The Rundown - Trump Outlines New Tariff Plan, Biden Proposes Medicare/Medicaid Coverage for Obesity Drugs

Episode Date: November 26, 2024

Stock market update for November 26, 2024.

Public.com presents the rundown. Your daily market update in five minutes. My name is Zadadmani, and today is Tuesday, November 25th. In today's episode, I'll tell you about the latest comments from Trump that shook the markets, especially automakers. We also recap earnings from Best Buy and Dick's sporting goods. Then stick around to the end of the show to find out how much Thanksgiving dinner is expected to cost this year. Prices have actually come down. All right, let's go.

The stock market got off to a nice start this week. Both the S&P and NASDAQ added 0.3% on Monday. And I hate to say this, but the Dow is on a roll right now. This flawed index was up 1% on Monday, hitting new record highs, and it's now gone up for four days in a row. And yes, I'm in shambles right now. Speaking of shambles, Bitcoin is experiencing its first pullback since the election. Bitcoin continued to dip on Monday.

The price has now dropped to underdust. $92,000 as of this recording. The price of Bitcoin was over $99,000 last week. It was within a few hundred dollars of hitting 100K, but it never officially got there. And maybe I had something to do with that because I was so confident that it was going to hit 100K last week that I might have jinxed it. So I'm having a tough week right now. Also, I'm losing my voice a bit. I think it might be all the screaming I did when I opened up the public out this morning and saw the price of Bitcoin. And also, the Dow just hit record highs. It might also be a cold. But no, I think it's mostly the screaming.

You know, I bet a few executives woke up screaming this morning as well because Trump announced on true social last night that he's going to hit Mexico and Canada with a 25% tariff on his first day in office. And then he followed that out with another post saying that he's going to add an additional 10% tariff on all Chinese goods. This is kind of a big deal because Mexico, China, and Canada are the U.S.'s top three suppliers of imported goods.

They count for 42% of all imports to the U.S. And these tariffs could have a wide-ranging impact on a lot of industries. Investors are already feeling a little nervous about the auto industry. Both GM and Ford saw their stock drop this morning because these companies' supply chains rely on both Canada and Mexico. And the value of the peso and the Canadian dollar also dropped this morning. So the markets are already moving based on these tariff threats. We'll have to see if Trump actually follows through with this or if it's just another negotiation tactic. Trump did say the tariffs would stay in place until drugs, in particular fentanyl, and all illegal aliens stop this invasion of our country.

That's what he posted on Truth Social. So we'll have to see how this all plays out. But definitely got a lot of people by surprise. Let's run through some headlines. A new proposal by the Biden administration this morning is looking to cover weight loss treatment drugs through Medicare and Medicaid. According to this proposed rule, an estimated to 7.5 million people across Medicare and Medicaid would qualify for these anti-obesity medications, according to the U.S. Health and Human Services Secretary.

This would be a big policy change because legislations from two decades ago restricts Medicare from covering drugs for weight loss. But it ultimately depends on if the Trump administration, who takes office in January, would endorse this rule change as well. You know, these weight loss drugs like OZempic and Weigovie and Zepbound, they've gotten very popular over the last couple years, but they're very expensive, costing around $1,000 a month. Covering these weight loss drugs is estimated to cost the federal government $36 billion, according to these Centers for Medicare and Medicaid Services.

But if this rule goes through, it could be a big boom for the companies that make these weight loss drugs, specifically Nova Nordisk and Eli Lilly. These two companies have dominated the weight loss market. Noah Nordus makes WeGovie and Ozempic, and Eli Lilly makes Zepbound. So something to keep an eye on, investors seem to be a bit optimistic because shares of both Nova Nordisk and Eli Lilly are rising this morning on this news. Now, a company that is benefiting from laws passed by the Biden administration is Intel. They are set to receive $7.9 billion to help bolster the chip industry in the U.S.

This funding to Intel is part of the Chipsack that was passed a couple years ago. Now, the $7.9 billion investment is $600 million less than the initial $8.5 billion that was awarded? The investment dropped because Intel already received a $3 billion military grant from the government. And we'll have to see how far the $7.9 billion goes to help Intel pick things back up. I mean, Intel definitely isn't as dominant as they once was back in the day. They've been overtaken by their competitors like Nvidia and AMD on the chip side and TSM on the manufacturing side. And as a result, their stock is down 50% year to date. So they got a lot of work to do, but they are working on building factories in Arizona, Ohio, New Mexico, and Oregon.

Let's talk about some stocks making moves today. of Dick's sporting goods are surging this morning after the sporting retailer posted better than expected Q3 earnings. The company beat on both revenue and profit expectations thanks to a strong back-to-school shopping season. On top of that, the company said their holiday shopping season is off to a great start, and the company is raising their full-year sales guidance to be between $13.2 and $13.3 billion. Dix pulled off the earnings trifecta. They beat on revenue, they beat on profit, and they raised their guidance. That's why their shares are up more than 8% in pre-market trading. Now, on the flip side, Best Buy not doing so good this morning, they reported earnings and

missed estimates across the board, and they cut their full year sales forecast because shoppers are holding off on buying electronics. The company said they saw softer than expected demand because customers seem to be waiting for deals and sales events, like Black Friday, which is coming up. Or actually, it's happening right now. A lot of companies have already kicked off their Black Friday sales. Now, Best Buy doesn't seem to be very optimistic. about the holiday shopping season, the company expects their comparable sales to drop 2.5 to 3.5% which is steeper than their initial projections of 1.5 to a 3% drop. The company's CEO also blamed macro uncertainty and the election for distracting consumers. I think the bigger problem is that

tech has just gotten really good. These tech products that have come out over the last 3, 4, 5 years are so good that people just aren't rushing to upgrade to a new device. Like if you bought a laptop this decade, you probably are still okay. Same with iPad. Same with TVs. Tech has just gotten too good, and there hasn't really been a new innovative device that are getting shoppers to rush to buy it, you know? I think some people thought that VR headsets might be that,

but clearly it's more of a niche product right now. So Best Buy needs some new tech innovation to happen, because otherwise, I'm not sure if shoppers are going to be rushing to buy the latest tech products. Let's wrap the show with a fun fact. The price of Thanksgiving dinner has gotten cheaper this year. According to the American Farm Bureau, the price of Thanksgiving dinner is down 5% compared to last year.

They say the average cost for a 10-person dinner is estimated to be $58 in 8 cents, depending on where you live. And this is the second year in a row that the price of Thanksgiving dinner has come down. The price peaked back in 2022 at $64 for a dinner for 10. But things are still higher compared to pre-pandemic days. Prices are still up 19% compared to 2019. Now, one thing contributing to a lower price is that turkeys have gotten cheaper because overall demand for turkeys has dropped.

Personally, I've never really been a turkey guy, all right? I think it's too dry. Like, Thanksgiving to me is all about the sides, all right? That's what I like. Well, all right, guys, that's the rundown for today. I hope you guys enjoyed today's episode. If you did and you have like eight seconds, consider giving us a five-star review on Apple and Spotify.

Leave a comment on Spotify, vote in today's Spotify poll. All that engagement really helps us out, and it helps other people find this show. The stock market will be closed on Thursday, so no show for us. But we will do a show on Friday to recap the week. So stay tuned for that. Thank you guys so much for listening. 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 and are not affiliated with public holdings or its subsidiaries. You should make your own financial and investment decisions or consult. Respect to professionals.

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