S01 E09 10/04/23

Stock Gamblers - October 04, 2023

Hosts: George Howell & Chris Carbonara

Intro:

George and Chris share anecdotes from their recent experiences, including a ribbon-cutting ceremony in Boston and a rainy trip. The duo also touch upon their basement adventure.

Economic Recap:

- Federal Reserve's Balancing Act: Despite the Federal Reserve's efforts to combat inflation with multiple interest rate hikes since March 2022, the U.S. unemployment rate remains low at 3.8%. This surprising stability in the labor market is leading economists to re-evaluate traditional beliefs about inflation and unemployment.

- Political Turbulence and Market Impact: The recent political shakeup, marked by the end of Kevin McCarthy's tenure as House speaker, led to a noticeable market drop. However, other factors, such as a rise in Treasury yields, were more influential. With an 80% chance of a government shutdown by mid-November, sectors like defense, semiconductors, and healthcare could see increased volatility.

Stock News Highlights:

- Birkenstock IPO: The German sandal-maker is aiming to raise up to $1.58 billion with its upcoming IPO, valuing the company at an impressive $9.2 billion.

- Congressional Decision's Market Effect: U.S. stock-index futures rose after Congress passed an interim spending bill, averting an immediate government shutdown. Yet, this decision might affect House Speaker Kevin McCarthy's position.

- McDonald's and NLRB: The National Labor Relations Board's proposed rule could redefine McDonald's relationship with its franchisee employees, potentially holding the corporation accountable for labor law violations.

- Clorox Financial Impact: After a summer cybersecurity attack, Clorox has cut its financial projections, leading to a decrease in its shares.

- Intel's Spinoff Plans: Intel is planning an IPO for its PSG division, potentially bringing in billions and positioning the company to rival giants like Nvidia and AMD.

Roll Them Dice Stocks:

Highlighted stocks include Procter & Gamble, Salesforce, Chevron, Delta Air Lines, and Estée Lauder.

Expert Stock Picks:

- Motley Fool: Advocates the potential growth trajectory for Viatris, while recommending a sell for New Relic shares based on an impending buyout.

- *Barron’s:* Points to General Dynamics as a prime defense contractor with a promising backlog and potential for investment, especially if a government shutdown leads to a dip in the stock's price.

Host Picks:

- Carbo: Discusses his decision not to have any picks this week, focusing on Tilray's outreach to Robinhood customers. He shares insights from a Q&A session with Tilray's CEO and Chairman, Irwin Simon.

- George: Highlights previous picks and introduces Moderna and CSL.

Patreon & Contact:

Listeners can support the show on Patreon for exclusive content and participate in a virtual stock market competition. Contact the hosts at stockgamblersshow@gmail.com or through their website at stockgamblers.net.

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