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Tuesday, September 3

Some of the largest macro moves in the market today include: Copper -2.0%. Oil (WTI) -1.9%. S&P 500 Index (US) -0.5%. Some of the largest moves among US mega-cap stocks include: NVIDIA Corp (NVDA) -2.0%. Exxon Mobil Corp (XOM) -1.0%. JPMorgan Chase & Co (JPM) -0.7%. 

Recent economic data from China indicates a slowdown, with the NBS Composite PMI Output Index falling to 50.1 in August and manufacturing activity contracting for the fourth consecutive month at 49.1, while services showed slight improvement above expectations at 50.3.

In Europe, Italy's GDP growth was confirmed at a modest 0.2% for Q2 of this year despite declining exports and unchanged consumption levels; meanwhile, industrial producer prices fell by only -1.1%, marking reduced deflationary pressures compared to previous months.

The US market is focused on upcoming key economic indicators including ISM Manufacturing PMI due later today and nonfarm payrolls set for release on Friday which are expected to influence Federal Reserve rate decisions amidst ongoing discussions about potential interest rate cuts driven by labor market conditions.

Invesco QQQ Trust Series I (QQQ) [-0.7%]
Invesco QQQ Trust Series I (QQQ) has seen a decline since Friday, coinciding with a challenging week for technology-heavy indices. The Nasdaq dropped significantly, contrasting with gains in the Dow and S&P 500. Key holdings within QQQ contributed to its performance: NVIDIA faced concerns over potential delays in its next-generation chips, while Apple is discontinuing older products post-iPhone 16 launch amid increased competition from Huawei. Additionally, the ETF is trading below its 50-day moving average, while other major index ETFs are near new highs. The Dow Jones Index also declined slightly, reflecting ongoing sentiment that could be impacting technology and growth stocks, which are heavily represented in QQQ.

United States Oil Fund LP (USO) [-2.9%]
The United States Oil Fund LP (USO) has experienced a price decline of nearly 2.9% since Friday. This movement coincides with a drop in WTI crude oil prices, which fell significantly due to weak economic data from China, overshadowing supply disruptions in Libya. Brent crude has also declined amid geopolitical tensions, particularly following attacks on two oil tankers in the Red Sea by Yemen's Houthi rebels. Additionally, Libya has halted all crude oil exports due to ongoing political instability, tightening market conditions. OPEC+ is expected to begin unwinding some production cuts in October, further influencing market dynamics. These developments have collectively contributed to negative returns for crude oil benchmarks and are reflected in the pricing of USO.

BA |-3.8%|-3.9B
Boeing Co | Aerospace & Defense
Boeing Co's stock has dropped significantly, down 3.8% since Friday. Wells Fargo has downgraded Boeing to "Underweight," lowering its price target from $185 to $119, reflecting concerns about the company's outlook. NASA's decision to adjust the Crew-9 mission due to issues with Boeing's Starliner spacecraft has compounded negative sentiment, as the spacecraft will return to Earth without a crew following technical difficulties. Additionally, astronaut Butch Wilmore reported strange noises from the malfunctioning Starliner, prolonging his and colleague Suni Williams' time stranded in orbit. The company is also facing potential labor strikes affecting 32,000 workers amid contract negotiations focused on wages and healthcare. A recent survey indicates increased traveler caution regarding aircraft safety, with many researching aircraft types prior to booking flights, influenced by a series of incidents that have raised alarms about Boeing's safety record.

PCVX |+32.5%|+3.8B
Vaxcyte Inc | Biotechnology
Vaxcyte Inc. has announced positive topline results from its Phase 1/2 study of VAX-31, a 31-valent pneumococcal conjugate vaccine candidate aimed at adults aged 50 and older. The study, involving 1,015 healthy adults, demonstrated robust immune responses across all serotypes and a safety profile comparable to Prevnar 20. Following these encouraging results, Vaxcyte plans to advance VAX-31 into a Phase 3 program, with a pivotal non-inferiority study expected to begin by mid-2025. Additionally, the company will hold a webcast on September 3, 2024, to discuss these findings further. This announcement has coincided with a notable increase in Vaxcyte's stock price, which has moved significantly higher since Friday.

TRP |-2.5% | -1.2B
TC Energy Corp | Oil & Gas Storage & Transportation
TC Energy Corp (TRP) experienced a decline of 2.5% in after-hours trading. The company is currently underperforming relative to its sector peers. There is a growing demand for reliable energy sources, particularly in light of the surge in data center power driven by artificial intelligence. This trend underscores the need for significant grid expansion, especially in the PJM and ERCOT markets, where utilities are planning substantial natural gas-fired generation. In Texas, initiatives like the Texas Energy Fund aim to enhance grid reliability through new gas-fired generation. Overall, natural gas is anticipated to play a critical role in addressing future energy needs amid the limitations of renewable sources.

PFE |-1.9% | -3.1B
Pfizer Inc | Pharmaceuticals
Pfizer Inc. has reported new immunogenicity and safety data from its Phase 2 study of the Lyme disease vaccine candidate VLA15, developed in partnership with Valneva. Following a second booster vaccination administered one year after the first, the immune response and safety profile were consistent with initial booster data. This positive outcome supports the potential benefits of booster vaccinations ahead of Lyme season. Concurrently, Kansas has joined other states in suing Pfizer over its COVID-19 vaccines, highlighting ongoing legal challenges for the company. Despite the favorable trial results, Pfizer's stock has dropped significantly since Friday, underperforming its sector peers.

X | -3.9% | -321.8M
United States Steel Corp | Steel
United States Steel Corp's shares have dropped significantly following Vice President Kamala Harris's opposition to the proposed $14 billion acquisition by Nippon Steel. Harris's remarks emphasize that U.S. Steel should remain "American-owned and American-operated," a sentiment echoed by President Biden. The United Steelworkers union has also voiced strong resistance, raising concerns about job security and adherence to existing contracts. Despite Nippon Steel's pledge to invest $2.7 billion into U.S. Steel's facilities and uphold current contracts, the political and union opposition presents significant challenges to the acquisition. Additionally, Cleveland-Cliffs Inc has seen a decline, which may reflect broader market sentiments affecting the steel sector, contributing to United States Steel Corp's underperformance relative to its peers.

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