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Friday, October 18

Some of the largest macro moves in the market today include: USD/CNH -0.4%. Copper +1.7%. Gold +0.8%. Some of the largest moves among US mega-cap stocks include: Apple Inc (AAPL) +1.8%. 

China's economic data has shown mixed results, with the country's GDP growth slowing to 4.6% year-on-year in Q3 of 2024, marking it as the weakest advance since early 2023. However, China's industrial production grew by a faster-than-expected rate of 5.4% in September and unemployment fell to its lowest level in three months at 5.1%, indicating some resilience despite ongoing challenges such as property market weakness.

In Europe, construction output continued its decline for the seventh consecutive month, with notable decreases observed particularly in France and Germany during August. However, Spain saw an increase over this period that slightly offset broader regional declines within Euro Area activity levels overall amidst varied responses from different sectors across member states' economies. 

SPDR Gold Shares (GLD) [+0.9%]
SPDR Gold Shares (GLD) has experienced a price increase of 0.9% in pre-market trading, coinciding with gold reaching a record high of $2,727.45 amid escalating geopolitical tensions in the Middle East and uncertainties surrounding the U.S. presidential election. Spot gold recently closed at an all-time high of $2,693, with expectations to approach $3,000 soon. Bank of America has characterized gold as the "last safe haven" in light of rising U.S. debt risks, projecting a potential price of $3,000 an ounce by the end of next year. Additionally, strong retail sales data and a drop in U.S. initial jobless claims have created a favorable environment for gold as an alternative investment. In related movements, silver has also increased, reflecting broader market dynamics historically correlated with GLD.

Invesco QQQ Trust Series I (QQQ) [+0.6%]
Invesco QQQ Trust Series I (QQQ) saw an increase of 0.6% after market hours. Recent social media discussions highlighted QQQ's performance on October 17th, where it rose slightly while the S&P 500 dipped marginally and the Dow Jones increased. Notably, Netflix (NFLX) reported strong Q3 earnings that exceeded estimates, contributing positively to QQQ's performance. Intuitive Surgical (ISRG) also outperformed expectations in its Q3 results, enhancing its market potential. Additionally, Nvidia (NVDA) led in money flow with bullish net premiums, which may benefit QQQ and the S&P 500. Market participants noted QQQ's daily candle showed minimal fluctuation, suggesting it opened at a high and closed near a low for the day. Insider activity was observed with sales from executives at Broadcom (AVGO) and Meta Platforms (META).

NFLX | +6.3% | +19.8B
Netflix Inc | Movies & Entertainment
Netflix Inc reported robust third-quarter results, revealing a total of 282.72 million global streaming paid memberships, reflecting a 14% year-over-year increase. The company added 5.07 million paid memberships during the quarter, surpassing expectations. Revenue for Q3 reached 9.83 billion, exceeding the consensus estimate, with earnings per share of 5.40, also above forecasts. For Q4, Netflix anticipates revenue of 10.13 billion and EPS of 4.23, both higher than analyst expectations. Additionally, the company raised its FY2024 revenue guidance to a range of 38.9 billion from a previous estimate. Notably, Netflix's advertising tier membership grew by 35% quarter-over-quarter, and management expressed enthusiasm for upcoming live events. Following the earnings announcement, the stock experienced a significant increase in after-hours trading, reflecting positive market sentiment regarding its performance and outlook.

CVS | -10.0% | -7.2B
CVS Health Corp | Health Care Services
CVS Health Corp has appointed David Joyner as its new CEO, effective October 17, succeeding Karen Lynch. This leadership change coincides with the company's announcement that its third-quarter earnings will significantly miss Wall Street expectations, with adjusted EPS projected between $1.05 and $1.10, well below the consensus estimate of $1.70. The shortfall is attributed to approximately $1.1 billion in charges related to premium deficiency reserves. Furthermore, CVS has withdrawn its previous guidance for 2024 due to rising medical costs. Following this news, CVS shares dropped significantly in premarket trading, reflecting the market's reaction to the leadership transition and revised earnings outlook. The company is also undergoing restructuring and has implemented layoffs as part of its cost-cutting measures.

AXP | -3.0%| -6.0B
American Express Co | Consumer Finance
American Express Co reported third-quarter earnings with adjusted earnings per share (EPS) of 3.49, exceeding the consensus estimate of 3.38. Revenue for the quarter was 16.64 billion, slightly below the expected 16.68 billion, but reflecting an 8% year-over-year increase. The company raised its full-year EPS guidance to a range of 13.75 to 14.05, up from a previous range of 13.30 to 13.80, while maintaining an expected revenue growth of around 9%. Despite these positive results, shares fell by approximately 2.8% in premarket trading following the earnings release. Additionally, the net write-off rate increased to 1.9%, up from 1.8% a year ago, signaling a slight deterioration in credit quality.

ISRG |+6.4%|+11.5B
Intuitive Surgical Inc | Health Care Equipment
Intuitive Surgical Inc. reported strong third-quarter results, with adjusted earnings per share of 1.84, exceeding the consensus estimate of 1.63 by nearly 13%. Revenue reached 2.04 billion, surpassing expectations of 2.00 billion and reflecting a 17% year-over-year increase. The company placed 379 da Vinci surgical systems during the quarter, up from 312 units in the same period last year, contributing to an installed base of 9,539 systems, which is a 15% increase year-over-year. Worldwide da Vinci procedures grew approximately 18%. Net income rose to 565.1 million from 415.7 million a year prior. The company ended the quarter with 8.31 billion in cash and investments, marking a 628 million increase during the period. Regulatory clearance for the da Vinci 5 surgical system was obtained in South Korea this month. Following these results, shares surged approximately 6% in after-hours trading.

PG | -1.2% | -4.9B
Procter & Gamble Co | Household Products
Procter & Gamble Co's stock has declined, reflecting a broader downturn in the Household Products sub-sector. In its recent fiscal Q1 earnings report, the company posted a net income of $3.96 billion, or $1.61 per share, down from $4.52 billion a year prior. While core earnings per share rose to $1.93, surpassing expectations, revenue fell to $21.74 billion, missing forecasts. This represents a year-over-year decline of 0.6%. The company maintained its full-year guidance for core EPS growth between 5% to 7% and overall sales growth of 2% to 4%. Procter & Gamble also noted an anticipated commodity cost headwind of approximately $200 million after tax for fiscal 2025.

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