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.

Thursday, August 8

Some of the largest macro moves in the market today include: Ethereum +5.7%. Bitcoin +4.9%. S&P 500 Index (US) +1.2%. Some of the largest moves among US mega-cap stocks include: Eli Lilly and Co (LLY) +12.2%. NVIDIA Corp (NVDA) +2.2%. Alphabet Inc (GOOGL) +1.3%. 

The US labor market data released today showed a decline in initial jobless claims to 230,000 for the week ending August 3rd, which was better than expected. Despite this improvement, continuing claims increased slightly and remain above average levels seen earlier this year. This mixed picture suggests that while there is some resilience in the labor market, it has softened compared to its post-pandemic peak.

Global markets are experiencing volatility due to ongoing debates about central bank policies and their potential impact on interest rates. Investors are particularly focused on upcoming economic indicators from major economies like Japan's current account surplus report and recent loan growth figures as well as comments from Federal Reserve officials regarding future monetary policy adjustments amidst fluctuating equity futures and currency exchange rates.

In Europe, stock indices such as Germany’s DAX 30 Index have declined amid concerns over disappointing earnings reports coupled with broader risk aversion driven by fears of an economic slowdown. The Bank of England also reported weaker-than-expected house price balance data for July indicating further challenges ahead for the UK housing market.

Bitcoin (BTC/USD) [+5.3%]
Bitcoin has increased by 4.0% since Wednesday, coinciding with a notable shift in market sentiment towards cryptocurrencies. The Federal Reserve is anticipated to implement aggressive interest rate cuts starting in September, driven by weaker-than-expected employment data and recession fears, which typically enhances demand for riskier assets like Bitcoin. Additionally, the approval of spot Bitcoin ETFs by regulators may bolster institutional adoption. In a related development, Metaplanet, a Japanese company, secured a substantial loan to acquire more Bitcoin, reinforcing its commitment to the asset as a long-term investment. However, reduced debt accumulation among U.S. consumers poses challenges for Bitcoin's bullish outlook.

Health Care Select Sector SPDR Fund [+1.6%]
The Health Care Select Sector SPDR Fund (XLV) has seen a price increase of more than 1% during the pre-market session on Thursday. Key contributors to this performance include Eli Lilly and Co., which reported strong Q2 2024 results, surpassing earnings and revenue estimates while raising its full-year revenue guidance and adjusted EPS outlook. Amgen Inc. also played a role, as its price target was raised by TD Cowen analyst Yaron Weber, reflecting confidence in the company’s future performance. Other contributors included Thermo Fisher Scientific, Boston Scientific, and Intuitive Surgical, each making minor contributions to the ETF's overall performance. Additionally, the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) moved up by 0.95%, suggesting a broader market sentiment that may be influencing the health care sector.

LLY |+12.1%|+99.7B
Eli Lilly and Co. reported strong Q2 2024 financial results, with adjusted earnings per share of 3.92, significantly surpassing the expected 2.70. Revenue reached 11.3 billion, exceeding forecasts by 1.33 billion. The company raised its full-year revenue guidance by 3 billion, now projecting between 45.4 billion and 46.6 billion, bolstered by robust sales from Mounjaro and Zepbound, which achieved quarterly sales of 3.09 billion and 1.24 billion, respectively. Additionally, Lilly increased its adjusted EPS outlook for 2024 to a range of 16.10 to 16.60, up from the previous estimate of 13.50 to 14.00. These results were announced at 6:45 AM NY time, with guidance updates following shortly thereafter at 6:52 AM NY time.

NVO | +5.5% | +23.0B
Novo Nordisk A/S is experiencing a notable price increase, aligning with a broader upward movement in its sector. The company is outperforming its peers, suggesting it may be at the forefront of this sector strength. Contributing to this momentum is the significant surge in Eli Lilly and Co, which has risen sharply following the release of robust Q2 2024 financial results. These results included adjusted earnings per share that exceeded estimates and an upward revision of full-year revenue guidance. This strong performance from Eli Lilly may be influencing the price action in Novo Nordisk, given their historical correlation within the pharmaceutical industry.

Z |+11.7%|+1.3B
Zillow Group reported a narrower net loss of $0.07 per diluted share for Q2, an improvement from a loss of $0.15 a year earlier. Revenue increased to $572 million, surpassing analysts' expectations of $538.2 million. Residential revenue rose by 8% to $409 million, while rental revenue surged by 29% to $117 million. The company appointed Jeremy Wacksman as CEO, succeeding co-founder Rich Barton, who will transition to co-executive chair. Following these announcements, shares surged approximately 12% in after-hours trading. Zillow also forecasted Q3 revenue between $545 million and $560 million, aligning closely with analyst estimates.

MNST |-7.8% | -3.8B
Monster Beverage Corp reported disappointing Q2 results, with net sales of $1.90 billion, falling short of the $2.01 billion estimate. Earnings per share were $0.41, below the consensus of $0.47. This performance has led several brokerages, including Jefferies and RBC Capital Markets, to lower their price targets, while Citi Research highlighted ongoing downside risks. The company noted a reduction in consumer spending and a shift in retail trends as contributing factors to this challenging quarter. Following the earnings announcement, the stock price dropped significantly, reflecting a notable trendline deviation, and has declined year-to-date.

PH |+10.4%|+7.6B
Parker-Hannifin Corp reported Q4 adjusted earnings per share of 6.77, exceeding the consensus estimate of 6.22 by a notable margin. The company achieved quarterly sales of 5.2 billion, surpassing the expected 5.08 billion and reflecting a slight increase from the previous year's 5.096 billion. For fiscal year 2025, Parker-Hannifin provided guidance for adjusted EPS between 26.30 and 27.00, with total sales growth anticipated between 1.5% and 4.5%. Organic sales growth is projected at 2% to 5%, while the total segment operating margin is expected to range from 22.1% to 22.5%. Net income for Q4 stood at 785 million, with adjusted net income reported at 884 million.

Thank you for spending a minute with us. 

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