Welcome to the MarketReader Minute.

Below are AI-generated insights on today’s premarket moves, powered by MarketReader technology.

If you find the insights useful, you may subscribe to our new sector-specific newsletters or share this on Twitter.

Tuesday, July 23

Some of the largest macro moves in the market today include: Bitcoin -1.6%. A50 Index (China) -1.3%. Hang Seng 50 Index (China) -1.1%. 

The Chinese stock markets are under pressure, with the A50 Index and Hang Seng 50 Index both experiencing significant declines. This is attributed to concerns over China's economic outlook following weaker-than-expected growth data for Q2 and a surprise rate cut by the People's Bank of China (PBoC) aimed at bolstering the slowing economy.

In contrast, European stocks have opened in positive territory as investors await key earnings reports from major companies like Alphabet and Tesla later today. The market sentiment remains cautious ahead of these releases, which could provide further direction on risk appetite amidst ongoing geopolitical uncertainties.

Meanwhile, Bitcoin has dropped significantly amid broader cryptocurrency volatility influenced by regulatory developments such as the SEC's approval of Ethereum ETFs set to start trading today. Additionally, upcoming U.S. economic data including PMI figures tomorrow and GDP numbers on Thursday are expected to play crucial roles in shaping investor expectations around future Federal Reserve policy actions.

Bitcoin (BTC/USD) [-1.7%]
The U.S. government transferred Bitcoin to Coinbase, including funds from seized addresses and significant amounts, coinciding with speculations on declaring Bitcoin a strategic reserve asset. This aligns with anticipation of Donald Trump potentially discussing such plans, leading to market uncertainty. Mt. Gox moved billions in BTC for creditor repayments, while BlackRock's ETF experienced large inflows without lifting cryptocurrency above key resistance levels. These actions may impact spot prices, with the government's involvement in cryptocurrency holdings and strategies contributing to potential price fluctuations amid discussions on stabilizing the U.S. dollar's value.

FXI [-1.4%]
The iShares China Large-Cap ETF (FXI) dropped -1.3% pre-market, potentially influenced by concerns over China's economic growth affecting AUD and NZD currencies, alongside PBOC's unexpected rate cuts amidst a slowing economy. Market sentiment towards Chinese assets like FXI may also be impacted by fears of potential tariffs from political figures favoring America first, such as Trump or Harris. The AUD/USD currency pair moved down by -0.21%, showing a mild positive correlation with FXI's movement.

GM |+3.4%|+2.0B
General Motors Co's stock price surged by +3.2% in the pre-market session following the company's impressive Q2 earnings report. GM exceeded expectations with an EPS of $3.06, surpassing the estimated $2.72, and reported sales of $47.969 billion, beating the expected $45.302 billion. Additionally, GM raised its 2024 adjusted EPS guidance to $9.50-$10.50 from $9.00-$10.00 and its EBIT-adjusted guidance to $13.0B-$15.0B from $12.5B-$14.5B, while increasing its automotive operating cash flow guidance as well. Despite facing challenges such as a recent cyberattack and losses in China, GM's stock has outperformed both rivals and the S&P 500 this year, with a notable 38% increase in share price.

KO | +1.5% | +4.2B
Coca-Cola Co's stock price rose by +1.3% in the pre-market session following the company's strong Q2 2024 results announcement. The company exceeded estimates with an adjusted EPS of $0.84 and sales of $12.4 billion, higher than the expected figures. Coca-Cola also raised its full-year guidance, anticipating organic revenue growth of 9-10% and comparable EPS growth of 5-6%. Despite a slight decline in net income compared to the previous year, the positive outlook led to an increase in share price as investors reacted favorably to the improved performance and future prospects, with notable growth in unit case volumes and revenue.

NXP |-7.9%|-5.3B
NXP Semiconductors NV's stock price dropped by 7.4% following a downbeat third-quarter outlook, with adjusted earnings and revenue guidance falling below consensus estimates. The company reported a decline in adjusted EPS and revenue for the second quarter, attributed to challenges in the automotive segment. Despite this, Chief Executive Kurt Sievers expressed confidence in navigating market conditions. Additionally, social media buzz highlighted missed earnings estimates and a subsequent 8% stock price decrease post-announcement, with Q3 revenue expected to decrease by around -5% year-on-year. Amidst a challenging environment, NXP remains focused on driving profitability and managing demand dynamics.

SPOT |+13.7% | +9.2B
Spotify Technology SA's stock price surged by 14.3% after reporting Q2 2024 earnings, with EPS surpassing estimates at €1.33 and revenue slightly below expectations at €3.807B. Total monthly active users increased by 14% year-over-year to 626 million, with premium subscribers reaching 246 million. The company foresees continued growth, projecting total MAUs to reach 639 million in Q3, expecting revenue to rise to €4.0B. The significant stock price increase is likely attributed to the strong performance in user metrics and financials, along with optimistic guidance for future performance, following a successful implementation of a price hike strategy.

UPS |-8.5%|-9.7B
United Parcel Service Inc saw a significant drop in price following the announcement of its Q2 2024 financial results. The company reported lower-than-expected adjusted EPS and sales figures, missing estimates. Additionally, UPS revised its 2024 revenue outlook and announced plans for an adjusted operating margin, capital expenditures, and a stock buyback program targeting $1 billion annually. The company's strategic acquisitions, like the recent Estafeta acquisition in Mexico, aim to bolster global logistics capabilities and tap into expanding trade opportunities in North America.

Thank you for spending a minute with us. 

If you have 2 more minutes, watch this demo of the MarketReader Platform: