NEWS
Inflation’s Rut Means A More Likely Cut

Inflation’s downward progress has the market getting its rate cut hopes up and embracing other sectors outside of big tech. Stocks ended the week mixed but broadly in the green today on the back of better-than-expected economic data. Let’s see what else you missed. 👀

Today's issue covers disinflation helping the appetite for industrial socks, tech consulting firm Booz finally getting bruised, Andrew Left being sued by the SEC, and three beaten-down names bouncing back. 📰

Here's today's heat map:

11 of 11 sectors closed green. Communications (+1.87%) led, & energy (+0.32%) lagged. 💚

Russia’s central bank hiked rates by 200 bps to 18% and promised further tightening as it fights inflation well above its 4% target. 🔺

Biogen shares fell 7% after European drug regulators rejected the Alzheimer treatment it’s developing with Eisai, saying its risks outweigh the benefits. ❌

New York private equity firm Apollo Global Management is buying Everi Holdings and International Game Technology (IGT) 's gambling and slot machine business in a $6.30 billion deal. 🎰

WW International dropped 13% after Morgan Stanley downgraded it from overweight to equal weight, citing obesity drugs as a long-term headwind. 💊

Food delivery stock DoorDash rose 4% after Redburn Atlantic initiated coverage as a buy and forecasted a 68% upside from current levels. 🥡

Here are the closing prices: 

STOCKS
Appetite For Industrials Remains Fierce

Industrial stocks (and other cyclicals) have been a big theme this year as money rotates beyond big tech and into other sectors. And today that trend continued, with Dow component 3M soaring after earnings. 🤯

The stock had its best day in history, rising 23%, while investor sentiment on Stocktwits hit a one-year high (95/100). Its earnings and revenue surpassed analyst estimates, and management also raised its full-year profit forecast.

After a rough few years, the company embarked on a turnaround plan marked by significant restructuring, including the spin-off of its healthcare division, workforce reductions, and facility closures. ❤️‍🩹

CEO Bill Brown’s strategic pivot towards higher-growth areas such as automotive electrification and climate technology has helped the company stabilize. In May, he made it clear to employees that the company’s top priorities are innovative-driven organic growth and operating efficiency, and so far, those efforts are paying dividends.

Analysts also applauded the company’s efforts to manage its legal liabilities and external factors, such as improving end markets for electronics. 👏

But 3M is not the only industrial company enjoying the limelight. Railroad operator Norfolk Southern rose 11% after beating earnings estimates, and FTAI Aviation made new all-time highs after beating revenue. 🌟

And don’t forget aerospace and defense, which is hot for obvious reasons.

Point being, investors are buying up industrial stocks across the board and don’t see this trend slowing down anytime soon. We’ll have to wait and see if that bullish bet on the economy and the Fed pays off. So far, it certainly has. 💸

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