📈 Nuclear’s Big Comeback

Good morning.

⚡ The Fast Five → Elon gets a win in court, Port strike starts, YouTube gets sued, FTC gives Amazon a pass, Another reactor gets fired up

And now…

⏱️ Your 5-minute briefing for Tuesday, October 1, 2024:

MARKET BRIEF
Before the Open

Pre-Market

Fear & Greed

Trends

• Dow, S&P 500 Close at Record Highs as Markets Weigh Fed Chair Comments

• US Futures Steady After S&P 500 Closes at Record

• New York Fed's reverse repo facility sees cash surge on last day of Q3

• Fed's Bostic open to another large rate cut if job market weakens

WHAT WE’RE WATCHING
Events

• Today: Institute for Supply Management (ISM), Purchasing Managers' Index (PMI), 10:00AM

• Why You Should Care: It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.

Earnings Reports

• Today: Nike, Paychex, McCormick & Co, Acuity Brands

• Tomorrow: RPM International, ConAgra Foods, Levi Strauss

MARKET BRIEF
Leading News

Nuclear Power's Comeback: Michigan Reactor Gets a Federal Boost

Why it matters: Nuclear energy is emerging as a key player in the clean energy revolution, and this latest development signals renewed investor confidence.

The big picture: In a significant move for U.S. energy independence, Michigan’s Palisades nuclear plant has secured $1 billion in federal loan support. This marks the first restart of a U.S. nuclear reactor in nearly a decade, underscoring the growing interest in nuclear as a zero-carbon energy source.
With the world searching for reliable alternatives to fossil fuels, nuclear power, long controversial, is finding favor as a clean, stable, and potentially profitable solution. This development could have big implications for investors eyeing the future of energy, as both energy security and climate goals become more pressing.

Key details:

• Palisades’ restart will add about 800 megawatts to the grid, helping Michigan meet its renewable energy targets.

• Federal support shows the government's increasing willingness to back nuclear innovation alongside renewables like wind and solar.

• Investors in companies like NextEra Energy (NEE) and Exelon (EXC) could see long-term growth as nuclear gains traction in energy portfolios.

Go deeper:

• Nuclear vs. renewables: Unlike solar and wind, nuclear provides a 24/7 energy supply, critical for preventing blackouts as grids face rising demand.

• Risk factor: High initial costs and public skepticism remain hurdles, but federal backing reduces some financial risks for investors.

What they're saying: “We’re seeing a renaissance in nuclear energy,” said Energy Secretary Jennifer Granholm, emphasizing its role in achieving net-zero emissions.

The bottom line: Nuclear energy is back on the radar. As more plants secure funding and restart operations, consider diversifying into nuclear energy for long-term growth potential.

Tesla's Big Win: Musk Dodges Shareholder Lawsuit

Why it matters: Elon Musk’s latest legal victory removes a major overhang for Tesla (TSLA) shareholders and keeps the electric vehicle giant’s momentum strong.

The big picture: A federal judge ruled in favor of Musk, dismissing a lawsuit that accused him of misleading shareholders about the acquisition of SolarCity. This clears Tesla of any liability in the deal and reaffirms Musk’s control over the company’s long-term vision.

• Investors were initially spooked when Musk pursued the SolarCity deal in 2016, but Tesla's recent court victory helps vindicate the decision. The ruling is also a boost for investor confidence as it reduces potential financial risks and distractions for Tesla’s leadership.

• For shareholders, it’s another notch on Musk’s belt that solidifies his “move fast and fix later” approach to business—an attitude that’s driven Tesla to its $800 billion market cap.

Key takeaways:

• Legal clarity means more focus on growth. This win removes a legal hurdle that had the potential to cost Tesla millions, allowing the company to double down on scaling production and new innovations.

• Tesla's stock has staying power. TSLA continues to be a market leader, up 140% year-to-date, proving that despite its volatility, the long-term trajectory is upward.

• Musk’s leadership is validated. Whether it’s bold moves in solar, EVs, or AI, investors can expect more high-stakes bets—and now, with fewer distractions.

What they're saying: "The Court cannot accept the argument that [the SolarCity acquisition] 'made no business sense,'" wrote Vice Chancellor Joseph Slights III in his ruling.

The bottom line: Tesla’s legal victory is a green light for investors who’ve bet on Musk’s aggressive vision. With fewer clouds on the horizon, the company is poised for further growth—especially as EV demand and clean energy markets expand.

Headlines

• Dockworkers go on strike at East and Gulf Coast ports (link)

• Florida Could Make Other States Pay for Its Insurance Crisis (link)

• US court partially dismisses FTC lawsuit against Amazon (link)

• AT&T claims VMware by Broadcom offered it a 1,050 percent price rise (link)

• FTC clears Chevron-Hess deal, bans John Hess from board (link)

• Arkansas sues YouTube over claims that the site is fueling a mental health crisis (link)

CRYPTO
Fear & Greed

Headlines

• FTX Dotcom Creditors Vote Massively in Favor of Reorganizing Plan (link)

• Cryptocurrencies Continue to Outperform the Stock Market (link)

• SEC’s Mango settlement reiterates its case that SOL is a security (link)

DAILY SHARE
On the Socials