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Biden calls Xi a dictator after carefully planned summit, bulls are in control of the market now, Hyundai to be first automaker to sell new cars on Amazon, Apple to adopt RCS texting standard in truce with Android, and Starbucks employees go on strike during key promotional ‘Red Cup Day’ event…

Author

Smart Owl
November 17, 2023

☕️ Good Morning.

The Fast Five → Biden calls Xi a dictator after carefully planned summit, bulls are in control of the market now, Hyundai to be first automaker to sell new cars on Amazon, Apple to adopt RCS texting standard in truce with Android, and Starbucks employees go on strike during key promotional ‘Red Cup Day’ event…

Your 5-minute briefing for Friday:

BEFORE THE OPEN

As of market close 11/16/2023.

MARKETS:

  • Stock futures hover near flatline in ongoing November gains.

  • Dow futures up 21 points (+0.06%), S&P 500 futures rise 0.06%, Nasdaq 100 futures dip 0.05%.

  • Gap shares surge 15% on strong Q3 results; ChargePoint falls 29% after C-suite changes and lower Q3 revenue forecast.

  • Dow ends 4-session win streak, down 0.13%; S&P 500 up 0.12%, Nasdaq rises 0.07%.

  • All three indices set for third straight weekly gains.

  • Soft October CPI and PPI data boost hopes of easing inflation and less aggressive Fed.

  • November sees S&P 500 up 7.5%, Dow up 5.7%, Nasdaq surging 9.8%.

  • Today, focus on October housing starts and building permits data.

EARNINGS

  • Full earnings calendar here

NEWS BRIEFING

  • APEC Summit:

    • Xi pledges ‘heart-warming’ steps to attract foreign capital (Read More)

    • Biden tells corporate leaders stable US-China ties benefit world (Read More)

    • Also Biden: Biden calls Xi a dictator after carefully planned summit (Read More)

    • Google CEO Sundar Pichai compares AI to climate change at Summit(Read More)

  • Bulls Control the Stock Market Now and a New S&P 500 High is Within Reach (Read More)

  • Hyundai to be First Automaker to Sell New Cars on Amazon (Read More)

  • Fed’s Mester wants ‘much more evidence’ that inflation has been defeated (Read More)

  • US yields underestimate ‘adverse fiscal dynamics,’ Barclays says (Read More)

  • US continuing jobless claims rise to highest in almost two years (Read More)

  • YouTube debuts AI tool that mimics vocals of artists like John Legend, Demi Lovato (Read More)

  • China will be at the forefront of AI, Alphabet’s Pichai says (Read More)

  • Apple’s effort to replace Qualcomm chip in iPhone falls further behind (Read More)

  • Apple (AAPL) plans to adopt RCS texting standard in truce with Android (Read More)

  • Brigade, Sculptor among now-bankrupt WeWork’s biggest creditors (Read More)

  • Wall Street loves Washington’s new debt approach - for now (Read More)

  • Microsoft is bringing its Copilot chatbot to Windows 10 (Read More)

  • Applied Materials under US probe for shipment to Chinese chipmaker SMIC (Read More)

  • Americanas fraud was $1B more than previously suspected (Read More)

  • Starbucks employees at hundreds of US stores walkout on Red Cup Day (Read More)

CRYPTO

  • A JV between Binance Holdings and Gulf Energy Development plan to launch a crypto exchange in Thailand next year after winning a license from the country’s regulator (Read More)

  • CoinShares, one of Europe’s largest cryptocurrency asset managers, is looking to buy ETFs from rival Valkyrie, which has a spot Bitcoin ETF awaiting regulatory approval (Read More)

BULLISH BITES

💃 Sticky: Taylor Swift keeps showing up in Wall Street research

🌉 Ambitious: Sequoia icon Michael Moritz bets $300 Million on reshaping San Francisco

⛵️ Booming: The mega-rich are taking to the waves like never before

💔 The breakup: A town that became 'one giant Airbnb' is now facing a reckoning

🤝 Like a pro: Struggling to get a constant flow of customers? Meet ClickFunnels.

FEATURED TRADES

ANALYST REPORT

Charles River Laboratories: Cautious Client Spending Affects Near Term, but Long-Term Outlook Positive

Charles River Laboratories was founded in 1947 and is a leading provider of drug discovery and development services.

Ticker: CRL | Price: $189.56 | Price Target: $260 (+37%) | Timeframe: N/A

💊 Drug Discovery | 📈 Bullish Idea

The CEO also just bought $1M of the stock as noted in the Insider Trades section.

Charles River Laboratories, a company with a narrow moat rating, reported a 4% increase in third-quarter revenue to $1.03 billion, despite headwinds from cautious client spending and macroeconomic challenges impacting its research models and services segment. The company showed sequential improvement in its safety assessment business, with a lower study cancellation rate and a better net book/bill ratio, indicating stabilization in the biotech funding environment, especially in venture capital investments. With the stock currently trading about 35% below our $260 fair value estimate and in the 5-star territory, we view it as undervalued. For 2023, we project a revenue growth of approximately 3% to $4.1 billion. Our positive long-term outlook is based on increasing demand for preclinical outsourcing services and Charles River's industry-leading position. The stock's current valuation is seen as an attractive entry point for long-term investors, considering the company’s strong market position in research models and discovery and safety assessment, and the expectation that the current macroeconomic challenges will stabilize in the forecast period.

Read the full article here (paywall). Read time: 8 min

DAILY SHARES

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