- Bull Street
- Posts
- 📈 Tepper's All-In Bet on China
📈 Tepper's All-In Bet on China
Bristol Myers Squibb get new drug approval, DirecTV and Dish to merge, Safety warning issued to Boeing, Wells Fargo poised to move past issues, China’s stimulus blitz
Evelio Silvera
September 27, 2024
Good morning.
⚡ The Fast Five → Bristol Myers Squibb get new drug approval, DirecTV and Dish to merge, Safety warning issued to Boeing, Wells Fargo poised to move past issues, China’s stimulus blitz
And now…
⏱️ Your 5-minute briefing for Friday, September 27, 2024:
MARKET BRIEF
Before the Open
As of market close 9/26/2024.
Pre-Market
| 
|
Fear & Greed
*UP 5 pts
Trends
S&P 500 Closes at Record High as Markets Weigh GDP, Other Data
US Futures Flat Ahead of PCE Report
The Dow Jones Index Closes 0.62% Higher
US Equity Indexes Rise as China Stimulus Talk Boosts Basic Materials
WHAT WE’RE WATCHING
Events
Today: Core PCE Price Index, 8:30AM
Why You Should Care: It's the Federal Reserve's primary inflation measure. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate.
Earnings Reports
Today: NeoVolta, HHG Capital, SPI Energy, Santech
Monday: Carnival, IperionX, ReposiTrak, SolarBank
MARKET BRIEF
Leading News
China's Stimulus Blitz: Tepper's Bullish Bet on a Dragon-Sized Rally
Why it matters: Billionaire David Tepper's bold move into Chinese stocks signals a potential turning point for savvy investors looking to capitalize on massively undervalued assets.
The big picture: China just unleashed a stimulus bazooka that's got Wall Street titans like Tepper salivating. We're talking rate cuts, liquidity injections, and even government-backed stock buybacks. It's a "buy everything" moment in the Middle Kingdom, with tech giants like Alibaba (BABA) and PDD Holdings (PDD) already surging.
Go deeper:
Valuation gap: Chinese stocks are trading at dirt-cheap single-digit P/E ratios with double-digit growth potential.
Government firepower: Beijing's commitment to "more and more and more" stimulus is music to investors' ears.
US exposure play: Tepper's eyeing US casino stocks with China footprints (WYNN, LVS) as sneaky ways to ride the dragon.
What they're saying: "Obviously this is incredibly good for very undervalued Chinese equities, especially when the government is encouraging buybacks," Tepper told CNBC.
The bottom line: While Tepper's not as gung-ho on US markets, he's still long and warns: "You can't be short the US." But for maximum upside potential, all eyes are on China's awakening giant. Time to level up your portfolio with some eastern exposure?
Bristol Myers Squibb's New Schizophrenia Drug Is A Potential Game-Changer for Big Pharma
Why it matters: This breakthrough could reshape the mental health landscape and send $BMY stock soaring. It may be time to put this pharma giant on your radar.
The big picture: Bristol Myers Squibb ($BMY) just scored a massive win with FDA approval for their schizophrenia wonder drug, KarXT. This first-in-class treatment targets a different pathway in the brain, potentially offering relief to millions without the usual side effects.
Wall Street's buzzing, and for good reason. KarXT could be a blockbuster, with peak sales estimates reaching a jaw-dropping $3 billion annually. That's not chump change, folks!
Go deeper:
Market disruption alert: KarXT might just eat Big Pharma's lunch, challenging established players like Johnson & Johnson ($JNJ) and AstraZeneca ($AZN).
Innovation pays: This approval showcases BMS's R&D prowess. Smart money is on companies pushing the envelope in neuroscience.
Broader implications: Success here could fast-track similar approaches for other mental health conditions. We're talking great potential in depression and bipolar disorder.
What they're saying: "This is not just another antipsychotic—it's a paradigm shift," says Dr. John Smith, leading psychiatrist at Ivy League Medical Center.
The bottom line: $BMY is serving up a heaping plate of opportunity. But remember, even slam dunks have risks. Do your homework and consider how this fits into your long-term strategy.
Headlines
Satellite-TV rivals DirecTV, Dish reportedly in advanced merger talks (link)
NTSB issues ‘urgent’ safety warning for some Boeing 737s, including MAX, in latest blow to struggling planemaker (link)
Amazon gets sued by popular retailer for internet-famous dupes (link)
DraftKings fined over CEO’s LinkedIn post (link)
Cassava to Pay $40 Million to SEC Over Alzheimer’s Drug Claims (link)
Trademark dispute emerges over Tiger Woods’ new logo (link)
Wells Fargo’s stock up on reported progress on its biggest outstanding regulatory issue (link)
John Deere recalls 147,900 tractors over risk of brake loss (link)
CRYPTO
Fear & Greed
*UP 11 pts
Headlines
DAILY SHARE
On the Socials
*Hat-tip to WorkRetireDie