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Monday, September 9

Some of the largest macro moves in the market today include: SPY up, 0.7% Copper +1.9%. Some of the largest moves among US mega-cap stocks include: Microsoft Corp (MSFT) +1.0%. JPMorgan Chase & Co (JPM) +0.7%. Berkshire Hathaway Inc (BRK.B) +0.6%. 

Recent economic data from China indicates mixed signals, with foreign exchange reserves reaching their highest level since 2015 and annual inflation edging up to 0.6% in August but falling short of market forecasts. Additionally, China's producer prices shrank by a significant margin for the 23rd consecutive month due to weak domestic demand.

In Japan, the current account surplus exceeded expectations in July at JPY 3,193 billion driven primarily by an increase in primary income surplus despite a goods trade deficit as imports grew faster than exports. However, loan growth slowed slightly below forecast levels while Q2 GDP was revised down marginally indicating moderate economic expansion.

Global markets are reacting positively today following last week's declines; major US indices such as Nasdaq and S&P500 show gains alongside European equities like Germany's DAX and UK's FTSE100 rebounding on bargain hunting amid anticipation of key upcoming events including central bank policy decisions from ECB this week along with critical US CPI reports which could influence future rate cuts.

Invesco DB US Dollar Index Bullish Fund (UUP) [+0.4%]
The Invesco DB US Dollar Index Bullish Fund (UUP) has increased by 0.4% since Friday, reflecting a broader strengthening of the U.S. dollar index, which rose by 0.35% to 101.54. This dollar strength coincides with mixed global market performance, as evidenced by the gains in major European indices. Additionally, market expectations for a Federal Reserve interest rate cut in September have diminished. This has led to higher Treasury yields, further supporting the dollar. Concurrently, China's inflation data has disappointed, contributing to pressures on global currencies, including the yuan, which has seen a corresponding increase against the dollar. The overall dynamics in the currency market align with the recent price movements of UUP.

SPDR Dow Jones Industrial Average ETF Trust (DIA) [+0.6%]
The SPDR Dow Jones Industrial Average ETF Trust (DIA) has seen a price increase of 0.7% in pre-market trading on Monday. Key contributors to this performance include Boeing Co., which experienced a significant rise following a labor agreement that potentially averted a major strike. Microsoft Corp also saw a notable increase, buoyed by momentum in the AI sector, despite some concerns regarding the broader technology market. The Dow Jones Index rose by 1.1%, influenced by recent U.S. labor market data showing weaker-than-expected job growth, which has led to speculation about potential interest rate cuts by the Federal Reserve. Additionally, the S&P 500 Index increased by 1.14%, reflecting overall positive market sentiment that likely supports DIA's upward movement.

SMMT |+33.4%|+3.8B
Summit Therapeutics Inc | Biotechnology
Summit Therapeutics Inc (SMMT) has seen a notable increase in its stock price following the announcement of Phase 3 trial results for ivonescimab. The trial demonstrated a median progression-free survival (PFS) of 11.14 months, significantly outpacing Merck's Keytruda, which recorded a PFS of 5.82 months in patients with advanced non-small cell lung cancer (NSCLC). The therapy also achieved a 49% reduction in the risk of tumor progression. In response to these results, analysts have raised their price targets, with HC Wainwright increasing its target to 30 from 16, Citi to 19 from 13, and Stifel to 25 from 14, while maintaining a Buy rating. Social media discussions highlight the positive reception of these findings, particularly noting the reasonable toxicity profile of ivonescimab and its efficacy in reducing disease progression or death in advanced NSCLC patients.

MRK |-2.6%|-7.5B
Merck & Co Inc | Pharmaceuticals
Merck & Co Inc (MRK) has experienced a notable decline in its stock price, dropping significantly amid competitive developments in the oncology sector. Summit Therapeutics' experimental therapy has outperformed Merck's Keytruda in a late-stage lung cancer trial, demonstrating a marked reduction in tumor progression risk. This news has contributed to a substantial decrease in Merck's stock. In addition, Merck's ifinatamab deruxtecan achieved an objective response rate of 54.8% in patients with extensive-stage small cell lung cancer during the IDeate-Lung01 trial, although the competitive landscape remains challenging. Social media discussions reflect resistance at key moving averages for MRK, alongside suggestions for potential acquisitions to counterbalance declining Keytruda sales. On September 7, Merck announced promising interim results from its ongoing IDeate-Lung01 phase 2 trial, indicating continued efficacy in treating small cell lung cancer.

PLTR |+8.5% | +6.3B
Palantir Technologies Inc | Application Software
Palantir Technologies Inc. will be added to the S&P 500 Index, effective prior to the start of trading on September 23. This inclusion is viewed as a significant milestone, with Wedbush analyst Daniel Ives referring to it as a "validation moment" for the company. Ives highlighted that Palantir's profitability profile has improved due to its in-house artificial intelligence platform and its U.S. Commercial business. Additionally, Palantir and bp have announced a five-year strategic relationship to enhance AI capabilities using Palantir’s AIP software, continuing a decade-long collaboration in oil and gas operations. In the broader market context, the S&P 500 Index has risen, which may be influencing Palantir's recent price increase of nearly 8%. Palantir is currently outperforming its sector peers.

DELL |+5.1% | +3.9B
Dell Technologies Inc | Technology Hardware, Storage & Peripherals
Dell Technologies Inc has been added to the S&P 500 index, resulting in a significant price increase. Following this announcement, the stock rose by approximately 6% to 108.33. In premarket trading, shares were also reported to be up over 6%. The S&P Dow Jones Indices confirmed that Dell will join the index alongside Palantir and Erie Indemnity, replacing American Airlines Group, Etsy, and Bio-Rad Laboratories, with this change taking effect prior to market opening on September 23. Year-to-date performance for Dell has shown substantial gains, increasing by over 30%. Concurrently, the Nasdaq 100 Index has moved up by 1.42%, reflecting broader market trends that may influence technology stocks.

BA | +3.6% | +3.6B
Boeing Co | Aerospace & Defense
Boeing Co has reached a tentative labor agreement with the International Association of Machinists (IAM), potentially preventing a significant strike affecting over 33,000 employees. The proposed contract includes a 25% wage increase over four years, improvements to healthcare costs, and enhanced retirement benefits. Additionally, Boeing plans to manufacture its next airplane model in the Pacific Northwest, solidifying its commitment to the region. This negotiation marks the first comprehensive talks in 16 years, with a worker vote scheduled for September 12 to ratify the agreement. Meanwhile, the Dow Jones Index has increased, which may be contributing to Boeing's stock price movement of nearly 4%. Boeing is currently outperforming its sector peers.

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