…
Keeping score
Markets heavily applauded a pause in the trade war on Monday, or maybe more accurately, the clarity it brought with it. Stocks were a clear winner as the Dow (DJI) jumped more than 1100 points, and the S&P 500 (SP500) and Nasdaq (COMP:IND) soared 3.3% and 4.3%, respectively, leaving most of the indexes near where they started the year. The breakthrough will see the U.S. slash tariffs on Chinese goods from 145% to 30%, signaling more of a targeted approach to trade rather than shock therapy, while China agreed to cut its rate from 125% to 10%.
Trump’s stance: “We achieved a ‘total reset’ with China. The biggest thing that we are discussing is opening up China [to American business] and they’ve agreed to do that, but it’s going to take a while to paper it. I think it would be fantastic for our businesses if we could go in and compete.” If a trade deal is not reached by the end of the 90-day pause, tariffs would “go substantially higher” but would not go back up to 145%, since that would essentially be “decoupling” and “nobody’s going to buy.”
The stark shift follows conflicting statements made by Trump in recent weeks, ranging from “[America] is losing nothing” by not trading with China, to “at some point, I’m going to lower [tariffs] because otherwise, you could never do business with them.” The U.S. is now pushing for a “decoupling of strategic necessities,” according to Treasury Secretary Scott Bessent, and not a “generalized decoupling” that can cause “unintended consequences and the equivalent of an embargo.” It’s also clear that baseline U.S. tariffs of at least 10% are likely to remain on every country, and that could go even higher in the event of bigger trade barriers or geopolitical tensions (like the additional 20% levy on China over the fentanyl crisis).
Xi’s perspective: “We will resolutely uphold the multilateral trading system… There are no winners in tariff wars or trade wars. The world is undergoing a century of rapid change, with multiple risks compounding one another. Bullying or hegemonism only leads to self-isolation. Only through solidarity and cooperation can countries maintain world peace and stability.” That’s the talk Washington is particularly nervous about, but might be able to live with, as China attempts to cement its superpower status and challenge the U.S. on the world stage.
What else is happening…
WSB survey results: Drugmakers are recouping profits in the U.S..
Samsung launches ultra-thin S25 Edge as Apple prepares iPhone Air.
Coinbase (COIN) shares skyrocket after index inclusion news.
AMC (AMC) to halve ticket prices on Wednesdays to boost traffic.
Newark airport chaos: Task force formed with Verizon and L3Harris.
Equinor (EQNR) threatens to cancel New York offshore wind project.
Boulder’s climate lawsuit against Exxon, Suncor (SU) to proceed.
Amazon signs up FedEx (FDX) to fill UPS (UPS) delivery gaps.
McDonald’s (MCD) bets on growth with plans for 375K new hires.
Trump in Middle East: U.S. approves $1.45B arms sales to UAE.
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Good morning. Happy Monday. Hope you had a good weekend.
The Asian/Pacific markets mostly did well. Japan, China, Hong Kong, South Korea, India and Taiwan led the way. Europe, Africa and the Middle East are currently doing very well. Poland, France, Turkey, Greece, Finland, Norway, the Netherlands, Italy, Portugal, Austria, Sweden, Saudi Arabia, and the Czech Republic are posting solid gains; Hungary is down. Futures in the States point to a huge gap up open for the cash market.
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The dollar is up big. Oil and copper are up. Gold and silver are down. Bonds are down. Bitcoin is down.
Stories/News from Seeking Alpha…
The costs
A big change may soon be coming to the U.S. pharmaceutical market, where consumers pay exponentially more than any other country in the world. Due to the many players in the system, it has been hard to pin down an exact cause of the expenses or what to do about drug pricing, but there have been many attempts to change the status quo. The latest effort will come this morning, with many watching the developments, including Big Pharma and what it will mean for their shareholders.
Announcement: “In the White House, at 9:00 A.M., I will be signing one of the most consequential Executive Orders in our Country’s history,” President Trump wrote on Truth Social. “Prescription Drug and Pharmaceutical prices will be REDUCED, almost immediately, by 30% to 80%. They will rise throughout the World in order to equalize and, for the first time in many years, bring FAIRNESS TO AMERICA! I will be instituting a MOST FAVORED NATION’S POLICY whereby the United States will pay the same price as the Nation that pays the lowest price anywhere in the World.”
Many have pointed to the U.S. market as the one that covers the research and development costs for much of the globe, especially given drug companies’ ability to dictate their listing prices. In most other nations, the government buys the stock of medicine for a country, so it is able to negotiate lower rates or bulk discounts, and can walk away from a deal based on “affordability and value.” That rarely happens in the U.S., whose market is based on “access and availability.” Private insurers will agree to nearly every deal, but just charge more.
Other differences: Direct-to-consumer marketing is allowed in the U.S. (bloating advertising expenses), while companies must make sure they keep prices inflated before patents expire and generics are released. Unlike other countries, there is also the existence of pharmacy benefit managers, referred to as “middlemen,” who work for insurance companies and government agencies. PBMs attempt to bring down the cost of U.S. drugs by negotiating discounts and rebates, but they also take a percentage and have immense power over where a drug is placed on an insurer’s formulary (tiers that classify how much a consumer vs. insurer has to pay for any given medicine). PBMs also won’t release their “proprietary” rebate data publicly, which can influence costs, sales, and initial listing prices. Take the WSB survey.
What else is happening…
Lutnick defends tariff strategy, affirms 10% minimum to stay.
FAA considers ‘broad’ reductions to flights into Newark airport.
Microsoft (MSFT), OpenAI revising partnership and contract terms.
Chinese EV battery giant CATL seeks $4B in Hong Kong listing.
Another Theranos? Elizabeth Holmes’ partner eyes new startup.
Aramco (ARMCO) profit dips amid lower oil prices, budget strains.
Trump to receive $400M luxury Boeing (BA) jet as gift from Qatar.
Zelenskyy ready for talks with Russia as Trump backs Putin’s offer.
More Walgreens stores to be serviced by prescription-filling robots.
Elon Musk: ‘Gold Card’ visa pilot underway ahead of public launch.
Valuing Alphabet On A Sum Of The Parts Basis, Assuming Search Stops Growing
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