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Tuesday, September 24

Some of the largest macro moves in the market today include: Copper +2.8%. USD/CNH -0.5%. Oil (WTI) +1.7%. Some of the largest moves among US mega-cap stocks include: Visa Inc (V) -2.2%. Exxon Mobil Corp (XOM) +0.9%. 

China's central bank has announced a significant stimulus package aimed at revitalizing its economy, which includes cutting the reserve requirement ratio by 50 basis points and other measures to boost lending. This move has led to notable gains in commodities such as copper and crude oil, reflecting China's substantial influence on global demand for these resources.

In Germany, business morale dropped significantly with the Ifo Business Climate indicator falling to an eight-month low of 85.4 in September from 86.6 in August. The decline was driven by worsening current conditions and lower future expectations among businesses, raising concerns about potential economic slowdown within Europe's largest economy.

Japan reported mixed PMI data; while manufacturing activity continued contracting more than expected with a reading of 49.6 for September down from last month's figure of 49.8, services sector growth accelerated slightly reaching its highest pace since April at a PMI score of 53.9.

iShares China Large-Cap ETF (FXI) [+5.4%]
The iShares China Large-Cap ETF (FXI) has experienced a significant price increase of approximately 5.3% in pre-market trading. This movement is supported by recent monetary policy changes from China's Central Bank, which has lowered interest rates and plans to reduce the reserve requirement ratio (RRR) by 50 basis points. These measures are expected to inject around 1 trillion yuan into the economy, enhancing liquidity. Notable contributors to the ETF's performance include TCEHY, JD, MPNGY, TCOM, and LI, which have all posted positive returns. The move in USD/CNH has also contributed to FXI's performance, adding 0.42%. Overall, the supportive monetary stance aims to bolster the stock market amid ongoing economic recovery efforts in China.

United States Oil Fund LP (USO) [+2.0%]
United States Oil Fund LP (USO) experienced a price increase in pre-market trading, coinciding with a surge in crude oil prices. Brent crude rose to $75.03 per barrel, while West Texas Intermediate (WTI) climbed to $71.55 per barrel. This upward movement follows China's announcement of its largest stimulus since the pandemic, aimed at bolstering economic growth amid a downturn in the property sector. Additionally, escalating military actions in the Middle East, particularly Israel's offensive against Hezbollah, have raised concerns about potential supply disruptions. U.S. oil producers are also evacuating staff and pausing production ahead of an approaching hurricane in the Gulf of Mexico.

V |-2.2%|-12.2B
Visa Inc | Transaction & Payment Processing Services
Visa Inc. is reportedly facing a significant antitrust lawsuit from the U.S. Department of Justice (DOJ) regarding its alleged monopolization of the U.S. debit card market. This legal action follows a prolonged investigation into Visa's business practices, particularly concerning exclusive agreements that may have hindered competition. The DOJ is expected to file the lawsuit imminently, targeting Visa's anti-competitive activities, including those related to its tokenization technology. Following these revelations, Visa's stock experienced a decline, dropping significantly in after-hours trading.

BABA | +5.6%|+102.1B
Alibaba Group Holding Ltd | Broadline Retail
Shares of Alibaba Group Holding Ltd rose sharply following a central bank interest rate cut and new government stimulus aimed at revitalizing China's economy. The People's Bank of China announced a reduction in the benchmark seven-day interest rate and eased reserve requirements for banks, alongside a significant injection of approximately $70 billion for stock purchases. This intervention is part of broader efforts to combat sluggish growth and an ongoing property slump, with authorities signaling more easing measures to come. Concurrently, the Hang Seng Index and Shanghai Composite index experienced gains, with Alibaba's shares climbing notably. Additionally, Futu Holdings Ltd saw a substantial increase, reflecting a broader market sentiment that typically influences Alibaba's performance.

LBRDA |+21.4% | +2.2B
Liberty Broadband Corp | Cable & Satellite
Liberty Broadband Corporation has announced a counterproposal to Charter Communications for an all-stock, tax-free merger. The proposal suggests that shareholders receive 0.2900 of a Charter Class A common stock share for each Liberty Broadband share. The transaction includes a proposed closing date of June 30, 2027, or an earlier mutually agreed date. Charter would assume or refinance Liberty Broadband's debt and outstanding preferred stock at or prior to closing. During the transaction's pendency, Liberty Broadband will continue its operations in the ordinary course of business, subject to definitive agreements. This counterproposal was communicated to the Special Committee of Charter's Board of Directors. In the pre-market session, Liberty Broadband's stock price has increased significantly.

XPEV |+7.4% | +1.4B
Xpeng Inc | Automobile Manufacturers
Xpeng Inc. announced a production milestone, achieving its 500,000th vehicle, as shared on social media approximately three hours ago. The company also reported the production of 10,000 units of its new Mona M03 all-electric hatchback coupe within 22 days of its late August launch. For the eight months ending in August, Xpeng delivered 77,209 electric vehicles, marking a 17% increase year-over-year. In the second quarter, Xpeng reported deliveries of 30,207 EVs, total revenue of 1.12 billion, and a net loss of 180 million. The competitively priced Mona M03 starts at RMB 119,800, undercutting Tesla's Model 3. Meanwhile, NIO Inc. surged following a significant interest rate cut by China's central bank, which has positively affected the broader market and likely contributed to Xpeng's recent 7.1% price increase.

AZO | -3.5% | -1.7B
Autozone Inc | Automotive Retail
AutoZone, Inc. reported its fourth-quarter results, revealing an adjusted earnings per share (EPS) of 48.11, which fell short of the analyst estimate of 53.53. Revenue reached 6.21 billion, also below the consensus of 6.23 billion. The company experienced a 1.3% increase in total same-store sales, with domestic same-store sales rising only 0.2%. Year-over-year net income was reported at 902.21 million, compared to 864.84 million in the prior year. Despite showing growth in revenue and net income, the notable misses in earnings and sales expectations may have contributed to a price decline of 3.5% since Monday.

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