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Monday, July 22

Some of the largest macro moves in the market today include: Nasdaq 100 Index (US) +1.2%. S&P 500 Index (US) +0.8%. Copper -1.4%. Some of the largest moves among US mega-cap stocks include: NVIDIA Corp (NVDA) +2.2%. Broadcom Inc (AVGO) +2.1%. Meta Platforms Inc (META) +1.7%. 

The People's Bank of China has unexpectedly cut key lending rates by 10 basis points to record lows, with the one-year loan prime rate now at 3.35% and the five-year rate at 3.85%. This move aims to support China's fragile economy following recent data indicating a slowdown in recovery momentum.

In economic releases from the United States, the Chicago Fed National Activity Index decreased to +0.05 in June from an upwardly revised +0.23 in May but still came above market expectations of -0.09, suggesting mixed signals about U.S economic activity across various sectors including production and employment indicators.

Global equity markets are reacting positively today; European indices such as Euro Stoxx 50 (+1.65%), CAC 40 (+1.63%), DAX (Germany) (+1), FTSE100 (UK)(+1%) have all posted gains alongside major US indices like Nasdaq-100(+12%). Meanwhile commodities show varied performance: Natural Gas surged over four percent while Copper fell significantly (-14%).

Nasdaq 100 Index (US100/USD) [+1.2%]
The Nasdaq 100 Index (US) has increased by 1.1% since Friday's close, potentially influenced by negative sentiment in global markets related to tech stock outlooks and a major IT outage impacting various industries worldwide. Concerns about reduced oil demand from China and hopes for a Gaza ceasefire may also be contributing factors, as West Texas Intermediate Crude oil futures hit a low settlement since June 17th at $80.13 per barrel.

FXI [+1.9%]
The iShares China Large-Cap ETF increased by +1.9% following the People's Bank of China lowering the Loan Prime Rate, impacting market sentiment positively. The China Loan Prime Rate for July also decreased, contributing to the ETF's upward movement as investors reacted to the country's monetary policy adjustments.

CRWD |-5.1%|-3.6B
CrowdStrike Holdings Inc experienced a -4.4% price drop pre-market due to a global tech outage from a faulty update, potentially incurring over $1 billion in costs. The incident affected millions of Windows users globally, causing disruptions across critical infrastructure operations. Analysts anticipate challenges in customer retention and attracting new clients, with competitors like SentinelOne and Palo Alto Networks benefitting. Despite quick resolution, long-term reputation concerns persist, as 8.5 million device crashes occurred, impacting Q2 results. CEO George Kurtz highlighted the identification of the issue, emphasizing the need for robust cybersecurity measures during such disruptions, as CRWD's stock price reflects worries about its reputation and ability to onboard new customers amid potential legal repercussions.

RYAAY | -14.3% | -15.9B
Ryanair Holdings PLC's stock price plummeted by 13.8% after reporting disappointing Q1 financial results, including a 46% profit decrease despite a 10% rise in passengers. The airline revised its Q2 forecast, anticipating significantly lower fares than the previous year due to weakened consumer spending and a challenging pricing environment. Ryanair's CEO hinted at a potential share buyback during the upcoming half-year results in November. The company's lowered fares are attributed to adverse market conditions, such as Boeing delivery delays or geopolitical conflicts, impacting investor confidence in the airline's financial performance amidst a deteriorating market scenario.

VZ |-3.7%|-6.2B
Verizon Communications Inc saw a -4.0% price change premarket following Q2 earnings release. The company reported a revenue miss with operating revenue slightly higher at $32.8B, net income down, and adjusted EPS slightly below estimates. Verizon added postpaid phone subscribers but faced losses in prepaid subscribers due to the Affordable Connectivity Program ending. Despite mixed results, Verizon reaffirmed its FY2024 EPS guidance and remains on track for financial targets, focusing on wireless service revenue growth and broadband subscriber additions. The stock's movement coincides with the broader sector downturn today.

NVDA |+2.2% | +64.3B
NVIDIA Corp is up +2.0% in pre-market trading following Piper Sandler's analyst reiteration of an Overweight rating and a raised price target. The company is launching a new AI chip, the "B20," tailored for the Chinese market to comply with U.S. export controls, aimed at enhancing competition against local tech giants. CEO Jensen Huang's recent substantial divestments of nearly $360 million over five weeks have sparked investor interest, potentially influencing stock dynamics moving forward.

AMZN |+1.3%|+24.5B
Amazon.com Inc's stock price has increased by 1.2% in the pre-market session, coinciding with founder Jeff Bezos' plan to sell $5 billion of Amazon shares, following a previous $8.5 billion divestment in February. This move aligns with the discontinuation of the Astro for Business security robot, indicating potential product setbacks. The broader market trend is also positive, with the Invesco QQQ Trust Series I and Nasdaq 100 Index both reflecting gains, likely contributing to Amazon's upward movement.

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