Levi's Trims Forecast, Stock Plummets

October 03, 2024 | [Read Online]( Levi's Trims Forecast, Stock Plummets [fb]( [fb]( [fb]( [fb](mailto:?subject=Post%20from%20Elite%20Trade%20Club&body=Levi%27s%20Trims%20Forecast%2C%20Stock%20Plummets%3A%20%0A%0Ahttps%3A%2F%2Felitetrade.club%2Fp%2Flevis-trims-forecast-stock-plummets) Good morning. Today is October 3rd, and we’ll take a look at Levi’s poor earnings, OpenAI’s move to hobble its competitors, and how holiday hiring is shaping up at major retail and e-commerce firms. 📈 Want first dibs on our next big stock pick? [Check out our insider stock picks]( with Elite Trade Club Insider. Previous Close 📈 Stocks faced a rough start to October, with investor sentiment dampened by escalating tensions in the Middle East. The key indices were flat at the close of the day yesterday after a major drop on Tuesday. Investors are now bracing for Friday's key September Payrolls Report, which could impact the Federal Reserve's rate decisions. Futures Futures are edging lower on Thursday as traders await the September Jobs Report. Dow futures are down 144 points, or 0.3%, with S&P 500 futures also falling 0.3% and Nasdaq 100 futures dipping 0.5%. Gold [This Small-Cap Gold Stock Is Positioned for a Big Breakout]( Gold prices are soaring, and [one small-cap gold stock]([Â](could be positioned for massive gains as the market continues its upward trend. This company holds over 4 million ounces of gold reserves, giving it a solid foundation for growth. Most investors haven't caught on yet, providing an early window to [capitalize on shares currently priced around $0.25.]( With experienced leadership and strategic plans to expand production, this stock stands out in the competitive gold mining space, offering significant potential for early investors. The gold market is showing no signs of slowing down, and this opportunity could be a game-changer. [Get all the details in this FREE report and see how to seize this potential breakout.]( What to Watch Constellation Brands (NYSE: STZ) and AngioDynamics (NASDAQ: ANGO) will announce their quarterly earnings before the market opens. On the economic calendar, the Initial Jobless Claims for September will be released at 8:30 a.m. Eastern. The S&P final U.S. Services PMI for September will follow at 9:45 a.m. Eastern, with the ISM Services Index and Factory Orders for August published at 10:00 a.m. Eastern. Additionally, Minneapolis Fed President Neel Kashkari will moderate a discussion with Atlanta Fed President Raphael Bostic at 10:40 a.m. Eastern. Technology OpenAI Seeks Exclusive Investor Commitments Amidst $6.6B Fundraising Round As part of its latest $6.6 billion investment round from global backers like Thrive Capital and Tiger Global, OpenAI is requesting that investors avoid funding five specific AI startups it considers close competitors. Among the companies on the list are AI rivals developing large language models, including Anthropic and Elon Musk's xAI, as well as Safe Superintelligence (SSI), a new venture founded by OpenAI's co-founder, Ilya Sutskever. The list also includes AI application firms Perplexity and Glean, suggesting that OpenAI plans to expand its offerings to enterprises and end users as it targets a significant revenue jump to $11.6 billion by 2025 from $3.7 billion this year. Although the request is not legally binding, it highlights OpenAI's strategy to secure exclusive commitments from its investors in an increasingly competitive industry where access to capital is crucial. While it's common in venture capital to avoid funding direct competitors, OpenAI's specific list stands out. This request does not apply to previous investors or their past investments, but it could impact future fundraising efforts for both OpenAI's investors and the five named competitors. Clothing Levi's Cuts Guidance as Dockers Drags Business, Shares Drop Over 11% Levi Strauss & Co. has reduced its revenue outlook for the year and is exploring the sale of its Dockers brand as the khaki-focused label continues to underperform. While Levi’s denim sales increased by 5% during the fiscal third quarter, overall revenue remained flat at $1.52 billion, missing Wall Street's expectations of $1.55 billion. The company's stock is falling by more than 11% in premarket trading today. Earnings per share for the quarter beat estimates, coming in at $0.33, higher than the expected $0.31. However, Levi's trimmed its full-year revenue guidance, now projecting a 1% increase, down from its previous range of 1%-3%. Dockers, launched in 1986 as a khaki alternative to denim, saw a 15% drop in sales, pushing Levi's to consider selling the brand. Levi's finance chief Harmit Singh noted that offloading Dockers could improve margins and reduce volatility in the company's revenue growth. On the upside, Levi’s Beyond Yoga brand saw 19% sales growth, and its focus on direct-to-consumer sales has led to a 4.4-percentage-point improvement in gross margins. Levi’s aims to grow its direct sales channel from 44% to 55% of total revenue. Levi's European sales exceeded expectations, but the company faced challenges in the Americas and Asia, with issues ranging from cybersecurity breaches in Mexico to leadership changes in China. Retail Amazon and Target Lead Holiday Hiring Amid Retail Slowdown Retailers are ramping up holiday hiring, though fewer seasonal employees are expected this year compared to previous seasons. Amazon announced plans to hire 250,000 full-time, part-time, and seasonal workers for the busy shopping period, matching last year's numbers. Bath & Body Works and Target also confirmed hiring 100,000 seasonal employees, with Target offering current staff the option to work additional hours. However, some retailers are scaling back. Macy's plans to add 31,500 seasonal workers, down from 38,000 last year, while Walmart and Kohl's have remained quiet about their hiring strategies. The holiday season, the busiest time for online and in-store retailers, has already seen discount events launched to attract early shoppers. Analysts project a modest increase in U.S. retail sales, with forecasts ranging from 2.3% to 3.3% growth between November and January, largely driven by price hikes due to inflation. Online sales are expected to see a stronger boost, with a projected 8.4% increase, hitting a record $240.8 billion. Despite cautious optimism, the retail sector may face challenges filling open positions, given job demands and pay rates. Pre-Election Market Moves [5 Election Stocks to Buy Before November]( With the upcoming election, key stocks are expected to move significantly in anticipation of the results. History has shown that [certain stocks can surge even before the new president officially takes office](, offering huge opportunities for early investors. Now is the time to get ahead of these shifts. Don’t be caught off guard in November. This FREE report reveals the five stocks that are primed for growth ahead of the election. [Click here to download your report now.]( Movers and Shakers Elevai Labs Inc. [ELAB] - Last Close: $0.09 Elevai Labs is surging 36% in premarket trading today. Its subsidiary, Elevai Skincare Inc., will conduct a new clinical study to evaluate the impact of combining their flagship exosome skincare products with a medical aesthetic energy device for enhanced skin rejuvenation. This clinical study comes at a time when the energy-based aesthetic device market is growing rapidly. My Take: This is a very tiny stock that has lost nearly 97% of its value in the last year. It would be best to adopt a cautionary approach with it. Conduit Pharmaceuticals [CDT] - Last Close: $0.09 Conduit Pharmaceuticals is rebounding after a sell-off. The stock fell 10.4% yesterday and has lost nearly 27% of its value in the past month. Its shares are recouping from the recent sell-off during the premarket today. Shares are up 24.53% on a 4.1-million trading volume. My Take: CDT is a very small float stock that underperformed all last year. The current sell-off might be a natural correction, but it would be best to adopt a wait-and-watch approach here. ALT5 Sigma Corporation [ALTS] - Last Close: $1.78 ALT5 Sigma's stock is falling by nearly 21% in premarket trading. Yesterday, the company announced its strategic plan to separate into two independent publicly traded companies. The separation will result in ALT5 maintaining its focus on fintech, while the newly formed entity, Alyea Therapeutics Corporation, will focus on non-addictive pain management therapies. Investors appear to be concerned over the execution of the split and market uncertainty surrounding the biotech arm's future, causing the slump. My Take: The current sell-off seems to be a reaction to the announcement, but otherwise the stock has had a great year so far. Hopefully, it will rebound as more news about the split emerges. Keep a close watch on this one for now. Stocks Set for Major Breakouts [Once-in-a-Decade Buying Opportunities for 2024]( Eric Fry, renowned for spotting stocks that deliver massive gains, is back with new picks for the upcoming year. His track record includes stocks that have surged over 1,000%, and [he’s now identified companies primed for similar growth in 2024.]( These stocks are positioned to lead the charge in key sectors, offering a strategic advantage to early investors. This is a unique opportunity to uncover stocks that could see explosive growth before the market catches on. [Get in before the crowd with this free report outlining these high-potential opportunities.]( Everything Else - [Chagos Islands]( have reached a sovereignty deal, with the U.K. transferring control to Mauritius while retaining rights to the Diego Garcia military base. - [Starbucks]( expands global coffee innovation efforts with new farms in Guatemala and Costa Rica. - [Credit Suisse]( faces allegations from SoftBank over mishandling of Greensill's financial crisis in a $440-million legal battle. - Softbank's Sebastian Siemiatkowski highlighted talent retention risks ahead of [Klarna's](public offering amid U.S. competition. - Andrew Bailey's dovish comments on rate cuts led to a sharp decline in the [pound against the dollar](. - Investors have questioned [Stellantis’]( dividends as shares drop over 4%, marking a 43% decline this year. - [Netanyahu]( vowed to continue the offensive against Hezbollah amid calls for a ceasefire and rising regional tensions. That’s all for today. Thank you for reading. If you have any feedback, please reply to this email. Best Regards, — Adam Garcia Elite Trade Club [Click here]( to get our daily newsletter straight to your cell for free. P.S. Just like this newsletter, it's 100% free*, and you can stop at any time by replying STOP. [Privacy Policy]( | [Advertiser Disclosure]( [tw]( [ig]( [yt]( [tk]( *Standard message/carrier rates may apply. Legal Stuff: Stocks featured in this newsletter are for entertainment purposes only. You should not base any investment decisions on information contained in my newsletter. Stocks featured in this newsletter may be owned by owners/operators of this website, which could impact our ability to remain unbiased. Please consult a financial advisor before making any trading decisions. I may earn a small commission from links placed inside these emails. 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