Markets Await Fed's Rate Cut Decision

Good morning. Its September 16th, and today, we’ll look at Washington state's fight against the Kroger-Albertson deal, TikTok’s battle against a new law forcing it to choose between a sale or a ban in the U.S., and an AI stock set for explosive growth.

Previous Close 📈

Stocks ended on a high note last week, with all three indices closing in the green. After a challenging start to September, optimism around the Federal Reserve's upcoming interest rate decision has helped the markets recover.

Futures

U.S. stock futures are relatively flat as investors await the Federal Reserve's policy meeting. S&P 500 futures are just below the flatline, Dow futures are little changed, and Nasdaq 100 futures are down 0.15%. Traders are closely watching for a potential interest rate cut while also eyeing key economic data and earnings reports this week.

What to Watch

The week starts out with earnings reports from AstroNova (NASDAQ: ALOT) and Coda Octopus Group (NASDAQ: CODA) during premarket trading.

RF Industries (NASDAQ: RFIL), Vince Holding (NYSE: VNCE), and Ocean Power Technologies (NYSE: OPTT) will share their numbers after the closing bell.

On the economic calendar, the September Empire State Manufacturing Survey will be released at 8:30 a.m. Eastern, providing an early look at manufacturing activity in New York State.

Public Safety

Could This Be the AI Stock to Make You Rich?

This innovative AI stock delivered a 128% revenue surge in 2023, yet it remains undervalued with a market cap under $35 million. Their cutting-edge technology—Autonomous Security Robots and gunshot detection systems—is already transforming public safety and generating consistent, recurring revenue.

With over 30 new contracts, including a major deal with the U.S. Federal Government, this company is primed for significant growth in the booming AI security market.

This is your chance to get in early and ride the wave of what could be the next major AI stock. Don’t miss out—act now and start building real wealth today.

Retail

Past Mergers Fuel Washington's Legal Battle Against Albertsons-Kroger Deal

Washington state is challenging the $24.6 billion merger between Albertsons and Kroger, drawing from its past experiences with grocery chain consolidations that resulted in store closures and job losses.

The state is particularly concerned as Albertsons and Kroger control over half of the grocery sales in Washington, where they own more than 300 stores.

To ease regulatory concerns, the companies have proposed selling 579 stores nationwide, with 124 of them in Washington, the most of any state. However, the proposed buyer, C&S Wholesale Grocers, has limited experience managing stores, raising doubts about the viability of this plan.

Washington's Attorney General, Bob Ferguson, is seeking to block the merger both in the state and across the country, arguing that it would reduce competition, raise prices, and potentially lead to more store closures.

This legal action comes after the state's experience with Albertsons' acquisition of Safeway in 2016, which led to a small grocery chain, Haggen, struggling to manage the acquired stores, eventually leading to closures and layoffs.

Albertsons and Kroger argue that merging would allow them to compete better against larger rivals like Walmart and Costco.

Media & Entertainment

DirecTV Gains Rights to Disney’s Future ESPN Streaming Service in New Deal

DirecTV and Disney reached an agreement to restore Disney’s channels, including ESPN, ABC, and other networks, to DirecTV's 11 million customers after a two-week blackout.

This resolution came just in time for college football and the Emmy Awards. The blackout began on September 1, following a dispute over fees and bundling structures, which left many DirecTV subscribers unable to access popular events like the U.S. Open and "Monday Night Football."

The new deal, announced Saturday, allows DirecTV to offer Disney’s streaming services—Disney+, Hulu, and ESPN+—both as part of its packages and a la carte.

It also secures DirecTV rights to distribute Disney's upcoming ESPN flagship direct-to-consumer streaming service, set to launch in fall 2025, at no extra cost to its subscribers. This agreement echoes a similar deal Disney made with Charter Communications last year.

The conflict highlights the importance of live sports to both media companies and pay TV providers. Throughout the standoff, DirecTV accused Disney of not negotiating in good faith, even filing a complaint with the Federal Communications Commission (FCC).

While the complaint remains active, both companies have now called this deal a "first-of-its-kind collaboration," offering customers more flexibility in their viewing options.

Social Media

TikTok Challenges U.S. ‘Sale-or-Ban’ Law, Citing Free Speech Concerns

TikTok is mounting its legal challenge against a U.S. law requiring the company to be sold or banned within nine months, a measure prompted by fears over data security and potential Chinese government influence.

The law, signed by President Biden in April, has sparked controversy, with TikTok and its parent company, ByteDance, denying any links to Chinese authorities and calling the legislation an "extraordinary intrusion on free speech rights."

With over 170 million users in the U.S., TikTok's representatives, along with eight creators who rely on the platform for their livelihoods, will present their arguments before a three-judge panel in Washington, D.C.

The Department of Justice (DoJ) will counter, emphasizing national security concerns, including the risk of TikTok being used for propaganda by the Chinese government.

Critics, however, argue that upholding the law would set a dangerous precedent for free speech globally. While the legal battle unfolds, experts predict the case could extend for months, potentially reaching the Supreme Court before any resolution is achieved.

Energy

Is This Industry Headed for Its 'NVIDIA Moment'?

Most investors didn't see NVIDIA's rise from obscurity to a tech giant coming... The lithium market is primed for a similar breakout. As the EV revolution shifts into mass adoption, demand for lithium is set to soar. A little-known company is strategically positioned with access to one of the largest lithium deposits in North America.

Don’t miss the next major breakout—secure your place in the lithium boom!

NuCana plc [NCNA] - Last Close: $2.540

NuCana plc stock is up by 99% in premarket trade.

The company reported positive Phase 2 study results for its drug NUC-7738 combined with pembrolizumab.

This treatment showed promising outcomes for metastatic melanoma patients who did not respond to existing PD-1 inhibitor therapies, achieving prolonged progression-free survival and disease control in 75% of participants.

With its favorable safety profile, this combination therapy offers a potential new option for difficult-to-treat melanoma cases, generating strong investor interest and driving up the stock price.

Agape ATP Corporation [ATPC] - Last Close: $1.75

Agape ATP shares are up 29% before the opening bell today.

The firm announced a strategic partnership between its subsidiary, ATPC Green Energy, and Xiamen Photons Solar Technology Co., Ltd.

The collaboration focuses on developing advanced solar PV mounting systems for Malaysia and ASEAN countries, supporting the region's push for renewable energy and carbon neutrality.

This joint effort combines ATPC's regional expertise with Photons Solar's technological prowess, aiming to boost solar energy adoption and offer versatile, reliable solar solutions.

The partnership's potential to transform the ASEAN solar market has sparked investor optimism, driving the stock higher.

AdvanSix Inc. [ASIX] - Last Close: $27.44

AdvanSix is up 20% so far in premarket trading after the company was awarded a $12 million grant from the U.S. Department of Agriculture (USDA) to expand American fertilizer production.

The grant will help AdvanSix increase its production of granular ammonium sulfate fertilizer by approximately 200,000 tons per year, supporting domestic supply chains and creating economic opportunities.

This expansion is part of AdvanSix's SUSTAIN initiative to enhance fertilizer production while maintaining energy and environmental standards.

The funding recognizes the company's potential to positively impact farmers and meet the growing demand for sustainable sulfur nutrition, boosting investor confidence and driving up the stock price.

Security

An AI Stock Ready to Break Out

While the big names dominate the headlines, this overlooked AI company is quietly revolutionizing public safety. With the global security robots market projected to hit $120 billion by 2030, this company is strategically positioned to capture massive gains.

Their 2023 revenue surged by 128%, yet with a market cap of just $35 million, this stock remains hugely undervalued.

Get in early on this AI breakthrough and tap into a high-growth opportunity before Wall Street takes notice.

Everything Else

• India can sustain 7.5% to 8% growth, says its central bank governor.

• Pfizer's new drug for cancer-related syndrome cachexia delivered positive trial outcomes.

• After gunshots were fired near Trump's Golf Course, the suspect has been identified and is in custody.

• Target prepares for the holiday rush with 100,000 seasonal hires.

• Harland & Wolff will close its non-core divisions amid financial difficulties.

• Audi workers in Brussels protest as a plant closure looms.

• A softer dollar and anticipated U.S. interest rate cuts boosted gold prices to new highs.

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.