It Girl Identity: Issue 17

It Girl Identity Newsletter

Grab your iced pumpkin latte and read what's moving markets this week, stocks we have been eyeing, and enjoy our curated It Girl Identity recommendations!

What’s Moving Markets

U.S. stock markets posted slight gains, mainly due to the positive influence of China’s stimulus measures. Tech stocks led the way, with companies like Microsoft and Nvidia performing well.

What’s Up

• Nio (NIO): Shares have surged approximately 24% this week as investors react to China's economic stimulus plans, which are expected to benefit electric vehicle (EV) manufacturers like Nio.

• CVS Health (CVS): Glenview Capital may propose operational improvements to CVS, boosting shares slightly.

• Rightmove (RMV): Rejected a fourth takeover bid from News Corp-controlled REA, keeping shares stable.

• Alibaba (BABA): U.S. securities of Chinese companies like Alibaba rallied after China expanded its stimulus measures.

• Phoenix Group Holdings PLC (PHNX): Shares rose 1.07% at the end of the week, contributing to a positive trading day for the stock market as the FTSE 100 Index advanced by 0.43%.

• Lam Research (LRCX): Stock surged after Micron reported a 93% revenue growth in its fourth quarter, fueled by rising demand for memory chips in generative AI. Analyst Toshiya Hari of Goldman Sachs maintained a Buy rating and increased the price target from $700 to $912, citing Lam's strong position in Etch and Deposition technologies.

• Top S&P 500 Gainers: Wynn Resorts + 7.24%, Walgreens Boots Alliance +6.34%, APA Corporation Registered Shs +5.96%, CVS Health +4.02%

What’s Down  

• BP (BP): BP shares have fallen 28% since April, extending recent losses as oil prices drop due to potential increased production from Saudi Arabia and Libya.

• Stellantis (STLA): Shares dropped after cutting its full-year outlook, accelerating plans to reduce U.S. inventory.

• Aston Martin (AML): Fell over 20% due to reduced annual guidance, citing supply-chain problems and weak demand in China.

• Ford (F) & General Motors (GM): Declined after Stellantis and Volkswagen issued outlook warnings.

• Mullen Automotive (MULN): Mullen Automotive faces severe financial challenges, including ongoing losses and the necessity of a 1-for-100 reverse stock split to maintain its NASDAQ listing. The company aims to sell up to 85 million shares and has secured $250 million in financing, which includes $100 million from convertible notes. Despite recent orders totaling about $213 million and the launch of the Mullen Five SUV, the company reported a net loss of $289.9 million this year, resulting in earnings per share of -$7.91. Over the past week, shares plummeted from $7.69 to $3.64, marking a decline of $4.05 or approximately 52.7%.

• Top S&P 500 Losers: Dell Technologies -4.96%, HP -3.91%, Eli Lilly -3.47%, PayPal -2.75%, Cintas -2.25%.

Markets and Economy

• OpenAI’s Shift: OpenAI plans to become a public-benefit corporation within the next two years, which means it will focus not just on making money but also on doing good for society. This is a big deal for the tech world because most companies are primarily profit-driven. OpenAI’s new model could inspire other tech startups to follow a similar path, where companies balance profits with social responsibility. However, this shift won’t be easy. OpenAI will face a lot of legal and regulatory challenges along the way, which could impact how quickly they can make this transition. If they succeed, it could reshape how tech companies operate, especially in areas like AI, where ethical considerations are crucial.

• China Stocks Surge: China’s government recently rolled out stimulus measures to help boost their economy, which has led to a major rise in Chinese stock prices. The Shanghai Composite Index saw a 17% jump in just one month, signaling strong investor confidence. These measures, such as cutting interest rates and supporting industries, are designed to stabilize the economy and keep growth on track. This is important globally because China plays a huge role in the world economy. When China’s economy does well, it often boosts markets around the world. Investors are keeping a close eye on China, expecting more government support that could keep this momentum going.

• Luxury Stocks Boost: Stocks like LVMH, Mercedes-Benz, and BMW surged following China's economic rebound, driven by renewed consumer spending. These luxury companies have been heavily reliant on Chinese demand.

  • Outlook: If China's economic recovery is sustained, luxury brands may see more consistent growth.

• U.S. Mortgage Relief: In the U.S., mortgage lenders have started to lower interest rates, which is a big change after a period of high rates. This is aimed at making home buying more affordable, especially since the housing market has cooled down recently due to the high cost of borrowing. Lower rates could help more people qualify for mortgages and increase homebuyer interest, leading to more activity in the housing market. It’s important to watch how this affects buyer behavior because if more people start purchasing homes, it could give a much-needed boost to the U.S. economy and the real estate sector.

IPOs & Mergers and Acquisitions

• General Atlantic Nears £800mn Acquisition of Learning Technologies Group: US private equity firm General Atlantic is close to acquiring London-based Learning Technologies Group (LTG) for over £800 million. LTG, which provides digital training solutions to corporate and government clients, saw its shares jump 28% to 96p after a potential £1 per share offer, valuing the company at £760 million. The offer includes an option for shareholders to reinvest in an unlisted equity alternative. LTG's revenue fell 12% in the first half of the year, generating £250 million. General Atlantic, known for backing tech firms like Alibaba and Facebook, recently acquired edtech company Kahoot.

Earnings Calendar

This Week's Major U.S. Economic Reports & Fed Speakers

Here is a quick breakdown of this week’s Fed Speaker events and economic indicators, what they mean, and their forecasts!

Monday, September 30

Speakers: Federal Reserve Governor Michelle Bowman, Federal Reserve Chair Jerome Powell

• Chicago Business Barometer (Sept.): Measures overall performance of the manufacturing and non-manufacturing sector in the Chicago region. Forecast: 45.3 (Previous 46.1)

Tuesday, October 1

Speakers: Federal Reserve Governor Lisa Cook, and a joint panel from Richmond Fed President Tom Barkin, Atlanta Fed President Raphael Bostic, and Boston Fed President Susan Collins

• S&P Final US Manufacturing (Sept.): (Previous: 47.0).

• ISM Manufacturing (Sept.): Measures the level of demand for products through ordering activity at factories. Forecast: 47.2% (Previous: 47.2%).

• Construction Spending (Aug.): Forecast: 0.2% (Previous: -0.3%).

• Job Openings (Aug.): (Previous: 7.7 million).

• Auto Sales (Sept.): (Previous: 15.1 million).

Wednesday, October 2

Speakers: Cleveland Fed President Beth Hammack, St. Louis Fed President Alberto Musalem, Federal Reserve Governor Michelle Bowman, Richmond Fed President Tom Barkin

• ADP Employment (Sept.): Measure of change in US private employment and pay derived by payroll data of client companies served by ADP. (Previous: 99,000).

Thursday, October 3

Speakers: Minneapolis Fed President Neel Kashkari with Atlanta Fed President Raphael Bostic

• Initial Jobless Claims (Sept. 28): Number of new claims for unemployment benefits, indicating the health of the job market. (Previous: 218,000).

• S&P Final US Services (Sept.): (Previous: 55.4).

• ISM Services (Sept.): Measures economic condition and performance of service-based companies. Forecast: 51.5% (Previous: 51.5%).

• Factory Orders (Aug.): Forecast: 0.0% (Previous: 5.0%).

Friday, October 4

Speakers: New York Fed President John Williams

• US Nonfarm Payroll (Sept.): Forecast: 144,000 (Previous: 142,000).

• US Unemployment Rate (Sept.): Forecast: 4.2% (Previous: 4.2%).

• US Hourly Wages (Sept.): Forecast: 0.3% (Previous: 0.3%).

• US Hourly Wages (YoY): (Previous: 3.8%).

Sources: BusinessInsider, New York Fed, MarketWatch, WSJ, Financial Times, Interactive Investor, Yahoo Finance

Top 10 Stocks We are Watching

Big Moves in Telecom, EV, and Banking

Disclaimer: Information shared here is for educational purposes only. Consult a financial advisor for personalized advice.

1. Verizon (VZ): Verizon shares are heading toward a two-year high after sealing a $3.3 billion deal to lease its wireless-communication towers to Vertical Bridge. The deal supports Verizon’s efforts to cut costs while giving it continued access to crucial infrastructure. Investors are optimistic about the cash inflow and cost-saving measures.

2. JPMorgan Chase (JPM): Morgan Stanley downgraded JPMorgan to equal-weight due to the stock’s strong 2024 rally and concerns about limited upside from lower interest rates. Despite this, JPMorgan remains a leader in the banking sector with robust capital strength.

3. Nio (NIO): Chinese EV manufacturer Nio saw its stock surge by 24% this week, fueled by China's new economic stimulus plans. These measures are expected to drive demand for electric vehicles, positioning Nio to benefit from increased consumer and government support.

4. Alibaba (BABA): U.S. shares of Alibaba surged following China’s economic stimulus. As one of the top tech giants in China, Alibaba stands to gain from increased consumer activity and capital markets support, making it a stock to watch for continued growth.

5. Microsoft (MSFT): Raising $6.5B for OpenAI as it transitions to a for-profit model. Investors eyeing equity opportunities.

6. Nvidia (NVDA): Involved in OpenAI's fundraising; their GPUs remain crucial for AI applications.

7. Stellantis (STLA): Stellantis shares dropped after the company slashed its full-year outlook, citing inventory issues and declining U.S. demand. This comes as part of broader industry challenges, with concerns over global automotive demand.

8. Ford (F): Ford’s stock dipped alongside Stellantis after issuing a negative outlook for the rest of the year. Weak demand in China and persistent supply chain challenges weigh on its performance, though its EV transition strategy continues to attract investor attention.

9. Phoenix Group Holdings (PHNX): This insurance firm saw its shares rise by 1.07% at the end of the week, benefiting from a positive market rally in the UK. The company’s steady performance and strong fundamentals make it a safe bet for those looking at financial services stocks.

10. Mullen Automotive (MULN): Facing financial difficulties, Mullen has announced a 1-for-100 reverse stock split to maintain its NASDAQ listing. Despite securing new orders and launching its SUV model, the company’s ongoing losses and recent stock decline are raising red flags for investors.

It Girl Recommendations

Shop Our Other Recommendations Here: health, fashion, fitness, education, beauty, and skincare...

Honey Cinnamon Latte Recipe

This four ingredient drink is the perfect, comforting fall pick-me-up for those long winter days when lectures feel endless☕.

Ingredients:

• 1 shot of Espresso or ½ a cup of strongly brewed coffee

• 1 cup of milk (choose the milk of your choice)

• 1 tbsp honey

• ½ tsp. cinnamon

• 1 tsp vanilla extract (Optional)

• Whipped cream (Optional)

Recipe:

1. Prepare one shot of espresso using an espresso machine, or brew a strong cup of coffee using your preferred method.

2. In a small saucepan, heat the milk over medium heat until it's warm but not boiling.

3. Once the milk is heated, use a milk frother, whisk, or blender to froth the milk until it's foamy.

4. In a mug, stir together the honey, ground cinnamon, and vanilla extract.

5. Pour the brewed espresso/coffee into the mug with the honey-cinnamon mixture and stir.

6. Slowly add the frothed milk into the mug, holding back the foam with a spoon and pouring just the liquid. Once most of the milk is in, spoon the remaining foam on top.

7. Top with whipped cream and sprinkle a little extra ground cinnamon on top for a beautiful finish.

8. Enjoy your homemade Honey Cinnamon Latte!

Financial Fashion

With internship season being upon us, it's the perfect time to buy a new blazer, upgrade your professional wardrobe, and prepare to make a strong impression in the your interviews! ✨

1. Double-breasted blazer- H&M

2. Regular fit blazer- Stradivarius

3. Fitted suit jacket- Mango

4. Premium Linen Blazer- Abercrombie

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See you next Monday, It Girls!

With Love,

It Girl Identity