Markets
Nikkei 225
33,533.09
▲ +364.99 / +1.10%
SSE Composite
3,125.93
▲ +8.19 / +0.26%
IBOVESPA
118,856.17
▲ +98.64 / +0.08%
Straits Times
3,263.39
▼ -17.30 / -0.53%
BMV IPC
51,172.92
▼ -178.68 / -0.35%
Dow Jones
34,692.01
▲ +73.77 / +0.21%
DAX 30
15,727.12
▼ -166.41 / -1.05%
BSE SENSEX
67,596.84
▼ -241.79 / -0.36%
FTSE 100
7,652.94
▼ -58.44 / -0.76%
JSE Top 40
68,299.44
▼ -729.73 / -1.06%
Last Week’s Highlights
SoftBank’s chip designer fell after debut
Shares of Arm Holdings, SoftBank’s chip designer, experienced downward volatility after its debut on the Nasdaq, where the British company was valued at $65 billion. On Friday, shares fell 4.5% to close at $60.75, after hitting $69 at the start of the session. The drop came amid concerns about weak consumer demand and falling stock indices in general. Despite the recent 25% rise the previous day, some attributed the drop to the fact that SoftBank still owns about 90% of Arm’s outstanding shares.
Automakers go up despite strike
Despite a strike and comments from President Joe Biden, shares of Ford, General Motors, and Stellantis rose at the end of the trading day. The strike, led by some 13,000 members of the United Auto Workers (UAW), prompted Biden to express his support for the unions and the need for fair compensation for workers. Meanwhile, government officials are working to mediate negotiations. Although corporate benefits are high, some are concerned about the pay disparity, with CEOs earning considerably more than average union workers. The UAW seeks a shorter workweek and a staggered wage increase over four years.
Coming Up This Week
Bank of America is affected by inflation
Bank of America has announced disappointing credit card results, leading to a decline in the value of its stock. Bank of America’s credit card default rate has exceeded expectations, with an increase of 2.13% in August. While this is higher than July, it is still below August 2019 default levels. Consumers continue to spend at a steady pace, but inflation is taking a toll on the economy. Some reports suggest that consumers are increasingly turning to credit cards and “buy now, pay later” services due to inflationary pressure, which could be contributing to delinquencies. Despite this, analysts consider Bank of America to remain a moderate buy, with a potential upside of 21.79%.
Cannabis stock up with a banking act
The SAFE Banking Act is generating positive momentum in cannabis stocks as it seeks to open access to banking services for marijuana businesses, reducing reliance on cash and improving security. While some opponents prefer outright prohibition of marijuana, this legislation has bipartisan support and focuses on banking and crime reduction. Some companies, such as Trulieve Cannabis and Green Thumb Industries, experienced stock increases, while others, such as Tilray and Curaleaf Holdings, had slight declines. Analysts are supportive of these marijuana stocks, highlighting the upside potential of Trulieve Cannabis and the downside risk of Tilray.
