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Tuesday, December 16

Noteworthy macro moves today: Oil (WTI) -1.7%. 

Global equity indices are trading lower as investors react to a mix of economic data and sentiment shifts. The U.S. job growth figures released today showed an increase of only 64,000 jobs in November, which was above the previous month's loss but below market expectations. This has raised concerns about the labor market's strength and its implications for future Federal Reserve policy.

Additionally, Bank of America highlighted that investor sentiment is at a three-and-a-half-year high; however, caution persists due to fears surrounding crowded trades in equities and potential headwinds from rising bond yields. This mixed sentiment is reflected in the performance of major indices, with many experiencing declines amid worries about inflation and interest rates.

In Europe, the release of Germany's HCOB Manufacturing PMI Flash indicated a contraction in manufacturing activity, further contributing to negative market sentiment. The index fell to its lowest level in eight months at 47.7, signaling ongoing challenges within the sector and raising concerns about broader economic stability across the region.

iShares MSCI Japan ETF (EWJ) [-4.4%]
The iShares MSCI Japan ETF (EWJ) has experienced a notable decline of 4.4% in pre-market trading. The Nikkei 225 index has dropped significantly, losing over 784 points amid widespread weakness across various sectors. Concurrently, the au Jibun Bank Japan Services Purchasing Managers' Index Preliminary for December reported a decrease to 52.5 from 53.2, signaling a contraction in service sector growth. Additionally, the Bank of Japan is expected to raise benchmark interest rates to their highest level since 1995, reflecting tightening monetary policy. Financial institutions in Japan have begun repatriating funds, potentially affecting capital flows. Among the ETF's holdings, SONY, SMFG, and MUFG have all reported negative returns, contributing to the ETF's overall performance. The movement in USD/JPY has also played a role in the ETF's current standing.

iShares MSCI United Kingdom ETF (EWU) [-2.1%]
The iShares MSCI United Kingdom ETF (EWU) is experiencing a daily return of nearly -2%, influenced by significant declines in Asian markets, including a notable drop in Japan's Nikkei Index. Recent U.K. economic data presents a mixed labor market scenario; the Average Earnings Index for October has decreased to 4.7%, while the Claimant Count Change for November shows an increase of 20.1K, contrasting with a previous decrease. The Employment Change for the three months ending in October reports a loss of 16K, an improvement from the prior loss of 22K. The unemployment rate has risen to 5.1%. Among the ETF's holdings, BP and AstraZeneca have notably contributed to the performance decline. Additionally, Shell's internal decision to block a proposal to acquire BP reflects broader concerns regarding acquisitions amidst BP's declining share price.

ROKU | +5.0% | +820.3M
Roku Inc | Movies & Entertainment
Roku Inc. has seen significant insider selling, with Officer Fuchsberg divesting 3,250 shares valued at approximately 353.5K and COO Jedda selling 3,000 shares worth about 322.3K, both transactions occurring within the last 13 hours. In a positive development, Morgan Stanley upgraded Roku from Equalweight to Overweight, raising the price target to 135 from 85. This upgrade follows a double upgrade from Underweight to Overweight by the same firm, further reinforcing the positive sentiment surrounding the stock. Conversations on social media have echoed this upgrade, highlighting the increased price target.

RKLB | -2.1% | -573.8M
Rocket Lab USA Inc | Aerospace & Defense
Equatorial Trust has filed to sell 2,500,000 shares of Rocket Lab USA Inc, a move that could exert market pressure. This filing was published approximately 13 hours ago and represents a substantial volume of shares, coinciding with a 2.0% decline in the stock's price. Meanwhile, Rocket Lab is preparing for its 20th Electron mission of the year, titled "Bridging The Swarm," with upcoming launches in the next two weeks expected to exceed launch guidance. Social media discussions have highlighted this milestone, noting Rocket Lab as one of the top space stocks benefiting from the recent SpaceX IPO announcement. Additionally, the Russell 2000 Index has decreased slightly, reflecting broader market sentiment that may also influence Rocket Lab's recent performance.

RPRX | +3.1% | +739.3M
Royalty Pharma PLC | Pharmaceuticals
Royalty Pharma PLC has announced the acquisition of a royalty interest in Nuvalent's neladalkib and zidesamtinib for up to 315 million. This agreement provides Royalty Pharma with low-single digit royalty rights on worldwide net sales of these tyrosine kinase inhibitors, which are being developed for non-small cell lung cancer (NSCLC). Neladalkib is designed for ALK mutation-positive cases, while zidesamtinib targets ROS1 mutation-positive patients. The royalties are expected to extend through approximately 2041 to 2042. Analyst projections suggest that neladalkib could achieve sales of around 3.5 billion by 2035, with zidesamtinib potentially reaching 1.9 billion in the same period.

KHC | +1.2% | +356.3M
Kraft Heinz Co | Packaged Foods & Meats
Kraft Heinz Co announced significant leadership changes, appointing Steve Cahillane as CEO effective January 1, 2026. He will succeed Carlos Abrams-Rivera, who will transition to an advisory role until March 6, 2026. Cahillane, previously CEO of Kellanova, has extensive industry experience, having held senior roles at The Coca-Cola Company and AB InBev. Concurrently, John Cahill will become Board Chair. This transition coincides with Kraft Heinz's planned separation into two independent companies, a strategy first disclosed in September 2025, aimed at enhancing operational focus. The separation is anticipated to be tax-free for shareholders, subject to customary conditions. Kraft Heinz reported approximately $26 billion in net sales for 2024. This news has been highlighted on social media and was posted during trading hours, likely contributing to the stock's increase of 1.6% since Monday.

PYPL | +1.8% | +1.2B
PayPal Holdings Inc | Transaction & Payment Processing Services
PayPal Holdings Inc. has applied to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to establish PayPal Bank, a proposed Utah-chartered industrial loan company. This initiative aims to enhance lending solutions for small businesses in the U.S., allowing PayPal to provide capital more efficiently and reduce reliance on third parties. The proposed bank is expected to offer interest-bearing savings accounts and seek direct membership with U.S. card networks. Mara McNeill has been appointed as president of PayPal Bank, bringing over 25 years of financial services experience. If approved, customer deposits will be eligible for FDIC insurance coverage. Following the announcement, social media discussions reflected optimism about the potential impact on PayPal's stock price, with some noting that the company has provided over $30 billion in loans since 2013.

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