Markets Rebound + Mastercard to Acquire Threat Intelligence Firm for $2.65B

Good morning. Its September 12th, and today, we’ll look at Mastercard’s big cybersecurity move, Alaska Air’s excellent earnings report, and Moderna’s push to diversify as COVID-19 vaccinations drop.

Previous Close 📈

Stocks rebounded Wednesday after a volatile session driven by the August Consumer Price Index report. An uptick in core inflation initially spooked investors, but a late surge in tech shares helped markets recover.

Futures

U.S. stock futures are edging higher as investors await more inflation and labor data. Dow futures are up 0.18%, while S&P 500 and Nasdaq 100 futures are gaining 0.19% and 0.27%, respectively. Markets remain cautious ahead of the August Producer Price Index and current Initial Jobless Claims data—key indicators for upcoming Fed decisions.

What to Watch

Lots to watch out for on the economic front today.

At 8:30 a.m., the Initial Jobless Claims for September and Producer Price Index (PPI) for August will be released. August's Monthly U.S. Federal Budget will be shared at 2:00 p.m. Eastern.

On the earnings beat, Kroger (NYSE: KR), Signet Jewelers Limited (NYSE: SIG), and Caleres (NYSE: CAL) will release their earnings before the market opens.

After the closing bell, tech giant Adobe (NASDAQ: ADBE), RH (NYSE: RH), and Radiant Logistics (NYSE: RLGT) will report their quarterly numbers.

AI & Healthcare

The Future of Healthcare and AI: A $10 Trillion Opportunity You Can’t Ignore

AI is often referred to as a “Faceless Monster,” raising concerns about job losses and security risks across industries.

But in the midst of these fears, one company has managed to tame this powerful force, using it to transform one of the most vital and fastest-growing sectors: healthcare.

As healthcare is projected to become a $10 trillion industry by 2030, this company’s innovative approach to integrating AI is revolutionizing how we approach patient care, diagnostics, and treatment.

Instead of fearing the rise of AI, this company has learned how to harness its power to benefit people globally, creating a massive opportunity for forward-thinking investors.

Now is your chance to get ahead of this game-changing trend. Click here to discover the company leading the AI healthcare revolution!

Cybersecurity

Mastercard Expands AI Capabilities With $2.65 Billion Acquisition of Recorded Future

Mastercard announced that it will acquire Recorded Future Inc., a Massachusetts-based threat intelligence firm, for $2.65 billion.

Recorded Future specializes in data threat intelligence and employs over 1,900 people across 75 countries. The deal is expected to close by the first quarter of 2025.

The acquisition builds on a collaboration between Mastercard and Recorded Future on an AI-powered service that enhances the speed of detecting compromised credit cards.

Since its launch earlier this year, the service has doubled the rate of identifying compromised cards compared to the previous year, according to Mastercard.

Mastercard aims to strengthen its cybersecurity capabilities through this acquisition, reflecting its commitment to leveraging advanced technology in financial security.

Mastercard's stock is seeing a slight uptick, rising 0.2% in premarket trading.

Airlines

Higher Summer Travel and Re-Bookings Lift Alaska Air's Profit Forecast

Alaska Air Group raised its profit forecast for the third quarter, driven by robust summer travel demand and a surge in re-bookings from passengers affected by a global cyber outage in July.

The outage, linked to a software update from cybersecurity firm CrowdStrike, forced many airlines to cancel flights, stranding thousands of travelers. This situation led to increased bookings for Alaska Air, which was less impacted by the disruption.

The airline now anticipates a profit per share between $2.15 and $2.25 for the current quarter, significantly higher than its previous estimate of $1.40 to $1.60.

Additionally, Alaska Air expects reduced fuel costs through September due to declining jet fuel prices, further supporting its improved outlook.

Alaska Air's shares are rallying by nearly 5% in premarket trading. Other major U.S. airlines, including JetBlue, have also benefited from strong summer demand and re-bookings stemming from the July outage, boosting their revenue forecasts for the third quarter.

Pharmaceuticals

Moderna to Slash Costs, Focus on New Vaccines by 2027

Moderna will cut around $1.1 billion in costs by 2027 while targeting approvals for ten new products as it adjusts to reduced COVID-19 vaccine demand.

Shares of the firm are trading down nearly 6% in premarket trade.

The biotech firm announced that it will reduce research and development spending to between $3.6 billion and $3.8 billion by 2027, down from $4.8 billion expected by the end of this year.

The company will also pause work on some projects to focus on its most promising developments.

Moderna also unveiled promising results from late-stage trials for its respiratory syncytial virus (RSV) vaccine for high-risk adults aged 18 to 59 and a standalone flu shot for older adults. The company expects to submit both for regulatory approval in 2025.

Looking ahead, Moderna aims for a revenue target of $2.5 billion to $3.5 billion in 2025, with annual growth exceeding 25% as new products are launched.

Key projects in the pipeline include vaccines for RSV, norovirus, flu, and personalized cancer therapies, alongside collaborations with Merck.

Transportation

Take Flight With the Future of Air Mobility

The next revolution in transportation is in the skies. Electric air mobility is on the verge of transforming how people and goods move, with the global market projected to reach $1.5 trillion by 2040.

Early movers in this space have secured key partnerships and are already generating revenue. As the cost of electric air taxis continues to fall, this $75+ billion regional air mobility market is ready to take off.

Explore this game-changing opportunity and see how early investors could benefit.

Smart For Life, Inc. [SMFL] - Last Close: $0.85

Smart for Life stock is up 60% in premarket trading after HRT Financial LP, a notable investment firm, acquired a new stake in the company by purchasing 45,636 shares at $0.91 per share.

This investment indicates HRT Financial's confidence in Smart for Life's potential for growth and turnaround in the consumer packaged goods sector.

Despite the company's recent financial struggles, HRT's significant stake of 41.49% suggests a strategic move to capitalize on undervalued assets with potential for recovery. Investors view this as a positive signal, driving the stock price higher.

NETGEAR, Inc. [NTGR] - Last Close: $15.93

NETGEAR is up by more than 25% so far in premarket trading.

The company raised its sales forecast for the third quarter of 2024, now expecting revenue between $170 million and $180 million, up from the previous range of $160 million to $175 million.

This boost is due to the earlier-than-expected launch of its new 5G mobile hotspot.

Additionally, NETGEAR reached a $135 million settlement with TP-Link Systems, resolving all pending litigation between them, further increasing investor confidence and driving the stock higher.

Tenon Medical, Inc. [TNON] - Last Close: $3.06

Tenon Medical stock is surging 120% in premarket trade.

The company announced this week that it has raised $550,000 through a private sale of Series B Preferred Stock and warrants.

These preferred shares can be converted to common stock at a set price, with protections for investors against dilution and favorable terms in case of major company changes.

This influx of capital and favorable deal terms have sparked investor optimism, driving the stock price higher.

An Opportunity You Can’t Miss

A Monster Healthcare Crisis Meets the Power of AI

The world’s aging population, unhealthy lifestyles, and an overburdened healthcare system are fueling a crisis.

Funding cuts across clinics and hospitals only make things worse.

But amid this chaos, one company has emerged with a groundbreaking solution: harnessing AI to transform healthcare.

While AI threatens industries with job losses and security risks, this company has figured out how to use it for early detection, diagnosis, and even treatment of medical issues faced by an aging population.

And with the healthcare industry set to reach $10 trillion within the next decade, the potential for growth is staggering.

Even more impressive? This company recently saw a 292% rise in share value in less than 120 days.

Don’t miss out on this explosive opportunity. Click here to learn more about this game-changing AI company today!

Everything Else

• Novo Nordisk’s Amycretin outshined Wegovy in phase 1 trials with more than double the weight loss.

• GM and Hyundai signed an MOU for a potential collaboration on EVs, supply chains, and clean-energy tech.

• Cyber threats are surging by 1,200% as BT battles a rising wave of malicious bots.

• Boeing workers are set to vote on a strike, which could cost the company up to $3.5 billion.

• NVIDIA’s CEO's optimistic AI outlook sparked a rally in Asian semiconductor shares.

• Beijing condemned a U.S. House bill that could close Hong Kong’s U.S. trade offices.

• Asian markets are surging as tech stocks boost investor confidence.

• Former Evergrande Chief Hui Ka Yan was detained amidst a Chinese property sector crisis.

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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