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- 👉 The Investing Week Ahead: 10/9/23
👉 The Investing Week Ahead: 10/9/23
Free stock idea webinar, chaos in Israel & Afghanistan, and a couple of $60B+ acquisitions...
Welcome to your new week.
Before we get going — I encourage you to click this link to register for my webinar with Katie Stockton tomorrow (Tuesday, October 10th)!
Katie is the Managing Partner of Fairlead Strategies and a consistent face on CNBC. She is an absolute wizard at technical analysis — we plan to talk through the market as a whole and get a technical perspective on some of my favorite stocks!
While you’re at it — drop your email above so you can get emails each week from Katie herself. She’s the best in the business!
Key Earnings Announcements:
Pepsi and JPMorgan Chase are in focus.
Monday (10/9): Applied Blockchain
Tuesday (10/10): AZZ Inc, E2Open Parent Holding Inc, Neogen Corp, Pepsi
Wednesday (10/11): Richardson Electronics
Thursday (10/12): Commercial Metals Company, Delta Air Lines, Domino’s Pizza, Fastenal, Infosys, SMART Global Holdings, Walgreens
Friday (10/13): BlackRock, Citi, JPMorgan Chase, PNC, Progressive, UnitedHealth Group, Wells Fargo
What We’re Watching:
Pepsi’s most recent earnings report highlighted +14% organic revenue growth to Frito-Lay North America and +15% organic revenue growth to international business as a whole. Investors will be looking to see if Pepsi’s desire to innovate new offerings across Quaker, Lays, Gatorade, Propel, and other products has resulted in positive ROI.
Remember — Jamie Dimon recently said “I am not sure if the world is prepared for 7%” when discussing interest rates. Investors and general market followers will be listening closely to see if Dimon reveals anymore newsworthy tidbits.
Investor Events / Global Affairs:
Iran may be behind the Hamas attacks, Afghanistan is struck with one of the largest earthquakes in its history, Microsoft may finally finish the Activision Blizzard acquisition, and ExxonMobil is considering its largest acquisition since acquiring Mobil.
Eyes on Iran’s Involvement in the Israel Attacks
As you know by now and may have read in the Week in Review yesterday — this weekend was the darkest few days in Israel’s history. We’ll elect to stay away from commenting on the Palestinian celebrations throughout America after the world watched 1,100+ (and counting) people die, get taken hostage, and have their bodies mutilated.
What we want you to see is the fact that Iran’s Supreme Leader — Imam Sayyid Ali Khamenei — has been actively praising the terrorist attacks. Elon Musk made the difficult decision to allow his posts to remain on Twitter for the public’s ability to see Iran leadership’s position on things.
Check out the Iranian Supreme Leader’s Twitter here. We believe this will have massive implications on a global scale.
According to Israel Minister for Strategic Affairs Ron Dermer — Hamas has taken American hostages into the Gaza Strip as well.
“Those are the two directives given by the Israeli cabinet. And that is what the IDF is preparing to do. First stage is ongoing, with aerial assault, quite a massive aerial assault against Hamas' military targets in Gaza. And that will continue…
Now is the time to say, yes, we are angry, yes, we are -- Israel is hurting. But even in these difficult times, we do not forget that we fight under international humanitarian law and that we remember that we respect the sanctity of human life. And I know that this is criticism that is so many times thrust upon Israel, I think unfairly. And for some reason, we are held to, I think, sometimes impossible standards when it comes to defending ourselves.”
— Jonathan Conricus, Israel Defense Forces International Spokesperson
Here is an interesting thread about how most investment portfolios aren’t prepared for war.
More importantly — our thoughts and prayers are with those affected by the terrorism.
Afghanistan Earthquake Kills 2,400+ People
Two powerful magnitude-6.3 earthquakes struck western Afghanistan near Herat — resulting in one of the deadliest seismic disasters in recent decades.
At least 2,445 people have died and thousands are injured. Over 1,300 homes were destroyed, and 10 villages in the Zinda Jan district of Herat province were devastated.
Rescue efforts were hampered by limited equipment, and the death toll is expected to continue rising, according to Barat Moin — the head of a hospital in Herat. The Taliban and international organizations, including the World Health Organization, have mobilized efforts to provide assistance to the affected areas, while Afghanistan's susceptibility to earthquakes due to its location on fault lines has been highlighted.
Our thoughts and prayers are with innocent civilians that have been impacted by these horrendous earthquakes.
Microsoft’s (MSFT) Acquisition of Activision Blizzard (ATVI) Could Close This Week
Microsoft is reportedly set to finalize its $69 billion acquisition of Activision Blizzard on Friday, October 13th — pending final approval from the UK.
This completion is five days before the previously agreed-upon deadline of October 18th. The UK's Competition and Markets Authority provisionally approved the acquisition, which included divesting the cloud gaming business to Ubisoft, with final approval expected soon.
Microsoft has already overcome regulatory hurdles in the U.S. and Europe, securing agreements for Activision games to be available on PlayStation for a decade.
The deal will make Microsoft the third-largest gaming business by revenue globally.
ExxonMobil’s (XOM) $60B Acquisition Talks
Exxon Mobil is reportedly in advanced talks to acquire Pioneer Natural Resources in a deal that could value Pioneer at around $60 billion. This acquisition would be Exxon's largest since its $81 billion purchase of Mobil in 1998 — and would expand its presence in the Permian shale basin, a highly lucrative region for the U.S. oil industry.
If successful, the deal may be reached in the coming days, potentially making Pioneer an essential asset for Exxon to increase oil production.
Major Economic Events:
Inflation for Consumers and Inflation for Producers — according to the government.
Monday (10/9): Speeches by Fed Governor Jefferson & Dallas Fed President Logan
Tuesday (10/10): NFIB Optimism Index, Wholesale Inventories
Wednesday (10/11): Fed Meeting Minutes, Producer Price Index (PPI)
Thursday (10/12): Consumer Price Index (CPI)
Friday (10/13): Consumer Sentiment, Import Price Index
What We’re Watching:
Headline CPI (MoM) —
Headline CPI (YoY) —
Core CPI (MoM) —
Core CPI (YoY) —
Headline PPI (MoM) —
Headline PPI (YoY) —
Core PPI (MoM) —
Core PPI (YoY) —
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Disclaimer: This is not financial advice or recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
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