The shutdown of the US government is now into its second week, weighing on market sentiment and delaying key economic reports. The government shutdown means delays in the release of government reports, including today’s weekly initial unemployment claims, Tuesday’s Aug US trade report, and last Friday’s monthly payroll report. A prolonged shutdown could also delay the government’s inflation data, scheduled for release on October 15. The White House has warned that if the government shutdown lingered, it wou ...

Market Performance - U.S. stocks experienced a rise on Friday, with the S&P 500 increasing by 0.6%, the Dow Jones Industrial Average gaining 299 points (0.7%), and the Nasdaq composite adding 0.4%, helping to reduce weekly losses [1][2] - The S&P 500 closed at 6,643.70, the Dow at 46,247.29, and the Nasdaq at 22,484.07 [8] Inflation and Economic Indicators - Inflation in the U.S. accelerated to 2.7% in August from 2.6% in July, which, while above the Federal Reserve's 2% target, aligned with economists' forecasts [2][3] - Consumer sentiment showed weakness, with a University of Michigan survey indicating frustration with high prices, although inflation expectations for the next 12 months slightly decreased to 4.7% from 4.8% [10][11] Federal Reserve and Interest Rates - The Federal Reserve's potential for continued interest rate cuts is critical for Wall Street, as expectations for these cuts have driven U.S. stocks to record highs since April [3][4] - The Fed recently implemented its first rate cut of the year, but further cuts are uncertain due to concerns about worsening inflation [4] Tariffs and Market Reactions - President Trump's announcement of new tariffs on imports, including pharmaceutical drugs and heavy trucks, has created uncertainty among analysts regarding their ultimate effects on the market [5][6] - Companies like Paccar, Eli Lilly, and Pfizer saw stock increases following the tariff announcement, while home furnishing companies experienced volatility in their stock prices [6][7] International Market Trends - European stock indexes rose after declines in Asia, with France's CAC 40 climbing 1% and South Korea's Kospi dropping 2.5% [9] Upcoming Events - A potential U.S. government shutdown is on the horizon, with a deadline set for next week, but historical data suggests limited impact on the market from such political events [12]

Market Overview - Most U.S. stocks are rising, with the S&P 500 up 0.2% and the Dow Jones Industrial Average increasing by 211 points or 0.5% [3][4] - The Nasdaq composite is down 0.1% due to declines in some major tech stocks, but all three indexes are near their all-time highs [3][4] Inflation and Economic Indicators - Inflation in the U.S. accelerated to 2.7% last month from 2.6% in July, which is above the Federal Reserve's 2% target but aligns with economists' forecasts [4][5] - The Federal Reserve recently cut interest rates for the first time this year, with more cuts anticipated through the end of next year, although there are concerns about the potential impact on inflation [5][6] Tariffs and Market Reactions - President Trump's announcement of new tariffs on imports, including pharmaceuticals and furniture, is expected to influence inflation and market dynamics [7][8] - Companies like Paccar and major pharmaceutical firms saw stock increases, while home furnishing retailers experienced volatility in their stock prices due to potential higher import costs [8][9] Company Performance - Costco Wholesale's stock fell 1.9% despite reporting stronger-than-expected quarterly profits, attributed to slower membership renewal rates and disappointing revenue growth [10] - Consumer sentiment is reported to be weaker than expected, with inflation expectations slightly decreasing from 4.8% to 4.7% [11][12] Broader Market Sentiment - Investors are generally accustomed to political impasses, such as the potential U.S. government shutdown, which historically have limited impact on the market [12][13]

When I last looked at Costco Wholesale Corporation (NASDAQ: COST ) in June, I called it a Hold at about $999 a share. My main concern was the high price, not the company itself. Since then, the stock has slipped to around $943, down aboutWith over 15 years of experience in the markets and a degree in economics, I focus on breaking down companies with clarity and discipline. My goal is to give individual investors a straightforward, honest view—what’s working, what isn’t, and where the risks and opportunitie ...

Costco (COST) stock fell more than 2% early Friday after its fourth quarter results showed US same-store sales came in slightly below forecasts as the company navigated a choppy consumer landscape, tariff-related pressure, and competition from peers like Walmart's (WMT) Sam's Club. Costco's headline profits and revenue beat Wall Street expectations, with revenue at the wholesale giant clocking in at $86.16 billion compared to expectations of $86.03 billion, with adjusted earnings per share coming in at $5 ...

Group 1: U.S. University Research Funding - The Trump administration has halted significant funding for university research, impacting higher education and startup culture [24][25] - U.S. government funding for university research has grown from $253 million in 1953 to approximately $60 billion in 2023, highlighting its importance for innovation [29] - The partnership between the government and universities has been crucial for scientific advancements and economic growth over the past 80 years [28][30] Group 2: Economic Impact of Funding Cuts - Cuts to federal funding for scientific research could lead to a loss of innovation and competitiveness, particularly against countries like China [50][54] - The disruption in funding has already resulted in halted research activities and job losses in academic labs [39][42] - Alternative funding sources, such as venture capital and private sector investments, are emerging but may not fully replace the $60 billion previously provided by the government [47][48] Group 3: Argentina's Economic Reforms - President Javier Milei's austerity measures have reduced inflation from nearly 300% to just over 30%, but have also led to significant job losses and public discontent [61][62] - The Argentine economy has a long history of fiscal deficits, with government spending consistently exceeding tax revenues [66] - The success of Milei's reforms hinges on public support and the ability to maintain fiscal discipline across future administrations [67][72] Group 4: UK Economic Landscape - The UK economy is characterized by regional inequality, with London historically dominating economic activity [105][106] - Recent investments in cities like Birmingham indicate a shift towards diversifying economic growth beyond London [90][100] - The devolution of decision-making to local authorities is seen as a potential driver for improved economic performance in regions outside London [108][112]

Sam's Club is drilling deeper into its AI journey. The company is placing enterprisegrade chat GBT tools directly in the hands of its frontline leadership. Club managers will be able to use AI to aid in business insights such as pinpointing sales trends.For more on the company's growth strategy, let's get to Sam's Club CEO, Chris Nicholas. Chris, it is great to see you. So, walk us through this new AI rollout.Chris, what's it going to mean for the business. Yeah, thanks for having us on. We're really excite ...

Core Insights - Employers are more inclined to train workers on artificial intelligence (AI) rather than replace them, according to an analysis by the Federal Reserve Bank of New York [1][4] - A survey indicated an increase in AI usage among businesses, with minimal layoffs reported, as companies focus on retraining employees [2][3] AI Adoption and Workforce Impact - The survey revealed that while some companies reduced hiring due to AI, others increased hiring for positions requiring AI skills [2] - Predictions of AI-related layoffs were made by a few employers, but past survey data suggests that such expectations may not materialize [3] - AI usage varies significantly by industry, with over 50% of firms in information, finance, and professional services utilizing AI, while less than half in sectors like wholesale, leisure, and retail reported similar usage [3] Job Market Implications - The Federal Reserve researchers noted that the adjustments in workforce due to AI are unlikely to have major immediate effects on the job market, as the findings pertain only to 25-40% of firms using AI [4] - The overall impact on employment is expected to be modest, with both positive and negative effects possible [4]

Core Insights - Warren Buffett continues to invest in industry-leading companies with strong capital-return programs, despite selling off a significant portion of his holdings in Bank of America [2][5][6] Group 1: Bank of America (BofA) - Buffett has sold over 427 million shares of Bank of America, reducing his stake by 41% over the past year, with the current holding exceeding 1.03 billion shares [6][9] - The selling may be influenced by a favorable corporate income tax rate, as indicated by Buffett's comments during the 2024 annual shareholder meeting [7][10] - BofA's stock is currently trading at a 36% premium to its book value, which may lead Buffett to reassess its attractiveness as a value investment [9] Group 2: Domino's Pizza - Buffett has consistently purchased shares of Domino's Pizza for four consecutive quarters, building a 7.8% stake in the company [12][14] - Domino's has a strong capital-return program, with a history of growing dividends and share repurchases, having retired over half of its outstanding shares since going public [15][16] - The company's innovative initiatives, such as the "Hungry for MORE" program leveraging artificial intelligence, contribute to its growth potential and customer loyalty [16] Group 3: Pool Corp. - Buffett has also increased his stake in Pool Corp. for four consecutive quarters, now holding a 9.3% stake, benefiting from its strong operating cash flow predictability [17][18] - Pool Corp. has seen significant growth since its public debut, with a nearly 47,000% gain including dividends [17] - The company has doubled its share buyback spending in the first half of 2025 compared to the previous year and has consistently raised its dividend for two decades [21]

Core Insights - Canada's manufacturers and wholesalers are showing signs of stabilization after facing challenges from trade uncertainty and increased tariffs, with early sales estimates indicating a positive impact on the sluggish economy as it enters the third quarter [1][2] Group 1: Manufacturing and Wholesale Sales - An advance tally indicates a solid 1.8% improvement in manufacturing sales in July compared to the previous month [1] - Wholesale sales are estimated to have risen by 1.3% for the same month, suggesting a recovery in trade-exposed sectors [1]