Markets Await Further Direction From Fed After Jumbo Rate Cut

Good morning. It’s September 23rd, and today, we’ll look at a major upcoming IPO in the aviation sector, some positive news for Intel, and a new billion-dollar fund for small manufacturers shifting to EVs.

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Stocks ended last week on a high, with the Dow Jones closing above 42,000 for the first time following the Federal Reserve’s 50-basis-point rate cut. All three major indices gained more than 1% for the week.

Futures

Futures are slightly higher to start the week. Dow futures are up 26 points, or 0.1%, while S&P 500 and Nasdaq 100 futures have each gained 0.2%. Investors are focusing on upcoming economic data and speeches from key Fed officials for insights into future policy direction.

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What to Watch

Uxin Limited (NASDAQ: UXIN) will report its quarterly earnings before the market opens, while AAR Corp. (NYSE: AIR) will release its earnings after the market closes.

On the economic front, the S&P Flash U.S. Services PMI and the S&P Flash U.S. Manufacturing PMI for September will be released at 9:45 a.m. Eastern, providing an early snapshot of business activity in both sectors.

Aviation

StandardAero Eyes $7.5 Billion Valuation With Planned US IPO

Aviation service provider StandardAero, supported by private equity firm Carlyle Group, is preparing for a U.S. initial public offering (IPO) targeting a valuation of up to $7.5 billion.

The Scottsdale-based company plans to raise up to $1.07 billion by offering 46.5 million shares priced between $20 and $23 each.

The IPO comes as the aviation sector recovers from the downturn caused by the pandemic. J.P. Morgan, Morgan Stanley, and 15 other financial institutions are acting as underwriters.

StandardAero, which offers aerospace engine aftermarket services, will list on the New York Stock Exchange under the symbol "SARO."

In the first half of this year, the company posted a net income of $8.6 million on $2.6 billion in revenue, reversing previous losses. Carlyle, which acquired StandardAero in 2019, will retain control of the company after the IPO.

Technology

Intel May Receive $5-Billion Investment From Apollo Amid Qualcomm Acquisition Speculation

Intel, facing significant financial challenges, could be in line for a multi-billion-dollar investment from Apollo Global Management, according to a recent report.

This offer, reportedly worth up to $5 billion, comes at a critical time as Intel attempts to reverse its fortunes under CEO Pat Gelsinger. The proposed investment, while still in early discussions, could play a crucial role in Intel's turnaround strategy.

The investment offer follows recent rumors of a potential acquisition by Qualcomm, although these reports remain unconfirmed. Intel has faced tough competition from rivals AMD and NVIDIA, contributing to its declining market value and forcing the tech giant to lay off 15% of its workforce.

Apollo’s interest in Intel is not entirely unexpected, as the firm previously announced plans to acquire a 49% stake in Intel’s Ireland manufacturing facility for $11 billion earlier this year.

While this latest potential deal may deepen Apollo’s involvement, it remains uncertain whether the investment will move forward.

Automobiles

New Government-Backed $1-Billion Fund Launched to Support Small Auto Suppliers Shifting to EVs

Monroe Capital LLC has announced the launch of a $1-billion fund to provide loans to small- and medium-sized auto suppliers as the industry pivots from gasoline-powered to electric vehicles (EVs).

Backed by government-guaranteed lending, the Drive Forward Fund LP aims to help these suppliers refinance, grow, and diversify their businesses. This initiative is part of a broader effort to support over 250,000 workers in the auto supply chain.

The U.S. Treasury also announced a $9.1-million grant for the Michigan Auto Supplier Transition Program to help smaller firms secure financing for EV components production.

The new fund comes as automakers face growing pressure from tariffs, tax credit rules, and emissions standards to build cleaner vehicles, requiring new parts and supply chain updates.

Monroe Capital's CEO, Ted Koenig, emphasized that the fund will play a crucial role in advancing the U.S. automotive supply chain. Fundraising will begin after the SBA licensing process is complete.

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Nuvve Holding Corp. [NVVE] - Last Close: $3.92

Nuvve Holding Corp.'s stock is surging nearly 100% in premarket trade following the company's announcement of a 1-for-10 reverse stock split.

This reverse split, which reduces the number of outstanding shares from approximately 6.5 million to 0.7 million, is aimed at regaining compliance with Nasdaq's minimum bid price requirement of $1.00 per share.

The move consolidates shares, which increases the stock's price per share, making it more attractive to investors and helping Nuvve maintain its Nasdaq listing.

Black Diamond Therapeutics, Inc. [BDTX] - Last Close: $4.76

Black Diamond Therapeutics is up by more than 40% before the opening bell today.

The firm announced promising Phase 2 trial results for its drug BDTX-1535. The drug showed strong anti-tumor activity in patients with recurrent EGFR-mutant non-small-cell lung cancer (NSCLC), a challenging cancer to treat, particularly in cases resistant to existing therapies like osimertinib.

These results position BDTX-1535 as a potential new treatment for this difficult-to-treat cancer, boosting investor confidence in the company’s future prospects. Regulatory feedback is expected in early 2025.

Biohaven Ltd. [BHVN] - Last Close: $40.39

Biohaven shares are up 12.5% in premarket trading due to the company's announcement of an upcoming conference call to discuss the results of a pivotal study on troriluzole for the treatment of Spinocerebellar Ataxia (SCA).

This study was designed in collaboration with the FDA and aims to evaluate the effectiveness of troriluzole, a third-generation drug that modulates glutamate, an important neurotransmitter.

The results of this study are eagerly anticipated, as troriluzole could offer a new treatment option for patients with SCA, a rare neurodegenerative disorder.

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Everything Else

• UniCredit strengthened its position in Commerzbank, seeking to reach a 29.9% stake.

• KKR secured $4.6 billion for first its North America mid-market deals fund and plans an employee equity program.

• Zabka Group is set for an IPO in Warsaw following massive expansion under CVC Capital.

• A breast cancer drug from AstraZeneca and Daiichi struggled to extend patient survival in a new trial.

• Dealerships in China reported $19.5 billion in losses and appealed for government aid.

• The Biden administration targeted Chinese technology in autonomous cars, citing security concerns.

• Alibaba Cloud and NVIDIA unveiled an advanced solution for Chinese smart vehicles.

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

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