Mid-Week Wrap-Up - September 25th, 2024

The S&P and Dow make new all-time highs

AuthorAuthor

CMG Venture & Mark Roussin
September 25, 2024

In partnership with

Good morning investors!

If this is your first time reading, welcome to The Investor’s Edge — a thriving community of nearly 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 major indexes are mixed to start the week but both the S&P 500 and Dow Jones made new record highs at one point.

3 Stories Moving the Market

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

Justice Department accuses Visa of debit network monopoly that affects price of ‘nearly everything’

The U.S. Justice Department has sued Visa, accusing the company of maintaining an illegal monopoly over debit payments through restrictive agreements with partners that stifle competition.

The lawsuit claims Visa’s actions have led to billions of dollars in excessive fees for American consumers and businesses, which are passed on through higher prices or reduced quality of services.

Attorney General Merrick Garland stated that Visa's monopoly impacts the cost of almost everything consumers purchase.

Visa, however, dismissed the lawsuit as "meritless," arguing that there are numerous payment options available in the market today.

👉 EDGE ALERT: While Visa is undoubtedly a dominant player in the payments industry, describing it as a monopoly oversimplifies a complex ecosystem. Visa's role in the payments world is significant, but…upgrade to Edge+ to read the full Edge Alert.

Warren Buffett's Berkshire Hathaway keeps selling more Bank of America stock

Warren Buffett's Berkshire Hathaway has sold a significant portion of its holdings in Bank of America, totaling nearly $9 billion over the past few months.

On Tuesday, Berkshire announced it sold an additional 21.6 million shares, earning around $862.7 million.

Since mid-July, Berkshire has sold Bank of America stock in 10 of the last 11 weeks, offloading 218.5 million shares.

Despite these sales, Berkshire still holds a 10.5% stake in the bank. Bank of America's stock has declined since Buffett began selling, although it remains up 16% for the year, trailing competitors like Goldman Sachs, JPMorgan Chase, and Citigroup.

A word from our sponsor - Vinovest

Whiskey Investing: Consistent Returns with Vinovest

It’s no secret that investors love strong returns.

That’s why 250,000 people use Vinovest to invest in fine whiskey.

Whiskey has consistently matured and delivered noteworthy exits. With the most recent exit at 30.7%, Vinovest’s track record supports whiskey’s value growth across categories such as Bourbon, Scotch, and Irish whiskey.

With Vinovest’s strategic approach to sourcing and market analysis, you get access to optimal acquisition costs and profitable exits.

Nvidia shares surge as CEO may be done selling shares after hitting preset plan limit

Nvidia CEO Jensen Huang has completed selling over $700 million in company stock under a prearranged plan.

Huang had initiated a plan in March to sell up to six million Nvidia shares by the end of Q1 2025 but reached this target ahead of schedule following several transactions between June and September.

Despite these insider sales, Nvidia shares rose over 4% after the news, reflecting the company’s strong performance amid the AI boom. Nvidia's stock has surged over 140% this year, briefly reaching a $3 trillion market cap.

Huang remains the company's largest individual shareholder, holding 75.4 million shares and an additional 786 million shares through trusts and partnerships.

📚 EDGE-UCATION: What does insider buying or selling of a stock say about a company?

Insider buying or selling of a stock can provide useful signals about a company, as it reflects the actions of individuals who have deep knowledge of the business, such as executives, directors, and key stakeholders. However, it's important to interpret these moves carefully.

When insiders are purchasing shares, it is often viewed as a positive sign. It suggests that those who understand the company’s prospects the best have confidence in its future performance and believe the stock is undervalued.

Insider selling is more complex to interpret. While it can raise concerns about the company's outlook, it’s not always a negative signal. Insiders may sell to diversify their portfolios, pay taxes, or fund personal expenses. Many sales occur under 10b5-1 plans, which are prearranged and scheduled to avoid any perception of trading on inside information. Large insider sales can suggest that insiders believe the stock price may have peaked.

Ultimately, insider trading activity is one piece of the puzzle. While insider buying is generally seen as a vote of confidence, insider selling needs to be considered alongside other factors, such as company performance, market conditions, and individual motivations.

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.

Unlock the Edge+ Experience

Like the content you have seen so far? Edge+ members not only get additional content in these recaps, but they also get expert market analysis straight to their inbox multiple times per week.

Edge+ members also get access to all of the following benefits:

As we like to say, price is what you pay value is what you get. Trust us when we say you’re not getting this much value for the price anywhere else on the Internet. Join the Edge+ club today!

Still not sure if the IE+ club is for you? We are now offering a FREE 7 day trial to see how much value we truly provide. Don't just take our word for it — come see for yourself why this opportunity is too good to miss! 👇

The Second Half

While there are several earnings and economic reports left this week, the PCE report is the major catalyst everyone will be watching, including us. There are also several key Fed speeches on the calendar, including one from Jerome Powell on Thursday.

Earnings Reports

There are still some major earnings this week. At the Investor’s Edge we will be watching Micron and Costco.

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

Economic Reports

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

The PCE inflation report will be the main focus as we close the week, though there will also be the latest GDP data, initial jobless claims, consumer sentiment and pending home sales.

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

Before you go, don’t forget to join our Discord server. Members this week are testing the new Edge scoring system. See how your favorite stocks stack up based on a scoring model built by the founders of the Investor’s Edge.

If you are only reading the newsletter, you are only getting a fraction of the benefits of being an Edge subscriber. Here’s what you’re missing in the Discord:

🗨️ Chat rooms: Connect with fellow investors, swap ideas, and engage in lively discussions about stocks and market trends—all while rubbing virtual elbows with both Mark and Chris.

🚨Trade Alerts: Get exclusive, behind-the-scenes access to our trades as they happen. It's like having a front-row seat to our investment decisions!

Join us on Discord and let's level up our investing game together. The future of trading awaits—and you're invited to be a part of it! 🌟

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.

Reply

or to participate.