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- 📈 Walgreens Makes a Digital Pivot
📈 Walgreens Makes a Digital Pivot
Energy project permitting could be streamlined, United Health delivers a beat but slips, Boeing seeks a cash injection, Southwest channels Succession, Walgreens closes 1,200 stores
Evelio Silvera
October 16, 2024
Good morning.
⚡ The Fast Five → Energy project permitting could be streamlined, United Health delivers a beat but slips, Boeing seeks a cash injection, Southwest channels Succession, Walgreens closes 1,200 stores
And now…
⏱️ Your 5-minute briefing for Wednesday, October 16, 2024:
MARKET BRIEF
Before the Open
As of market close 10/15/2024.
Pre-Market
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Fear & Greed
*DOWN 6 pts
Trends
Wall Street ends lower as chip, oil stocks drop
US Futures Flat After Weak Session
US consumers see higher long-run inflation, rising delinquency risk
WHAT WE’RE WATCHING
Events
Thurs. Oct. 17: Census Bureau - Core Retail Sales (Auto), 8:30AM
Why You Should Care: It's the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
Earnings Reports
Today: Abbott Labs, US Bancorp, CSX, Las Vegas Sands, Discover, Equifax
Tomorrow: Netflix, Morgan Stanley, Blackstone, Truist
MARKET BRIEF
Leading News
Walgreens Shutters 1,200 Stores With Focus on Digital
Why it matters: This move is a wake-up call for retail and healthcare investors. Walgreens' (WBA) decision reflects broader trends, and savvy investors need to consider how to navigate the shifting landscape.
The big picture: Walgreens is closing 1,200 stores as part of a strategy to cut costs and pivot toward digital health services. With foot traffic declining and margins under pressure, the pharmacy giant is rethinking its traditional brick-and-mortar approach. But this is not a retreat—it's a strategic shift to future-proof its business in an evolving market.
Investors shouldn’t view this as a signal to panic. In fact, this could unlock value in the long term, as Walgreens redirects resources into growth areas like telehealth, prescription delivery, and retail health clinics. With a focus on technology and streamlining operations, Walgreens aims to position itself as a key player in the digital health boom, which is projected to grow significantly in the coming years.
Key details:
Store closures represent about 10% of Walgreens' U.S. locations, potentially boosting profit margins by reducing overhead.
Walgreens is doubling down on telehealth services and has partnerships with companies like VillageMD, aiming to expand its footprint in primary care.
The company is betting on AI-driven health data to optimize patient care and drug delivery, a move that resonates with tech-savvy investors.
What they're saying: Walgreens CEO Rosalind Brewer noted, "This is about efficiency and leveraging technology to meet the needs of a modern customer base."
The bottom line: While yesterday’s gains may turn to short-term pain, Walgreens is positioning itself to capitalize on digital health trends. Investors should keep an eye on WBA as the company shifts focus toward higher-margin, tech-driven services.
Washington Wants Faster Permits
Why it matters: Streamlined permitting could supercharge sectors like energy, infrastructure, and tech, unlocking potential gains for savvy investors eyeing long-term growth.
The big picture: Congress is pushing to reform the permit approval process, particularly for energy projects like natural gas pipelines, renewables, and infrastructure. Leaders in Washington believe that outdated red tape is slowing down critical projects that could help modernize the economy.
For investors, this could mean faster timelines for big projects, reduced regulatory risk, and increased certainty—all of which are bullish signals. Sectors like energy ($XLE), utilities ($XLU), and even green tech (think solar and wind ETFs) stand to gain from an expedited approval process. As Washington eyes the future, the capital flows into these areas could accelerate.
Key insights:
Energy boost: Natural gas and renewables could get a tailwind, with faster approvals paving the way for expanded production and infrastructure.
Infrastructure overhaul: Big projects could come online quicker, benefiting construction and industrial giants ($XLI).
Tech's green edge: Tech firms in AI and clean energy solutions stand to profit from government support in emerging sectors.
What they're saying: Sen. John Barrasso (R-Wyo.) points out that “America’s energy security depends on it,” indicating a bipartisan push for quicker infrastructure approval.
The bottom line: Permitting reform could revitalize key sectors, offering bullish prospects for patient investors. Keep an eye on energy, infrastructure, and emerging green tech. Look for ETFs that capture this trend, and consider it a long-term play that fits well with today’s fast-paced market environment.
Headlines
Troubled Boeing signals it may raise up to $25 billion to shore up finances (link)
UnitedHealth Delivered a Beat—Here’s Why the Stock Plunged Anyway (link)
Permits put on hold for planned pipeline to fuel a new Tennessee natural gas power plant (link)
Southwest Airlines activist investor takes major step toward changes (link)
Legendary Entertainment Buys Out Wanda, With An Eye Toward M&A (link)
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