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Wednesday, December 11

Some of the largest macro moves in the market today include: Ethereum +3.2%. Oil (WTI) +1.4%. Bitcoin +2.0%.

The U.S. Consumer Price Index (CPI) data released today indicates that the annual inflation rate rose to 2.7% in November, up from 2.6% in October, while core inflation remained steady at 3.3%. This aligns with market expectations and suggests a stable economic environment ahead of next week's Federal Reserve meeting, where an interest rate cut is anticipated.

In Japan, business sentiment among large manufacturing firms has improved significantly as indicated by a rise in the business survey index to its highest level since late 2021 amid positive GDP growth figures for Q3 surpassing forecasts. The Bank of Japan's upcoming policy decisions are under scrutiny given this shift towards more optimistic outlooks despite concerns about potential slowdowns forecasted for early next year.

Geopolitical tensions have also influenced markets; reports suggest China may allow its currency to weaken further amidst trade risks associated with Donald Trump's presidency potentially leading to renewed tariffs on Chinese goods. Consequently, there has been increased demand for safe-haven assets like gold and fluctuations across various currencies including notable strength seen against commodity-linked currencies such as AUD and NZD due to these developments.

Ethereum (ETH/USD) [+3.2%]
Ethereum has seen a notable increase, rising to $3,716.60 amid a broader cryptocurrency market rebound. This uptick coincides with regulatory optimism under the incoming U.S. administration and significant movements in Bitcoin prices. Expectations of interest rate cuts by central banks are also supporting risk assets like cryptocurrencies. Additionally, social media discussions highlight recent ETF flows, with substantial purchases of ETH and BTC, and net inflows into ETH ETFs reaching approximately $305.7 million. The Ethereum Foundation's recent sale of 100 ETH for DAI is part of its strategy to manage reserves ahead of the upcoming Pectra upgrade, scheduled between late 2024 and early 2025. Meanwhile, price predictions from Bitwise Invest suggest that ETH could potentially reach $7,000 by 2025, reflecting a mix of bullish sentiment and strategic actions within the ecosystem.

United States Oil Fund LP (USO) [+1.5%]
In pre-market trading, United States Oil Fund LP (USO) has seen a price increase of 1.5%. WTI crude prices rose by over 1% to approximately 69.32. The American Petroleum Institute reported a crude oil inventory build of 499,000 barrels for the week ending December 6, contrasting with an expected draw of 1.3 million barrels. OPEC has also revised its 2024 global oil demand growth forecast down to 1.61 million barrels per day from 1.82 million, citing bearish third-quarter data. Additionally, OPEC's crude production averaged 26.66 million barrels per day in November, reflecting a rise of 104,000 barrels per day from October. Meanwhile, Brent crude prices are buoyed by optimism surrounding China's stimulus measures aimed at boosting demand.

GM | +1.5%| +914.9M
General Motors Co | Automobile Manufacturers
General Motors Co announced on December 10, 2024, that it will cease funding for its Cruise robotaxi program, opting instead to focus on advanced driver assistance systems for personal vehicles. This decision follows nearly $10 billion in investments and reflects the substantial resources required to scale the robotaxi business amid rising competition. GM currently owns about 90% of Cruise and plans to acquire the remaining shares, increasing its ownership to over 97%. The restructuring is projected to yield annual cost savings exceeding $1 billion and is expected to be finalized in the first half of 2025. Following this announcement, GM shares rose in after-hours trading. Discussions on social media have highlighted concerns regarding GM's competitive position against rivals like Tesla and Waymo, with some users interpreting this shift as a retreat from a significant market opportunity.

M | -11.5% | -469.9M
Macy's Inc | Broadline Retail
Macy's, Inc. reported its Q3 financial results, revealing a net income of $28 million and an adjusted EPS of $0.04, surpassing the Street estimate of $0.03. Comparable sales declined by 1.3% on an owned-plus-licensed basis, slightly better than the estimated drop of 1.39%. The company revised its fiscal year adjusted EPS outlook down to a range of $2.25 to $2.50 from a previous forecast of $2.34 to $2.69, while raising its revenue forecast for FY24 to between $22.3 billion and $22.5 billion, up from $22.1 billion to $22.4 billion. Following the announcement, shares of Macy's experienced a significant decline of approximately 10.6% in premarket trading, reflecting concerns over the company's performance and guidance adjustments.

PLAY | -13.3% | -170.7M
Dave & Buster's Entertainment Inc | Leisure Facilities
Dave & Buster's Entertainment Inc. reported disappointing Q3 earnings, with an adjusted loss of $0.45 per share, missing estimates by 12 cents. Revenue fell to $453 million, below the expected $469.93 million, while comparable store sales declined 7.7% year-over-year. The resignation of CEO Chris Morris, effective immediately, further compounded concerns, with Kevin Sheehan appointed as interim CEO. Following the earnings announcement, the stock dropped significantly in after-hours trading, reflecting broader apprehensions about the company's performance and leadership transition. Analysts have since downgraded the stock amid these developments. Social media discussions highlighted the significant decline in share price attributed to the poor earnings report and leadership change.

HSY | -5.1%| -1.8B
Hershey Co | Packaged Foods & Meats
Hershey Co's shares declined significantly in premarket trading, dropping 5.1% following Mondelez International's announcement of its commitment to pursue bolt-on mergers and acquisitions. This comes on the heels of Mondelez's approval of a $9 billion share repurchase plan, set to commence on January 1, 2025. Earlier reports had suggested that Mondelez was considering an acquisition of Hershey Foods, which had previously supported Hershey's stock price. Additionally, social media discussions reflect shareholder dissatisfaction, with comments indicating significant losses for investors.

MRVL | +1.4% | +20.0B
Marvell Technology Inc | Semiconductors
Marvell Technology Inc. has launched a 1.6 Tbps linear-drive pluggable optics (LPO) chipset aimed at overcoming the speed and reach limitations of copper cables, specifically for next-generation short-reach compute fabric interconnects in artificial intelligence and data center applications. The company also announced the general availability of a 200G-per-lane optimized transimpedance amplifier (TIA) and laser driver chipset, which enables both 800 Gbps and 1.6 Tbps capabilities. These advancements are intended to enhance data center infrastructure in response to the growing demand for high-bandwidth interconnect solutions. Additionally, recent U.S. inflation data, with core inflation at 3.3% and overall inflation at 2.7%, has contributed to market volatility, with Marvell typically reacting significantly to such economic indicators. The combination of these product launches and macroeconomic factors coincides with a notable price increase of Marvell's stock in pre-market trading.

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