Market Overview - The S&P 500 is on track for a down week after three consecutive weeks of gains, with major U.S. indices expected to finish in the red for the week [2][6][5] - Despite the overall downtrend, individual stocks have shown gains, with the Dow up 300 points (0.7%), S&P up 39 points (0.6%), and NASDAQ up 99 points (0.4%) on the last trading day [6][7] Economic Indicators - Recent economic data has provided a positive outlook for the U.S. economy, with expectations for the upcoming payrolls report indicating a potential change in sentiment [3][5] - The market is closely watching the jobs report scheduled for release next week, which could significantly influence market direction [5][4] Company Highlights - Electronic Arts is the top gainer in the S&P 500, rising approximately 15% due to reports of a potential $50 billion leveraged buyout, which would be the largest in history [10][11] - Other notable gainers include Globalfoundries (up 8%) and Intel (up 4.5%), driven by news of a new plan from the Trump administration to reduce reliance on overseas chip manufacturing [15] - PACCAR, a truck manufacturer, saw a rise of about 5.2% following the announcement of new tariffs on heavy trucks, which analysts believe will benefit the company due to its U.S. production [15] Sector Performance - The consumer discretionary sector performed well, with 429 names in the S&P 500 gaining ground, reflecting better-than-expected personal income and spending data [8] - Conversely, RH, a furniture retailer, experienced a decline of 2.9% after reporting mixed fourth-quarter results and facing high expectations from analysts [17][18] Corporate Governance Trends - There is a notable trend of increasing diversity in corporate boards, yet recent data indicates that white men are being hired at the fastest rate in over a decade, as companies prioritize experience amid economic and political challenges [22][24]

Economists question whether President Trump can achieve his goal of helping American businesses with his new round of tariffs https://t.co/iyGaxOrLYC ...

Tariff Impact & Industry Response - President Trump announced a potential 100% tariff on pharmaceutical products entering the US starting October 1st, with exemptions for the EU and Japan honoring the existing 15% cap [1] - The market initially reacted positively, viewing the announcement as a potential "d-risking event" after uncertainty since the initial tariff discussions in April [2][3] - Companies that have already invested in US manufacturing may benefit, while those that haven't may face pressure to invest or potentially see price increases on imported drugs [3][5] Manufacturing & Investment - Many big pharma and biotech companies (including US and European firms) already have plans in place to expand US manufacturing, potentially accelerated due to the administration's focus [5][7] - The industry has been publicly announcing plans to create more manufacturing in the US [4][5] - It's difficult to differentiate between pre-existing plans and new investments spurred by the tariff threat, but proof of new plant construction is expected [7][8] Generics & Spec Pharma - The generics and spec pharma industries, with potentially lower profit margins, may have less manufacturing in the US and could be more vulnerable [5]

Group 1: Electronic Arts - Electronic Arts shares surged nearly 15% following reports of a potential $50 billion deal to take the company private, which could be the largest leveraged buyout in history [3][7] - The group of investors involved includes Saudi Arabia's Public Investment Fund and private equity firm Silver Lake [3] Group 2: Costco - Costco's stock fell nearly 3% after reporting fiscal fourth-quarter results, where U.S. same-store sales growth fell short of expectations despite sales and profits exceeding analyst forecasts [9] - The company cited consumer caution regarding discretionary purchases and increasing competition as factors affecting performance [9] Group 3: General Market Trends - Major U.S. equity indexes ended a three-day losing streak, with the S&P 500 up 0.6%, Dow up 0.7%, and Nasdaq up 0.4%, driven by inflation data aligning with expectations [2] - The Federal Reserve may be on track to cut interest rates further due to the inflation gauge meeting expectations [2]

Major indexes snapped a three-day losing streak. ...

BREAKING: Inflation Data Cements Rate Cut Expectations President Donald Trump delivered the pharmaceutical industry another blow this week, threatening 100% tariffs on companies who don't have a manufacturing presence in the U.S. In a post on social media platform Truth Social, Trump said the administration will impose a 100% tariff starting Oct. 1 "on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America." The post adds to the fast- ...

Group 1 - President Trump announced a new wave of tariffs set to launch on October 1, targeting imports of heavy trucks, furniture, and pharmaceuticals, citing national security reasons [1] - A 25% tariff will be imposed on foreign-made heavy-duty trucks, impacting domestic manufacturers and higher-end importers like RH [1] - The stock market showed mixed reactions, with some domestic manufacturers experiencing gains while importers faced declines [1] Group 2 - The Dow and other indexes experienced a rise following inflation data that met estimates, indicating a potential recovery in the market [2] - Stocks related to furniture, such as Wayfair, received upgrades despite concerns over tariffs, with Wayfair's stock jumping after beating Q2 expectations [4] - The overall market sentiment was affected by inflation concerns and the looming tariff announcements, leading to volatility in stock prices [4]

Tariff Impact Analysis - President Trump's new 100% tariffs on the pharma sector may not be as severe as initially feared due to bilateral trade agreements and manufacturing presence in the United States [1][2] - The tariff impact is mitigated because many pharmaceutical manufacturers have operations or are building facilities in the United States [2] - Tariffs on materials used in drug manufacturing in the United States are a small portion of the overall cost, with gross margins on these products being 85-90% plus [4] - The API (Active Pharmaceutical Ingredient) component may only be 1-2% of the overall cost, so a 10-15% tariff on that component is not a major concern [5] Investment Recommendations - The industry is more focused on the IRA (Inflation Reduction Act) negotiated price list and potential drug pricing negotiations [5] - Gilead is viewed favorably due to its long-acting prep launch [6] - Fizer's recent deal is seen as a positive step, but execution is needed [7] - Other favored names include Vert [6]

Core Viewpoint - The retail sector, particularly companies like Home Depot, is expected to experience a deceleration in sales growth due to tariff impacts, but overall performance is not anticipated to be disastrous as consumers continue to spend despite price increases [4][5][6][7]. Retail Sector Analysis - Retailers like Home Depot have a broad global supply base, with a significant portion of sourcing already occurring in the US, which may mitigate the impact of tariffs [2][3]. - There is an expectation of a slowdown in retail sales growth from 5% in August to a lower rate as the holiday season approaches, indicating a potential air pocket in the fourth quarter [5][6]. - The consumer response to price increases has been surprisingly resilient, with continued purchasing behavior observed [4]. Company-Specific Insights - Walmart is gaining market share and is well-positioned to absorb tariff pressures while maintaining margin growth [9]. - Home Depot is viewed as a potential recovery play in the home improvement sector, especially with anticipated stimulus measures expected to exceed the negative impacts of tariffs [10]. - The auto parts sector, represented by companies like AutoZone, is also expected to perform well due to the inelastic demand for essential products, even in the face of price increases [11].

Joining me now to discuss the potential fallout, Everore ISI's Greg Melik. Greg, thank you so much for for being here with us. I know that you cover Home Depot and that was one of the names that came to mind for me as soon as I saw some of these headlines.What do you think the impact will be. You know, we think for the retailers, especially one like Home Depot, they have a big broad enough global supply base. And in the case of Home Depot, the majority of what they're doing, they're sourcing here in the US ...