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Good morning investors!

If this is your first time reading, welcome to The Investor’s Edge — a thriving community of over 20,000 subscribers striving to be better investors with an edge in the market.

Every Wednesday we publish “The Mid-Week Wrap-Up” — your ticket to being well informed and staying ahead in the investment game!

This report is designed to help investors of all skill levels break down important stories/topics within the stock market. And best of all, we cut through all of the BS and give you exactly what you need to know in easy to digest, bite sized pieces of content.

This article is designed to truly give you that EDGE in the day ahead!

Grab your afternoon pick me up and let’s dive in.

Market Talk

The S&P 500 made new all-time highs today as markets continue to show strength.

3 Stories Moving the Market

These are some of the biggest stories so far this week that are having an influence on market action.

DOJ indicates it’s considering Google breakup following monopoly ruling

* NOTE - we will be sending out a brand new Deep Dive of Alphabet to Edge+ members tomorrow morning. See how we determine the Edge score, our views on the risks to Alphabet, and most importantly our price targets and potential trades we are looking to set up on the stock.

The U.S. Department of Justice (DOJ) has made recommendations aimed at addressing Google's dominance in the search engine market, including the potential breakup of the company as an antitrust remedy.

The DOJ's proposals involve various measures like contract restrictions, non-discrimination rules, data sharing, and ensuring interoperability. It is also considering limiting Google's use of products like Chrome, Play, and Android to favor its own search engine over competitors, including emerging AI-driven features.

Additionally, the DOJ suggested ending Google's lucrative default search engine agreements with companies like Apple and Samsung, possibly through a "choice screen" that would allow users to select other search engines.

These recommendations follow a judge's ruling in August that Google holds a monopoly in search, violating antitrust laws under the Sherman Act.

PepsiCo trims revenue outlook as North American snacking, key international markets lag

PepsiCo lowered its full-year outlook for organic revenue growth after two consecutive quarters of weaker-than-expected sales.

In Q3, net income fell to $2.93 billion, or $2.31 per share, down from $3.09 billion, or $2.24 per share, a year earlier. Net sales declined 0.6% to $23.32 billion.

Organic revenue grew by 1.3%, but volumes for both food and beverages dropped by 2%, particularly in North America where consumer demand weakened. Quaker Foods saw the largest volume decline at 13%, while Frito-Lay dropped 1.5%.

Pepsi now expects only a low-single-digit increase in organic revenue for 2024, down from its previous 4% growth target, but still anticipates an 8% rise in core earnings per share.d the use of automation with the United States Maritime Alliance (USMX) broke down.

Nvidia AI Summit: everything you need to know

Here are the key highlights from the NVIDIA AI Summit:

1. Sustainable Computing: NVIDIA's vice president Bob Pette emphasized that accelerated computing is essential for the next industrial revolution, offering massive energy efficiency improvements. NVIDIA’s Blackwell platform has cut energy consumption by up to 2,000x for AI model training and 100,000x for AI token generation.

2. AI’s Industrial Revolution: AI is set to revolutionize industries like healthcare, manufacturing, and scientific research. Pette described AI factories that generate “tokens” (intelligence) as the new economic product driving this transformation.

3. CUDA Libraries: NVIDIA’s CUDA libraries power over 4,000 accelerated applications, driving performance gains while minimizing power consumption. They enable efficient deployment of AI solutions across industries.

4. Agentic AI: NVIDIA is advancing AI agents capable of reasoning, learning, and acting autonomously, transforming sectors like healthcare, manufacturing, and customer service by automating complex tasks and accelerating innovation.

5. Healthcare and Life Sciences: NVIDIA sees a $10 trillion opportunity in healthcare. Its platforms like Clara and Parabricks are revolutionizing diagnostics, genomics, and medical imaging.

6. Climate Modeling: NVIDIA’s Earth 2 platform enhances climate research by combining simulation, AI, and visualization tools to address environmental challenges and predict natural disasters.

7. Cybersecurity: The new NVIDIA NIM Agent Blueprint accelerates real-time threat detection and analysis, significantly reducing threat response times in critical infrastructure protection.

8. AI Workforce Training: NVIDIA’s Deep Learning Institute has trained over 600,000 people to lead in the AI-driven future, emphasizing the company’s commitment to building the next generation of AI talent.

In Other News

In this section we'll be curating a selection of news headlines we think you'll find interesting. If a topic catches your eye, click the provided links to read more about it.

• TSMC’s Sales Beat Estimates in Good Sign for AI Chip Demand

• Uber to launch AI assistant powered by OpenAI's GPT-4o to help drivers go electric

• Chinese Stocks Tumble Most Since 2020 on Stimulus Skepticism

• McDonald’s sues major beef producers in U.S. price-fixing lawsuit

• Chevron to sell assets for $6.5 billion to Canadian Natural Resources

• CVS, UnitedHealth say FTC should take Lina Khan and two commissioners off drug middlemen case

• Mining giant Rio Tinto to acquire Arcadium Lithium in $6.7 billion deal

• Boeing stock falls amid breakdown in union talks, risk of credit rating downgrade

• Activist Starboard Value Takes $1 Billion Stake in Pfizer

• Couche-Tard hikes bid for 7-Eleven owner to $47 billion

The Second Half

There are several major companies still to report earnings this week, while the FOMC meeting minutes, inflation reports, jobless claims, and consumer sentiment will be in focus on the economic news front.

Earnings Reports

There are still some major earnings this week. At the Investor’s Edge we will be watching JP Morgan, BlackRock, Delta Airlines and Domino’s Pizza.

Here is the calendar of earnings releases scheduled for the rest of the week:

Economic Reports

The two inflation reports will be the main focus as we close the week, though there will also be the latest initial jobless claims data, FOMC meeting minutes, consumer sentiment and several Fed speeches.

Here is the full calendar of events scheduled for the remainder of the week:

The Investor’s Edge Discord is the place to be!

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Thank you for reading this edition of the Mid-Week Wrap-Up.

Until next time investors!

Mark & Chris

The Investor’s Edge

Disclosure

This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.