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Medicare Makes History: Biden Administration Unveils Groundbreaking Prescription Price Negotiations for Top 10 Medicines

The Biden administration on Tuesday is expected to release its list of 10 prescription medicines that will be subject to the first-ever price negotiations by the U.S. Medicare health program that covers 66 million people.

President Joe Biden’s signature Inflation Reduction Act (IRA), signed into law last year, allows the Medicare health program for Americans aged 65 and over to negotiate prices for some of its most costly drugs.

The list will kick off the negotiation process for the 10 drugs whose new prices would go into effect in 2026. The program aims to save $25 billion per year on drug prices by 2031.

Moving Markets

3M, XPeng, Hawaiian Electric Industries rise premarket; Novocure slides

U.S. stock futures edge up as traders look ahead to key economic data and new company results this week. Elsewhere, Google reportedly eyes plans to sell its mapping data to companies building renewable energy products, while Mark Zuckerberg, Elon Musk and other tech industry leaders are invited to Washington for a forum discussing the possible pitfalls of generative artificial intelligence.

1. U.S. futures little changed

U.S. stock futures were near flat Tuesday as investors awaited the release of fresh economic data and corporate earnings (see below).

At 05:27 ET (9:27 GMT), the Dow futures and S&P 500 futures were little changed, while Nasdaq 100 Futures dipped 14 points or 0.1%.

The main indices on Wall Street all closed in the green on Monday. It was their second consecutive winning session, a slight lift for stock markets that endured a tough August. Despite the increases, the benchmark S&P 500, tech-heavy Nasdaq Composite and 30-stock Dow Jones Industrial Average are all on pace to finish lower on a monthly basis.

2. Job openings survey ahead; Best Buy earnings loom

Traders will have a chance to pick through data on job openings in the U.S. on Tuesday morning, along with a fresh batch of corporate results from the waning quarterly earnings season.

Economists predict that the Job Openings and Labor Turnover Survey, or JOLTS, will show that the number of available positions dropped to about 9.47 million in July. That would be down from 9.58 million in the previous month – the lowest level in more than two years, but still indicative of a tight jobs market.

The JOLTS report will serve as a prelude to the much-anticipated publication of the key U.S. nonfarm payroll figures later this week. The labor market has been a major focus of the Federal Reserve’s recent monetary tightening push, with policymakers hoping that a cooling in demand for workers will help ease inflationary pressures.

On the earnings front, Best Buy (NYSE:BBY) is slated to report its second-quarter earnings on Tuesday. Observers will likely be keen to see how the electronics retailer has fared during a slowdown in consumer spending on nonessential items. In the first quarter, the company predicted that demand weakness should bottom out by the end of the year.

3. Google to license maps data to companies – CNBC

Google (NASDAQ:GOOGL) is planning to begin licensing mapping data to businesses constructing products focused on renewable energy, CNBC has reported.

According to materials reviewed and cited by the network, the tech giant is preparing to sell access to new application programming interfaces that contain solar and energy information. Google is aiming to raise up to $100 million from these sales in its first year after launch, CNBC said.

4. Schumer’s to host Musk, Zuckerberg at AI summit

U.S. Senate Majority Leader Chuck Schumer will host tech moguls Elon Musk and Mark Zuckerberg at a forum next month discussing the future of generative artificial intelligence, as U.S. officials ponder how to mitigate the possible dangers of the nascent technology.

5. San Francisco Fed head of supervision to retire – reports

Azher Abbasi, the San Francisco Federal Reserve’s head of bank supervision, will retire at the end of October, according to multiple media reports.

In an email first quoted by Bloomberg, the spokesperson added that Abbasi will be replaced on an interim basis by former Minneapolis Fed official Niel Willardson on October 1.


Best Buy quarterly results beat a bright spot amid weak annual forecast

Best Buy Co Inc boogied through the financial stage on Tuesday, gracefully slicing the upper range of its annual revenue forecast. After waltzing past quarterly sales and profit projections, the company showcased its prowess in enticing American bargain hunters to snatch up coveted treasures like televisions and laptops, all while adorned in the garb of deeper discounts.

As the curtains rose, shares of the premier U.S. electronics emporium swayed and twirled, displaying a dainty 1% rise in the capricious premarket trading arena.

In the backdrop of the past year’s financial symphony, the crescendo of soaring interest rates and elevated rental costs cast a shadow on the demand for life’s frivolities. Best Buy, ever the maestro of innovation, orchestrated a symphony of hefty promotions, casting an enchanting spell to beckon customers into its digital realm, orchestrating a magnificent crescendo in electronics sales.

In the grand ballroom of competition, the company’s “Black Friday in July” extravaganza unfolded, an enchanting soirée of savings designed to rival the 48-hour shopping soiree hosted by the illustrious (NASDAQ:AMZN). A duel of discounts and a clash of commerce titans, as the orchestra played on in this thrilling retail ballet.

Big Lots’ (NYSE:BIG) stock soared over 14% in the premarket trading circus on Tuesday. The furniture and home decor retail maestros unveiled Q2 results that were more fabulous than a unicorn’s spa day.

In a daring feat of defiance, Big Lots revealed that its comparable sales took a 14.6% dip compared to the yesteryear’s figures, leaving the naysayers gobsmacked as they had predicted an even gloomier 18.1% drop.

And lo and behold, the grand finale of financial acrobatics: Adjusted loss per share strutted in at $3.24, defying gravity compared to last year’s $2.28 loss per share. The experts’ crystal ball was smashed to bits with their projected loss per share of $4.11, as the numbers decided to pirouette in a different direction.

Smart investing is like ordering a gourmet meal at a restaurant – you carefully choose a balanced mix of ingredients, savor every bite, and watch as your taste buds and portfolio both do a happy dance. It’s not about following the herd, but about leading your own financial safari with a compass made of research and a map woven from diversified choices. So, while others might be chasing after shiny mirages, the smart investor kicks back, sips their metaphorical tea, and enjoys the sunset of compounding returns.