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

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Tuesday, December 3

Some of the largest macro moves in the market today include: Oil (WTI) +1.5%. Copper +1.4%.

Recent market movements are significantly influenced by the upcoming U.S. economic data releases, particularly the JOLTS Job Openings report due later today. This release is critical as it may provide insights into labor market conditions ahead of Friday's Nonfarm Payrolls and could impact Federal Reserve policy expectations regarding interest rate cuts.

In Europe, political uncertainty looms with a no-confidence vote expected in France this week that could further destabilize the government. The situation has led to fluctuations in currency values and investor sentiment across European markets; however, recent comments from ECB officials suggest continued support for cautious monetary easing, which might stabilize some financial assets amid these uncertainties.

Additionally, commodity prices have seen upward momentum recently—oil prices rose on speculation about OPEC+ output decisions while precious metals like gold gained traction amidst geopolitical tensions and concerns over inflationary pressures linked to potential tariff increases under new U.S. administration policies following President-elect Trump's victory.

United States Oil Fund LP (USO) [+1.7%]
United States Oil Fund LP (USO) has seen a price increase in the pre-market session on Tuesday. OPEC+ is expected to extend its current oil output cuts until the end of the first quarter, with a meeting imminent to confirm this decision. The group currently restrains approximately 5.86 million barrels per day, representing about 5.7% of global demand. Concurrently, crude oil prices have risen as OPEC+ finalizes an agreement to delay easing output restrictions by three months, which supports the market amid concerns about weak global demand and geopolitical tensions. Additionally, rising expectations for a Federal Reserve interest rate cut in December, following supportive comments from Fed officials, are contributing to positive sentiment in the crude oil markets.

iShares MSCI Japan ETF (EWJ) [+1.3%]
Asian stock markets are experiencing gains, with Japan's Nikkei 225 index increasing significantly. This positive movement follows record highs in U.S. indices and expectations of a Federal Reserve interest rate cut. Additionally, eased restrictions on Chinese chip access are contributing to favorable market conditions for Japanese equities, including the iShares MSCI Japan ETF (EWJ), which has a daily return of 1.26%. In bond market developments, the Japan 10-Year JGB auction yielded a rate of 1.084%, up from the previous rate of 1.000%. This change may influence investor sentiment towards Japanese equities. Among the ETF's holdings, notable contributors include SONY, TOELY, DSCSY, MUFG, and SMFG, each registering increased returns that positively impacted the ETF's overall performance.

ZS | -6.1% | -1.8B
Zscaler Inc | Systems Software
Zscaler reported its first-quarter fiscal 2025 results, revealing a net loss of $12.1 million, or $0.08 per share, a notable improvement from a $33.5 million loss in the prior year. The company's revenue for the quarter reached $628 million, exceeding the consensus estimate of $606.19 million and reflecting a 26% year-over-year increase. Adjusted earnings were reported at $0.77 per share, surpassing expectations of $0.63. For the second quarter, Zscaler anticipates revenue between $633 million and $635 million, slightly below consensus estimates. Despite these positive results, shares declined approximately 6% in after-hours trading, attributed to concerns over guidance and the announcement of the CFO's retirement after eight years. Additionally, social media discussions highlighted an 18.8% year-over-year increase in customers with over $100K in annual recurring revenue, totaling 3,100.

CRDO | +31.7% | +3.3B
Credo Technology Group Holding Ltd | Semiconductors
Credo Technology Group Holding Ltd has experienced a substantial increase in its stock price, following the release of its second-quarter financial results, which surpassed analysts' expectations. The company reported revenue of $72 million, reflecting a 64% year-over-year growth and exceeding forecasts of $66.8 million. Adjusted earnings per share were $0.07, beating the anticipated $0.05. In light of these results, several firms, including Barclays and Needham, significantly raised their price targets, with Barclays setting a new target of $80, up from $32. Credo also provided guidance for third-quarter revenue between $115 million and $125 million, well above prior estimates. Social media discussions have highlighted these positive developments, emphasizing robust demand for the company's connectivity solutions, particularly in relation to AI deployments.

T | +2.7%| +4.6B
AT&T Inc | Integrated Telecommunication Services
AT&T Inc has authorized an initial $10 billion tranche of stock buybacks, part of a total repurchase capacity of $20 billion. The company projects over $18 billion in free cash flow by 2027, driven by growth in its 5G and fiber services. On December 3, AT&T raised its 2024 adjusted earnings per share (EPS) outlook to between $2.20 and $2.25, exceeding analyst estimates of $2.10. The firm anticipates wireless service revenue growth of approximately 3% and broadband revenue growth exceeding 7% for the same period. Additionally, AT&T plans to return over $40 billion to shareholders through dividends and share repurchases within the next three years. Social media discussions also highlighted the company's EPS forecast for 2025, projected between $1.97 and $2.07, excluding the impact of DIRECTV.

TSLA | -1.0%| -11.3B
Tesla Inc | Automobile Manufacturers
Tesla Inc. has instructed its Cybertruck production line workers at the Texas gigafactory to take three days off starting December 3, 2024, following inconsistent scheduling since late October. Regular operations are set to resume on December 6, and workers will be compensated for these days off. In China, Tesla's team confirmed that the Cybertruck will not be sold in the country soon due to regulatory challenges. Despite this, Tesla's insurance registrations in China increased by 14.2% year-over-year for the fourth quarter, with 18,600 units registered in the first week of December. A Delaware judge has rejected Elon Musk's request to reinstate his $56 billion pay package, causing a significant drop in after-hours trading. Additionally, Tesla's Shanghai Gigafactory reported delivering 79,000 electric vehicles in November, a month-over-month increase of 15%, while sales in China rose by 12% year-over-year.

X | -6.7% | -574.9M
United States Steel Corp | Steel
Shares of United States Steel Corp have dropped significantly in pre-market trading, following President-elect Donald Trump's public opposition to the company's proposed acquisition by Japan's Nippon Steel. Trump declared his intent to block the $14.1 billion deal on Truth Social, citing national security concerns and his commitment to revitalizing U.S. Steel through tax incentives and tariffs. This stance has been echoed by various stakeholders, including unions and the Biden administration, leading to a broader resistance against the acquisition. Social media discussions reflect a consensus that the deal is unlikely to proceed, with significant attention on the political implications for the U.S. steel industry. As of early December 3, 2024, the stock was reported down approximately 7% in pre-market trading.

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