| | Good Afternoon! | Hey, everyone. It's Adam from Elite Trade Club. | Here’s what moved the market today. |
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| | | | Markets 📈 | The market ended the week with tariff concerns in everyone’s mind, causing drops for U.S. indexes. The Dow Jones was affected the worst, losing over 300 points. | DJIA [-0.75%] S&P 500 [-0.50%]
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| Nasdaq [-0.28%] Russell 2K [-0.82%]
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| | Market-Moving News 📈 | Banking | JPMorgan to Deliver Over $4 Billion in Gold as Prices Surge and Tariff Concerns Grow | | JPMorgan Chase & Co. is set to deliver over $4 billion worth of gold bullion in February as part of futures contracts in New York, thanks to rising prices and fears of import tariffs. The bank, known as the world’s largest bullion dealer, is among several institutions preparing to deliver 30 million troy ounces of gold on the CME Group’s Comex. This delivery marks one of the largest on record. | Gold futures prices have surged recently, with spot prices in London reaching new highs. The gap between Comex futures prices and spot prices has created an opportunity for banks to profit by transporting gold quickly between trading hubs. This has led to unusual activity in other precious metals, with silver also being flown into the U.S. despite its bulk and lower price point. | Typically, only a small portion of Comex trades are physically delivered, as most positions are closed or rolled over before expiration. However, physical inventories in Comex depositories have grown significantly since the U.S. election, with 13 million additional ounces of gold added, amounting to about $38 billion. | While JPMorgan’s motives remain unclear, analysts speculate that the deliveries could be related to taking advantage of the price differences or unwinding short positions. Other major banks, including Deutsche Bank, Morgan Stanley, and Goldman Sachs, are also involved in these deliveries. |
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| | Retail | Walgreens Halts Dividend as Turnaround Efforts Take Priority | | Walgreens Boots Alliance announced it is suspending its dividend for the first time in over 90 years as part of a broader effort to strengthen its balance sheet. The move, aimed at reducing debt and improving cash flow, came as a surprise despite prior expectations of a possible cut. The stock dropped sharply following the announcement, reflecting investor concerns over Walgreens' financial outlook. | While the company continues its turnaround strategy, challenges remain. Walgreens faces store optimization costs, upcoming debt maturities, and slow growth in its core business, adding uncertainty to its financial recovery. The decision to suspend the dividend highlights the company's focus on preserving liquidity amid these headwinds. | The company is also dealing with ongoing legal scrutiny. Just ten days ago, Walgreens' shares fell after the U.S. Department of Justice accused the company of filling unlawful opioid prescriptions in violation of the False Claims Act. Walgreens has denied wrongdoing, but the legal proceedings add another layer of uncertainty for investors. | As Walgreens navigates restructuring efforts and legal challenges, the company's ability to stabilize operations and regain investor confidence will remain a key focus in the months ahead. |
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| | | | Wholesale | Costco Workers Prepare to Strike as Contract Deadline Approaches | | Costco workers, represented by the Teamsters union, are facing a potential strike as the deadline for a new contract approaches. With midnight Friday marking the expiration of the current agreement, 18,000 workers across six states are preparing to walk out if negotiations fail to yield an agreement. | The affected states include California, Washington, Maryland, Virginia, New Jersey, and New York, though the strike may not impact all stores. Costco, with over 200,000 U.S. employees and 600 locations, has stated that the labor contract with the Teamsters covers less than 10% of its stores. | Teamsters members voted earlier this month to strike unless Costco presents a new contract by the Friday deadline. Union leaders argue that the company’s profits—bolstered by a 5% revenue increase last year—should be reflected in worker compensation. Costco’s net income more than doubled in recent years, reaching $7.36 billion by the end of its fiscal year in September. | The union’s leadership has warned that if their demands for a fair deal are not met, they will initiate a national strike. Costco, however, remains committed to negotiating in good faith, asserting that it has always treated its employees well and is working to resolve the matter. |
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| | Top Winners and Losers 🔥 | | Viavi Solutions Inc [VIAV] $12.04 (+20.52%) | Viavi Solutions shined brightly today after boasting strong revenue and earnings growth. | Atlassian Corporation [TEAM] $306.78 (+14.92%) | Atlassian jumped thanks to stellar Q2 results and the company’s success in joining the AI boom. | AST SpaceMobile Inc [ASTS] $20.24 (+11.15%) | AST SpaceMobile announced that the FCC granted it special authority to test its commercial BlueBird satellites, sparking a share price increase. |
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| | | | Deckers Outdoor Corp [DECK] $177.36 (-20.42%) | Deckers lost ground after updating shareholders on weaker-than-expected revenue guidance for the fiscal year. | Beazer Homes USA Inc [BZH] $22.16 (-20.20%) | Beazer Homes failed to impress in its Q1 2025 earnings report, resulting in a loss of share price. | Vestis Corp [VSTS] $13.98 (-11.74%) | Vestis stock also dropped on a dip in revenue and concerns over executive shakeups at the top level. |
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| | | | That's it for today! Please, write us back, and let us know what you think of the Closing Bell Roundup. We're always eager to hear feedback! | Thanks for reading. I'll see you at the next open! | Best Regards, — Adam G. Elite Trade Club |
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