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Wednesday, November 20

Some of the largest macro moves in the market today include: US Dollar Index +0.4%. Bitcoin +2.1%. USD/CNH +0.2%. Some of the largest moves among US mega-cap stocks include: UnitedHealth Group Inc (UNH) +1.3%.

Recent market movements have been significantly influenced by geopolitical tensions, particularly the escalation of conflict between Russia and Ukraine. Following Ukraine's use of U.S.-supplied long-range missiles against Russian targets, there has been a notable increase in demand for safe-haven assets such as gold and government bonds. This situation is compounded by heightened rhetoric from both sides regarding nuclear capabilities, which has led to fluctuations across global equity markets.

In economic data releases today, UK inflation rose unexpectedly to 2.3% year-on-year in October while core inflation increased to 3.3%, exceeding forecasts and suggesting potential implications for future monetary policy decisions by the Bank of England. Additionally, Germany reported a decline in producer prices but showed signs of stabilization with a slight monthly rebound; these mixed signals contribute further uncertainty about growth prospects within Europe.

Market sentiment remains cautious ahead of key Federal Reserve speeches scheduled throughout the day that may provide insights into upcoming interest rate policies amid ongoing discussions around fiscal measures under President-elect Donald Trump’s administration aimed at reshaping trade dynamics through proposed tariffs on imports—potentially impacting broader economic conditions moving forward.

Invesco DB US Dollar Index Bullish Fund (UUP) [+0.4%]
The Invesco DB US Dollar Index Bullish Fund (UUP) has experienced a price increase of 0.4% since Tuesday, aligning with a broader upward movement in the U.S. dollar index, which rose to 106.63. This rebound comes after a one-week low, amid easing demand for safe-haven assets. The dollar's strength is further supported by hawkish remarks from Federal Reserve Chair Jerome Powell regarding interest rates, coupled with geopolitical tensions stemming from Ukraine's military actions against Russia. Additionally, the dollar has appreciated against the yen, which has fallen to a three-month low, raising speculation about potential intervention by the Bank of Japan. The U.S. dollar index's increase is reflected in correlated assets, contributing to UUP's own rise since the previous close.

USD/CNH (USD/CNH) [+0.2%]
The USD/CNH has increased by 0.2% since Tuesday. The People's Bank of China has maintained its key lending rates at 3.1% for the one-year loan prime rate and 3.6% for the five-year rate, aligning with market expectations amid ongoing economic recovery efforts in China. Geopolitical tensions have escalated, particularly with Ukraine's use of U.S.-supplied long-range missiles against Russian targets, which may elevate demand for safe-haven assets like the USD. Additionally, social media discussions highlighted Trump's plans for 40% tariffs on China by early 2025 and the Kremlin's confirmation of an inactive Russia-US hotline amid rising nuclear tensions. Furthermore, the PBOC cut the CNY Central Parity Rate to 7.1395 per USD, a move that was stronger than market expectations. In correlated assets, USD/JPY has moved up, reflecting broader market dynamics that may also influence USD/CNH.

TGT | -17.4% | -10.4B
Target Corp | Consumer Staples Merchandise Retail
Target Corporation reported disappointing third-quarter results, with adjusted earnings per share (EPS) of 1.85, falling short of the consensus estimate of 2.30. Total revenue reached 25.67 billion, below the expected 25.90 billion. The company also revised its fiscal year 2024 adjusted EPS guidance to a range of 8.30 to 8.90, down from the previous forecast of 9.00 to 9.70, which was already below consensus expectations of 9.55. Comparable sales increased by just 0.3%, attributed to traffic growth, but overall performance was hindered by rising digital fulfillment and supply chain costs. Following these results, Target shares experienced a significant decline in premarket trading, reflecting market reaction to the earnings miss and the revised outlook. Analysts noted challenges from increased competition, particularly from Walmart, and a decline in discretionary spending among consumers.

CMCSA | +2.5% | +4.2B
Comcast Corp | Cable & Satellite
Comcast Corp has announced plans to restructure by spinning off its NBCUniversal cable television networks, including MSNBC, CNBC, and USA Network, into a new publicly traded company named SpinCo. This strategic move aims to create a focused independent media business that will also encompass channels like Oxygen, E!, Syfy, and Golf Channel. The cable networks generated approximately $7 billion in revenue over the past year. The transaction is expected to be tax-free for Comcast shareholders and is anticipated to complete within a year, pending customary conditions. Mark Lazarus will serve as CEO of the new entity. Social media discussions have confirmed that this decision is intended to better position Comcast for growth by retaining its broadcast TV, sports, movies, and theme parks, while potentially facilitating a future sale of the spun-off channels.

WIX | +10.5%| +1.2B
Wix.Com Ltd | Internet Services & Infrastructure
Wix.com Ltd reported robust third-quarter results, showcasing a net income of $26.78 million, a significant rise from $6.98 million the previous year. Revenue reached $444.67 million, surpassing analyst expectations of $444.0 million, reflecting a 13% year-over-year growth. The adjusted EPS was reported at $1.50, exceeding the consensus estimate of $1.43. Total bookings increased to $449.78 million, marking a 16% rise compared to the same quarter last year. Wix also raised its fiscal year 2024 revenue outlook to between $1.757 billion and $1.764 billion and increased bookings expectations to $1.822 billion to $1.832 billion. Following these earnings results, Wix's stock experienced a notable increase in pre-market trading, with reports indicating a surge of over 20%. Bank of America subsequently raised its price target for Wix from 190 to 228.

KEYS | +9.4%| +2.7B
Keysight Technologies Inc | Electronic Equipment & Instruments
Keysight Technologies Inc reported its fiscal Q4 earnings, posting a non-GAAP EPS of 1.65, exceeding the consensus estimate of 1.57, despite a decline from 1.99 a year prior. Revenue for the quarter ended October 31 was 1.29 billion, surpassing expectations of 1.26 billion but down from 1.31 billion year-over-year. The company announced guidance for fiscal Q1, projecting adjusted EPS between 1.65 and 1.71 and revenue in the range of 1.265 billion to 1.285 billion, both above analyst forecasts. Following the earnings announcement, Keysight's shares rose significantly in after-hours trading, with reports indicating a price increase to 152.13, reflecting a notable gain. The company also recorded a GAAP net loss of 73 million, translating to an EPS of -0.42, largely due to a substantial tax expense associated with a new tax incentive in Singapore.

HOOD | +5.5% | +1.8B
Robinhood Markets Inc | Investment Banking & Brokerage
Robinhood Markets Inc. has experienced a positive uptick, reflected in its recent stock performance, which has increased significantly. Mizuho recently published a favorable assessment of Robinhood's partnership with TradePMR, labeling it a "good strategic deal." Additionally, Bernstein raised its price target for Robinhood from 30 to 51, assigning an "Outperform" rating. This adjustment is linked to the expansion of cryptocurrency offerings, reduced regulatory constraints, and the introduction of new product lines. Social media discussions highlight user engagement with trading activities, particularly call spreads related to Robinhood. Furthermore, Bitcoin has also seen an increase, which may correlate with Robinhood's market movement.

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