Welcome to the MarketReader Minute.

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

If you find the insights useful, you may subscribe to our new sector-specific newsletters or share this on Twitter.

Friday, September 20

Some of the largest macro moves in the market today include: Gold +1.1%. Ethereum +3.6%. USD/CNH -0.3%. 

The Federal Reserve's recent decision to cut interest rates by 50 basis points has significantly impacted global markets. This move, which lowered the federal funds rate to a range of 4.75% to 5%, was aimed at boosting economic confidence and addressing inflation concerns. The announcement led to notable gains in major U.S. equity indices such as the Dow Jones Industrial Average and S&P 500, both reaching new record highs.

In Asia, stock markets responded positively with Japan’s Nikkei index rising sharply coinciding with the Bank of Japan maintaining its key lending rates unchanged amid ongoing economic uncertainties and moderate recovery signs within their economy. Meanwhile, China's central bank also kept its benchmark loan prime rate steady following similar actions from other major economies' central banks this week.

European stocks have faced downward pressure due partly to mixed reactions towards monetary policy decisions across various regions including Germany where producer prices fell less than expected but still marked continued deflationary trends for over a year now amidst declining energy costs; UK retail sales showed stronger-than-expected growth driven by favorable weather conditions enhancing consumer spending on food and clothing items.

SPDR S&P 500 ETF Trust (SPY) [-0.4%]
The SPDR S&P 500 ETF Trust (SPY) has seen a price decline of 0.4% since Thursday. Key contributors to this movement included Nvidia (NVDA), Apple (AAPL), and FedEx (FDX), with FDX experiencing a significant drop after reporting disappointing first-quarter results, missing both earnings and revenue estimates. The broader market context shows that the S&P 500 Index decreased by 0.2% during Friday's trading, coinciding with a slight decline in the Dow Jones Index. This occurs following the Federal Reserve's recent decision to cut interest rates by 50 basis points, aimed at stimulating economic recovery amid challenges in inflation and the labor market. Despite the current declines, global stock indices have reacted positively to the Fed's announcement, suggesting potential for future performance improvements in the S&P 500.

iShares MSCI Japan ETF (EWJ) [+0.4%, +53.7M]
The iShares MSCI Japan ETF (EWJ) has experienced a price increase of 0.4% in the pre-market session. Significant movements among its holdings include contributions from MUFG, TM, SONY, and MFG. The recent performance of SONY is noteworthy, as the company announced a special 30th Anniversary Collection for PlayStation, featuring a limited PS5 Pro bundle. Japan's National Core Consumer Price Index for August held steady at 2.8%, while the National Consumer Price Index rose month-over-month by 0.5%. The Bank of Japan maintained its interest rate at 0.25%.

FDX |-13.1%|-8.4B
FedEx Corp | Air Freight & Logistics
FedEx Corp reported disappointing first-quarter financial results on September 19, 2024, with adjusted earnings per share of $3.60, significantly below the consensus estimate of $4.80. Revenue for the quarter totaled $21.6 billion, falling short of expectations of $21.93 billion. The company revised its fiscal year 2025 earnings forecast down to a range of $20 to $21, from a previous range of $20 to $22, and projected low single-digit revenue growth compared to earlier estimates of low-to-mid single digits. Following these announcements, FedEx shares dropped significantly in after-hours trading, declining over 10%. Social media highlighted concerns about weaker-than-expected demand in the U.S. domestic package market, attributing the company's struggles to a shift in service demand and raising alarms about future economic conditions.

NKE |+7.7%|+10.1B
Nike Inc | Footwear
Nike Inc. shares surged following the announcement of Elliott Hill as the new President and CEO, effective October 14, 2024. This change comes as John Donahoe prepares to retire on October 13, while remaining an advisor until January 31, 2025. Hill, a veteran with over 30 years at Nike, previously served as President of Consumer and Marketplace before his retirement in 2020. Analysts responded positively, with Baird raising its price target for Nike from 100 to 110, while Deutsche Bank maintained a Buy rating with a 92 price target. The stock's significant increase reflects a positive market reaction to the leadership transition, with social media highlighting Hill's extensive experience and potential to revitalize the company amidst recent challenges.

CEG |+7.8% | +5.5B
Constellation Energy Corp | Electric Utilities
Constellation Energy Corp has announced a substantial 20-year power purchase agreement with Microsoft, which will facilitate the launch of the Crane Clean Energy Center and the restart of Three Mile Island Unit 1, offline since 2019. This agreement aims to provide carbon-free energy for Microsoft's data centers, aligning with its sustainability objectives. The project is projected to generate approximately 3,400 jobs and contribute over $3 billion in state and federal taxes. The Crane Clean Energy Center is expected to add around 835 megawatts of carbon-free energy to the grid, with operations anticipated to resume by 2028, pending regulatory approvals. Additionally, Constellation plans to seek license renewal to extend the operational life of Three Mile Island Unit 1 until at least 2054.

LEN |-3.5% | -1.8B
Lennar Corp | Homebuilding
Lennar Corp reported its third-quarter financial results on September 19, 2024, with adjusted earnings per share of 3.90, surpassing the consensus estimate of 3.63. Revenue reached 9.42 billion, exceeding expectations of 9.16 billion and marking a year-over-year increase. New orders rose by 5% to 20,587 homes, while deliveries increased by 16% to 21,516 homes. The gross margin on home sales declined to 22.5% from 24.4% year-over-year. The backlog stood at 16,944 homes valued at 7.7 billion. For the fourth quarter, Lennar anticipates new orders between 19,000 and 19,300 and deliveries between 22,500 and 23,000, with an average sales price around 425,000. Following the announcement, shares experienced a decline of approximately 3.5%.

GM | -1.0% | -542.3M
General Motors Co | Automobile Manufacturers
General Motors Co (GM) is experiencing a price decline, coinciding with a broader market downturn. The company's autonomous driving unit, Cruise, plans to resume robotaxi operations in California after a previous pause due to a pedestrian accident. This initiative includes deploying manual mapping vehicles in Sunnyvale and Mountain View, with supervised testing of up to five autonomous vehicles expected later this fall. Cruise reported an operating loss for the first half of 2024, marking a significant increase from the prior year. Additionally, GM is recalling nearly 450,000 pickup trucks and SUVs in the U.S. due to an issue with the low brake fluid warning light. On a related note, GM has announced a temporary layoff of 680 employees at its Fairfax plant in Kansas City, set to take effect on November 18.

Thank you for spending a minute with us. 

If you have 2 more minutes, watch this demo of the MarketReader Platform: