|
|
Good morning.
US consumer confidence fell sharply in September, sinking to the lowest level in five months, the Conference Board
said Tuesday. A 3.6-point drop, driven by consumers’ pessimistic views of inflation and the labor market, brought the Consumer Confidence Index to 94.2, lower than analysts expected.
And, speaking of things subject to Americans' bipartisan ire, the US Congress, with its 26%
approval rating, failed to reach a funding agreement last night, resulting in the first government shutdown in over six years. Capitol Hill, evidently, isn't concerned that its members are even less popular than inflation. |
|
|
MARKETS |
|
|
*Presented by VanEck. Stock data as of market close on September 30, 2025. |
|
*Please see important SMH disclosures below. |
|
|
|
|
|
|
|
Take a chill pill, investors. Pfizer
plans to cut US medication prices as part of an agreement with the White House that analysts say can help restore confidence in the prescription drug industry after months of policy tumult.
In exchange, Washington will grant Pfizer a three-year exemption from potentially onerous tariffs on pharmaceutical imports, provided it maintains a commitment to expand US research and manufacturing capacity.
Double Trouble
The Trump administration has focused on two issues that directly impact the pharmaceutical industry’s bottom line. First, there are prices. A 2024 RAND
study found that US drug prices are 278% higher than in 33 other developed countries in the Organization for Economic Cooperation and Development. For brand-name drugs, that climbs to a staggering 422%. The Trump administration
announced in May that it would attempt to address the disparity through a “most favored nation” policy that pressures pharmaceutical companies to slash US price tags to equal the lowest offered in comparable developed economies. In May, the president sent
letters to 17 pharma CEOs, including Pfizer’s, urging them to commit to most-favored-nation prices for all treatments to Medicaid patients — and for all patients on future drugs — by September 29.
Second, there’s manufacturing. A
study by supply chain and risk compliance firm Exiger earlier this year found that 75% of essential medicines in the US are imported, the majority from China and India. “The fundamental problem is we’ve incentivized people to move everything offshore,” Mark Ey, the COO of the National Community Pharmacists Association,
told an Axios roundtable in May. Trump said the US will place a 100% tariff on brand-name or patented pharmaceutical imports starting today. The Pfizer deal, meanwhile, set a key precedent for how drugmakers can earn slack in exchange for compliance, with markets signaling approval:
-
Pfizer said it will offer discounts on drugs averaging 50% and up to 85%, including the most-favored-nation price for Medicaid. The company also pledged to invest $70 billion in US manufacturing, keeping its imports tariff-free for three years.
-
Shares of Pfizer jumped 6.2% on Tuesday. BMO Capital Markets analysts wrote in a note that the deal was a plus for not only Pfizer stock, but also the entire pharma sector: “Today’s deal seems to set a path for other pharmaceutical players to follow, allowing for headline pricing concessions and a Trump ‘win’ without more punitive implementation of MFN/tariffs.”
Deals on Deck: On Monday, the country’s largest drug lobby group
committed to more investments in US manufacturing, as well as the creation of a website where consumers can directly purchase drugs for lower prices. President Donald Trump said Tuesday that deals similar to Pfizer’s are forthcoming. That helped to lift shares in other major pharma companies that received presidential missives: Merck rose 6.1% Tuesday, Eli Lilly 5.2%, AbbVie 3.7%, and Bristol Myers Squibb 2.3%.
Written by Sean Craig |
|
|
|
|
|
|
|
|
|
|
As the old adage goes, if at first you don’t succeed, try, try again, and if you’re still getting nowhere, just go out and poach one of the world’s foremost tech product designers. OK, that’s not part of the adage, but you know what we mean.
On Tuesday, Amazon unveiled its latest line of Alexa-powered Echo home speaker devices, the first products designed under the tutelage of consumer electronics lead Panos Panay, who was snagged from Microsoft two years ago to revive the e-commerce giant’s struggling device unit. The Echo debut was part of a wide-ranging Amazon hardware makeover that included a new Kindle e-reader.
Echoes of the Past
There’s a reason Amazon wanted fresh eyes on its Alexa line of products. Launched in 2014, the Echo home speakers were loss-leaders by design, the idea being that the cost the company ate to move scores of devices into homes would be worth it if Echo owners used the devices to indulge in even more e-shopping. Consumers didn’t bite, and Echo devices proved better as free kitchen timers than sales-robots, as well as far worse conversationalists than emerging AI-powered chatbots. In late 2023, Amazon laid off “several hundred” employees in its Alexa division.
Amazon tapped Panay around the time of the layoffs, and quickly prioritized thoroughly AI-ifying Alexa’s personality. Tuesday’s debut of new devices has been long in the making. Amazon had initially planned to unveil the new Echo hardware and Alexa software in October of last year,
according to internal documents seen by Bloomberg, only to be delayed until 2025. Amazon
debuted the AI-powered Alexa+ upgrade, which requires either a Prime membership or a standalone $20 monthly subscription, this February.
Now, the company is looking to revive its entire hardware line and dig itself out of a giant money hole:
-
Tuesday’s announcements included the lower-end $100 Echo Dot Max, the $220 Echo Studio (designed specifically for “audiophiles”) and two revamped models of the Echo Show, which include a screen. Amazon also unveiled new Kindles, a new 4K Fire TV Stick and upgraded versions of its popular home security devices, Ring and Blink.
-
Amazon doesn’t specifically report revenue from its hardware and device division, but by all accounts, it’s a dismal performer. According to internal documents reported by The Wall Street Journal last year, the unit
racked up $25 billion in losses between 2017 and 2021.
Read the Room: That’s not to say Amazon is completely hapless in hardware. Last year,
Ring products became profitable. Meanwhile, the company said on Tuesday that its Kindle line, which launched in 2007, is on track for its third consecutive year of double-digit sales growth. You could write a book.
Written by Brian Boyle |
|
|
|
|
Your Biggest Hidden Asset? Brain Capital. Fostering brain capital has the potential to unlock $26 trillion in global economic opportunities. The Business Collaborative for Brain Health’s new report explains how leaders can turn a focus on brain skills into a business advantage — building a workforce that’s resilient, high-performing, and ready for the future.
Start building yours now.
 |
|
|
|
|
General Motors deserves credit for turning itself into the second-largest electric vehicle seller in the United States earlier this year, with its 62,000 sales through May leapfrogging Ford’s and trailing only Tesla’s.
But the US electric vehicle tax credit, a major driver of growth, expired yesterday, and analysts expect sales to slide as a result. GM’s onetime ambition of going all-electric by 2035 is now best described as an object in the rearview mirror. The C-suite occupants of its downtown Detroit headquarters have already signaled they’re just fine with that, but will still take advantage of EV incentives while refilling the corporate gas tank.
Power Pivot
EVs accounted for 4% of GM’s sales last year, and 6% this year, with growth driven by the rollout of a fleet of new models and the now-defunct $7,500 federal tax rebate on EV purchases. The company has been signalling for months that it’s prepared for a pivot back to the days of combustion as environmental regulations are rolled back in Washington. A $4 billion plan to expand the production of gas cars and SUVs was
announced in June, and executives
pared EV production last month, citing expectations of weaker demand.
As The Wall Street Journal
reported Monday, GM has also embarked on a heavy-handed lobbying campaign against emissions and fuel standards. California Governor Gavin Newsom alleged the company “sold us out” in
backing a successful effort to nullify the state’s ability to set tougher emissions standards than national ones set by the Environmental Protection Agency. A simple look at the company’s moves at home and abroad suggests GM’s philosophy is to follow the bottom-line incentives, including any electric charge it can plug into:
-
GM and Ford both
launched programs where their financial arms made down payments on EVs in dealership inventories before the expiration of the federal EV tax credit. The programs allow GM Financial and Ford Credit to claim the credit, while dealers will be able to lease the cars to customers with the rebate factored into the rate.
-
GM is also rebooting its EV business in China, the world’s largest battery-powered car market, with locally developed models after a suite of US-developed cars fell flat. This week, GM’s Buick brand
launched the Electra LV, its first locally developed EV in China, ensuring it can take advantage of purchase tax exemptions that Beijing is expected to begin
phasing out next year.
Bye Buy: Sales of new EVs fell 6.3% year-over-year in the second quarter,
according to Cox Automotive analysts. But they
expect the third quarter saw a record surge as consumers tried to take advantage of the tax credit, forecasting 410,000 EVs sold, a 21% year-over-year jump. That would also give EV sales a record 10% market share for the quarter, though that will no doubt prove highly combustible in the months to come.
Written by Sean Craig |
|
|
|
|
-
Winners Lose: The new owners of Publisher’s Clearing House, which was bought out of bankruptcy in June, will
guarantee future winners of its popular sweepstakes their money, but past winners who didn’t get fully paid are out of luck.
-
Fed Incentive: US job openings
increased slightly in August, while hiring slowed, conditions that may encourage the Federal Reserve to cut interest rates again this month.
-
Maximize Your 2025 Tax Savings with Strategic Loss Harvesting. Discover how to offset gains and reduce taxable income by up to $3,000 annually through tax-loss harvesting. Learn advanced tactics like “doubling up” before November 29th to avoid wash sales.
Book your free Range demo today and unlock professional tax optimization strategies.**
** Partner |
|
|
|
Disclaimer
*Important Disclosures
VanEck Semiconductor ETF (SMH): Average Annual Total Returns Quarter End as of 6/30/2025* (%) |
|
|
The performance data quoted represents past performance. Past performance is not a guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Please call 800.826.2333 or visit vaneck.com for performance current to the most recent month ended.
*Investing involves substantial risk and high volatility, including possible loss of principal. Visit vaneck.com to read and consider the prospectus, containing the investment objectives, risks, and fees of the funds, carefully before investing. Past performance is no guarantee of future results. VanEck mutual funds and ETFs are distributed by VanEck Securities Corporation, Distributor, a wholly owned subsidiary of VanEck Associates Corporation. |
|
|
|
|
|
