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<ul><li>The American drug regulator approved 953 new generic drugs between October 2018 and June 2019.</li><li>This is the highest number of approvals in the first nine months of any fiscal year from the USFDA, according to a report.</li><li>While the new approvals will put pressure on existing drugs to be cheaper, the silver lining for companies is that new applications have slowed down.</li></ul>The United States Food and Drug Administration (USFDA) has generously doled out approvals for new drugs and that is likely to show in the profits of Indian drug makers like <keyword id="44642" type="CITY" weightage="20" keywordseo="Sun-Pharma">Sun Pharma</keyword>, <keyword id="46698" type="CITY" weightage="20" keywordseo="Lupin">Lupin</keyword>, <keyword id="7875008" type="UNKNOWN" weightage="20" keywordseo="dr-redddys-laboratories">Dr Redddy's Laboratories</keyword>, and <keyword id="70473" type="COMPANY" weightage="20" keywordseo="Aurobindo-Pharma">Aurobindo Pharma</keyword> when the earnings start tumbling out this month. The American drug regulator approved 953 new generic drugs between October 2018 and June 2019. This is the highest number of approvals in the first nine months of any fiscal year from the USFDA, according to a report from Ashika Institutional Research. Companies have been battling the pricing pressure in US for a while now and the profit squeeze has taken a lot out of stock prices in recent years. On one hand, there is a two-pronged pressure consistently squeezing drug prices-- one from <a href="https://www.businessinsider.in/The-Trump-administration-has-a-little-known-practice-in-the-pharma-industry-in-its-crosshairs/articleshow/64124087.cms" data-type="tilCustomLink" target="_blank">the Donald Trump administration</a> and the other from the <a href="https://www.livemint.com/market/mark-to-market/us-disruption-may-have-singed-indian-pharma-but-it-is-emerging-stronger-1557253325315.html" data-type="tilCustomLink" target="_blank">rising competition</a> in generic drugs. Over the past three years, sales per marketed product (in US) have declined by about 30%, according to a report by global investment bank Nomura in March 2019. At the same time, <a href="https://www.businessinsider.in/seven-indian-pharma-companies-are-being-dragged-into-a-us-lawsuit-over-high-drug-prices/articleshow/69318841.cms" data-type="tilCustomLink" target="_blank">seven Indian companies</a> -- Sun Pharma, Dr Reddy’s Laboratories, Glenmark Pharma, Lupin, Wockhardt, Zydus Pharma and Aurobindo Pharma-- are facing a lawsuit in over 40 American states for acting like a cartel to keep drug prices up. "However, given intensifying competition due to faster generic approvals and regulatory headwinds, the litigation raises the risk associated with the US generics business for companies involved in the litigation," a report from an Indian brokerage, Motilal Oswal, on May 14 said. At rock bottom While the new approvals will put pressure on existing drugs to be cheaper, the silver lining for companies is that new applications have slowed down. "We are seeing mild slowdown with total 696 ANDAs submitted in the first 9 months of the fiscal year, down 8% (YoY). As major generic companies continue to exit unattractive products, ANDA (generic drug) submissions are seeing this slowdown," the report said. In terms of profit margins, Indian drug makers, who rely a lot on the US market for their revenue, have little to lose and a lot to gain from the low base of previous years. According to estimates from Karvy, the margin for most companies is expected to have widened significantly in the three months ended June 2019, compared to the same period a year earlier. <table style="width: 166pt;"> </colgroup> <tbody><tr> <td class="xl66" style="height:15.0pt;width:82pt">Company</td> <td class="xl67" style="border-left-width: initial; border-left-style: none; width: 84pt;">Profit Margin</td> </tr> <tr> <td class="xl68" style="height: 15pt; border-top-width: initial; border-top-style: none;">Lupin</td> <td class="xl69" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">+732 basis points</td> </tr> <tr> <td class="xl68" style="height: 15pt; border-top-width: initial; border-top-style: none;">Sun Pharma</td> <td class="xl69" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-253 basis points</td> </tr> <tr> <td class="xl68" style="height: 15pt; border-top-width: initial; border-top-style: none;">Torrent Pharma</td> <td class="xl69" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">+118 basis points</td> </tr> <tr> <td class="xl68" style="height: 15pt; border-top-width: initial; border-top-style: none;">Cadila Health</td> <td class="xl69" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-45 basis points</td> </tr> <tr> <td class="xl68" style="height: 15pt; border-top-width: initial; border-top-style: none;">Dr Reddy's Labs</td> <td class="xl69" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">+217 basis points</td> </tr> <tr> <td colspan="2" class="xl70" style="border-right:1.0pt solid black; height:15.0pt;width:166pt">Source: Karvy Stock Broking </td> </tr> <tr> <td colspan="2" class="xl72" style="border-right:1.0pt solid black; height:15.75pt">100 basis points make 1%</td> </tr></tbody></table> SEE ALSO: <a href="https://www.businessinsider.in/donald-trump-on-generic-drugs-indian-pharma-and-katherine-ebans-new-book-with-dinesh-thakur/articleshow/69407566.cms" data-type="tilCustomLink" target="_blank">The man who brought Ranbaxy to its knees is pushing for ‘Made in India’ tag on drugs sold in US</a>

USFDA has set a new record in generic drug approvals this year-- but Indian drug makers have a lot to gain and little to lose

<ul><li>Weak <keyword id="1159034" type="PERSON" weightage="20" keywordseo="JLR-sales">JLR sales</keyword>, subdued demand for commercial vehicles, is expected to weigh on Tata Motors’ earnings in the second quarter. </li><li>The luxury carmaker JLR’s sales declined 27.2% year-on-year in the quarter ended September 30. </li><li>According to brokerages, Tata Motors is likely to report a loss of ₹2,328 crore. </li></ul>The auto sector in India may be witnessing the green shoots of recovery over the last quarter. However, India’s third-largest carmaker in terms of passenger vehicles (PV), Tata Motors, may report losses for a consecutive quarter. The demand for commercial vehicles (CV) and the high-margin Jaguar Land Rover (JLR) cars — which make up for a majority of Tata’s products — was already very weak before the pandemic. And compared to the other segments, the situation has not improved over the past quarter. According to an IIFL report, Tata Motors’ is likely to see its loss widen at the consolidated level, with both JLR and standalone business reporting loss. However, slight margin improvement is expected, given the strong growth in PVs. <div type="image" title="Auto slaes (3)" msid="78873690" hostid="261"></div> JLR’s weak Q2 sales to weigh heavy While the company’s domestic sales recovered sharply in August and September, registering a growth of 21% and 37% — JLR continued to struggle, which will weigh on Tata Motors’ performance. The luxury car segment JLR’s sales declined 27.2% year-on-year in the quarter ended September 30. <div type="image" title="JLR Revenue contribution (1)" msid="78873697" hostid="261"></div> In fact, in late July itself, Tata Motors<a href="https://in.reuters.com/article/tata-motors-ltd-results/tata-warns-of-another-loss-at-jlr-as-demand-slow-to-pick-up-idINKCN24W1Q9"> had warned</a> that JLR was witnessing a subdued performance, and it may post another quarterly loss as the coronavirus crisis saps demand. Secondary pain point — Weak demand for its commercial vehicle segment Compared to other segments in the auto sector, outlook for the commercial vehicle segment remains pretty bleak. And, this was evident in its September sales. Despite 37% growth in overall sales in September, the CV segment declined 29% year-on-year. With such a significant year-on-year volume decline in JLR and CVs, analysts expect Tata Motors’ earnings to remain under pressure. According to brokerages, the automaker is likely to report a loss of ₹2,328 crore. Q2FY21 Earnings Estimates <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brokerages on Tata Motors </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q2 loss estimates (YoY) </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Emkay </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,212 crore </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ICICI Securities </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,892 crore </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Prabhudas Liladher </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,091 crore </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HDFC </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 1,120 crore </td></tr></tbody></table> The festive season is fuelling hopes With the arrival of the festive season, Tata Motors is also betting on a sharp rise in sales figures. The company is offering hefty discounts up to ₹65,000 to woo customers on nearly all its cars from Tata Tiago to Nexon, and Harrier to Tigor. “The initial market trends do suggest a bigger uptick during the festive season with people’s sentiment improving and the need for personal mobility becoming even more evident in Covid times,” said the Axis Securities report. All eyes will be on management commentary on demand outlook, capex plans, business turnaround strategy and discounting trends across JLR’s key markets. Tata Motors’ shares have raked in a decent rally in the second quarter, surging over 36% since the start of July. <div type="image" title="Q2 Tata Motors Share price" msid="78873720" hostid="261"></div> SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/piramal-group-is-ready-for-acquisitions-in-both-pharma-and-financial-services/articleshow/78865009.cms" data-type="tilCustomLink">EXCLUSIVE: Piramal Group is ready for acquisitions in both pharma and financial services</a> <a href="https://www.businessinsider.in/stock-market/news/ril-future-retail-stocks-under-pressure-after-singapore-arbitration-court-rules-in-favour-of-amazon/articleshow/78865963.cms" data-type="tilCustomLink">RIL, Future Retail stocks under pressure after Singapore arbitration court rules in favour of Amazon</a> <a href="https://www.businessinsider.in/tech/news/the-first-satellite-with-ai-onboard-is-now-in-orbit-and-its-tech-could-completely-change-how-we-respond-to-wildfires/articleshow/78858333.cms" data-type="tilCustomLink">The first satellite with AI onboard is now in orbit, and its tech could completely change how we respond to wildfires</a> <a href="https://www.businessinsider.in/stock-market/news/the-stock-market-has-historically-performed-better-when-the-incumbent-president-wins-reelection-according-to-one-analysis/articleshow/78858968.cms" data-type="tilCustomLink">The stock market has historically performed better when the incumbent president wins reelection, according to one analysis</a>

Tata Motors may report loss for yet another quarter led by weak JLR sales, commercial vehicles’ pain

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div></div></div>It's a short week as markets will be closed or will close early on Good Friday.It's also jobs week. On Friday, we'll get the March US employment situation report. Economists expect it to confirm what we already know: job growth is healthy as the unemployment rate continues to fall.However, if you were only focused on the labor market, then you probably wouldn't have guessed that <a href="http://www.businessinsider.com/us-economic-growth-is-tumbling-2015-3">most of the other major economic indicators have been deteriorating</a>.Here's your Monday Scouting Report:Top Stories<ul><li>Job growth seems to be the only thing good that's going on lately. Job growth continues to surprise economists to the upside. But <a href="https://twitter.com/M_McDonough/status/582157065612865536">according to Bloomberg LP Chief Economist Michael McDonough</a>, the same can't be said about housing, industrial production, spending, retail sales, and the various manufacturing surveys. The unexpected March plunges in <a href="http://www.businessinsider.com/retail-sales-feb-2015-2015-3">retail sales</a> and <a href="http://www.businessinsider.com/durable-goods-orders-feb-2015-2015-3">durable goods orders</a> stand out as they reflect weakness in both consumers and businesses. This is all a bit perplexing considering all of the <a href="http://www.businessinsider.com/us-income-bracket-savings-cheaper-oil-2014-12">extra spending money Americans supposedly have thanks to falling gas prices</a>. Rather than spending, evidence suggests <a href="http://www.businessinsider.com/markets-chart-of-the-day-march-23-2015-3">they're saving that money</a>. Late Thursday, <a href="http://www.businessinsider.com/us-economic-growth-is-tumbling-2015-3">Goldman Sachs' Kris Dawsey hacked his forecast</a> for Q1 GDP growth on the concerns. However, he's optimistic that the consumer will spend some of those savings in upcoming quarters, which should get GDP growth back to 3%. Unfortunately, <a href="http://www.businessinsider.com/household-spending-expectations-decline-2015-3">a recent NY Fed survey</a> suggests that's becoming less and less likely. </li></ul>Economic Calendar <ul><li>Personal Income and Spending (Mon): Economists estimate income climbed 0.3% in February as spending increased by 0.2%. Core PCE is estimated to have risen by 0.1%. From Credit Suisse: "A weather-driven surge in utility spending is expected to push nominal consumer demand up 0.5%, although spending outside of utilities looks soft (car sales were lower on the month, core retail sales were flat). Real personal spending will be a key input into Q1 GDP tracking estimates (our current estimate is 1.4%). Headline inflation should rise 0.2% after last month's energy-induced plunge. The core PCE deflator is expected at a modest +0.1%."</li><li style="line-height: 1.5em;">Pending Home Sales (Mon): Economists estimate the pace of sales increased by 0.4% month-over-month in February. From Bank of America Merrill Lynch: "The challenging weather conditions in parts of the country could weigh on activity since pending home sales track signed contracts and prospective buyers need to be able to go out and search for a property. However, it does not appear that new home sales, which also track signed contracts, were impaired. In fact, new home sales surged in February to the highest in seven years."</li><li>Dallas Fed Manufacturing Activity (Mon): Economists estimate this manufacturing index improved to -9.0 in March from -11.2 in February. "Regional surveys are suggesting some slowing in output in late Q1," UBS's Kevin Cummins said.</li><li>S&amp;P Case-Shiller Home Prices (Tues): Economists estimate home prices increased by 0.7% month-over-month in February or 4.6% year-over-year. From Bank of America Merrill Lynch: "The Core Logic home price index, which trends with the Case Shiller data, climbed by 1.1% mom in January, suggesting some risk of an even bigger gain in Case Shiller. That said, the Core Logic data tend to be more volatile than Case Shiller - since Case Shiller is a three-month moving average change - and is also subject to revisions. We also think the data are currently biased higher by poor seasonal adjustments, similar to last year which showed very strong gains in the winter followed by weakness in the spring and summer months. Looking past the noise, it seems that home prices are still running at a solid clip, exceeding the pace of disposable income growth."</li><li>Chicago Purchasing Managers Index (Tues): Economists estimate this regional activity index jumped to 51.8 in March from 45. 8 in February. From Barclays: "Last month, the index fell the most since the 2008 recession, as what looked likely to be a weak print was exacerbated by harsh weather and the West Coast port slowdown. The February reading overstated the degree of the slowdown, in our view, and we look for a rebound to 52.0 in March, signaling a slow pace of expansion."</li><li>Consumer Confidence (Tues): Economists estimate the Conference Board's index of sentiment was unchanged at 96.4 in March. From Barclays: "The preliminary estimate of the University of Michigan index declined from February levels; however, we expect the effects of an uptick in financial market volatility and the rebound in gasoline prices to be buffered by lower monthly jobless claims."</li><li>Auto Sales (Wed): Analysts estimate the pace of auto sales improved to an annualized rate of 16.9 million units in March. From Nomura: "Inclement weather in late February probably caused many consumers to delay their new vehicle purchases until March. Thus, some demand for vehicles may have shifted away from February to March."</li><li>ADP Employment Change (Wed): Economists estimate US private payrolls increased by 225,000 in March.</li><li>Markit US Manufacturing PMI (Thurs): Economists estimate this index climbed to 55.3 in March from 55.1 in February. "Manufacturing regained further momentum from the slowdown seen at the turn of the year, with output, new orders and employment growth all accelerating in March," <a href="http://www.markiteconomics.com/Survey/PressRelease.mvc/2861da71797f4fa9bc41b8cbee173955">Markit's Chris Williamson said</a>.</li><li>Construction Spending (Wed): Economists estimate Spending slipped by 0.1% in February. From Bank of America Merrill Lynch: "Housing starts collapsed in February and a delay in new building will hold back overall construction spending. Moreover, we suspect that renovation projects will be delayed as well. Nonresidential construction spending is also likely to be weak, but perhaps the decline won't be as severe given it is following a sharp 1.6% decline in January."</li><li>ISM Manufacturing (Wed): Economists estimate this manufacturing index slipped to 52.5 in March from 52.9 in February. From UBS's Kevin Cummins: "Regional surveys have been a bit softer so far in March. In contrast, the Markit PMI improved slightly. At 52.9, the February reading for the ISM manufacturing index was down sharply from the peak of 58.1 six months earlier. However, the ISM index had looked somewhat exaggerated relative to more direct measures of manufacturing activity. The level still looks consistent with at least moderate growth in manufacturing output. More broadly, according to ISM officials, February's level of 52.9 is typically associated with a 3.1% growth rate in real GDP."</li><li>Initial Jobless Claims (Thurs): Economists estimate the weekly jobless claims climbed to 285,000 from 282,000 a week ago. "Claims have remained low as the labor market continues to register solid improvement," Nomura economists said.</li><li>Trade Balance (Thurs): Economists estimate the trade deficit shrunk slightly to $41.3 billion in February from $41.8 billion in January. "Higher oil prices should have boosted imports and we also expect a pause in exports after the plunge in January, although the trend is clearly lower," UBS's Cummins said. From BNP Paribas: "A labor strike at West coast ports was resolved in late February, but trade flows were likely still disrupted for most of the month."</li><li>Factory Order (Thurs): Economists estimate orders fell by 0.4% in February. From Nomura: "Factory orders have been on the soft side since late summer, posing some concern for business investment. This is likely to continue into February, with the 1.4% decline in durable goods orders providing a low baseline for overall factory orders."</li><li>The Jobs Report (Fri): Economists estimate US companies added 248,000 nonfarm payrolls in March, driven by a 240,000 increase in private payrolls. The unemployment rate is expected to be unchanged at 5.5% with the labor force participation rate sitting at 62.8%. Average hourly earnings are estimated to have increased by 0.2% month-over-month or 2.0% year-over-year. From Wells Fargo's John Silvia: "The absence of stronger wage growth has been a key concern for the Fed. Jobless claims continue to fall lower and point to further employment gains; however, the exceptionally strong pace we have seen most recently is unlikely to be sustainable. We expect that the pace of hiring moderated to a still-strong 240,000 net gain in March. Despite the strong gains, the unemployment rate should hold at 5.5 percent in the month."</li></ul>Market CommentaryVolatility has picked up a bit in the stock market. The S&amp;P 500 lost about 2% last week, and it's now up just 0.1% for the year."The equity market's very recent retrenchment while rapid should not be that surprising," Citi's Tobias Levkovich said on Thursday. Here were some of the warning signs:"The ECRI weekly leading index was dipping and the Citi Economic Surprise Index had fallen back but the equity market had just experienced a strong February rally taking stocks to levels we deemed more likely for mid-2015. The top 50 intra-stock correlation had dipped below 30% and that usually signaled some reason for near-term caution as well. Plus, valuations had become stretched especially in the biotechnology area as our model for likely performance had moved into unattractive territory for a good while and history has shown that rising bond yields could be a problem for the pharma and biotech stocks in the past."Levkovich reiterated his expectation that the S&amp;P would hit 2,200 by year-end.BMO Capital's Brian Belski is slightly more bullish with a year-end target of 2,250. From Belski's Friday note:"While stocks have enjoyed a remarkable run the past six years, the believability and sustainability of US strength is fervently debated based on our client interactions. We believe 2015 can be defined as "two great unwinds." First and foremost, the drawdown in oil prices is the last straw in terms of prior-cycle leadership, which also included EM, credit, small cap and low quality. The second unwind are strategies built around QE - namely stocks go up as interest rates decline. Once and for all, investors desperately need to accept reality: the "anywhere but the US" fascination and QE are over"With a 2,150 year-end target, Deutsche Bank's David Bianco is a bit more cautious than his peers. But he recognizes there is some upside risk. From Bianco's Friday note:"We've argued, strong job growth and falling [unemployment] amidst still slow GDP justifies the start of Fed hikes from 0% in June or Sept. Hikes would boost the dollar, keep US inflation low and flatten the yield curve. If a strong dollar and initial Fed hikes stave off rising unit labor costs, then, in this world of scant long-term real interest rates, the [Fed funds] rate and 10yr Treasury yields should plateau well below historical norms this cycle at ~2% and &lt;3%. This would support further S&amp;P PE upside..."By "PE upside," Bianco is saying that investors would be willing to pay a higher premium for stocks relative to earnings.For more insight about the middle market, visit <a href="https://urldefense.proofpoint.com/v1/url?u=http://mid-marketpulse.com&amp;k=S62Tl7vLGjW6AAK5ZFwEoQ%3D%3D%0A&amp;r=%2B2sEypbBAnV2mc5PLhBR08ZBMT%2BquZZGjxd0T7NNaP4%3D%0A&amp;m=UtLLChRIkxZLioNs9a5IxKFS7RONkU%2FjCuvoQ68P2Hw%3D%0A&amp;s=28acf971eb6ce00a636a9e28c206665a00dc8a6b849c5fbdd6236e929e9008ce" target="_blank">mid-marketpulse.com</a>. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/invest-warren-buffett-berkshire-hathaway-2015-2">How to invest like Warren Buffett</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="s3M3ZhbDpuxZm0OsRtnfcALpwlLIe4o6" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

Here's your complete preview of this week's big economic events

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">REUTERS/Lucas JacksonChristmas decorations are seen on the floor of the New York Stock Exchange the day before Christmas in New York December 24, 2015. </div></div></div>From one holiday-shortened week to another.The past week was mostly quiet, but highlighted by three straight up days and one flat day in the stock market. Read <a href="http://www.businessinsider.com/closing-bell-dec-21-2015-2015-12">this</a>, <a href="http://www.businessinsider.com/closing-bell-december-22-2015-12">this</a>, <a href="http://www.businessinsider.com/closing-bell-december-23-2015-12">this</a>, and <a href="http://www.businessinsider.com/closing-bell-december-24-2015-12">this</a>.US markets will be open from Monday through Thursday, but will be closed Friday for New Year's Day.As we count down the final trading days of the year, here's your Monday Scouting Report:Top Stories<ul><li>Worrisome gaps. Accounting for earnings is a complicated business. In a recent note to clients, Bank of America Merrill Lynch's Savita Subramanian observed that reported earnings have exhibiting some unusual trends. From her note: "The proportion of companies beating on EPS (60%) was the highest since 3Q10, while the proportion missing on sales (59%) was the highest since 3Q12 - with the gap between the two surprise ratios the widest since 1Q09. Only Health Care and Tech saw both top and bottom line beats. While companies have been nimble about managing earnings to expectations, demand continues to weigh on sales… Another trend worth watching: since late last year, pro forma S&amp;P 500 EPS has exceeded reported (GAAP) EPS by more than 30%, well above the ~10% gap for most of 2013 and 2014 and the widest gap since the Financial Crisis. In 3Q15, nearly 60% of the difference between GAAP and adjusted EPS was attributable to Energy, Metals &amp; Mining and Machinery, where asset impairments/write-downs were the biggest contributors. Another ~20% of the difference was related to Health Care (chiefly Pharma, Biotech and Health Care Equip/Supplies), largely due to acquisition-related costs/impairments." For more context, read <a href="http://www.businessinsider.com/baml-warns-of-gaps-in-sales-and-earnings-2015-12">this</a>.</li></ul>Economic Calendar<ul><li>Dallas Fed Manufacturing (Mon): Economists estimate this regional manufacturing index deteriorated to -7.0 in December from -4.9 in November. Here's Wells Fargo's Sam Bullard: "As one would expect given the plunge in oil prices, the Dallas Fed manufacturing activity index has run in contractionary territory throughout 2015. Renewed weakness in oil prices in December likely kept the headline index below the expansion/contraction level for the twelfth straight month."</li><li>S&amp;P/Case-Shiller Home Price Index (Tues): Economists estimate home prices climbed 0.55% month-over-month in October or 5.60% year-over-year. Here's HSBC: "Home prices have been on an upward trend in most parts of the country since 2012. Over the past year, the Case- Shiller 20-city index has increased by 5.5%. "</li><li>Consumer Confidence (Tues): Economists estimate the Conference Board's measure of sentiment jumped to 93.8 in December from 90.4 in November. Here's Wells Fargo's John Silvia: "Nonfarm payrolls in November posted a second consecutive strong reading, allaying some fears regarding the labor market. We expect consumer confidence will have bounced back in December on the back of more upbeat economic data. In addition, the renewed slide in gas prices will likely support confidence moving into the holiday season. That said, the volatility in financial markets will likely weigh on confidence, leading to only a modest gain."</li><li>Pending Home Sales (Wed): Economists estimate pending sales climbed 0.6% month-over-month in November. Here's UBS's Sam Coffin: "The pending home sales index has probably stopped falling after a net decline over the past six months. We project a 1.0% increase in November after little change in October. Our forecast is backed by improving housing indicators, in particular rising mortgage applications."</li><li>Initial Jobless Claims (Thurs): Economists estimate initial claims climbed to 273,000 from 267,000 a week ago. Here's Wells Fargo's Bullard: "Initial jobless claims continue to trend at a low level, reflecting firms' content over current staffing levels against today's moderate demand outlook. Given the holidays, weekly movements can be volatile with seasonal adjustment issues and therefore it is best to monitor the four­week moving average for underlying trends during this period."</li><li>Chicago Purchasing Manager (Thurs): Economists estimate this index improved to 50.3 in December from 48.7 in November. Barclays: "We look for the Chicago PMI to rise to a neutral reading of 50 in December, up from 48.7 in November. This indicator of Chicago-area activity has been volatile throughout 2015, and last months' survey results were no exception as production, new orders and inventories all fell sharply. A bounce from these moves should bring the headline index higher at year-end."</li></ul><div class="KonaFilter image-container display-table"><div><div class="image on-image">REUTERS/Lucas JacksonA trader cuts cake in a booth decorated for Christmas as he works on the floor of the New York Stock Exchange the day before Christmas in New York.</div></div></div>Market CommentarySince the financial crisis, S&amp;P 500 companies have spent <a href="http://www.businessinsider.com/buybacks-are-back-2014-10">trillions of dollars buying back shares</a> of their own stock. In the third quarter alone, these companies gobbled up <a href="http://www.businessinsider.com/sp-500-third-quarter-buybacks-2015-12">$156 billion worth of themselves</a>.It's important to note that these buybacks - which are enormous enough to sway markets - don't occur evenly throughout the year."Typically, we have a huge tailwind in December from buyback action," <a href="http://www.businessinsider.com/goldman-on-buybacks-and-market-volatility-2015-12">JonesTrading's Dave Lutz observed on Thursday</a>. "Fascinating: November/December has combined for almost 23% of annual buyback budgets from '07-'14(ex-'08).""This tailwind vanishes quickly, as January only has 3% of the total buyback allotments spent," Lutz noted.If this pattern holds, we may witness a <a href="http://www.businessinsider.com/goldman-on-buyback-blackout-window-2015-3">spike in volatility</a> come January. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/humanoid-robot-iran-engineering-2015-12">Engineers in Iran have created a robot that imitates human behavior with scary accuracy</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="swOXVreTpmpcmC5vvlg1enl_n61wKup7" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

Here's your complete preview of this 4-day week's big market-moving events

<div style="padding: 15px; border: 1px solid #999999; margin-bottom: 10px; font-size: 15px!important; line-height: 25px; overflow: auto; vertical-align: middle;">This is part of <a href="http://www.businessinsider.com/category/monday-scouting-report">"Monday Scouting Report,"</a> a weekly look at the stories and issues affecting mid-market businesses. <a href="http://www.businessinsider.com/category/monday-scouting-report">"Monday Scouting Report"</a> is sponsored by GE Capital. <a href="http://www.businessinsider.com/category/monday-scouting-report" target="_blank">Get more »</a></div><div class="KonaFilter image-container display-table float_right"><div><div class="image"><a href="https://www.flickr.com/photos/mikemcd/14712733333/">Flickr / Michael McDonough</a>Tung Ping Chau Island, Hong Kong</div></div></div>This week, we'll get the U.S. jobs report, July auto sales stats, and the first official estimate of Q2 U.S. GDP growth.
GDP reports are usually not too interesting as they are backward looking stats, most of which are revealed through other monthly reports.
Nevertheless, everyone's interested to see what number the U.S. managed to crank out after an unexpectedly 2.9% rate of <a href="http://www.businessinsider.com/q1-gdp-third-release-2014-6">plunge in Q1</a>.
Meanwhile, we'll also get a ton of manufacturing reports from around the world and from within the U.S.
Also, the Fed's Federal Open Market Committee (FOMC) meets on Tuesday and Wednesday to mull over monetary policy.
Also, Pfizer, American Express, Exxon Mobil, Colgate-Palmolive, Time Warner Cable, Valeant Pharma are among the companies announcing Q2 financial results this week.
Here's your Monday Scouting Report:
Top Story
<ul>
<li>All Eyes On Q2 GDP: "Following the first quarter's surprising 2.9% decline in GDP, we are looking for a nice rebound in Q2," said Wells Fargo's John Silvia. "Perhaps even more notably, personal consumption expenditures grew at an initially-reported 3.0% pace, but the figure was revised down to only 1.0%. While the decline in Q1 GDP was rather discouraging, economic indicators thus far in Q2 have been much more upbeat. While we still see net exports putting a drag on economic growth, inventory-building should provide a boost in Q2." The 66 estimates of economists surveyed by Bloomberg range from 2.3% to 5.2%.</li>
<li>Looking Beyond Q2: "Layoffs are falling and bank lending is accelerating-two powerful statistical indicators of the economy's building momentum heading into H2 14," said UBS's Maury Harris who sees "3 handled" real GDP growth from now through 2015. "The major expected behavioral drivers continue to be pent-up demand and lagged positive credit impacts from earlier QE. From the Fed's perspective, housing is a downside risk, although we believe recently tepid mortgage applications and new home sales should pick up with better job creation and related household formation."</li>
</ul>
Economic Calendar 
<ul>
<li>Markit Services PMI (Mon): Economists estimate this index of services activity slipped to 59.8 in July from 61.0 in June.</li>
<li>Pending Home Sales (Mon): Economists estimate sales climbed 0.5% month-over-month in June. "After a string of weak data starting last summer, pending home sales have improved over the past three months," said Bank of America Merrill Lynch economists. "This has also been reflected in the existing home sales data, which track closed contracts. Part of this gain is a payback from the extraordinary weakness during the winter. Smoothing through the year, it still seems that home sales will be down this year relative to last."</li>
<li>Dallas Fed Manufacturing Index (Mon): Economists estimate this regional activity index climbed to 12.0 in July from 11.4 in June. "The regional manufacturing surveys released so far in July have shown strengthening, with gains in the Philadelphia, New York, Richmond, and Kansas City Fed measures," noted UBS's Kevin Cummins. "In contrast, the Markit "Flash" PMI slipped a point but still signaled solid growth."</li>
<li>S&amp;P/Case Shilling Home Price Index (Tues): Economists estimate home prices climbed by 0.3% month-over-month in May, or 10.0% year-over-year. "This is a marked slowdown from the 10.7% qoq saar increase in 1Q," said Bank of America Merrill Lynch economists. "While we had expected home price appreciation to slow, the sharp swing between 1Q and 2Q seems extreme and may reflect poor seasonal factors related to the share of distressed transactions. As such, we may see stronger monthly readings in the second half of the year even though the yoy rate should continue to slow."</li>
<li>Consumer Confidence Index (Tues): Economists estimate the Conference Board's index of sentiment climbed to 85.5 in July from 85.2 in June. "This would reflect the effect of improved housing and labor markets, and we expect confidence to continue to move broadly higher in the second half of the year," said Barclays economists.</li>
<li>ADP Employment Change (Wed): Economists estimated private payrolls climbed by 230,000 in July, down from 281,000 in June. "The early July employment data - claims, regional manufacturing surveys - suggest an improving trend in hiring. Relative to the BLS data, ADP growth has run at a slower pace four out of the last five months," said Bank of America Merrill Lynch economists.</li>
<li>GDP (Wed): Economists estimate Q2 climbed at a 3.0% rate with personal consumption increasing at a 1.9% rate.</li>
<li>FOMC (Wed): At 2:00 p.m. ET, the FOMC will publish its statement. There will be no update to the committee's economic forecasts, and there will be no press conference or Q&amp;A to follow. Economists estimate the Fed will keep interest rates unchanged, and taper monthly Treasury purchases by $5 billion and monthly mortgage backed securities purchases by $5 billion. Here's <a href="http://www.businessinsider.com/fomc-preview-july-2014-2014-7">Goldman Sachs' David Mericle</a> : "We expect that next week's FOMC statement will show very little change. The FOMC might choose to upgrade the language on growth in economic activity somewhat, and it might also strengthen the language on labor market indicators a touch in recognition of the strong June employment report. For the most part, however, recent data have supported the characterization of current conditions in the June statement. In particular, the softer June CPI print likely reinforced the Committee's decision to downplay the firmer inflation prints seen from March to May, and weak housing starts and new home sales reports have likely reinforced concern about the housing sector."</li>
<li>Initial Jobless Claims (Thurs): Economists estimate weekly initial claims ticked up to 302,000 from 284,000 a week ago. "Initial jobless claims probably remained near eight-year lows," said Citi's Peter D'Antonio. "We posit that seasonal factors and their inability to adequately account for the declining number of auto shutdown-related July claims, have exaggerated the improvement in this indicator that was already underway in May and June. This resulted in the recent downswing in weekly filings. Separately, beneficiaries and the insured rate likely also remained low due to factory retooling period seasonal factor idiosyncrasies."</li>
<li>Chicago PMI (Thurs): Economists estimate this index climbed to 63.0 in July from 62.6 in June. "This report on business activity in the Midwest region was broadly positive throughout Q2," said Nomura economists. "The new orders and order backlog sub-indexes within this survey exceeded 50 in June and suggest that activity should continue to expand, at least in the near term. Also, other regional manufacturing headline indexes remained elevated in July."</li>
<li>The Jobs Report (Fri): Economists estimate nonfarm payrolls increased by 231,000 in July, driven by a 228,000 jump in private payrolls. The unemployment rate is expected to be unchanged at 6.1%. Average hourly earnings is expected to have increased by 2.2% year-over-year. Here's Morgan Stanley's Ted Wieseman, who is estimating 230,000 payrolls: "Jobless claims fell to a seven-year low in the July survey week and then an eight-year low the next week, pointing to the pace of firings continuing to run at historically low levels, and business surveys have been pointing to some pickup in sluggish hiring rates. Consumer confidence surveys have shown rising confidence in job finding prospects, also consistent with a pickup in hiring but likely to support a higher quit rate. Strength in motor vehicle production, with July assemblies scheduled to rise to an eleven-year high in seasonally adjusted terms, we expect will support an outsized gain in manufacturing payrolls. The rise in employment we're forecasting would lower then unemployment rate another tenth to 6.0% with a stable labor force participation rate, which is our baseline at this point, assuming the demographic downtrend of 0.2 to 0.3pp per year from the aging of the population is being offset by returning discouraged workers."</li>
<li>Personal Income And Spending (Fri): Economists estimate personal income and spending both increased by 0.4% in June. Core PCE, the Fed's favorite measure of inflation, is estimated to have climbed by 1.4% year-over-year. "The jump in spending reflected a solid increase in core retail sales and a rise in unit auto sales," said Citi's D'Antonio. "In addition, the retail sales report implied substantial upward revisions to earlier months. These gains were partly offset by a drop-off in heating expenses as the weather normalized. The net effect was a rise in real consumer spending of about 21/4 percent at an annual rate. Meanwhile, the gain in payrolls signaled another healthy pickup in wage and salary income."</li>
<li>Markit US Manufacturing PMI (Fri): Economists estimate PMI climbed to 56.5 in July, up from a preliminary reading of 56.3 but down from June's 57.3. "US manufacturers are enjoying a summer of scorching growth," <a href="http://www.markiteconomics.com/Survey/PressRelease.mvc/3d6537dbfe864b79bd872077f8fed299">said Markit's Chris Williamson</a>. "Output grew in July at a rate only just below the four-year peak seen in June as inflows of new orders surged higher again."</li>
<li>Univ. Of Michigan Confidence (Fri): Economists estimate this index of sentiment climbed to 81.5 from a preliminary reading of 81.3. "This would be in line with the modest declines in gasoline prices and the upward move in equity markets since the preliminary survey," said Barclays economists.</li>
<li>ISM Manufacturing (Fri): Economists estimate this index of manufacturing climbed to 56.0 in July. "Northeast PMI readings soared in July," noted Credit Suisse economists. "The Philly Fed Survey was particularly impressive, with a decade-high reading for new orders."</li>
<li>Construction Spending (Fri): Economists estimate spending increased by 0.5% in June. "Within this, we look for a 0.3% m/m rise in private residential construction to be boosted by a 0.9% rise in the public component," forecasted Barclays economists. "This would reinforce our expectations that both residential and nonresidential construction spending will contribute to real GDP growth in the second quarter."</li>
<li>Vehicle Sales (Fri): Analysts estimate the pace of sales slipped to 16.7 million units in July from 16.9 million in June. "Mid-month industry surveys indicate that overall sales only pulled back slightly in July after rising to an eight- year high of 16.9 million in June, and our AlphaWise team is seeing similar trends," said Morgan Stanley's Wieseman. "Retail sales appear to have moved higher, but fleet demand pulled back after strong upside last month."</li>
</ul>
Market Commentary
Goldman downgraded stocks on Friday.
"We downgrade to neutral over 3 months as a sell-off in bonds could lead to a temporary sell-off in equities," <a href="http://www.businessinsider.com/goldman-sachs-neutral-on-equities-2014-7">wrote Goldman Sachs' portfolio strategy team led by Anders Nielsen</a>. "This makes the near-term risk/ reward less attractive despite our strong conviction that equities are the best positioned asset class over 12 months, where we remain overweight."
"Growth has improved substantially," they wrote. "Most of the acceleration we had expected is now behind us, but we expect growth to be sustained at current or slightly higher levels, with the US growing at around 3% through 2017. We think the likelihood of a rise in government bond yields has increased and see this as a key aspect of the near-term macro outlook."
For more insight about the middle market, visit <a href="https://urldefense.proofpoint.com/v1/url?u=http://mid-marketpulse.com&amp;k=S62Tl7vLGjW6AAK5ZFwEoQ%3D%3D%0A&amp;r=%2B2sEypbBAnV2mc5PLhBR08ZBMT%2BquZZGjxd0T7NNaP4%3D%0A&amp;m=UtLLChRIkxZLioNs9a5IxKFS7RONkU%2FjCuvoQ68P2Hw%3D%0A&amp;s=28acf971eb6ce00a636a9e28c206665a00dc8a6b849c5fbdd6236e929e9008ce" target="_blank">mid-marketpulse.com</a>.

Get Ready For An Unusually Busy Week For The Economy - Here's Your Complete Preview

IPO gold rush: All but 4 IPOs in FY24 gave positive returns on listing

Welcome to <keyword id="9884466" type="UNKNOWN" weightage="60" keywordseo="insider-cannabis">Insider Cannabis</keyword>, our weekly newsletter where we're bringing you an inside look at the deals, trends, and personalities driving the multibillion-dollar global <keyword id="14728" type="ENTERTAINMENT" weightage="100" keywordseo="cannabis">cannabis</keyword> boom.<a href="http://newsletter.businessinsider.com/join/cultivated">Sign up here to get it in your inbox every week</a>.Happy Friday readers,This week, the cannabis industry's news cycle was dominated by Jazz Pharmaceuticals' $7.2 billion acquisition of GW Pharma.I'll admit - the deal took me by surprise. I had long expected the oft-predicted pharmaceutical incursion into cannabis, but I didn't expect a neuroscience-focused company like Jazz to spend $7.2 billion, and not to mention, a 50% premium on GW's share price to close the deal.You can <a href="https://www.businessinsider.com/jazz-pharmaceuticals-will-acquire-cbd-drugmaker-gw-pharma-for-72-billion-2021-2">read our report on the deal here</a>, outlining GW's 20-year path from upstart to getting the first (and still only) CBD-based drug approved by the FDA.What else?Lawmakers in Virginia and New Mexico are marching quickly toward legalization as New Jersey stalls. Progressive New York lawmakers savaged Gov. Cuomo's legalization plan and pledged to flex the state legislature's Democratic supermajority to propose their own plan that puts social justice and equity aims first.-Jeremy (<a href="https://twitter.com/jfberke?lang=en">@jfberke</a>) and Yeji (<a href="https://twitter.com/jesse_yeji?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor">@jesse_yeji</a>)Here's what we wrote about this week:<h3><a href="https://www.businessinsider.com/jazz-pharmaceuticals-will-acquire-cbd-drugmaker-gw-pharma-for-72-billion-2021-2">A biotech known for its sleep and brain drugs just made a $7.2 billion bet that medical cannabis is crucial to its neuroscience ambitions</a></h3>Jazz Pharmaceuticals is making a $7.2 billion bet on the future of medical cannabis. The drugmaker said on Wednesday it will acquire GW Pharma, the maker of CBD-based epilepsy treatment Epidiolex, in a cash-and-stock deal. It's the largest cannabis-industry deal so far. <h3><a href="https://www.businessinsider.com/cannabis-industry-predictions-from-top-investors-2021-1">17 top cannabis investors lay out how the spread of legal marijuana will fuel a deal boom and drive investment in the upstart industry</a></h3>We asked 17 of the <a href="https://www.businessinsider.com/top-16-cannabis-venture-capital-funds-in-2020-and-where-they-invested-2020-12">top cannabis-industry investors</a> for their 2021 predictions. They said they expect more states to legalize <keyword id="40905" type="PERSON" weightage="60" keywordseo="Marijuana">marijuana</keyword>, a boom in dealmaking, and the return of investor confidence in the industry, among other predictions. <h3><a href="https://www.businessinsider.com/list-top-psychedelics-companies-by-funding-2021">Meet the top 14 psychedelics startups raising the most cash to develop new ways of treating depression, addiction, and more</a></h3>Insider identified the top 14 startups that are working to turn <keyword id="2874738" type="PERSON" weightage="60" keywordseo="Psychedelics">psychedelics</keyword> into approved medicines for conditions like depression, opioid use disorder, and anxiety. To put together this article, we reached out to companies on <a href="https://www.businessinsider.com/how-much-top-psychedelics-startups-have-raised-atai-compass-mindmed-2020-3">our list from last year</a>, used data provided by PitchBook, and talked to VCs in the space.The 14 private companies on this list alone raised over $222 million in 2020. Some told Insider that they're preparing to go public.<h2>Executive Moves</h2><ul><li>Tilray's chief corporate development officer, Andrew Pucher, will step down from his role as of March 31, according to securities filings. <a href="https://www.businessinsider.com/tilray-aphria-ceo-interview-explain-merger-strategy-strategic-partner-2020-12">Tilray merged with Aphria in December</a>. </li><li>Tom Grillea is <a href="https://www.globenewswire.com/news-release/2021/02/01/2167563/0/en/HERBL-California-s-Largest-Cannabis-Distributor-and-Supply-Chain-Solutions-Company-Appoints-Tom-Grillea-as-CRO.html">joining California cannabis distributor HERBL</a> as chief revenue officer. Grillea was formerly the CEO of Threshold Enterprises, a dietary supplements distributors.</li><li>Organigram Holdings <a href="https://www.businesswire.com/news/home/20210202005704/en/Organigram-Announces-Executive-Changes">announced on Tuesday</a> that Matt Rogers, SVP of operations, will be leaving the company at the end of May 2021.</li><li>Psilocybin company CannaGlobal announced on Monday it is rebranding its name to GoodCap Wellness and made <a href="https://www.businesswire.com/news/home/20210201005839/en/CannaGlobal-Appoints-World-Class-Board-and-Announces-Rebranding-to-GoodCap-Wellness">a slew of new board appointments</a>. </li></ul><h2>Deals, launches, and IPOs</h2><ul><li>Tuscan Holdings, originally a cannabis-focused SPAC, announced that it would merge with <a href="https://www.businesswire.com/news/home/20210201005283/en/Microvast-a-Leading-Innovator-of-EV-Battery-Technologies-to-List-on-Nasdaq-Through-Merger-with-Tuscan-Holdings-Corp.">EV battery maker Microvast</a>. Read our <a href="https://www.businessinsider.com/investors-poured-3-billion-into-cannabis-spacs-deadlines-loom-2020-12">explainer of the cannabis SPAC landscape here</a>.</li><li>Bexson Biomedical, an early-stage startup working on developing ketamine-based drugs for pain management, closed a $4.8 million Series A led by Noetic Psychedelic Fund. </li><li>Cannabis marketing platform Springbig <a href="https://www.prnewswire.com/news-releases/springbig-acquires-budtender-leading-cannabis-customer-experience-and-retention-platform-301219373.html">announced on Tuesday</a> that it acquired Canadian cannabis tech company BudTender. The companies did not disclose the financial terms of the transaction. </li><li>Jazz Pharmaceuticals <a href="https://www.businessinsider.com/jazz-pharmaceuticals-will-acquire-cbd-drugmaker-gw-pharma-for-72-billion-2021-2">acquired cannabis drugmaker GW Pharmaceuticals</a> in a $7.2 billion deal. The purchase price represents a 50% premium on GW's Tuesday close. </li><li>US cannabis company Green Thumb Industries <a href="https://seekingalpha.com/filing/5337430?source=email_2950:headline&amp;utm_medium=email&amp;utm_source=seeking_alpha&amp;mail_subject=gtbif-green-thumb-industries-inc-sec-filing-securities-registration-statement-s-1-a-february-02-2021&amp;utm_campaign=rta-stock-filings&amp;utm_content=link-1p;utm_content=link-1">filed an S-1</a> with the Securities and Exchange Commission, in preparation for an uplisting to a major US Exchange. </li></ul><h2>Policy moves</h2><ul><li>Senate Majority Leader Chuck Schumer, Sen. Cory Booker, and Sen, Ron Wyden <a href="https://www.finance.senate.gov/ranking-members-news/-booker-wyden-schumer-joint-statement-on-cannabis-reform-legislation">released a joint statement</a> pledging to release a draft discussion of a comprehensive cannabis reform bill that puts restorative justice and public health first. It's the first concrete step Senate Democrats have taken on cannabis reform.</li><li>New Mexico lawmakers <a href="https://www.marijuanamoment.net/new-mexico-senators-file-two-marijuana-legalization-bills-with-more-on-the-way/">filed two separate marijuana legalization bills</a> this week. Some lawmakers expect a third bill, addressing social equity issues, to be filed this month as well. </li><li>Virginia lawmakers are <a href="https://www.washingtonpost.com/local/virginia-politics/virginia-marijuana-legalization/2021/02/04/8d6fc33e-6707-11eb-8c64-9595888caa15_story.html" target="_blank" rel="noopener noreferrer">voting today on a bill that would legalize marijuana</a> in the state, becoming the first formerly Confederate state to do so. Gov. Ralph Northam has said legalizing marijuana is a priority for his administration. </li><li>Oregon state representatives introduced the <a href="https://www.prnewswire.com/news-releases/cannabis-social-equity-bill-introduced-301221494.html">Cannabis Equity Act into the state's legislature</a>. The bill, if passed, would provide a free, automatic expungement process and would divert cannabis tax revenue to invest in housing, job training, child care, and health for Black, Latinx, and Indigenous people. </li></ul><h2>Science and research</h2><ul><li>Recreational marijuana legalization is not associated with a rise in adolescent substance abuse disorder, according to <a href="https://pubmed.ncbi.nlm.nih.gov/33509417/">new research published in the </a><a href="https://pubmed.ncbi.nlm.nih.gov/33509417/">Journal of Substance Abuse Treatment</a>. </li><li>A new study published in the <a href="https://www.tandfonline.com/doi/abs/10.1080/02791072.2020.1870778">Journal of Psychoactive Drugs</a> found that cannabis consumers tend to choose different products depending on their age. Older consumers are less likely to use products like pre-rolled joints, vape pens, edibles, and concentrates when compared with younger users. </li><li>A new <a href="https://www.cato.org/policy-analysis/effect-state-marijuana-legalizations-2021-update">report from the Cato Institute</a>, led by Harvard economist Jeffrey Miron, found that state marijuana legalization generally had "minor effects" on issues like adolescent use, traffic safety, crime, and more. The authors note that "the strong claims made by both advocates and critics are substantially overstated and in some cases entirely without support from existing legalizations." </li></ul><h2>Earnings preview</h2>It's earnings season starting next week. We have the Canadian LPs on tap, and then the US companies will start reporting the week after: <ul><li><a href="https://produceredition.webcasts.com/starthere.jsp?ei=1418491&amp;tp_key=44498b61836183">Canopy Growth</a> will report its Q3 earnings next Tuesday (Feb 9). The call will be at 10 am ET.</li><li><a href="https://produceredition.webcasts.com/starthere.jsp?ei=1420788&amp;tp_key=9086023c9b3c9b">Canopy Rivers</a> will report its Q3 earnings next Wednesday (Feb 10). The call will be at 9 am ET.</li><li><a href="https://viavid.webcasts.com/starthere.jsp?ei=1425319&amp;tp_key=ab9992fd57fd57">Aurora Cannabis</a> will report its Q2 earnings next Thursday (Feb 11). The call will be at 5 pm ET.</li><li>MedMen and Green Thumb Industries will be holding earnings the week afterward.</li></ul><h2>Chart of the week</h2>Hemp-derived CBD sales are expected to increase threefold between 2020 and 2025, according to Nielsen and Hemp Industry Daily. The predicted increase is in part due to the increasing popularity of CBD as a dietary supplement and the likelihood of favorable guidance from the FDA and Congress:<div type="image" title="Annual hemp-derived CBD retail sales estimates" height="1040" width="1240" msid="80712858" hostid="261"></div><h2>What we're reading</h2><a href="https://www.bloomberg.com/news/articles/2021-02-01/new-york-is-trying-to-model-social-reform-through-pot-taxes">N.Y.'s Soon-to-Be Legal Pot Stirs Debate on Taxes, Social Reform</a> (Bloomberg)<a href="https://www.nytimes.com/2021/01/29/world/canada/canada-marijuana-legalized-impact.html">After Newness Fades, Canada Settles Down to Legal Marijuana</a> (The New York Times)<a href="https://www.politico.com/news/2021/01/31/marijuana-policy-democrats-senate-463816">'There's no stopping the industry now': Democratic control is a big win for marijuana</a> (Politico)<a href="https://nypost-com.cdn.ampproject.org/c/s/nypost.com/2021/01/28/cannabis-dispensaries-linked-to-21-drop-in-opioid-deaths-study/amp/">Cannabis dispensaries linked to nearly 30% drop in opioid deaths: study</a> (The New York Post)<a href="https://www.nj.com/marijuana/2021/02/nj-was-going-to-get-legal-weed-just-after-murphy-took-office-right-how-the-effort-has-sputtered-for-3-years-now.html">N.J. was going to get legal weed just after Murphy took office, right? How the effort has sputtered for 3 years now.</a> (NJ.com)<a href="https://www.kansascity.com/news/politics-government/article248919684.html">Kansas governor proposes paying for Medicaid expansion through legalizing medical marijuana</a> (The Kansas City Star)<a href="https://www.usatoday.com/story/sports/nba/columnist/jeff-zillgitt/2021/02/03/nba-should-take-marijuana-off-its-list-banned-substances/4361014001/">Opinion: NBA needs to permanently abolish marijuana testing</a> (USA Today)

A biotech makes a $7.2 billion bet on medical marijuana

<ul><li><keyword id="6355118" type="UNKNOWN" weightage="60" keywordseo="technology">Technology</keyword> <keyword id="6354298" type="DEFINITION" weightage="60" keywordseo="Stocks">stocks</keyword> have seen unprecedented gains in recent months, leading some to speculate that a bubble like that seen in the late 1990s might be inflating.</li><li>That's not the case, however, and tech's recent rally is set to continue, according to analysts at JPMorgan.</li><li>In a note Monday, they said: "In contrast to the dot-com bubble, the current rally has been supported by strong earnings delivery." </li><li>It noted tech price-to-earnings ratios are not stretched, a sign that the sector's fundamentals remain strong.</li><li>The bank stayed overweight on tech stocks, meaning it recommends investors buy.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul>Technology stocks have seen unprecedented gains in recent months, leading some to speculate that a bubble like that seen in the late 1990s might be inflating.That's not the case, however, and tech's recent rally is set to continue, according to analysts at JPMorgan.In a note Monday, analysts at JPMorgan Cazenove — an arm of the bank in Europe, the Middle East, and Africa — said both software and hardware stocks have significantly outperformed most other industries during the COVID crisis. "There is widespread concern that the impressive performance of the sector ... on top of 20% relative run last year, is making Tech vulnerable to profit taking. Indeed, many pundits keep arguing that there should be a style shift, out of Growth and into Value, basically out of Tech and into Financials and Energy," a team of analysts said Monday.The analysts, however, say they are "skeptical" of such forecasts, saying that tech's performance this year isn't anything like what happened in the late 90s."In contrast to the dot-com bubble, the current rally has been supported by strong earnings delivery," the team wrote.It also noted that the price-to-earnings ratios of major tech companies is not "stretched." The price-to-earnings ratio shows a company's stock earnings per share (EPS) to the current market price. A higher P/E ratio signals greater buyer interest and an expectation that the company's stock will grow further. Read more: <a href="https://slack-redir.net/link?url=https%3A%2F%2Fwww.businessinsider.com%2Fstock-picks-to-buy-investing-strategy-for-trump-election-win-2020-8" target="_blank" rel="noopener noreferrer">President Trump will officially be nominated for a 2nd term this week. RBC says buy these 48 stocks spanning every industry that are poised to crush the market if he wins reelection.</a>The bank noted that tech, staples and pharma were the only three sectors positive earnings growth in the second quarter of 2020, while overall US EPS growth was down 33% year-on-year."Tech has healthy balance sheets and strong cash flow generation, again in contrast to the 2000 episode," JPMorgan said, noting that it maintains an "overweight" rating on tech. That rating means it effectively recommends that clients buy tech stocks."Short term, Tech has been relatively less hurt by the current COVID-19 crisis, in particular when compared to consumer sectors. Parts of the Tech space have, in fact, taken greater market share during the current virus dislocation," JPMorgan said."While US Tech price relative is close to highs seen in early 2000, it is not as stretched in terms of the share of total market cap," JPMorgan said. Technology stocks have soared in value during the pandemic, helping pull the S&amp;P 500 and Nasdaq to record-highs in recent weeks.Read more: <a href="https://slack-redir.net/link?url=https%3A%2F%2Fwww.businessinsider.com%2Fstock-market-crash-extreme-moves-tail-risk-post-covid-socgen-2020-8" target="_blank" rel="noopener noreferrer">Stocks are making their most extreme moves in 20 years — and one quant expert warns the COVID-19 crash was a preview of more 'wild swings' to come</a><keyword id="31671" type="CITY" weightage="100" keywordseo="markets">Markets</keyword> have rebounded sharply since a meltdown in March when coronavirus was first spreading quickly in the Western world. The <a href="https://markets.businessinsider.com/futures/s&amp;p-500-futuresures">S&amp;P 500</a> has soared more than 50% since touching a low in March.The tech-heavy <a href="https://markets.businessinsider.com/index/nasdaq_100">Nasdaq Composite</a> has also risen 67% since closing at a low of 6,994 in March. <a href="https://markets.businessinsider.com/stocks/aapl-stock">Apple</a> became the first US-listed company to <a href="https://markets.businessinsider.com/news/stocks/apple-2-trillion-rally-market-capitalization-entire-uk-stock-market-2020-8-1029524339">reach the $2 trillion mark</a> last week. Its stock price has risen 70% since the start of the year. <a href="https://markets.businessinsider.com/stocks/tsla-stock">Tesla</a> has been another stock market favorite, having closed above $2,000 for the first time ever last week. Its stock is up over 390% since the start of the year. Participants have attributed the explosive stock market recovery to unprecedented central bank stimulus packages and hopes for the rapid development of a vaccine for COVID-19.

The 2020 tech stock boom is nothing like the dot-com bubble of 2000, and the sector is set to keep on rising, JPMorgan says

<div class="KonaFilter image-container display-table float_right"><div><div class="image"><a href="http://www.investing.com/indices/us-30">Investing.com</a></div></div></div>Stocks opened lower on Monday morning, following a positive week that pushed stocks to the best levels of 2016. Near 9:45 a.m. ET, the Dow was down 80 points, the S&amp;P 500 was down 7 points, and the Nasdaq was down 6 points.It wasn't a heavy-hitting morning for earnings, but some key companies missed forecasts. Xerox and private-equity firm KKR both missed estimates.Xerox fell nearly 8% in early trading, and was among the weakest performers on the S&amp;P 500. In other news, <a href="http://www.businessinsider.com/valeant-new-ceo-joseph-papa-2016-4">Valeant has a new CEO</a>. Joseph Papa, who was chief executive of pharma company Perrigo until Sunday, is expected to take over from Michael Pearson early in May. Perrigo shares fell as much as 10%, the most on the S&amp;P 500. And, <a href="http://www.businessinsider.com/gannett-proposes-to-buy-tribune-2016-4">Gannett has made an unsolicited offer</a> for Tribune Publishing for $12.24 a share in cash, or $815 million. Gannett, which owns USA Today, said the combination with the owner of the LA Times would cut costs amid an uncertain time for the newspaper industry.The economic-data calendar is full this week, and you can check out our <a href="http://www.businessinsider.com/monday-scouting-report-april-25-2016-4">complete preview of the week here</a>. At 10 a.m. ET, <a href="http://www.businessinsider.com/new-home-sales-march-2016-2016-4">new home sales</a> numbers are expected, followed by the Dallas Fed's manufacturing survey at 10:30 a.m. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/dermatologist-taking-own-skin-2016-4">A dermatologist reveals how she takes care of her own skin</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="p0ZzVvMjE6jM_t47KZ6B6HTcUMaukRUY" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

Stocks open lower

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div></div></div>Good morning! Here's what you need to know.<a href="http://www.businessinsider.com/afp-turkey-returns-to-single-party-rule-after-akp-election-sweep-2015-11">Turkey returns to single-party rule after surprise election sweep</a>. Turkey's Justice and Development Party (AKP) regained its parliamentary majority after an unexpected sweep in this weekend's election. This strengthens the position of President Recep Tayyip Erdogan. "Our people clearly showed in the November 1 elections that they prefer action and development to controversy," Erdogan said in a statement. The <a href="http://www.bloomberg.com/news/articles/2015-11-01/lira-seen-gaining-as-surprise-ak-party-win-ends-months-of-limbo">Turkish lira surged 4%</a> against the dollar following the results.<a href="http://www.businessinsider.com/china-pmi-shrinks-for-a-third-straight-month-in-october-2015-10">China's manufacturing sector contracts for the third straight month</a>. China's official manufacturing purchasing managers' index (PMI) stood at 49.8 in October. Any reading below 50 signals contraction, and this was the third straight sub-50 report. The <a href="http://www.businessinsider.com/r-china-official-october-factory-services-surveys-show-economy-still-wobbly-2015-10">services PMI</a>, which represents a much smaller portion of the economy, fell to 53.1 in October from 53.4 in September. The unofficial <a href="http://www.businessinsider.com/china-pmi-shows-manufacturing-is-still-contracting-2015-11">Caixin manufacturing PMI improved to 48.3</a> from 47.2. "Weak aggregate demand remained the biggest obstacle to economic growth, and the risk of deflation resulting from the continued fall in the prices of bulk commodities needs attention," <a href="http://www.markiteconomics.com/Survey/PressRelease.mvc/f9468709913e49739e93eedfd87bc9ed">Caixin economist Dr. He Fan said</a>.<a href="http://www.businessinsider.com/r-japan-final-october-manufacturing-pmi-hits-one-year-high-as-demand-grows-2015-11">Japan is a bright spot in Asia</a>. Japan's Nikkei PMI slipped to 52.4 in October from the preliminary estimate of 52.5, but nevertheless remains in expansionary territory. "Operating conditions at Japanese manufacturers improved substantially at the start of the final quarter of 2015," <a href="http://www.markiteconomics.com/Survey/PressRelease.mvc/4c754c28217f4543b9aa5c8b62ac7a6e">Markit's Amy Brownbill said</a>. "Growth in production accelerated to the fastest since February, underpinned by a sharp rise in total new orders. Supporting the marked increase in new work intakes was a rise in international demand as new export order growth resumed, having contracted slightly in the prior month. Subsequently both employment and buying activity increased, following declines seen in September."<a href="http://www.businessinsider.com/eurozone-manufacturing-pmis-for-october-2015-11">Europe is also looking better</a>. The manufacturing PMI reports across the eurozone were broadly better than expected. Germany, France, Italy, and Spain were all in expansionary territory. The eurozone PMI improved to 52.3 in October from 52.0 previously. Still, things could be better. "The eurozone manufacturing recovery remains disappointingly insipid," <a href="http://www.markiteconomics.com/Survey/PressRelease.mvc/a718f036d92d4f1d8a7092baf137474f">Markit's Chris Williamson said</a>. "The October survey is signaling factory output growth of only 2% per annum, a lackluster performance given the amount of central bank stimulus in place. With factory production lacking vigour, employment growth sagging to an eight-month low and output prices falling at the fastest rate since February, it's easy to see why the ECB are considering additional stimulus."<a href="https://businessinsider.com/r-ecb-to-do-all-needed-to-keep-inflation-target-on-track-draghi-2015-10">Mario Draghi says the European Central Bank will do what it takes</a>. ECB president Mario Draghi told Italian news that the central bank would take action if it that inflation was falling short of target. "If we are convinced that our medium-term inflation target is at risk, we will take the necessary actions," Draghi told the Italian daily Il Sole 24 Ore. "We will see whether a further stimulus is necessary. This is an open question." Separately, the ECB determined that <a href="http://www.businessinsider.com/r-ecb-reveals-capital-hole-in-greek-banks-as-unpaid-loans-soar-2015-10">Greek banks need to raise more capital</a>. The ECB revealed the results of bank stress tests and determined that Greece's four main banks - National Bank of Greece, Piraeus, Alpha Bank and Eurobank - need to raise 14.4 billion euros to cover bad loans under an adverse economic scenario.<a href="http://www.businessinsider.com/hsbc-profits-increase-32-in-third-quarter-earnings-2015-11">HSBC profits jump</a>. HSBC Q3 pre-tax profits jumped 32% as the bank had few fines to pay than in earlier reporting periods. Earnings climbed to $6.1 billion from $4.6 billion a year ago. "Revenue was down compared to the third quarter of 2014," CEO Stuart Gulliver said in a statement. "In particular, the stock market correction in Asia affected Principal Retail Banking &amp; Wealth Management, and revenue was also lower in Global Banking &amp; Markets."<a href="http://www.businessinsider.com/andrew-left-to-issue-updated-valeant-report-2015-11">Short-seller to release new report on Valeant Pharmaceuticals</a>. Citron Research's Andrew Left is planning to publish a new report on controversial pharma giant Valeant. This follows an earlier research report in which Left argued that the multi-billion dollar company was operating an <a href="http://www.businessinsider.com/valeant-shares-crash-october-21-2015-10">Enron-like fraud</a>.<a href="http://www.businessinsider.com/chipotle-ecoli-scare-in-seattle-and-oregon-2015-10">Chipotle closes stores amid E. coli outbreak</a>. The Mexican food chain closed 43 stores in Washington state and Oregon after three people in Portland and 19 people in Washington became sick after eating in its restaurants since October 14.Global market are mixed. US futures are up modestly with Dow futures up 23 points and S&amp;P 500 futures up 2 points. Asian markets closed lower with Japan's Nikkei down 2.1%, Hong Kong's Hang Seng down 1.2%, and China's CSI 300 down 1.6%. Europe is mostly up with Germany's DAX up 0.8%, France's CAC 40 up 0.4%, Spain's IBEX up 0.4%, and the UK's FTSE 100 down 0.3%.US manufacturing data ahead. At 9:45 a.m. ET we'll get the Markit US manufacturing PMI report and the ISM manufacturing index report. Read BusinessInsider's complete preview of the economic data in the <a href="http://www.businessinsider.com/monday-scouting-report-nov-2-2015-2015-10">Monday Scouting Report</a>. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/jewish-eruv-wire-hidden-in-manhattan-religious-carrying-sabbath-2015-10">There's a hidden wire stretched above American cities - and few people know what it's for</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="I1czY3eDrqT2-Si5fXISfZJYf_7XK7WF" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

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