Mexico’s economy posted its fastest growth in two and a half years, expanding by 1.1% in the third quarter of 2024 compared to the previous quarter, according to INEGI, the country’s national statistics agency.

The figure slightly outpaced the 1.0% forecast by economists surveyed by Reuters, signaling that Latin America’s second-largest economy is regaining momentum despite challenges.

Strong rebound in primary sector

The primary sector—comprising agriculture, fishing, and mining—led the recovery with an impressive 4.9% growth in Q3, rebounding sharply from a 0.2% contraction in the previous quarter.

This resurgence highlights the sector’s critical role in the economy, particularly amid external pressures such as volatile weather and fluctuating global commodity prices.

Meanwhile, the secondary sector, which includes manufacturing, grew by 0.9%, improving from the 0.3% recorded in Q2.

The tertiary sector, encompassing services, also grew by 1.1%, a significant improvement from its marginal 0.1% increase in the prior quarter.

Together, these sectors reflect a well-rounded economic recovery, driven by stronger industrial and service activities.

Annual growth stabilizes amid mixed signals

Despite quarter-over-quarter growth, annual growth slowed to 1.6% compared to the same period last year, down from 2.2% in the previous quarter.

However, this figure exceeded the 1.5% forecast in the Reuters poll, highlighting gradual stabilization in Mexico’s economy.

In September 2024, economic activity rose 0.3% year-over-year, decelerating from a revised 0.7% gain in August and falling short of market expectations of 0.5%.

Services growth slowed to 0.7%, while industrial output contracted by 0.4%, weighed down by declines in mining (-4.5%) and manufacturing (-2.3%).

However, agricultural activity rose by 1.2%, marking a rebound from a 2.1% decline in August.

Monthly, economic activity increased by 0.2% in September, surpassing market expectations of 0.1%, following a 0.2% decline in August.

Central bank’s strategic rate cuts

In a move to support growth, Mexico’s central bank, Banxico, reduced its benchmark interest rate by 25 basis points to 10.25%.

The unanimous decision reflects the bank’s confidence in easing inflation pressures and its intent to stimulate investment and consumer spending.

The rate cut, Banxico’s first in years, highlights its careful balancing act between fostering economic expansion and maintaining price stability.

With inflation gradually subsiding, the central bank has room to consider further rate cuts, potentially boosting domestic demand and enhancing Mexico’s growth trajectory.

Mexico’s Q3 growth offers a positive outlook for the economy, with solid performances in agriculture, manufacturing, and services. While annual growth rates have moderated, the resilience in key sectors and supportive monetary policies from Banxico provide a foundation for continued recovery.

The combination of sector-specific rebounds and strategic rate adjustments positions Mexico for steady progress in the months ahead, making it a key player in Latin America’s economic recovery story.

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Amazon.com Inc (NASDAQ: AMZN) just announced plans to invest another $4 billion in Anthropic – a California-based startup that’s competing with the likes of OpenAI in a generative artificial intelligence arms race.

Shares of the tech titan are close to hitting $200 on Friday.

Anthropic is an artificial intelligence company founded by former research executives of OpenAI – and is widely known for its next-gen AI assistant called Claude.

Shares of this San Francisco headquartered firm are not yet available for the public to trade.

Anthropic to use Amazon chips

Amazon will have a total of $8 billion invested in Anthropic following the new funding that, nonetheless, does not change its position as a minority investor.  

The multinational does not have representation on Anthropic’s board either – but the investment it announced this morning made Amazon Web Services the “primary cloud and training partner” for the AI startup.

Anthropic will use the Trainium and Inferentia chips from now on to train its most sophisticated AI models, as per a blog post on Friday.

Amazon’s investment in Anthropic is part of its broader push to drive growth from the artificial intelligence market that Statista forecasts will be worth $1.0 trillion over the next 10 years.

Amazon stock is currently up more than 30% versus its low in the first week of August.

Anthropic’s AI model has human-like abilities

Amazon.com Inc has decided in favor of doubling down on its investment in Anthropic only weeks after the AI startup announced new agents capable of using a computer like a human to handle complex tasks.

Its latest AI model with computer use capability can navigate websites, enter or interpret text, or even press buttons on a computer screen to execute tasks with “tens or even hundreds of steps,” as per Jared Kaplan – the company’s chief science officer.  

Anthropic offers early access to that artificial intelligence tool, he revealed in a recent CNBC interview.

Anthropic launched Claude Enterprise in September as well.

Note that AMZN is not the only one among hyperscalers that’s invested in Anthropic. Google committed to investing some $2 billion in the AI startup last year as well.

Amazon stock may be headed for $285

Amazon’s commitment to strengthening its footprint in artificial intelligence is part of the reason why Wall Street has a consensus “overweight” rating on AMZN.

In fact, analysts at JMP Securities see an upside in Amazon shares to $285 which translates to a more than 40% upside from here.

Other than AI and cloud computing, the investment firm recommends owning AMZN stock for the strength of its e-commerce business as well as its large and rapidly growing advertising segment.

BofA also recommended investing in Amazon.com Inc after the launch of its Haul platform last week.  

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US President-elect Donald Trump’s pick to lead the Energy Department believes fossil fuels are key to ending world poverty, which he says is a bigger issue than climate change’s “distant” threat, Reuters reported.

Trump’s choice to lead the US Energy Department Chris Wright penned a corporate report released in February called Bettering Human Lives.

The report was penned, while he was still the CEO of oilfield services company Liberty Energy. 

Wright said in the report that poverty can be alleviated by giving people more access to hydrocarbons. 

Wright had started a foundation aimed at expanding propane cookstoves in developing countries, Reuters said in its report. 

There have been concerns about Trump’s policies regarding energy and climate change.

The President-elect has been vocal about his support for the oil and gas industry in the US. 

Trump is also expected to roll back several climate regulations passed under the incumbent US President Joe Biden.

Wright’s appointment was thus seen as a step towards increasing oil and gas output in the US by experts. 

Wright’s appointment crucial for US oil and gas industry?

“The vibes will be better for the oil and gas industry,” Morgan Bazilian, director of the Payne Institute at the Colorado School of Mines, told Reuters in an interview, adding the industry felt attacked by President Joe Biden’s climate policies.

Brazilian also said that Wright is “a perfect example of this. He’s been outspoken on how the oil and gas industry has brought security power and development to the United States, which is true. The other true thing is that global emissions aren’t going down”. 

As the world tries to transition to using clean energy, the appointment of Wright could roll back the progress of the US in limiting carbon emissions. 

Experts have said that emissions from fossil fuels are the major reason for climate change. 

In the report, Wright said that carbon is essential for life, and pushed back on the treatment of carbon dioxide as a pollutant. 

Experts term Wright’s logic as absurd 

Reuters quoted Peter Reich, a climate scientist at the University of Michigan, as saying that Wright’s logic is “terrifyingly absurd”. 

“People and their pets and crops also need water,” Reich told Reuters.

Reich said:

That doesn’t mean that if your house is flooded up to the second floor or your soybean field is under water, that water cannot be a problem.

Wright in the report said that much of the world was losing perspective as they pushed misdirected efforts to achieve the social and political goal of appearing to “take action” against climate change. 

“Overheated rhetoric is epitomized by current UN head Antonio Guterres’ ‘code red for humanity’ and ‘global boiling’,” Wright said in the report. 

Additionally, he also mentioned in the report without evidence that the population of polar bears is rising. 

Charlotte Lindqvist, an expert at the University of Buffalo, told Reuters that polar bear populations are not increasing and the species is losing its sea ice habitats.

Wright says solar and wind energy insufficient

In the report, Wright said small modular nuclear, which is not yet commercialized, and geothermal can be alternatives to petroleum products. 

However, according to Reuters, he criticized solar and wind energy as insufficient. 

Bazilian told Reuters Wright’s views on solar and wind were outdated.  

He noted that the cost of carbon-free solar and wind has fallen dramatically and those sources can also address energy poverty, according to Reuters. 

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Reddit Inc (NYSE: RDDT) opened about 8.0% down on Friday after Tencent Holdings unloaded about $88.5 million shares of the forum social network.

The weakness may also be related to a report that Advance Magazine Publishers is considering trimming its position on Reddit as well.

Still, there are three solid reasons to consider loading up on Reddit stock on the recent sell-off. Let’s take a look at each of them individually.

Reddit stock price is backed by solid financials

Reddit has already turned a quarterly profit even though it hasn’t even been a year since it went public.

More importantly, the forum social network is attracting users at an unparalleled rate. Its daily active users went up another 47% on a year-over-year basis to 97.2 million in Q3.

That’s significant since more users will likely drive more advertisers to the platform – and more advertisers will continue to drive the company’s bottom line over the coming quarters.

Reddit topped Street estimates for all metrics in its latest report. Profit, revenue, daily active users, average revenue per user, you name it – this company surpassed all of them in Q3.

That speaks volumes about the state of business and what the future may hold for Reddit stock.

RDDT could benefit from AI tailwinds

Reddit stock is trading at a significant premium at writing but it may continue to justify it as RDDT is uniquely positioned to benefit from the AI frenzy.

On top of stealing ad spend from X (formerly Twitter), it’s selling data to big tech names and helping them train their large language models.

Reddit already has a deal in place with Google and OpenAI – and will likely secure similar deals with others as users continue to register on its online platform over the next few quarters.

Note that Statista estimates the artificial intelligence market to grow at a compound annualized rate of over 28% through the end of this decade which confirms AI as a meaningful potential tailwind for RDDT.

Reddit stock does not, however, pay a dividend.

Reddit is catering to an international audience

Reddit is also tapping on artificial intelligence to translate the wealth of data on its forum social network from English to a whole bunch of other languages.

That exposes it to an international audience and positions it to become a significantly bigger platform over the next five years. Steve Huffman – the company’s chief executive told investors in the earnings press release last month:

Reddit continues to be one of the most visited and trusted sites in the world with opportunities available to us that aren’t available to most companies.

Wall Street currently has a consensus “overweight” rating on Reddit stock, suggesting they continue to see further upside despite its massive year-to-date run.  

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President-elect Donald Trump’s sweeping tariff proposals have triggered widespread concerns among businesses and economists.

Trump has suggested imposing a 20% tariff on all US imports and steeper duties of up to 60% on goods from China and other key trading partners.

Retailers like Walmart and Lowe’s have already signaled that they may need to raise prices if these tariffs are enacted.

However, TJX—the parent company of TJ Maxx, Marshalls, and HomeGoods—sees an opportunity amid the disruption.

TJX’s unique business model

Unlike most competitors that depend heavily on overseas production, TJX relies on a unique business model that involves acquiring excess inventory from designer brands.

Much of this merchandise is sourced after it has already been imported, meaning tariffs have typically been paid by the original importer.

This “opportunistic buying” strategy allows TJX to sell items at discounts ranging from 20% to 60% below standard retail prices.

CEO Ernie Herrman believes Trump’s tariffs will only enhance the company’s ability to scoop up discounted goods.

“Manufacturers could bring in goods early,” Herrman noted during an earnings call on Wednesday. “That could create even more availability of goods at advantageous prices for us.”

Lessons from 2019 tariffs

TJX’s confidence stems from experience.

When the Trump administration raised tariffs to 25% on $200 billion worth of Chinese goods in 2019, TJX leveraged the ensuing market disruption to secure bargains.

Herrman described that period as a significant “buying opportunity” for the company.

The National Retail Federation forecasts similar dynamics this year, predicting a 13.6% increase in imports this November compared to last year and a 6.1% rise in December.

Retailers are racing to import goods ahead of potential tariff enforcement, creating conditions that TJX can exploit.

Competitors face an uphill battle

The outlook for TJX contrasts sharply with that of its rivals.

Companies like Steve Madden are accelerating plans to relocate production out of China, while Walmart and Lowe’s anticipate unavoidable price hikes.

“Our model is everyday low prices. But there probably will be cases where prices will go up for consumers,” Walmart finance chief John David Rainey told CNBC.

Although TJX acknowledges that some price increases may occur, analysts believe its pricing will remain competitive.

Neil Saunders, a GlobalData Retail analyst told CNN, “Even if prices rise due to tariffs, TJX will still be relatively cheaper than mainstream retailers.”

By capitalizing on supply chain disruptions and leveraging its unique sourcing strategy, TJX aims to reinforce its reputation as a leader in the discount retail space.

As competitors grapple with rising costs, TJX’s ability to adapt positions it well for growth, even in a challenging economic environment.

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