Good Morning! Hope you're all staying safe, especially if you're in Florida. Generator stocks are rising as the Southeast braces for hurricane season, while insurance stocks are falling. Hurricane Helene's recovery is estimated at $34 billion. The Chinese stock market is surging, with Goldman predicting another 20% jump. Private lenders are raising record high-grade debt as risks increase, and McDonald’s is suing major beef producers over price-fixing. Plus, Taylor Swift overtook Rihanna to become world's richest female musician, and how changing jobs can cost you $300k.

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Costco’s Gold Rush

Gold is surging to record highs in 2024. One unlikely retailer is helping power 2024’s gold rush… Costco. Costco, the big-box retailer, is making buying gold easier than ever for its members.

Costco might be better known for selling bulk toilet paper and food court deals, but the retailer has been selling gold since mid-2023. So far, it looks like it’s working, with 77% of Costco stores sold out of gold bars, most of which are “typically gone within a few hours" after being restocked.

Costco’s 1-ounce gold is selling at around $2,699.99, with a premium of just 1.6% over spot prices. While that will definitely cost you, it’s still lower than other retailers and even undercutting traditional precious metals dealers. And for executive members and Citi cardholders, Costco sweetens the deal with up to 4% cash back, making gold even more accessible to its loyal members.

Costco is seeing strong demand for physical gold. With geopolitical tensions, inflation fears, and financial instability on the rise, many Americans see gold as a strong store of value.

Spot gold prices have surged nearly 30% in 2024, and that outperforms both U.S. equities and bonds. And with the Fed’s pivot to interest-rate cuts, gold could continue to become a favorite for those looking to safeguard wealth.

Takeaway: Gold has been viewed as a safe-haven investment for a long time. But Costco is helping gold buying go mainstream. With consumers posting their gold bars on TikTok and Instagram, Costco is helping make gold ownership more accessible than ever. And we definitely didn’t have Costco undercutting gold dealers on our 2024 bingo card.

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Top Reads

• Generator maker shares rise, insurance stocks fall as Hurricane Milton intensifies (CNBC)

• Private lenders raise most high-grade debt ever as risks rise (YF)

• How Erdogan’s monument to Turkish power landed New York’s mayor in legal trouble (WSJ)

• Changing jobs can put a $300,000 dent in retirement savings (WSJ)

• Helene recovery could cost $34 billion (CNBC)

• Goldman says surging Chinese stocks could advance another 20% (YF)

• Assassin's Creed maker Ubisoft considers going private (Axios)

• Why a key borrowing rate is above 4% again (CNN)

• McDonald’s sues major beef producers in U.S. price-fixing lawsuit (CNBC)

• Vista Outdoors strikes a new, and maybe final, deal (Axios)

• Supreme Court rejects Martin Shkreli fine appeal (CNBC)

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Markets Rundown

Market Commentary

U.S. stocks started the week on a weaker note, giving back most of Friday's gains due to rising interest rates and oil prices. The energy sector remained the standout, extending its rally as WTI crude climbed to $77, driven by heightened geopolitical tensions.

Conversely, tech stocks and rate-sensitive sectors underperformed as the 10-year Treasury yield surged above 4%. Despite the risk-off mood, equities are still close to record highs, supported by a resilient economy heading into the year’s final quarter.

Bond yields increased after Friday’s stronger-than-expected jobs report, indicating the U.S. economy remains robust. While this bolsters the case for consumer spending and economic growth, it also suggests a slower pace for Federal Reserve rate cuts.

The 2-year yield hit its highest level since August, and the Fed is now expected to make quarter-point moves rather than larger cuts in the remainder of the year, aligning with Fed Chair Powell's recent comments. 

Looking ahead, inflation data will take center stage this week with CPI due Thursday and PPI on Friday. Analysts expect a modest 0.1% increase in headline CPI, marking the slowest year-over-year pace since early 2021.

Meanwhile, third-quarter earnings season begins Friday with major banks reporting. Expectations are for earnings to grow 4.2%, with tech leading the charge, while energy and materials may report declines. Solid economic growth should continue to underpin positive earnings growth, but the 15% earnings forecast for the S&P 500 may be overly optimistic.

Overall, rising bond yields and inflation expectations will likely remain key drivers for market sentiment in the near term.

Movers & Shakers

• (+) Generac ($GNRC) +8% after hurricane concerns are leading to stronger demand.

• (+) Pfizer ($PFE) +2% because activist investor Starboard Value took a $1B stake.

• (–) Universal Insurance ($UVE) -20% because the insurance company has high exposure to hurricane-impacted areas of Florida.

Private Dealmaking

• Itaglas bought rival gas distributor 21 Rete Gas for $5.8 billion

• Equinor bought a $2.5 billion stake in Orsted, a wind energy firm

• Butterfly Equity bought winemaker Duckhorn for $1.95 billion

• Coeur Mining bought SilverCrest Metals for $1.7 billion

• Blue Owl bought IPI Partners, a data center joint venture, for around $1 billion

• Judo Bio, an oligonucleotide medicines developer, raised $100 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

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Friend of a Friend

What if the best way to grow your network isn’t by introducing yourself to strangers at cocktail parties, handing out business cards, or signing up for the latest online tool, but by developing a better understanding of the existing network that’s already around you?

We know that it’s essential to reach out and build a network. But did you know that it’s actually your distant or former contacts who will be the most helpful to you? Or that many of our best efforts at meeting new people simply serve up the same old opportunities we already have?

In this startling new look at the art and science of networking, business school professor David Burkus digs deep to find the unexpected secrets that reveal the best ways to grow your career.

Based on entertaining case studies and scientific research, this practical and revelatory guide shares what the best networkers really do. Forget the outdated advice you’ve already heard. Learn how to make use of the hidden networks you already have.

“This book will change the way you think about networking.”

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Processing Times Declining for US Citizenship Applications

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Networking Without the Awkward Handshake

Networking doesn’t have to be a chore; it can be an enjoyable way to build genuine connections that enrich both your career and your life.

Many people avoid networking because it feels awkward or exploitative, but the truth is that the most effective networkers focus on giving rather than taking.

They see networking as an opportunity to form authentic relationships rather than as a transactional pursuit.

Instead of striving for perfection or flawless execution, approach networking as simply making new friends.

Take advantage of opportunities by joining clubs, attending events, and engaging on professional social media like LinkedIn. The goal is not to have endless contacts, but to build meaningful connections over time.

During conversations, show genuine interest—ask open-ended questions, smile, and be fully present. Remember, it’s not about how many people you know but about how well you know them.

With practice and a shift in mindset, networking becomes less about “putting on an act” and more about allowing your natural strengths and personality to shine.

Ultimately, building connections is about trust, support, and shared growth—making it not only beneficial for your career but also deeply rewarding.

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Short Squeez Picks

• 7 keys to developing a culture of growth

• Habits to become a magnetic leader

• Science-backed ways to boost your motivation

• Warren Buffett what success really entails

• Cumulative vs. cyclical knowledge

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Memes of the Day