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Friday, February 27

Noteworthy macro moves today: USD/CNH +0.4%. Oil (WTI) +3.3%. Ethereum -3.4%. Noteworthy US mega-cap moves today: Broadcom Inc (AVGO) -2.5%. JPMorgan Chase & Co (JPM) -2.2%. Microsoft Corp (MSFT) -2.2%. 

Global equity markets are trading lower following the release of stronger-than-expected U.S. Producer Price Index (PPI) data this morning, which showed a month-over-month increase of 0.5%, surpassing forecasts of a 0.3% rise, and a year-over-year increase of 2.9%. This unexpected inflationary pressure has raised concerns about potential future monetary policy adjustments by the Federal Reserve.

In Canada, GDP figures released today indicated stagnation with no growth in January, contrasting with expectations for slight expansion after December's revised growth of 0.2%. However, an increase in the CFIB Business Barometer index to its highest level since April suggests improved sentiment among small businesses despite the stagnant GDP.

Additionally, the UK GfK Consumer Confidence Index fell to -19 from -16 in January, missing expectations for improvement and reflecting rising unemployment concerns as jobless rates reached post-pandemic highs at around 5.2%. This decline in consumer confidence is likely to weigh on market sentiment amid ongoing economic uncertainties in the region.

Bitcoin (BTC/USD) [-2.1%]
Bitcoin's daily return has dropped significantly, reflecting ongoing volatility after a rebound towards $68,000 from a previous low of $62,000. Derivatives markets exhibit caution, with persistent demand for downside protection and a decline in perpetual futures open interest. Concurrently, the U.S. stock market is poised to open lower amid inflation fears and geopolitical tensions. Social media discussions reveal that over $8.7 billion worth of Bitcoin and Ethereum options are set to expire today, potentially heightening market volatility. Bitcoin is currently holding above the $62,537 pivot point, which some view as a near-term bullish indicator despite an overall bearish trend since early October. Additionally, Elliott Wave analysis suggests an incomplete bearish sequence, with targets indicating possible further downside. Ethereum has also declined significantly, reflecting its strong correlation with Bitcoin's recent performance.

VanEck Gold Miners ETF (GDX) [+1.0%]
Gold's recent strength is attributed to structural risks, as highlighted in a World Gold Council study. The report notes that gold remains under-owned in investment portfolios, currently just above 2% of global equities and bonds, compared to an optimal level of 8%. Rising US margin debt may enhance safe-haven demand for gold amid ongoing economic uncertainty. In addition, the Western Region Gold Unit has suspended production due to heavy snowfall, potentially impacting gold supply and prices. April gold contracts are up ahead of the PPI data release. Social media discussions indicate a shift in focus from AI and cryptocurrency stocks to gold and silver mining stocks, with GDX reaching an all-time high. Notable contributors to GDX's performance include NEM, AEM, WPM, PAAS, and AGI. Silver has also seen a significant increase, further supporting movement in GDX.

XYZ | +19.0% | +7.6B
Block Inc | Transaction & Payment Processing Services
Block Inc. has announced a substantial workforce reduction of 40%, decreasing its employee count from over 10,000 to just under 6,000. This strategic shift towards an "AI-native" operational model follows a fourth-quarter earnings report that revealed adjusted earnings per share of $0.65, slightly above consensus estimates, while revenue reached $6.25 billion, falling short of expectations. The restructuring is anticipated to incur charges between $450 million and $500 million, primarily in the first quarter of fiscal 2026. CEO Jack Dorsey characterized this decision as difficult yet necessary to enhance productivity and agility. Following these announcements, Block's shares experienced a significant surge in after-hours trading, with reports indicating gains exceeding 20%. Additionally, Morgan Stanley has upgraded Block's rating to Overweight from Equal Weight, raising the price target from 72 to 93.

NFLX | +8.1% | +3.2B
Netflix Inc | Movies & Entertainment
Netflix Inc. has officially opted not to enhance its bid for Warner Bros. Discovery, following the board's designation of a proposal from Paramount Skydance as "superior." The co-CEOs noted that the initial offer would have generated shareholder value, but the revised bid was deemed financially unattractive. Netflix plans to invest approximately $20 billion in quality films and series this year and will resume its share repurchase program. This decision has resulted in a significant uptick in Netflix shares during after-hours trading, reflecting positive market sentiment. The company will also receive a $2.8 billion breakup fee, further contributing to the stock's increase, which rose over 10% post-announcement. Social media discussions have highlighted the approval of this strategic retreat, with many users viewing it as a prudent move to safeguard shareholder interests and avoid potential regulatory complications.

DELL | +13.5% | +13.2B
Dell Technologies Inc | Technology Hardware, Storage & Peripherals
Dell Technologies reported robust fourth-quarter results, with an adjusted EPS of 3.89, surpassing estimates of 3.53, and revenues of 33.38 billion, exceeding projections of 31.68 billion. The company achieved a non-GAAP net income of 2.61 billion compared to 1.91 billion the previous year. For fiscal 2027, Dell anticipates an adjusted EPS of 12.90, significantly above the consensus estimate of 9.95, alongside projected revenues between 138 billion and 142 billion. Additionally, Dell announced a 20% increase in its cash dividend and a $10 billion expansion in its share repurchase program. Notably, strong demand for AI-optimized servers contributed to a substantial increase in backlog, which is expected to drive future performance.

ZS | -11.1% | -2.5B
Zscaler Inc | Systems Software
Zscaler Inc. reported its fiscal second-quarter results on February 26, 2026, revealing an adjusted EPS of 1.01, surpassing estimates of 0.90, with revenue of 815.75 million, exceeding expectations of 798.82 million. Despite this positive performance, the company lowered its full-year revenue guidance to between 3.309 billion and 3.322 billion. Analysts responded with significant price target reductions: RBC from 250 to 205, Stifel from 320 to 180, and Piper Sandler from 260 to 185. Social media discussions highlighted a net loss of 34.31 million, resulting in a GAAP EPS of -0.21. Concerns were raised about profitability due to rising stock-based compensation, now at 27% of revenue. In premarket trading, ZS shares were noted to be down 11.8%, reflecting market reaction to the lowered guidance and analyst downgrades.

RKLB | -5.7% | -1.9B
Rocket Lab USA Inc | Aerospace & Defense
Rocket Lab USA Inc. reported its fourth-quarter financial results, revealing an operating loss of 51.042 million and a net income loss of 52.922 million. Despite achieving record quarterly revenue of 179.65 million, the company fell short of consensus earnings estimates, contributing to negative market sentiment. Operating expenses surged to 119.274 million. Rocket Lab anticipates first-quarter revenue between 185 million and 200 million, slightly above consensus expectations. The company completed spacecraft commissioning for NASA's ESCAPADE Mars mission and announced a multi-launch contract with BlackSky for four dedicated Electron missions. Additionally, it has introduced advanced silicon solar arrays for space-based data centers and completed the acquisition of Optical Support, Inc., enhancing its national security payload capabilities. The first launch of the Neutron rocket has been rescheduled to Q4 2026. The Russell 2000 Index declined, reflecting broader market sentiment that may influence Rocket Lab's recent price movement of -5.7%.

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