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Thursday, August 1

Some of the largest macro moves in the market today include: USD/CNH +0.4%. Copper -1.2%. Some of the largest moves among US mega-cap stocks include: Meta Platforms Inc (META) +8.7%. Eli Lilly and Co (LLY) +4.6%. NVIDIA Corp (NVDA) +2.0%. 

The Bank of England has lowered its benchmark interest rate by 25 basis points to 5% in a closely contested decision, reflecting concerns over inflation and economic growth. This move follows the recent slowdown in UK inflation but comes amid higher services price growth, indicating mixed signals about future monetary policy directions.

In the United States, jobless claims have risen significantly to near a yearly high at 249,000 for the week ending July 27th. This increase suggests continued softening in the labor market and raises expectations that the Federal Reserve may lower borrowing costs as early as September.

Eurozone manufacturing activity remains weak with PMI figures holding steady at low levels while unemployment ticked up slightly to 6.5%. These indicators point towards ongoing challenges within Europe's industrial sector amidst broader economic uncertainties across major economies like Germany and France.

GBP/USD [-0.4%]
The Bank of England has cut its key interest rate by 25 basis points to 5%, marking the first reduction since it reached a 16-year high. This decision reflects concerns about economic slack and was influenced by recent inflation trends, which could impact GBP/USD as lower rates typically weaken a currency's value against others like the USD. Additionally, ongoing geopolitical tensions in the Middle East may also affect market sentiment towards risk assets including currencies such as GBP.

USD/CNH [+0.4%]
The USD/CNH has moved up by 0.4% during Thursday's market hours. This movement coincides with a significant drop in China's Caixin Manufacturing PMI, which unexpectedly fell to 49.8 in July from 51.8 in June, missing expectations of 51.5. This contraction suggests a break in the positive trend observed over the past year and may necessitate stronger stimulus efforts by Chinese authorities. Additionally, the People's Bank of China is anticipated to implement further monetary easing measures due to weak growth momentum and ongoing deflationary pressures. In related market dynamics, the USD/JPY has also increased, reflecting broader trends that may influence the USD/CNH exchange rate.

META |+8.6%|+111.9B
Meta Platforms Inc. reported strong second-quarter earnings, with adjusted earnings per share at 5.16, surpassing the estimate of 4.73 by over 9%. Revenue reached 39.07 billion, exceeding the consensus estimate of 38.31 billion and reflecting a year-over-year increase of 22%. The company provided third-quarter revenue guidance between 38.5 billion and 41 billion, while analysts expect approximately 39.14 billion. Notably, Meta's family daily active users averaged 3.27 billion in June, marking a 7% increase year-over-year. Following the earnings report, multiple analysts raised their price targets for the stock, with Goldman Sachs setting it at 555 and Oppenheimer at 615.

CVNA | +10.9% | +3.3B
Carvana Co reported a second-quarter profit of $0.14 per share, significantly exceeding the consensus estimate of a loss. Revenue for the quarter reached $3.41 billion, surpassing expectations and marking a substantial year-over-year increase. Vehicle sales surged, with over 101,000 units sold, reflecting a notable rise in demand. The company achieved a net income of $48 million, resulting in a net income margin of 1.4%. Additionally, Carvana projected an adjusted EBITDA for fiscal year 2024 between $1 billion and $1.2 billion. Following these announcements, shares of Carvana experienced a significant upward movement in trading, aligning with broader market trends and outperforming sector peers.

MRNA |-13.5%|-5.3B
Moderna reported second-quarter revenue of $241 million, surpassing the Street estimate of $134.9 million. The company, however, recorded a loss per share of $3.33, exceeding the consensus estimate of $3.14. In light of disappointing sales in the European Union and increased competition in the U.S. respiratory vaccine market, Moderna has revised its 2024 net product sales guidance to between $3 billion and $3.5 billion, down from a previous forecast of $4 billion. Notably, Spikevax sales fell to $184 million, reflecting a 37% year-over-year decline. The company's CEO acknowledged ongoing challenges within the COVID-19 vaccine market. Additionally, Moderna anticipates significant research and development expenses totaling approximately $4.5 billion for the year.

LLY |+4.7% | +37.3B
Eli Lilly and Co. announced positive topline results from the SUMMIT Phase 3 clinical trial of tirzepatide, which assessed its efficacy in adults with heart failure and obesity. The trial revealed a significant 38% reduction in the risk of heart failure outcomes compared to placebo, alongside a notable 15.7% body weight reduction in participants versus 2.2% in the placebo group. All key secondary endpoints were met, and the safety profile was consistent with previous studies. Following this announcement, Eli Lilly shares experienced an increase in trading activity. Additionally, social media discussions highlighted the success of their obesity drug Zepbound and tirzepatide, showcasing substantial benefits in reducing complications and improving symptoms in heart failure patients.

TM |-6.2%|-151.7B
Toyota Motor Corp's stock has dropped significantly, aligning with a broader market downturn affecting its sector. The company reported a modest increase in first-quarter net profit, surpassing analyst estimates, while revenue also rose, bolstered by a weaker yen. However, vehicle sales volume declined sharply due to substantial drops in domestic sales, with projections indicating an overall decrease for the fiscal year. Additionally, production disruptions related to a safety scandal and recalls of over 100,000 vehicles have adversely impacted operations. Despite these challenges, Toyota announced an interim dividend but refrained from providing forecasts for future dividend payments. Following these developments, Toyota shares fell over 8% at market close.

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