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Secretary could tap Treasury’s $1T account for bond buys. (0:14) Wall Street loves Jersey Mike’s. (1:21) Archer adds downtown LA to planned air-taxi network. (1:49)
This is an abridged transcript of the podcast:
Our top story so far, Bessent is bringing out the bazooka.
Treasury Secretary Scott Bessent could tap the Treasury’s almost $1T General Account to help fund increased purchases of long-dated government bonds, CNBC reported.
The suggestion changes the perception of how Treasury was expected to fund the purchases. In an interview Friday, Bessent called the increased purchases of long-dated bonds a “Treasury twist,” implying the government could sell short-term debt to pay for long-term Treasuries. A senior Treasury official did not rule out that option.
Since Treasury announced it would double the size of its off-the-run securities buybacks on the long end to at least $4B from $2B, bond prices have given back their initial gains. That was partly due to market skepticism that Treasury’s resources for the operation were too limited.
Treasury officials who spoke to CNBC would not indicate how much, if any, of the TGA would be used for the program or when an announcement would be made.
The 30-year Treasury yield (US30Y) moved 4 basis points lower to 5.24%, but trading is choppy. On Aug. 19, when the expanded long-term debt buyback plan was announced, the long bond yield fell as low as 5.18%. On Friday, it closed at 5.28%.
Among active stocks, bullish analyst ratings for Jersey Mike’s Subs (JMKE) are piling in after the expiration of the IPO quiet period.
The sandwich chain got Buy-equivalent ratings from William Blair, RBC Capital Markets, TD Cowen, Raymond James, Bank of America, Guggenheim, Truist, Mizuho and BTIG. Bernstein is the most cautious, with a Hold.
Analysts of the sub-sector have clearly had their noses to the grinder stone and predict a heroic rise in the share price. But if something were to torpedo earnings, we’d end up with a lot of po’ boys.
Archer Aviation (ACHR) is adding another planned stop to its Los Angeles air-taxi network as the company works toward a high-profile debut around the 2028 Olympic and Paralympic Games.
Archer and sports and entertainment company AEG said they will develop a vertiport at L.A. Live in downtown Los Angeles under a multiyear agreement. Archer will be the exclusive air-taxi provider for the 4-million-square-foot complex, which sits next to Crypto.com Arena, where the Lakers, Sparks and Kings play.
And at the annual Hot Chips event, IBM (IBM) unveiled its first dual-architecture mainframe processor, enabling companies to run on both IBM and Arm (ARM) compute platforms simultaneously.
In other news of note, Yum China (YUMC) announced that Pizza Hut China has opened its 300th burger bar location after launching the side-by-side format in late 2025.
The restaurant company said burger bars added double-digit incremental sales and meaningful profit to parent Pizza Hut stores in Q2.
Burger bars are becoming a major new battleground in China’s fast-food market. The concept centers on small burger businesses attached to larger restaurants.
The format fits a consumer base that increasingly wants affordable, portable individual meals, particularly delivery-friendly food for smaller households. Burgers were the top preference among respondents in a recent survey of quick-meal options.
Yum’s signature sandwich is the Daily Fresh-Cut Black Diamond Pineapple Cheese Beef Burger.
And in the Wall Street Research Corner, Goldman Sachs has identified six stocks that rank among the favorite holdings of both hedge funds and mutual funds heading into Q3.
Boeing (BA), Capital One Financial (COF), Mastercard (MA), SpaceX (SPCX), Thermo Fisher Scientific (TMO) and Visa (V) are the “shared favorites.” Those are stocks that appear in both Goldman’s Hedge Fund VIP basket and its Mutual Fund Overweight basket.
Capital One, SpaceX and Thermo Fisher are new additions, while Marvell Technology (MRVL) dropped out.
See how this group has done against the market in our story.
Editor’s Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.
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