NVDA Earnings Ready To DOMINATE

WORD ON THE STREET 

• UPS Workers Get BIG Raise – The Teamsters approved a new labor deal for drivers at UPS, giving it the biggest endorsement in the history of the organization. At the end of the five-year deal, UPS workers will average about $170,000 in pay. The deal averted a potentially ruinous strike that would have hit late last month.

• AMC Collapses – If you were still holding the meme stock – I’ve got bad news. The movie chain’s stock plummeted by more than 18% as investors prepared for the conversion of the special equity APE shares into normal shares.

• Theft Hits Dick’s Profit Guidance As Stock Falls – DKS had an even worse day than AMC – the stock was down more than 24%. The chain reported significantly lower earnings per share compared to last year and fell well below expectations, just $2.82 per share compared to $3.81 predicted. The company also blamed “elevated inventory shrink” for lowering profitability. In other words – theft.

• Woolworths Impresses On Profits – Woolworths met analyst forecasts as underlying full-year profit rose by 4.6%. The earnings margin for food was also up significantly compared to last year – something which may provide evidence for critics who claim inflation in Australia has more to do with corporate profits than supply problems or government policies.

HOT SPOTS: What’s Going on in Geopolitics

• Chinese Box Office Hits New High – Summer box office receipts in China hit an all-time seasonal high of $2.4 billion. It’s surprising because the country is suffering from slowing economic growth and high youth unemployment. Perhaps citizens are seeking escapism… that can’t make the Chinese government very happy.
  

• USA Approves New Arms Deal For Ukraine – The United States has approved a potential $12 billion arms deal from Poland to Ukraine. The potential purchase includes 96 AH-64E Apache helicopters and other equipment.

• Philippines Naval Outpost Resupplied In Defiance Of China – Ok, it’s not quite Fort Sumter but it’s a potentially dangerous showdown. The Philippines has stationed a garrison aboard the grounded ship the BRP Sierra Madre to stake its claim to an area of the South China Sea. China has blasted the move and its naval militia reportedly tried to prevent a resupply effort. However, the Philippines pulled it off despite Chinese efforts trying to “black, harass, and interfere,” according to the National Task Force for the West Philippine Sea.

CUTTING EDGE: What‘s Happening In Tech

• Here We Go Again With The Masks… – Yup, they’re going to do this again. At least in some areas… Lionsgate studio in Hollywood has mandated masks in response to the new COVID-19 variant, EG.5. The new variant has become the dominant form of the virus in the USA.

• Kinect Is Dead. Again. – Microsoft has canceled the Kinect depth camera and microphone for the second time. It was initially killed off in 2017, but returned as the Azure Kinect Developer Kit two years later. Now, Microsoft is ending production… the only ones that will ever be made available are the ones that have already been made.

• Coinbase Claims Minority Stake In Circle Internet Financial – The cryptocurrency exchange has bought a minority stake in Circle Internet Financial. As a result, Circle is bringing in issuance and governance of USDC in-house as part of the deal. The move is a step into letting Coinbase compete in sending money worldwide, with USDC the key into opening new business opportunities.

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