The Rundown - China Reveals Stimulus Package, Visa Faces Antitrust Pressure

Episode Date: September 24, 2024

Stock market update for September 24, 2024.

Public.com presents the rundown, your daily market update in five minutes. My name is Zedadmani, and today is Tuesday, September 24th. In today's episode, we update you on the strike at Boeing and how much money Boeing is losing every day. We also discuss China's plans to stimulate their economy and how the markets are reacting. Then stick around to the end of the show to find out why Visa stock is down and how much money Ozempic has made since it first went on sale. It's a lot, and it's catching attention of the market.

lawmakers. All right, let's go. The week is off to a great start. The S&P 500 started the week up 0.3% making its 40th record closed this year. And the NASDAQ also squeezed out a gain of 0.1%. It's about 4% away from its record highs from back in July. So it's still got a little bit of work to do before it starts making new highs. The S&P 500 did get a mini makeover this week. Three companies were added to the index on Monday, Pallenteer, Dell, and Erie indemnity, which is an insurance company, they're officially part of the S&P 500 now. They're replacing American Airlines, Etsy, and Biod Labs. Remember, the S&P 500 is an exclusive club of 500 of the best companies in the U.S. And every quarter, they kick out underperforming companies and replace them

with better ones. And that's why the S&P 500 is a really popular index to invest in. You're investing in 500 of the best companies in the U.S. And that list of companies gets updated every quarter. A couple other notable winners from yesterday, Tesla was up nearly 5%. And the stock is now flat for the year. So if you bought Tesla stock on the first trading day of the year, you're finally back to even. And then gold continues to make record highs jumping to over $2,600 an ounce. Gold has quietly been a monster winner this year. It's up nearly 27%. I'll be honest with you, I've never really been a huge gold guy, but it's hard to ignore that performance right now. Let's run through some headlines. We have an update for you on the Boeing strike happening right now.

We talked about it a couple times last week. The largest union at Boeing has been on strike since last week. Over 30,000 machinists are on strike right now, closing down factories all along the West Coast for Boeing. Well, Boeing just offered the Union a best and final offer. Boeing is offering a 30% raise over four years along with increased benefits. Boeing's original offer to the Union was a 25% raise. So I guess it's a little bit better, but I don't know if it's going to be enough to get the deal done, especially because this deal is only active until September 27th, which is this Friday. And the Union says they feel kind of disrespectful by that. The union says it's going to be really hard for them to get 30 plus thousand union members

to vote on this deal by the end of the week. So we'll see what happens. But I'm sure Boeing wants to get a deal done pretty soon because right now it's estimated that Boeing is losing close to $50 million per day every day of this strike. So hopefully they're not just winging it with these negotiations. Oh, that was really bad. That was really bad. Speaking of something that's been really bad but trying to make a comeback, China's economy. China's economy has been in a slump for the past couple years, their stock market is down, their property values are down. So now the Chinese central bank is ready to inject the economy with a shot of liquidity to get things going again. The People's Bank of China, which is kind of like China's Federal Reserve, they announced

some key policy changes today. Like they're lowering interest rates and they're also lowering the amount of cash that banks need to hold in reserve. They're hoping that these policy changes will make it easier for banks to lend out money, so then people can borrow that money to start a business or make investments, which would help grow the economy. The Chinese markets are reacting positively to this news, Chinese stocks are rallying so far. Some of the most notable ones like Alibaba and PDD, which owns Timu, are up more than 5% in the pre-market. And Neo, which is a Chinese EV company, is up about 7% today. So we'll see if some of these policy changes will get China's economy out of a rut. I mean, stimulus can be good, but just like having too many shots of espresso,

it can also result in a crash. So we'll see what happens. Let's talk about some stocks making moves today. Salesforce shares are rising after Piper Sandler upgraded the stock with a price target of $325 per share. The upgrade comes as Salesforce prepares new prices and packages that could help the firm's cloud business. Again, I'm not really sure what Salesforce still does, but apparently they got a new AI tool called Agent Force coming out soon, and that could potentially help with demand. This is according to Piper Sandler. Salesforce shares are up around 2% in the pre-market on this news and is trading over $269 per share. What does Salesforce do?

Now, stock not doing so good this morning is Visa. Shares are down after Bloomberg reported the DOJ is setting up an antitrust lawsuit against the payment giant. The case accuses Visa of blocking competition from entering the market via agreements and other strategies. I mean, the U.S. government has really been cracking down on supposed monopolies lately, right? Google recently lost their search engine monopoly case earlier this year,

and more big tech suits are underway. So Visa might be the latest one. By the way, Visa is quietly one of the biggest companies in the world. Their market cap is nearly $600 billion. That would make them around the 13th largest company in the U.S., just under Walmart and J.P. Morgan Chase. Shares of Visa are down more than 3% on this news. I'm sure we'll learn more about this lawsuit when it comes out. Let's wrap the show with a fun fact.

Noble Nordus has made over $50 billion in sales of their weight loss drug, OZempic and Weigovie, since they were introduced back in 2017. I mean, these drugs have been super popular, and they're very expensive, too. The list price for OZempeg is $900 a month, and Weigovie sells for $1,300 a month. Now, some have called for Novo Nortes to reduce the prices of these drugs

since the company has more than recouped the $10 billion they invested in the R&D to create these drugs. And some of those people are lawmakers. In fact, the CEO of Nover Nordus, Lars Jorgensen, will testify at a Senate hearing today about high prices for their drugs. Lawmakers in the U.S.

as I've pointed out that prices for OZemPEC and WeGovie are much higher in the U.S. compared to other countries. Like in Germany, OZMPIC costs $59 a month. So we'll see what the CEO of Nova Nordisk has to say today. Nova Nord's stock is up around 20% this year. And they have a market cap of over $400 billion. Well, all right, guys, that's the rundown for today. Hope you guys enjoyed today's episode.

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Shout out to Mike and Connor for all the help behind the scenes. And we'll see you guys back here tomorrow. This is the rundown. Your real-time resource for news events and trends in the markets. All views presented in the show reflect the opinions of the guests. You should not take any mention of a publicly traded security as recommendation to buy, sell or hold that security. Run-down guests are not financial advisors

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