Monday Market Closed

Dear Winner,

Monday market closed for Labor day observance. So sit back. Elongate that weekend and soak it up, you deserve it. Congrats on getting ahead for this week by opening this newsletter. Let us set you up for the week ahead.

So, with that said, let’s get after it…

Market Indices & Commodities

(As of Sunday Eve)

News
The Recap

In case you missed it, forgot, overslept, drank too much, were traveling, or whatever the case may be…

• Stocks rallied Friday to finish August with monthly gains, with the S&P 500 climbing 2.3% from the end of July 💰

• Brazil’s highest court banned X, outlawing the social-media platform for millions, amid escalating tensions over what speech is protected online. ⚖

• Apple CFO steps down and they cut 1,000 jobs 🍎

• Apple and Nvidia are in talks to invest in OpenAI 📱

• Warren Buffet’s Berkshire Hathaway hits $1 trillion valuation 💵

Graph of the Day
Semi-Conductor Wars 🪖 

News
This week

Another big week of news, economic data, events, the whole 9 yards. Get the scoop on what is important to know for this week.🎯

• Monday - -Market Holiday- China Caixin PMI (August): index expected to drop to 49.6 from 49.8.

• Tuesday - Construction Spending, ISM Manufacturing Index,

• Wednesday - Factory Orders, MBA Mortgage Applications Index, Trade Balance, China Caixin services PMI (August): expected to rise to 52.4 from 52.1, Bank of Canada rate decision: rates forecast to be held at 4.5%

• Thursday - ADP Employment Change, Continuing Claims, EIA Crude Oil Inventories, EIA Natural Gas Inventories, Initial Claims, ISM Non-Manufacturing Index, Productivity – Revised, Unit Labor Costs-Revised

• Friday - Average Workweek, Average Hourly Earnings, Nonfarm Payrolls, Nonfarm Private Payrolls, Unemployment Rate, Canada employment data (August): unemployment rate to hold at 6.4%

⭐ The week begins quietly with the US on holiday for Labor Day. However, US and China Purchasing Managers' Index's (PMIs) and then monthly US jobs data will mean that investors have plenty to monitor.

Now You Know 
Investing in Weight-Loss and Diabetes Treatments 💉

Alright,

I know all of you have heard all the shit like Ozempic and all of them weight loss drugs, to be honest I can’t even keep up with all their names.

Well anyways, they have been on fire. Eli Lilly and Novo Nordisk shareholders must be pretty stoked with the last few years of performance. 

The latest generation of medications have resulted in massive gains for these two pharmaceutical giants. But the revolution may only just be getting started, as a pipeline of similar treatments are going through clinical trials. 

Over the last 2 years, and almost in parallel with the Generative AI boom, a revolution has begun in the treatment of diabetes and weight loss. Surging sales of Ozempic and Wegovy have helped Novo Nordisk overtake LVMH to become Europe’s most valuable company.

GLP-1 (glucagon-like peptide-1 agonists) drugs stimulate the body to create more insulin, which helps lower blood sugar levels. The first GLP-1 drug was approved for the treatment of type 2 diabetes nearly 20 years ago.

Patients found that the drug also reduced their appetite and food intake, resulting in weight loss. In 2014 a newer variant was approved for weight management. But enough of that nerdy shit. Where’s the real value ?

The Billion Dollar Opportunity 💸 

Although Ozempic and Mounjaro were indicated for diabetes, they were both being prescribed ‘off-label’ for weight loss before the weight loss brands were approved. The positive results meant demand was already there long before Wegovy was approved.

Type-2 diabetes affects over 500 million people worldwide. While the newer GLP-1s are very effective for diabetes, there are other ways to manage it. The impact on weight management was more pronounced because few treatments have had widespread success.

Estimates of the potential GLP-1 market size vary widely, and range from around $70 billion to over $150 billion in the next decade. Most analysts also expect Novo Nordisk and Eli Lilly to continue to dominate the market for the next decade. 

So maybe it’s time to invest in this industry.

^{_{Thank You}}
That’s all Folks

Hey, thank you for checking out Monday Market Open. I hope you enjoyed it, learned something new, and are feeling ready to attack the week. Keep an eye on your inbox for more Alpha coming your way this week.

Cheers,