U.S. Steel's "Hail Mary” Pass

Plus, Solana ETF odds skyrocket.

Today is Friday, January 3, 2025.

The Early Bird Index today is 79.58

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U.S. Steel's "Hail Mary” Pass

Amid acquisition negotiations between Nippon Steel (OTCMKTS: NPSCY) and United States Steel (NYSE: X), the workers union is criticizing the latest proposal.

Details: In a letter on Thursday, the United Steelworkers union called out Nippon’s latest offer for failing to commit to maintaining future production.

Quote: “This is nothing but a ‘Hail Mary’ pass destined to fall to the ground. The bottom line is Nippon is a serial trade cheater that for decades built its business model on adding to global overcapacity and threatening the U.S. industry.” - United Steelworkers.

Background: Following the failed deal between both companies, Nippon made a new proposal this week to buy U.S. Steel that would reportedly give the U.S. government veto power over potential cuts to U.S. Steel’s production capacity.

Early Bird’s Nest Egg Gains: From a shareholder's perspective, union support for the acquisition of U.S. Steel by Nippon is crucial.

  • Union support could significantly influence the final approval process.

  • A favorable view from labor groups could help address concerns about potential job losses or negative impacts on American workers.

Final Thoughts: U.S. Steel’s stock is down 32% in the last 12 months.

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Notables

Notable Earnings Today: N/A.

Notable IPOs Today: A SPAC III Acquisition Corp. Class A Ordinary Shares (Nasdaq: ASPC).

Notable Equity Crowdfunding Campaigns Ending Today: Dr. Clark Store (Honeycomb).

Notable Economic Events Today: ISM Manufacturing PMI / Prices / Employment (10:00 a.m. ET).

Solana ETF Odds Skyrocket

The price of the cryptocurrency Solana jumped about 5% on Thursday as traders anticipated the approval of the first spot Solana ETF (exchange-traded fund) in the U.S. later this year. 

Details: VanEck’s head of research predicted this week that the odds of a spot Solana ETF listing in the U.S. this year are around 77%. Meanwhile, the platform Polymarket sees an 85% chance of a spot Solana ETF approval in 2025.

Background: Last year, the SEC approved the first spot Bitcoin and Ethereum ETFs.

Bigger Picture: A spot Solana ETF would give traditional investors more exposure to Solana.

Final Thoughts: Despite the recent enthusiasm, the price of Solana is down about 11% in the last 30 days.

Resources Connection Posts Good Results

Management consulting company Resources Connection (Nasdaq: RGP) jumped 3.21% in after-hours trading on Thursday after posting good financial earnings results.

Financials: Resources Connection posted earnings of 18 cents per share in the past quarter and revenue of $145.6 million; both were better than expected.

Final Thoughts: This is a good sign for the stock after dropping over 30% last year.

There’s a First Time for Everything: Tesla Annual Sales Slip for First Time as Competition Grows (New York Times)

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.