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Today in the Market (12/8/2023)

Good Evening! On Friday, stocks concluded the first complete trading week of December with a victory as investors evaluated the US monthly employment report favorably.

All three indexes finished very close together, with the Nasdaq increasing by 0.45%, the S&P 500 rising by 0.41%, and the Dow Jones up by 0.36%

A NEW TWIST

McDonald’s (MCD) is launching the first establishment of its unique restaurant concept, CosMc, today in Bolingbrook, Illinois, with an additional nine locations scheduled to begin operations in Texas next year. The restaurant specializes in beverages containing caffeine and appetizers designed to provide an energy boost in the afternoon.

But why? According to the company’s CEO, Chris Kempczinski, consumers who purchase a quick coffee before work or a fruity tea throughout the day represent a market worth $100 billion. This category is seeing quicker growth compared to other segments of the fast food industry. But it doesn’t stop there! CosMc’s will provide a selection of beverages such as a Churro Frappé, S’mores Cold Brew, and Blackberry Mint Green Tea, along with pretzel bits and many sweet delicacies.

Going forward! McDonald’s is committed to its efforts to get support from the U.S. this time. Kempczinski made that apparent while establishing expectations for CosMcs. If, upon analyzing a year’s worth of data, they conclude that the worldwide market is unlikely to adopt the new brand, CosMc’s may cease to exist.

A MOVE AWAY FROM CHINA

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Apple Inc. (AAPL) intends to increase its manufacturing operations in India, aiming to produce 25% of the global iPhone supply within the nation. According to a report from the Wall Street Journal, Apple and its suppliers have set a goal to manufacture over 50 million iPhones per year in the world’s most populated country over the next two to three years.

What is causing this shift? The movement arises as American multinational corporations want to broaden their supply chains, reducing their dependence on China after significant disruptions caused by the COVID-19 pandemic. Why? China implemented stringent measures to contain the pandemic, prompting the need for alternative sourcing strategies. The limitations implemented were far more stringent and had a significantly longer duration compared to the public health restrictions in the United States and other Western countries.

The big picture for India! According to the source, Apple intends to manufacture tens of millions of more smartphones in India beyond the first expansion. By the end of the decade, Indian manufacturing will make up a larger proportion of global iPhone output. However, China, an essential market and manufacturing center for Apple, will continue to be the primary manufacturer of the iPhone.

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