Middle East Crisis Looms Over Markets

October 02, 2024 | [Read Online]( Middle East Crisis Looms Over Markets [fb]( [fb]( [fb]( [fb](mailto:?subject=Post%20from%20Elite%20Trade%20Club&body=Middle%20East%20Crisis%20Looms%20Over%20Markets%3A%20%0A%0Ahttps%3A%2F%2Felitetrade.club%2Fp%2Fmiddle-east-crisis-looms-over-markets) Good morning. It's October 2nd, and in today’s edition, we’ll look at stocks tumbling as the latest Iran-Israel crisis threatens to blow up, the declining fortunes of Humana and Nike, and three high-yield stocks you might want to keep for the long haul. Previous Close 📈 Stocks tumbled on Tuesday as rising tensions in the Middle East weighed on investor sentiment. Technology was the worst hit, with key stocks like Apple, Nvidia, and Microsoft leading the declines. Futures Futures are also down today as the rocky start to October continues. Dow futures have dropped 176 points, or 0.4%, with S&P 500 and Nasdaq 100 futures both shedding 0.4%. Nike slid more than 5% after pulling its full-year guidance. Investors are focusing on private payroll data ahead of Friday’s critical Non-Farm Payrolls Report, which could influence the Federal Reserve's next rate decision. Top Stock Picks for 2024 [7 Rare Buying Opportunities You Don’t Want to Miss]( Eric Fry has a proven track record with 41 stock picks that soared over 1,000%, and another 20 that gained more than 500%. His expertise speaks for itself. Now, he’s revealing [7 companies he expects to win big in 2024](, and this is your chance to get in early before these stocks potentially take off. These companies are positioned for massive growth in key industries, and missing out could mean leaving significant gains on the table. The full research is available in a brand-new report, and the best part? It's completely free. [Download the free report now and uncover these high-potential stocks.]( What to Watch Conagra Brands (NYSE: CAG), RPM International (NYSE: RPM), and Moolec Science Sa (NASDAQ: MLEC) will report their quarterly earnings today before the market opens. The ADP Employment Report for September will be released at 8:15 a.m. ET. Cleveland Fed President Beth Hammack will give welcoming remarks at 9:00 a.m. ET, followed by St. Louis Fed President Alberto Musalem's opening remarks at 10:05 a.m. ET. Federal Reserve Governor Michelle Bowman will speak at 11:00 a.m. ET, and Richmond Fed President Tom Barkin will address the audience at 12:15 p.m. ET. After the closing bell, Levi Strauss & Co (NYSE: LEVI) and NovaGold Resources (NYSE: NG) will announce their results. Health Insurance Humana Faces Revenue Setback as Top Medicare Ratings Plummet, Stock Tumbles More Than 20% Humana Inc.’s shares are plummeting by more than 20% in premarket trading after revealing that the percentage of its Medicare Advantage members enrolled in highly-rated plans dropped significantly. The company's proportion of members in plans rated four stars or above fell to just 25% for 2025, compared to 94% in 2024—a change that threatens its future revenue. The dip in ratings could affect the quality bonus payments Humana receives in 2026, as the Centers for Medicare and Medicaid Services (CMS) provides financial rewards to plans achieving four or more stars under the Medicare Advantage Star Ratings system. Humana reported that one of its major contracts, which covers 45% of its Medicare Advantage members, saw its rating fall from 4.5 stars to 3.5 stars. Despite this, the company maintains that its financial outlook for 2024 and 2025 would not be affected by the current situation. However, Humana is appealing the CMS results, asserting that potential errors in the calculations may have led to the reduced ratings. The company is exploring options to mitigate the expected revenue hit in 2026 if its appeals are unsuccessful, with the goal of restoring its industry-leading status by 2027. Semiconductors KKR Eyes Chip Giant ASMPT Acquisition KKR is reportedly considering a takeover bid for ASMPT, a prominent chip equipment manufacturer listed in Hong Kong as per a Bloomberg report. The report, citing sources familiar with the discussions, indicates that the private equity giant has made a preliminary and non-binding approach to taking the company private. ASMPT, currently valued at approximately $5.07 billion (HK$39.39 billion), has attracted interest due to its position in the semiconductor supply chain, which remains highly sought after amid global technological advancements. The Dutch firm ASM International, which owns a 25% stake in ASMPT, has been under pressure from activist investors to divest its stake, further fueling speculation about potential deals. Interest in ASMPT has reportedly also come from investment firms and industry players in Asia. KKR has yet to issue a formal comment on the matter, and ASMPT did not immediately respond to requests for clarification. Founded in Singapore, ASMPT has a global footprint with over 10,800 employees across more than 30 countries. Sportswear Nike Withdraws Annual Revenue Forecast, Delays Analyst Day Leading to Stock Plunge Nike shares are falling by nearly 6% in premarket trading. The sportswear giant withdrew its annual revenue target, raising investor concerns about the timeline for a turnaround under incoming CEO Elliott Hill. Nike also postponed its investor day, previously scheduled for November 19, signaling a reevaluation period for the company. CFO Matthew Friend emphasized that removing the outlook would allow Hill to assess Nike's strategies and trends. Hill, a longtime Nike executive, will replace current CEO John Donahoe on October 14. Under Donahoe, Nike faced slowing demand and increasing competition from brands like On Holding and Hoka, particularly in high-performance footwear categories. Investors had been anticipating the November analyst day for clarity on Nike's recovery plans, but the postponement has left them with more questions than answers. The company reported that it had to increase promotions to boost sales last quarter and cautioned about a challenging holiday season ahead. Analysts at Bernstein Societe Generale noted that while Nike has shown some early positive market traction, its ongoing markdowns continue to impact sales and margins. As the company navigates its turnaround, investor uncertainty persists, particularly with no clear timeline on when improvements may start reflecting in Nike’s financial performance. Smart Trading [This breakout plan is winning big]( Trading without a solid plan can be risky, but there’s a way to stack the odds in your favor. One of the most effective strategies is trading breakouts, and now there’s [a plan that can help you spot these powerful setups.]( With the right approach, you’ll be able to capitalize on these opportunities and start seeing results. [This method]( has shown strong potential in identifying profitable trading opportunities. Don’t let these high-probability trades pass you by. [Get the breakout trading plan today and start profiting.]( (Clicking the link above will opt you into a subscription with NetPicks.) Movers and Shakers UP Fintech Holding Limited [TIGR] - Last Close: $6.23 UP Fintech Holding Limited is seeing its stock rise 32% in premarket trading following its release of strong second-quarter 2024 financial results. The company reported record-breaking revenue of $87.4 million, representing a 32.4% year-over-year increase. The positive performance was driven by a more active market environment, a 23.9% quarterly increase in trading volumes, and a 16.8% annual increase in funded customer accounts, which now exceed 1 million. Despite a decrease in net income from the prior year, UP Fintech's continued growth in its client base and total assets, coupled with strategic investments in technology and expanded offerings such as short selling and options trading for Hong Kong stocks, have fueled optimism in the market. My Take: TIGR has risen by over 50% in the last five days and is continuing the uptrend today as well. It might be prudent to adopt a wait and watch approach on the stock for now. Lexinfintech Holdings Ltd. [LX] - Last Close: $3.45 LexinFintech Holdings is seeing a 22% rise in premarket trading. The firm recently announced stellar second-quarter 2024 financial results, including a 12% increase in both total operating revenue and net profit from the first quarter of 2024, despite a 12% quarter-over-quarter decline in loan origination volume to RMB 51.1 billion. Its total operating revenue for the second quarter reached RMB 3.6 billion, reflecting a 19.1% year-over-year increase, while net profit rose to RMB 227 million. The company's success comes from its expansion into international markets, which experienced rapid growth, outpacing the domestic business. Lexin also achieved a significant milestone with a reduction in funding costs, boosting its profitability. Additionally, Lexin declared a semi-annual dividend of US$0.072 per ADS for the period ending June 30, 2024, indicating its commitment to returning value to shareholders. My Take: This stock has also seen a near 90% rise after it posted its strong quarterly result. Keep it on your radar for future growth. Fangdd Network Group Ltd [DUO] - Last Close: $3.39 FangDD is seeing a 39% surge in premarket trading. The firm announced a US$2.5 million registered direct offering of Class A ordinary shares. It has also entered into a securities purchase agreement with certain investors to sell 1,612,902 Class A ordinary shares at a price of US$1.55 per share. FangDD intends to use the net proceeds from this offering for general corporate purposes. MM Global Securities, Inc. has been engaged as the exclusive placement agent for the offering. The recent economic stimulus announced by China has also helped the stock rise by nearly 600% in the last 5 days. My Take: DUO is a tiny stock that is surging in the wake of the Chinese stimulus, like many others. It would be best to adopt a wait and watch approach for this stock. Profit-Driven Trade [A Rare Opportunity for Potential Massive Gains]( There’s a unique opportunity on the horizon with the chance to achieve significant returns. A proven trade has been designed to [capture stock movements before they even happen,]( helping turn even small price shifts into potentially big wins. This method simplifies trading with straightforward, actionable instructions—taking advantage of market moves quickly and efficiently. The potential here could lead to significant returns in a short amount of time. [Don’t miss out on the chance to be part of this—get the full details now.]( Everything Else - [Iran]( launched missile strikes on Israel, prompting vows of retaliation from Israeli leadership. - MSCI data shows [China]( regaining dominance in emerging markets, ending a phase of decline amid global monetary easing. - A market rally in [Hong Kong]( follows China’s comprehensive measures to support the economy and bolster equity markets. - AI Startup [Crescendo]( raised $50 million and acquired PartnerHero, aiming to transform its contact center services with AI technology. - Oil stocks rally as [BP and Shell's]( shares jump following escalating Middle East tensions and Iranian missile attacks. - FCA penalizes [Starling Bank]( £29 million for financial crime control failings dating back to 2017. That’s all for today. Thank you for reading. If you have any feedback, please reply to this email. 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