Key Economic Data Out Today

Earn While You Learn! ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, Key Economic Data Will Be Out Today Will we see a strong direction in the stock market soon? Unlikely. Investors are waiting for more economic data to see if the economy can maintain its current level of growth. The unemployment rate has risen steadily, but it is still at a healthy level. Wall Street is watching if it can flatten out. The Fed Reserve, of course, just cut interest rates by 50 basis points. Ronald Temple at Lazard viewed the move as a positive signal that the Fed is ready to “act quickly” if the labor market weakens further. - “I view this week’s rate cut as being a signal that the Fed is willing to act quickly if it needs an insurance policy against excessive labor market weakening,” said Ronald Temple, Lazard’s chief market strategist. At the same time, the recent cut is unlikely to make a difference to the economy’s fate over the next few months. The lag effect is long. Investors know that. So, they will watch for any clue on whether the Fed has acted early enough. - “The reality is that neither 25 nor 50 bps of rate cuts will materially change the near-term economic trajectory,” Temple said. “But the signal is important nonetheless, and markets responded the following day taking the S&P 500 Index to a new all-time high.” Ronald Temple, Lazard’s chief market strategist (Photo: CNBC) Chinese governments still struggled to turn the corner for its economy, as data last Friday showed the country have cut spending while the youth jobless rate jumped to the highest level this year. However, they chose not to cut lending rates to stimulate the economy. What’s more, the US is rumored to impose new rules that would ban Chinese hardware and software for connected vehicles. China plays a big role in the global economy because several multinational companies have big businesses there. For example, about 48% of Texas Instruments came from China. Apple, 18.9%. Tesla, 22.5%. Today, we will receive economic readings for the service and manufacturing sectors. Atlanta Fed President Raphael Bostic, Chicago Fed President Austan Goolsbee and Minneapolis Fed President Neel Kashkari will speak today to offer their latest insights on what the central bank might do next. A Boring (but Potentially Lucrative) Play on a Growth Software Stock Today’s Stock Pick: Vertex, Inc. (VERX) There is a major pain point for global companies related to taxes. Listen, “indirect tax” revenue is approximately 3.1x bigger than income tax revenue. They include taxes for sales, imports, exports, payrolls and so on. They add up to $4.4 trillion, while corporate income tax revenue is just $1.4 trillion. (Source: Vertex) Now, imagine that you are a major corporation with interests in dozens of countries. That means you’ll need to account for wide-ranging tax policies around the world in real-time. (Source: Vertex) Clearly, that’s a complicated matter which Vertex comes into the picture to offer solutions for this. Vertex offers end-to-end use cases where companies use its software for every step for anything related to indirect taxes. (Source: Vertex) How big could this market be? Well, Vertex estimates it to be a $22 billion TAM with less than 10% software adoption. That’s right. There’s a plenty of growth runaway ahead. (Source: Vertex) Many top leaders in different business categories use Vertex’s software. This shows that Vertex is the leader in this expanding category — with plenty of opportunities ahead. (Source: Vertex) There’s one key theme about Vertex — operating leverage. The company has a perfect ecosystem that is designed to turn first-time customers into bigger customers. Thanks to its land-and-expand model, the company can grow revenue without incurring higher expenses to finance the growth. (Source: Vertex) This is powerful. Why? Vertex has a long track record of revenue growth. It never failed to grow since 2005. You can see the remarkable revenue growth in the graphic below: (Source: Vertex) Meaning? Operating leverage is poised to amplify earnings growth for many years to come. Take this year as an example. The company expects to post about $655 million in revenue — or a 14% growth. Not bad, right? However, its operating leverage enables adjusted EBITDA to grow by about 30% from $100.8 million in FY2023 to $130 million in FY 2024. Bottom line: Vertex is very unknown in the software space. It is remarkable because its growth track record is one of the best in any industry. With its powerful operating leverage, the company is poised to be a winner for many years to come. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](