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Friday, December 13

Some of the largest macro moves in the market today include: Nasdaq 100 Index (US) +0.9%. Noteworthy US mega-cap moves today: Broadcom Inc (AVGO) +17.3%.

Recent market movements are significantly influenced by economic data releases and central bank policies. The U.S. stock markets experienced declines recently, with the Dow Jones falling for six consecutive sessions amid rising producer prices that exceeded expectations in November. This has raised concerns about inflation management ahead of next week's Federal Reserve meeting, where a rate cut is anticipated.

In Europe, mixed performances were noted as Germany's DAX reached record highs while other indices like France’s CAC 40 showed slight gains despite disappointing GDP figures from the UK indicating an economy shrinking for two months consecutively. This situation prompted speculation regarding potential faster interest rate cuts by the Bank of England to stimulate growth.

Additionally, China's Central Economic Work Conference outlined plans for more proactive fiscal measures aimed at boosting domestic demand and stabilizing its economy amidst external pressures. However, investors expressed disappointment over vague details on stimulus specifics following this high-level meeting; thus impacting sentiment across Asian markets negatively before they opened lower today.

Invesco QQQ Trust Series I (QQQ) [+0.9%]
Invesco QQQ Trust Series I (QQQ) reached premarket highs of approximately +0.93%, reflecting a positive movement in the stock's price prior to market opening. Recent social media discussions highlighted a significant divergence among major indexes, with QQQ up by over 2% for the month. Speculation surrounds Palantir Technologies (PLTR) potentially joining the Nasdaq 100, which could favorably impact QQQ. Additionally, geopolitical concerns were raised regarding a U.S. report on North Korean funding schemes, mentioning QQQ among affected tickers. The top contributors to QQQ's performance included Broadcom Inc. (AVGO), which reported strong quarterly results, and Apple Inc. (AAPL), forecasted for robust performance in 2025. Tesla (TSLA) continues to innovate with new features and expansion plans in China and Europe, further contributing to the ETF's outlook.

iShares China Large-Cap ETF (FXI) [-1.0%]
The iShares China Large-Cap ETF (FXI) has seen a decline of over 1% in pre-market trading, coinciding with significant drops in Chinese stock markets. The Shanghai Composite Index fell sharply, driven by disappointment over the lack of detailed stimulus measures following China's Central Economic Work Conference. Additionally, China's new loans for November were reported at 580 billion, falling short of expectations and reflecting ongoing economic concerns. Asian markets mirrored this trend, with notable declines in both the Shanghai Composite and the Shenzhen CSI 300. Social media discussions highlighted geopolitical tensions, particularly regarding military drills around Taiwan, which may influence market perceptions. Among FXI's holdings, JD, TCOM, and YUMC contributed negatively to the ETF's performance, with JD experiencing the largest drop.

AVGO | +17.0%| +16.7B
Broadcom Inc | Semiconductors
Broadcom Inc. reported its fourth-quarter results on December 12, 2024, revealing an adjusted earnings per share of 1.42, surpassing the consensus estimate of 1.38. Revenue reached 14.05 billion, slightly below expectations of 14.09 billion but significantly higher than 9.295 billion in the same quarter last year. The company achieved record annual revenue of 51.6 billion for fiscal year 2024, reflecting a 44% year-over-year growth, primarily driven by semiconductor revenue of 30.1 billion, including AI revenue of 12.2 billion, which surged 220% year-on-year. Following the earnings announcement, analysts from Piper Sandler and Evercore ISI raised their price targets for Broadcom to 250, while Deutsche Bank increased its target to 240. Additionally, Broadcom announced an 11% increase in its quarterly dividend to 0.59 per share, payable on December 31, 2024.

MU | +2.4% | +2.6B
Micron Technology Inc | Semiconductors
Micron Technology Inc. is experiencing a price increase, moving in tandem with the broader Semiconductors sector, which is also seeing significant upward momentum. A recent report from TDCowen, released about an hour ago, reaffirms a "Buy" rating for Micron, with a price target set at 135. An influential investor has recommended accumulating Micron shares ahead of its upcoming earnings announcement. The company is expected to report Q1 FY2025 earnings after the market closes on December 18, 2024, with an estimated EPS of 1.76 and revenue projected at 8.6 billion, a substantial increase from previous figures. Additionally, Broadcom Inc. recently surged following strong fourth-quarter earnings that surpassed EPS expectations, contributing to positive sentiment in the semiconductor space. The Nasdaq 100 Index has also risen, reflecting broader market trends that may be influencing Micron's recent price movement.

AMD | +1.6% | +3.3B
Advanced Micro Devices Inc | Semiconductors
Advanced Micro Devices Inc (AMD) is experiencing a price increase, coinciding with a notable rise in the Semiconductors sector. Recent social media activity highlights comments from AMD's CEO, who discussed the company's strategic turnaround and the necessity of long-term investments in new areas. She emphasized that a shift from incremental improvements to leveraging the company's strengths is essential for motivating employees. Additionally, discussions on social media reflect mixed sentiments, with one post mentioning a potential $500 giveaway if AMD reaches a specific price point. Another post expressed excitement about AMD's prospects, while some users previously perceived the stock as weak due to sector performance. The Nasdaq 100 Index has also risen, aligning with broader market trends that typically influence technology stocks like AMD.

MRVL | +7.1%| +106.9B
Marvell Technology Inc | Semiconductors
Marvell Technology Inc (MRVL) has seen a price increase coinciding with heightened discussions on social media regarding the semiconductor sector's dynamics, particularly in relation to Broadcom (AVGO). On October 16th, Broadcom's shares surged significantly following a robust earnings report that highlighted substantial growth in AI-related revenues, with projections for the AI market reaching between $60 billion to $90 billion by 2027. This performance was underscored by Broadcom's reported revenue of $14.06 billion and a remarkable year-over-year AI revenue growth of 220%. Additionally, users noted a similar breakout pattern for MRVL, suggesting potential upward momentum. Analysts have also raised their price targets for Broadcom, which historically correlates with movements in MRVL, further influencing market sentiment in the semiconductor sector.

RH | +13.8% | +1.1B
RH | Homefurnishing Retail
RH's shares surged significantly following the company's recent earnings report and guidance updates. The firm raised its full-year revenue growth outlook to a range of 6.8% to 7.2%, up from the previous estimate of 5% to 7%. Fourth-quarter demand growth expectations were set at 20% to 22%, with revenue growth projected between 18% and 20%. Although RH reported adjusted earnings of $2.48 per share, missing the expected $2.65, it noted a year-over-year total demand increase of 13%. November demand accelerated to an 18% increase, with positive momentum anticipated into December. Analysts responded favorably, raising price targets for RH, reflecting confidence in the company's strategic initiatives. Social media buzz highlighted the notable price movement after the earnings call, with discussions about the company's performance amidst challenging housing market conditions and concerns regarding cash flow and inventory levels.

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