Daily Brief United States: Intel Corp, Gold, Nvr Inc, USD, Crude Oil, Verde Clean Fuels , Cocoa Futures, POET Technologies , Arq and more

• Intel is struggling, with a dismal stock performance and job cuts
• The company’s risky and capital-intensive strategy may not be sustainable
• The core business is no longer sufficient to support their strategic goals, leading to financial challenges and market share loss.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• S&P 500 futures down 33 basis points, showing signs of exhaustion
• US dollar index up 67 basis points, driven by euro reversal
• China’s unexpected outperformance in equities may be linked to US stimulus actions and coordination

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• This month, I had the privilege of attending an investment conference, where I engaged with many successful value investors and independent thinkers.
• During one conversation, an investor jokingly remarked that everyone seems to have shifted toward “quality growth investing,” while he and Mr. Robotti appear to be among the few who still favor cyclical stocks, such as Tidewater Inc.
• Although I don’t generally shy away from cyclical stocks, I recognize the immense challenge of navigating the capital cycle by investing in companies that seem on the brink of failure.

• Option prices are a valuable tool for studying market trends and risk premium
• Gold’s unique properties make it a valuable asset for portfolio diversification and defense against government chaos
• The oil VIX index, OVX, provides insights into market risk and volatility in the oil market, with potential implications for broader market trends

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Labor market data challenges notion of slowing labor demand and jolts
• Fed policy expectations shift to 25 basis point cut in November
• Uncertainty in policy outcomes causing high policy uncertainty and potential for large market moves

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• The US oil and gas rig count declined by two to 585 for the week ending 04/Oct, marking the seventh drop in eight weeks.
• The US oil rig count fell by five to 479, its lowest since 19/Jul. Gas rigs rose by three to 102, marking its third straight weekly gain.
• For the week ending 04/Oct, US energy producers added two rigs in Texas but cut three in New Mexico and one each in Louisiana and Oklahoma.  

• The WTR Sustainable Index was up 0.6% W/W versus the S&P 500 Index (up 0.2%), the Russell 2000 Index (down 0.5%) and the Nasdaq Index (up 0.1%).
• Energy Technology (13.2% of the index) was down 1.6%, while Industrial Climate and Ag Technology (46.3% of the index) was up 0.5%, ClimateTech Mining was up 0.7%, and Advanced Transportation Solutions (21.2% of index) was up 2.0%.

• Top 10 Performers: PEV, EVGO, NXH, EAF, CRE, AZRE, SPI, BNET, GIGA, PLL

• Disaster Averted – But Not Solved The European Commission has proposed to delay the Deforestation free products regulation (EU DR) by 12 months.
• The law has been in place since May 2023, and was due to enter into effect on 30 December 2024.
• EU DR requires that targeted commodities (cattle, cocoa, coffee, palm oil, rubber, soy, wood) and relevant products sold in the EU must not be produced on land that was deforested after 2020.

• POET Technologies is a startup disrupting the photonics industry with a new technology that eliminates parts of an optical transceiver and replaces them with a single integrated device which is smaller, cheaper, faster, more scalable and with much lower power consumption than the current solutions.
• It has a $50M joint venture with Sanan IC to make and sell optical engines to data centers and telecom.
• Its solution can be produced at wafer scale, eliminating costly manual steps, and allowing it to be easily produced in large quantities and at low cost.

• A diversified environmental technology company focused on developing and providing solutions for air, water, and soil purification.
• Arq is a leading producer of powdered activated carbon (PAC) and is expanding into the faster-growing and higher-margin granular activated carbon (GAC) market, which should drive significant EBITDA growth in the coming years.
• Focus on execution and cash flow. Since new CEO Bob Rasmus took the helm in 2H23, Arq has delivered improving performance with its foundational and cash-generating PAC business through operational efficiencies, better contracting terms, and penetration of new markets.