🕶️ Meta Just Dropped...

Good afternoon! Novo Nordisk CEO Lars Fruergaard Jørgensen got a real-time grilling yesterday, courtesy of the Senate. Leading the charge? None other than Bernie Sanders, who didn’t hold back when questioning why the company’s blockbuster drugs Wegovy and Ozempic cost an arm and a leg in the US. Sanders, chairing the hearing, bluntly told Jørgensen to “stop ripping us off,” warning that these sky-high prices, paired with soaring demand, could drain Medicare and hike up insurance premiums.

Jørgensen tried to deflect, blaming the “complex US healthcare system” and claiming Novo Nordisk is actually saving taxpayers by tackling diseases that cost Americans billions. But with US prices for Ozempic at $969 a month versus $59 in Germany, the math isn’t adding up for many. Toss in the murky role of PBMs (aka pharmacy middlemen), and Jørgensen didn’t leave with any promises to lower prices anytime soon.

MARKETS

• Stocks cooled off on Wednesday after hitting all-time highs, with mixed results across the major indexes as investors weighed economic health and the potential for another significant rate cut. The Dow Jones Industrial Average snapped a four-day winning streak, dropping 0.7% (293 points), while the S&P 500 also retreated, losing 0.19% after reaching a fresh intraday record. The Nasdaq managed to stay just above the flat line, eking out a slight gain.

• The pullback came as investors digested the Federal Reserve's recent half-point rate cut and housing market data, leading to some profit-taking in the absence of a new catalyst to drive the market higher. The S&P 500, which notched its 41st record close of the year on Tuesday, took a breather after hitting another intraday high earlier in the session.

STOCKS
Winners & Losers

What’s up 📈

• Trump Media & Technology Group ($DJT) surged 10.48% after a post-lockup sell-off earlier in the week.

• Vistra ($VST) increased 5.94%, becoming the S&P 500's top gainer of 2024.

• Flutter Entertainment ($FLUT) rose 5.12% after announcing a $5 billion share buyback program. The company also forecast total revenue growth of $21 billion by 2027.

• Hewlett Packard Enterprise ($HPE) jumped 5.14% after Barclays upgraded it to overweight, citing rising demand for AI servers and its acquisition of Juniper Networks.

• DraftKings ($DKNG) ticked up 5.01%, likely in sympathy with Flutter Entertainment's positive outlook.

• Duolingo ($DUOL) climbed 6.58%.

• Wix.com ($WIX) rose 3.32%.

What’s down 📉

• Medpace ($MEDP) dropped 9.90% after Jefferies downgraded the stock to Hold from Buy and lowered the price target to $345 from $415.

• Rivian ($RIVN) slid 6.84% as Morgan Stanley downgraded its view on the U.S. auto industry and lowered ratings on Rivian and other automakers.

• Global Payments ($GPN) fell 6.50% after issuing guidance during an investor conference, where it projected FY25 EPS growth below estimates.

• Amgen ($AMGN) decreased 5.46% following disappointing results from two drug studies.

• General Motors ($GM) slipped 4.87% after Morgan Stanley downgraded the stock to underweight, citing concerns over U.S. consumer credit and China's growing car production capacity.

• Ford ($F) dropped 4.14% also after Morgan Stanley lowered its rating to equal weight from overweight, highlighting challenges in the U.S. and China.

• Southwest Airlines ($LUV) fell 4.57% as the company announced plans to reduce service to and from Atlanta, cutting over 300 pilot and flight attendant positions.

• ServiceNow ($NOW) dipped 3.63% in response to news that its partner firm, Carahsoft Technology, was raided by the FBI.

TECH
Meta Connect 2024 — AR, Ray-Ban, and Quest 3S

Meta wrapped up its annual Connect 2024 event, and spoiler alert: the future is getting seriously techy. From AR glasses that might one day replace your phone to AI celebrities chatting in your DMs, here’s the breakdown of all things Meta.

Orion AR Glasses: Your Phone’s Future Replacement?: Mark Zuckerberg kicked things off with the Orion AR glasses, which may one day make you ditch your phone. These bad boys project holograms right into your eyes, letting you navigate the digital world without even lifting a finger. Not ready for store shelves yet, but definitely the kind of future we thought only Tony Stark could pull off.

Quest 3S: VR on a Budget: Want to get lost in the virtual world without blowing your budget? Enter the Quest 3S, Meta’s latest VR headset priced at a comfy $299. It’s got all the mixed-reality bells and whistles, and with it hitting shelves, Meta is officially bidding farewell to the Quest 2 and Quest Pro. RIP, old friends.

Meta’s AI just got a glow-up—now you can talk to your favorite celebs through AI chatbots. Whether it’s Awkwafina or John Cena answering your texts, Meta is making your group chats a lot more Hollywood. So, next time you ask, “Who’s in my corner?” it could literally be John Cena.

Ray-Ban Smart Glasses: Your Memory, but Cooler: Meta’s Ray-Ban smart glasses have always been a look, but now they’re also smart enough to remember things for you. Left your milk behind at the store? These glasses will remind you. Plus, they’ll help you translate languages in real time. It’s like having a personal assistant... that you wear.

If you thought your Instagram feed couldn’t get more AI, think again. Meta is planning to flood your Facebook and Insta with AI-generated content tailored just for you. Expect your feed to be filled with AI-crafted posts, memes, and more to keep those thumbs busy.

Batman & Wordle in VR: Because, Why Not?: Gamers got some love too. Batman: Arkham Shadow is coming to the Quest platform, and if word games are your thing, Wordle is joining the virtual reality world. Time to flex those vocabulary muscles... in VR, of course.

Meta Connect 2024 was all about blending the lines between reality and the digital world. With AR glasses, AI celebs, and games galore, Meta’s pushing us into the future—whether we’re ready or not.

NEWS
Market Movements

• 🛍 Bernard Arnault's $54B Loss: Bernard Arnault, founder of luxury conglomerate LVMH ($LVMUY), has shed $54 billion in net worth since March. What's fueling LVMH’s stock slump? Its alcohol division is lagging due to global economic woes, with the company’s CFO stating that people are "too sad to pop champagne."

• 📉 Berkshire Sells Bank of America Shares: Berkshire Hathaway has sold 21 million Bank of America ($BAC) shares for $863 million since Sept. 20, totaling $9 billion in sales since July. Despite the sales, Berkshire remains BofA’s largest shareholder, holding a 10.5% stake.

• 🤖 Microsoft Unveils 'Correction': Microsoft ($MSFT) unveiled "Correction," a new service that automatically revises factually incorrect AI-generated text. It flags suspicious content before fact-checking it against verified sources.

• 🎥 Warner Bros. & Google Partner on AI Captions: Warner Bros. Discovery ($WBD) and Google ($GOOGL) have partnered to use Google's AI technology on the Max streaming platform, automating caption generation and reducing costs by up to 50%.

• 💻 Google Files Complaint Against Microsoft: Google ($GOOGL) has lodged a complaint with the EU against Microsoft ($MSFT), accusing it of anti-competitive practices to lock customers into its Azure cloud platform, costing European businesses up to $1.12 billion annually.

• 💊 Merck's Cancer Trial Disappoints: Merck’s ($MRK) experimental colorectal cancer drug failed to show a significant improvement in overall survival rates during a late-stage trial, a setback for the pharmaceutical giant.

• 🥤 Coca-Cola Discontinues Spiced Flavor: Coca-Cola ($KO) is discontinuing its spiced flavor, launched in February, after disappointing sales despite its initial promotion as a permanent addition.

AI
OpenAI CTO Mira Murati is leaving

After six-and-a-half years at OpenAI, CTO Mira Murati is stepping away. In a candid post on X (formerly Twitter), Murati said she’s taking time for “personal exploration.” But before she rides off into the sunset, her top priority is making sure the company transitions smoothly.

Murati, who led the development of ChatGPT and DALL-E, exits just ahead of OpenAI’s Dev Day conference—adding a bit of suspense to what’s already a high-stakes event.

Big Shoes to Fill: Murati’s departure is just the latest in a string of high-profile exits. Co-founders Ilya Sutskever and John Schulman, and Greg Brockman, have also left the company in recent months. While the details of Murati’s final day are still in the works, it’s clear her exit is shaking things up.

CEO Sam Altman didn’t hold back on praise, calling Murati’s contributions invaluable to both OpenAI’s mission and its internal culture. He teased that more details on the transition will be shared soon.

OpenAI’s Next Move: Murati’s exit couldn’t come at a more critical time. The company is in the middle of closing a $6.5 billion funding round, with backing from Microsoft, Nvidia, and Apple, among others. Meanwhile, competitors like Google and Anthropic (founded by ex-OpenAI talent) are circling, each looking to outpace OpenAI in the AI arms race.

End of an Era: Though Murati’s next steps are still a mystery, one thing’s for sure: she’s left an indelible mark on OpenAI’s trajectory. As the company moves forward, it will be interesting to see how they fill her shoes and keep pushing the boundaries of AI innovation.

EARNINGS
Micron’s AI Glow-Up

Micron Technology ($MU) is having a moment. The chipmaker’s stock shot up 14% in after-hours trading, all thanks to the AI hype train. With revenue for the upcoming quarter projected to hit between $8.5 billion and $8.9 billion—way above Wall Street’s $8.3 billion estimate—Micron’s riding the AI wave hard.

What’s driving the surge? Micron’s high-bandwidth memory (HBM), a must-have for training AI systems, is selling out faster than concert tickets. It’s giving Micron a serious edge in the AI arms race.

Blowing Past Expectations: Micron didn’t just meet expectations—it crushed them. Q4 revenue came in at $7.75 billion, up a jaw-dropping 93% from last year and beating the $7.66 billion forecast. Earnings per share? $1.18, leaving analysts’ $1.11 prediction in the dust.

With AI demand sky-high, Micron’s boosting prices and locking down contracts for 2024 and 2025. And with that kind of momentum, 2025 is looking like a good year to be in the memory chip game.

AI’s New Best Friend: Micron’s memory chips are the cool kids in AI town, making them a key partner for Nvidia ($NVDA) as companies pour billions into AI hardware. CEO Sanjay Mehrotra even said, “We’re entering 2025 with the best competitive positioning in Micron’s history.” Big words, but so far, they’re backing it up.

Back in Business

After a slump in demand for smartphones and PCs, Micron’s bouncing back. These devices are on the up, and with AI becoming a standard feature, they’re going to need more memory chips.

Translation: Micron’s got a lot to look forward to. Investors are clearly on board, and if AI keeps driving demand, this stock may have even more room to run.

Calendar
On The Horizon

Tomorrow

Tomorrow’s action starts with the weekly jobless claims report, which has become the go-to indicator for anyone trying to guess the Fed’s next move. With inflation on the backburner for now, the focus has shifted to how the labor market is holding up as the Fed walks the tightrope between employment and price stability.

Also, we’ve got the second revision of Q2 GDP coming in hot. The first revision showed 3% growth, and while this update probably won’t shake things up, it’ll give us another snapshot of the economy as the Fed mulls over its next rate cut. Oh, and if that’s not enough Fed news for you, eight Fed officials—including Jerome Powell—are hitting the mic tomorrow. Expect plenty of clues about where interest rates are headed next.

Before Market Open:

• Costco ($COST) is riding high in 2024, with shares up nearly 40% as cash-strapped U.S. consumers flock to its bargain-packed aisles. The company’s no-frills, bulk-buying model has clearly paid off, delivering solid growth in both revenue and profits. But here’s the catch: everyone already knows this. With expectations sky-high ahead of tomorrow’s earnings report, any misstep could trigger a hefty selloff. Wall Street’s looking for $5.08 in EPS and $79.93 billion in revenue, so it’s all eyes on Costco to see if they can keep the momentum going.

NEWS
The Daily Rundown

• 📱 Marques Brownlee’s App Backlash: Fans of tech reviewer Marques Brownlee, known as MKBHD, criticized his new digital wallpaper app, Panels, for its high subscription cost of $12/month or $50/year. Complaints also targeted the app’s ad-based free version and iOS tracking

• 🇺🇳 Biden’s Final UN Address: President Joe Biden delivered his last address to the United Nations General Assembly, urging global leaders to tackle the climate crisis and support Ukraine against Russia. He also referenced his decision to step back from the presidential race, calling for other leaders to make sacrifices for the greater good.

• 🤖 Sam Altman on Superintelligence: OpenAI CEO Sam Altman predicted that superintelligence—AI that surpasses human intelligence—could be realized within a few thousand days. While acknowledging the risks, Altman argued that the potential benefits far outweigh the downsides.

• 🌪 Hurricane Helene Intensifies: Hurricane Helene is strengthening as it approaches Florida's Big Bend. Currently a Category 1, it is expected to become a Category 3 or 4 at landfall. Storm surges up to 20 feet and heavy rainfall could cause life-threatening flooding, prompting evacuations in several counties.

• 🌎 Princeton Tops US News College Rankings: Princeton retained the No. 1 spot in the 2025 U.S. News & World Report rankings. MIT, Harvard, Stanford, and Yale rounded out the top five, with Cornell (#11), Columbia (#13), and NYU (#30) among the top-ranked tri-state schools.

• 📊 Top Chinese Economist Detained: A prominent Chinese economist, Zhu Hengpeng, was detained after criticizing Xi Jinping’s economic policies in a private WeChat chat. His comments have reportedly led to his removal from his posts as the government tightens its grip on economic discourse.

• ⚓ US Ports Facing Potential Strike: Dock workers on the East and Gulf Coasts may strike if their union, the International Longshoremen’s Association, doesn’t secure a new contract by October 1. The strike could affect 60% of US shipping traffic and cause $5 billion in daily economic damage, leading to shortages and supply chain disruptions.

  permissions. Brownlee addressed the concerns, promising updates.

• ⚖️ Caroline Ellison Sentenced for FTX Fraud: Caroline Ellison, the former girlfriend and accomplice of convicted FTX fraudster Sam Bankman-Fried, was sentenced to two years in prison for her role in the collapse of the crypto exchange. Despite her cooperation with prosecutors, Judge Lewis Kaplan stated that no one involved in such a major crime should receive a “get out of jail free card.”

RESOURCES
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