Day: October 16, 2024

MONTREAL, Oct. 16, 2024 /CNW/ – Today, the Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities, announced that a selection process is underway for the position of Chair of the Board of Directors at Jacques Cartier and Champlain Bridges Incorporated (JCCBI).

The Government of Canada is seeking applications from qualified, diverse, and talented individuals to fill this position through an open, transparent, and merit-based selection process. Interested candidates are encouraged to apply prior to November 12, 2024.

Former Chair Catherine Lavoie stepped down in November 2023 and Sylvain Villiard, the Vice-chair, was appointed by the Governor in Council to be the Interim Chair until a replacement could be identified.

This process encourages applications from individuals with experience at the senior executive level on transportation infrastructure management and a solid track record of implementing effective corporate governance practices, who are also proficient in both official languages. Experience with complex financing, executive compensation, and risk assessment and management practices would be considered assets.

The Notice of Appointment Opportunity is published and applications for this opportunity can be submitted through the Government of Canada’s Governor in Council appointments website.

Quotes

“The Jacques Cartier and Champlain Bridges Incorporated play an essential role in managing important federal transportation corridors to provide safe and efficient travel routes as well as support national and international supply chains. I invite candidates to apply to serve as Chair on its Board and support JCCBI’s vital work in the years to come.”

The Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities 

Quick facts

• JCCBI is a Crown corporation that operates at arm’s length from the government, overseen by an independent Board of Directors and reports to Parliament through the Minister of Housing, Infrastructure and Communities.
• JCCBI manages and operates federal transportation corridors in the Montréal area, including the:
• Jacques Cartier Bridge
• The Estacade
• Melocheville Tunnel
• Honoré Mercier Bridge (federal portion)
• Bonaventure Expressway (federal portion)
• JCCBI was responsible for the original Champlain Bridge and completed its deconstruction in November 2023, on time and on budget, with a final review on April 11, 2024.
• JCCBI is also responsible for the Bonaventure Expressway reconfiguration project. This major project is scheduled to run until 2029.
• At the request of Housing, Infrastructure and Communities Canada, JCCBI provides technical and financial advice for infrastructure maintenance and rehabilitation projects in Quebec, including the Samuel De Champlain Bridge.

Associated links

Appointment Opportunity for the position of Chair of the Board of Directors of JCCBI

Governor in Council Appointments

Housing, Infrastructure and Communities Canada

Jacques Cartier and Champlain Bridges Incorporated

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SOURCE Department of Housing, Infrastructure and Communities

View original content: http://www.newswire.ca/en/releases/archive/October2024/16/c1448.html

Disclosed on October 15, ITEM SECOND IRR TRUST FBO JACOB J WESTPHAL ua of JEFFREY R WESTPHAL dated October , 10% Owner at Vertex VERX, executed a substantial insider sell as per the latest SEC filing.

What Happened: opted to sell 135,146 shares of Vertex, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The transaction’s total worth stands at $5,462,273.

During Wednesday’s morning session, Vertex shares up by 0.41%, currently priced at $41.43.

About Vertex

Vertex Inc is a provider of tax technology and services. Its software, content, and services help customers stay in compliance with indirect taxes that occur in taxing jurisdictions all over the world. Vertex provides cloud-based and on-premise solutions to specific industries for every line of tax, including income, sales, consumer use, value-added, and payroll. The company offers solutions such as tax determination, Tax Data Management, document management, and compliance and reporting among others. The company derives revenue from software subscriptions.

A Deep Dive into Vertex’s Financials

Revenue Growth: Over the 3 months period, Vertex showcased positive performance, achieving a revenue growth rate of 15.33% as of 30 June, 2024. This reflects a substantial increase in the company’s top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Analyzing Profitability Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 63.74%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Vertex’s EPS reflects a decline, falling below the industry average with a current EPS of 0.03.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.51, caution is advised due to increased financial risk.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: Vertex’s current Price to Earnings (P/E) ratio of 317.23 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 10.47 is above industry norms, reflecting an elevated valuation for Vertex’s stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 76.18 reflects market recognition of Vertex’s value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: The company’s market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Why Insider Activity Matters in Finance

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

Exploring the legal landscape, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider’s new purchase, there’s a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Breaking Down the Significance of Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Vertex’s Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.

The S&P 500 defies the odds and mounting risks to continue its trend. The market broke above critical support in late September and is on track to reach bull case targets near 6,000 by the year’s end. The move was sparked by the Fed, which leans toward lower interest rates but is driven by the robust outlook for earnings. With the two forces seemingly in tandem, the 6,000 level may only be a stopping point on the way to even higher highs. 

The S&P 500’s 6,000 target is derived technically and is likely low. Given the earnings and dividend growth outlook and assuming no change in the price multiple, the 15% growth expected for 2025 suggests a move to 6,600 is possible by the end of next year. 

The S&P 500 Uptrend Is Supported by Earnings Growth 

The outlook for S&P 500 earnings growth is driving the market today. Although the forecasts for FQ3 2024, FQ4, and the first half of next year have moderated since the summer, they remain strong at 4.1%, 14.2%, and 13.5%, respectively. The critical detail is that the FQ3 growth target, down sequentially from low double-digits, is a launch pad for sequential acceleration in Q4 and sustained double-digit growth in the first half of next year. Because the Fed is lowering rates and economic data remains healthy, the estimates for next year are likely too low. 

The growth outlook for dividends and share repurchases also supports the uptrend in the S&P 500. Not all S&P 500 companies pay dividends or buy back shares, but most do, and some do both. The outlook is for sustained growth in 2025 at or above the pace set in 2024, mid-single-digits for the distribution and high-single-digits for repurchases. Goldman Sachs estimates predict that 2025 share repurchases will top $1 trillion, setting a record backed by earnings growth, lower interest rates, and resilient economic conditions. 

The economic data has shown spotty weaknesses in 2024 but healthy overall, aligning with Goldman’s forecast, with stronger-than-expected job growth and sustained wage inflation near 4.0%. A slowdown in GDP growth could provide a headwind for earnings growth, but the forecasted 2% to 2.5% is still solid and likely a low estimate. 

Large Cap Tech Is Still the Focus: That May Change in 2025

Large-cap tech stock prices will likely increase in 2024 and early 2025. Still, volatility should be expected because the VIX remains elevated, and there are signs of technical weakness. The warning to investors is not to chase stock prices higher but to wait for price pullbacks before buying, stick with quality, and be ready to exit quickly. 

Although the rally is expected to broaden to all sectors in 2025, including strength in healthcare, materials, communications, and technology, the focus will remain on large caps and AI. The communications and technology sectors will be the second and fourth fastest-growing, which means money will continue to flow into the leading names, including NVIDIA, Microsoft, Amazon AMZN, Google GOOG, and other AI-powered giants. 

Among the risks for investors is concentration. The S&P 500 is a market-cap-weighted index, so the more money flows into tech, the more impact it will have on the market when the AI bubble bursts. The top five holdings in the S&P, including Apple, NVIDIA, Microsoft, and others mentioned, already account for 30% of the entire index, so the risk is real. Fed policy will eventually show up in the data and results, pointing to improving economic conditions and small-cap strength that could end the bull market for large-cap stocks. 

The article “The S&P 500 Defies Odds, Extends Rally With 6,000 in Sight” first appeared on MarketBeat.

It was revealed in a recent SEC filing that Joseph B Hayek, EVP and CFO at Worthington Enterprises WOR made a noteworthy insider purchase on October 15,.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Hayek purchased 2,500 shares of Worthington Enterprises. The total transaction amounted to $100,525.

The latest update on Wednesday morning shows Worthington Enterprises shares down by 0.0%, trading at $40.31.

Discovering Worthington Enterprises: A Closer Look

Worthington Enterprises Inc is a designer and manufacturer of products sold to consumers, through retail channels, in the tools, outdoor living and celebrations market categories as well as a wide array of specialized building products that serve customers in the residential and non-residential construction markets, including ceiling suspension systems and light gauge metal framing products, as well as wholly-owned and consolidated operations that produce pressurized containment solutions for heating, cooking and cooling applications, among others. It operates under two reportable operating segments: Consumer Products and Building Products. It derives majority of the revenue from Building Products segment.

Worthington Enterprises: Delving into Financials

Revenue Growth: Worthington Enterprises’s revenue growth over a period of 3 months has faced challenges. As of 31 August, 2024, the company experienced a revenue decline of approximately -17.51%. This indicates a decrease in the company’s top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Profitability Metrics:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 24.29%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Worthington Enterprises’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.49.

Debt Management: Worthington Enterprises’s debt-to-equity ratio is below the industry average. With a ratio of 0.36, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 62.98 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.71 is above industry norms, reflecting an elevated valuation for Worthington Enterprises’s stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 16.2 reflects market recognition of Worthington Enterprises’s value, positioning it as more highly valued compared to industry peers.

Market Capitalization: Indicating a reduced size compared to industry averages, the company’s market capitalization poses unique challenges.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Uncovering the Importance of Insider Activity

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Deciphering Transaction Codes in Insider Filings

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Worthington Enterprises’s Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.

NEWTON, Mass., Oct. 16, 2024 (GLOBE NEWSWIRE) — Paytronix, the leader in guest engagement for restaurants and convenience stores, today unveiled the much-anticipated 2024 Paytronix Gift Card Trend Report. It’s most robust to date, it finds that while the number of cards sold in 2023 is on par with 2022, overall revenue from gift card sales is up four percent year over year. Among Paytronix clients, the number of digital gift cards sold grew 7% in 2023 to make up 34% of the total gift card market and become the fastest-growing gift card segment

Download the 2024 Paytronix Gift Card Report for all the numbers and insights.

“Forward-thinking restaurants are embracing digital gift cards, offering seamless purchasing, sending, redemption, and reloading experiences through mobile apps and websites,” said Lee Barnes, the Chief Data Officer of Paytronix. “In our latest report we’re helping brands understand that, by viewing gift cards as more than just a sales channel, they can expand their reach, empower their advocates, drive loyalty, and create personalized experiences that keep guests coming back for more.”

Adopting a Mobile-First Strategy
The report explores why a mobile-first approach to digital gift cards is becoming increasingly important for restaurants. Mobile gift cards can easily integrate with a restaurant’s existing app, loyalty program, and online ordering system. This cohesion creates a unified digital ecosystem that deepens a guests’ experiences and keeps their favorite establishment at their fingertips.

Mobile gift cards seamlessly merge with popular digital wallets like Apple Pay and Google Pay, allowing guests to easily store and access their gift cards for online orders and in-store purchases via NFC or QR code scans. A mobile-first approach to gift cards also provides valuable data on customer behaviors and preferences that can be used to create personalized promotions, fine-tune a loyalty program, and guide strategic business decisions.

Key findings from the report include:

Digital Cards Redeemed Twice as Fast – While unredeemed gift cards may seem profitable in the short term, encouraging swift redemption can cultivate lifelong customers. Report data reveals that the average online card was redeemed in 16.8 days, while cards purchased in-store took 35.3 days for redemption.

Increasing Sales – Year-over-year gift card sales continue to increase with 2023 revenue up 6 percent over 2022. Digital gift cards grew the most with sales up 229% between 2019 and 2023. Gift card growth among full-service restaurants (FSRs) also jumped with sales up around 1% (2022, 2,259,621 to 2023 2,342,083).

Most Popular – By far the most popular denomination are $25 cards, which made up 34% of cards sold in 2023. But $50 cards were the biggest mover with an increase of 17% in sales.

Holiday Sales – Year-over-year change in holiday gift cards were up five percent, with 80 percent of all physical gift cards, both in-store and third-party, sold in November and December.

Methodology
The 2024 Paytronix Gift Card Report draws on data sourced from aggregate gift card sales for 241 merchants continually operating gift card programs between January 1, 2019 and December 31, 2023. These merchants all had at least six months of gift card sales data starting in July 2018.

About Paytronix
Paytronix is the leader in Digital Customer Engagement for restaurants, convenience stores, and other retailers who seek to build lasting guest relationships. Paytronix continually advances digital guest engagement by developing technologies that uncover new insights about guest attitudes and behaviors that create brand preferences. For more information visit Paytronix.com.

Media Contact:
Calen McGee
Paytronix Systems, Inc.
cmcgee@paytronix.com
646-957-7758

TORONTO, Oct. 16, 2024 (GLOBE NEWSWIRE) — The Alcohol and Gaming Commission of Ontario (AGCO) has issued NorthStar Gaming (Ontario) Inc., a registered internet gaming operator, an Order of Monetary Penalty totalling $30,000 for failing to ensure that their site, NorthStarBets.ca, is accessible only to players in Ontario and other violations.

To protect the integrity and legality of Ontario’s gaming sector, games on gaming sites registered in Ontario may only be provided within Ontario unless they are conducted in conjunction with the government of another province. As part of its ongoing compliance monitoring of the gaming sector, AGCO identified the issue with NorthStarBets.ca during a proactive, third-party assessment it undertook of registered internet gaming operators.

As part of the assessment, tests were conducted from physical locations in Quebec and New York state to determine whether Ontario gaming sites were accessible outside of Ontario. During the assessment, NorthStarBets.ca failed to accurately identify the location of one of the devices. The AGCO is further citing the operator for its repeated failure to provide the Registrar with data, information and documents requested in a timely manner as required.

In addition to the penalty, the AGCO is continuing to engage with the operator to ensure the issues are appropriately addressed. Failure to do so may result in further enforcement action.

Operators served with an Order of Monetary Penalty have the right to appeal the Registrar’s action to the Licence Appeal Tribunal (LAT), an adjudicative tribunal independent of the AGCO and part of Tribunals Ontario.

QUOTES

“Ontario’s gaming sector is carefully regulated to ensure it’s conducted legally and with the public interest in mind. The AGCO will continue to take all appropriate steps to ensure that regulated gaming sites are operated with integrity and within the province’s legal framework.”

Dr. Karin Schnarr, Chief Executive Officer and Registrar – AGCO

ADDITIONAL INFORMATION

Contrary to section 3.8 of the Gaming Control Act, (GCA) NorthStar Gaming (Ontario) Inc. is alleged to have failed to comply with the following provisions of the Registrar’s Standards for Internet Gaming :

Media Contact

AGCO Communications
media@agco.ca

About the AGCO

The Alcohol and Gaming Commission of Ontario (AGCO) is an Ontario provincial regulatory agency reporting to the Ministry of the Attorney General (MAG). It is a corporation under the Alcohol and Gaming Commission of Ontario Act, 2019.

In a new SEC filing on October 15, it was revealed that Larsen, Senior Vice President at Williams Companies WMB, executed a significant exercise of company stock options.

What Happened: Larsen, Senior Vice President at Williams Companies, made a strategic move by exercising stock options for 1,458 shares of WMB as detailed in a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission. The transaction value amounted to $2,551.

Williams Companies shares are trading, exhibiting down of 0.0% and priced at $50.9 during Wednesday’s morning. This values Larsen’s 1,458 shares at $2,551.

All You Need to Know About Williams Companies

Williams Companies is a midstream energy company that owns and operates the large Transco and Northwest pipeline systems and associated natural gas gathering, processing, and storage assets. In August 2018, the firm acquired the remaining 26% ownership of its limited partner, Williams Partners.

Williams Companies: Delving into Financials

Revenue Growth: Williams Companies’s revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -5.92%. This indicates a decrease in the company’s top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Energy sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company maintains a high gross margin of 58.01%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Williams Companies’s EPS is below the industry average. The company faced challenges with a current EPS of 0.33. This suggests a potential decline in earnings.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 2.14.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: Williams Companies’s stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 21.94.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 5.95 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 12.13, the company’s EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company’s future performance.

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Why Insider Transactions Are Key in Investment Decisions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.

When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Transaction Codes Worth Your Attention

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Williams Companies’s Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.

Charles Schwab Corporation SCHW reported better-than-expected third-quarter results on Tuesday and analysts are weighing in. 

The Details: Charles Schwab saw revenue rise 5% to $4.85 billion with clients’ daily average trades growing 9% year-over-year.

JPMorgan analyst Kenneth Worthington pointed to Schwab as a leading brand for retail financial services and ​said its large and engaged base of retail investors should continue to drive growth for the company. JP Morgan maintained its Overweight rating on Schwab shares and raised its price target from $86 to $87. 

Cash Sweep Balances: Worthington noted Schwab’s September transactional cash sweep balances experienced a large uptick and expects average earning assets and average transaction-based cash levels likely to be flat to higher in the fourth quarter. 

Piper Sandler analysts also highlighted Schwab’s $17.2 billion increase in transactional cash balances in September as the highest month-over-month increase since the Fed began hiking rates in early 2022.

Piper Sandler’s Patrick Moley maintained a Neutral rating on the stock, but raised the price target from $64 to $65 as he remains “cautiously optimistic this trend can directionally continue in the coming quarters.”

See Also: Amazon Analyst Expects Q3 Earnings With Revenue Growth, Margin Expansion, Relative Stable E-Commerce Demand

Goldman Sachs analyst Alexander Blostein was less optimistic and sees cash sweep balances declining in October.  Blostein sees Schwab’s potential downside risks to include faster-than-expected core deposit outflows, Ameritrade-related attrition and lower retail trading activity. Goldman Sachs maintained a Neutral rating, but raised the price target on Charles Schwab stock from $67 to $74. 

“Although October sweep balances are likely to decline, we are encouraged by signs of further stabilization in sweep deposits which should be well-received by investors,” Blostein wrote. 

JMP Securities analyst Devin Ryan cautioned that client transactional cash trends “can be lumpy from month to month.” However, Charles Schwab’s latest results are evidence of “stabilizing-to-inflecting cash trends.” That’s a key focus for investors.

JMP Securities maintained a Market Outperform rating on Charles Schwab and raised the price target from $82 to $84.

Price Action: According to Benzinga Pro, Charles Schwab shares are up 0.96% at $72.65 at the time of publication Wednesday.

Read Also: 

Image: Shutterstock 

Small-cap stocks outperformed large caps in Wednesday’s session, with the Russell 2000 Index surging to test July 2024 highs on the back of expectations for interest rate cuts and a strong rally in regional banks.

Financial stocks continued their upward momentum, buoyed by strong earnings reports. Morgan Stanley MS significantly beat expectations, propelling its stock up by 8% to new all-time highs.

Regional banks, as tracked by the SPDR S&P Regional Banking ETF KRE, rallied 2.1%, hitting levels last seen in early March 2023, prior to the fallout of Silicon Valley Bank.

Airlines also soared, with United Airlines Holdings Inc. UAL posting an 11% rally. The surge lifted the entire industry, as tracked by the U.S. Global Jets ETF JETS, which reached its highest level since July 2023.

The tech sector lagged, weighed down by weak performance in semiconductors. The industry was still reeling from ASML Holding N.V. ASML’s earnings shock on Tuesday, after the company slashed its 2025 revenue outlook, triggering a broad selloff in chipmakers.

Both the Nasdaq 100 and semiconductor stocks remained flat on Wednesday.

In the currency market, the U.S. Dollar Index was poised to log its 12th positive day in the last 13 sessions. Treasury yields edged lower. Oil prices saw a slight decline of 0.6%, with West Texas Intermediate (WTI) crude falling below $70 per barrel.

Precious metals offered positive signals, with gold set to close its fifth consecutive day of gains, while silver rose 0.8%.

In the cryptocurrency space, Bitcoin BTC/USD advanced 1%, reaching $68,000 — its highest level since late July 2024.

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY rose 0.2% to $580.82.
• The SPDR Dow Jones Industrial Average DIA inched 0.6% higher to $429.93.
• The tech-heavy Invesco QQQ Trust Series QQQ fell 0.2% to $489.94.
• The iShares Russell 2000 ETF IWM rallied 1.8% to $226.77.
• The Utilities Select Sector SPDR Fund XLU outperformed, up 1.4%. The Communication Services Select Sector SPDR Fund XLC lagged, down 0.3%.

Wednesday’s Stock Movers

• Interactive Brokers Group Inc. IBKR fell over 3% after missing earnings estimate.
• Other stocks reactive to company earnings included United Airlines Holdings Inc. UAL, up 11.5%, J.B. Hunt Transport Services Inc. JBHT, up 3.5%, Abbott Laboratories ABT, up 1.7%, Morgan Stanley MS, up 7.6%, U.S. Bancorp USB, up 4.7% and Citizens Financial Group Inc. CFG.
• ASML Holding N.V. fell over 5% after dropping 17% on Tuesday in reaction to dismal revenue outlook.
• Companies set to report their earnings after the close include CSX Corp. CSX, Kinder Morgan Inc. KMI, Discover Financial Services DFS, Equifax Inc. EFX, Steel Dynamics Inc. STLD and Alcoa Corp. AA.

Read Next:

Photo via Shutterstock.

A pivotal economic release is set to land this Thursday at 8:30 a.m. ET: the retail sales report for September.

This data will provide a fresh snapshot of household spending during the final month of the third quarter, offering vital clues as to whether American consumers continued to prop up the broader economic growth.

Retail sales are projected to rise by 0.3% month-over-month (m/m) in September, as per TradingEconomics consensus, marking a modest improvement from the 0.1% uptick seen in August.

Some Wall Street analysts are forecasting even stronger results. Bank of America is predicting a more robust performance, with headline retail sales potentially climbing by 0.8% for the month.

“We forecast above-consensus gains of 0.7% and 0.8% in the Census Bureau’s September estimates for retail sales excluding autos and the core control group,” said Aditya Bhave, economist at Bank of America.

“This week’s retail sales report should continue the run of hot data,” Bhave added. “A report like the one we are forecasting would be significant, since it would come on the back of very encouraging GDP and GDI revisions and a gangbusters September jobs report.”

Bank of America anticipates significant gains in spending categories like department stores, up 2.4% m/m, general merchandise, up 2.2% m/m and clothing, up 1.5%.

A robust retail sales report for September would add to the narrative that the U.S. economy is in no immediate danger of a slowdown.

The idea of a “no landing” scenario, in which the economy neither contracts sharply (a hard landing) nor cools down significantly (a soft landing), is gaining traction.

The latest data points, including the blowout 336,000 jobs added in September and stronger-than-expected GDP figures, suggest that the economy may be re-accelerating rather than slowing down.

“If retail sales accelerate considerably, in our view, the narrative may shift further toward ‘no landing’ or even re-acceleration,” Bhave added.

“‘No landing’ is bullish for stocks, in our view, as long as inflation doesn’t flare up,” Ohsung Kwon, CFA, equity analyst at Bank of America, said.

The S&P 500 Index, tracked by the SPDR S&P 500 ETF Trust SPY, rose 0.4% during Wednesday afternoon trading in New York, sitting just 0.4 percentage points below its record high set on Monday.

Bank of America indicated that Hurricane Helene had a short-term impact on spending in parts of the southeastern U.S., including Florida, Georgia, North Carolina and South Carolina.

Card spending growth dipped in those states during the storm’s immediate aftermath, although the effect was temporary.

In the lead-up to the hurricane, there was also a notable surge in grocery spending in these areas as households prepared for the storm.

Despite the potential for strong retail sales growth, analysts at Bank of America suggest it is unlikely to alter the Fed’s current trajectory, at least in the near term.

“With policy rates still close to 5%, we think the Fed will feel comfortable cutting a few more times — two to four, perhaps — even if labor and economic activity data remain strong, as long as disinflation continues,” Bhave said.

Read Now:

Photo: Shutterstock