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Monday, September 16

Some of the largest macro moves in the market today include: US Dollar Index -0.4%. Some of the largest moves among US mega-cap stocks include: Apple Inc (AAPL) -2.4%. Broadcom Inc (AVGO) -1.6%. 

The most significant market event currently is the anticipation of central bank decisions, particularly from the Federal Reserve (Fed), which is expected to announce a rate cut on Wednesday. Market participants are debating whether it will be a 25 or 50 basis point reduction, with recent data suggesting an increased probability for the larger cut. This has led to fluctuations in bond yields and currency values as traders position themselves ahead of this key announcement.

In Europe, economic indicators show mixed signals; Italy reported its largest trade surplus in three years while inflation slowed down slightly. Meanwhile, Eurozone wage growth decelerated in Q2 but remained substantial at 4.5% year-on-year. These developments come amid broader concerns about global economic stability influenced by ongoing geopolitical tensions and weak Chinese economic data released over the weekend.

China's economy continues to exhibit signs of strain with disappointing retail sales and industrial production figures for August alongside rising unemployment rates and falling home prices—the steepest decline since May 2015—prompting calls for additional stimulus measures despite limited effectiveness observed so far.

Invesco CurrencyShares Euro Trust (FXE) [+0.5%]
Invesco CurrencyShares Euro Trust (FXE) has experienced a 0.5% increase, reflecting upward momentum in the EUR/USD pair, which is currently trading around 1.1120. This movement aligns with a weakening U.S. dollar, which decreased by 0.41% to 100.70 amid rising expectations for a substantial interest rate cut by the Federal Reserve at its upcoming meeting on September 18. Softer-than-expected Producer Price Index data and concerns regarding labor market conditions in the U.S. have contributed to this sentiment, leading to increased buying pressure on the Euro. Concurrently, the GBP/USD pair has risen by 0.58%, suggesting broader market dynamics that may also be influencing FXE's recent performance. Additionally, thin trading volumes due to holidays in China and Japan are further affecting currency movements favorably towards EUR/USD.

Invesco QQQ Trust Series I (QQQ) [-0.4%, -1.2B]
Invesco QQQ Trust Series I has seen a decline of 0.4% since Friday, influenced by notable movements among its holdings. Apple Inc. experienced a drop due to lower demand for its iPhone 16 Pro and Pro Max models, while NVIDIA Corporation's shares rebounded after positive updates on AI demand. Micron Technology faced a premarket decline following negative commentary from Morgan Stanley, which lowered its price target significantly. The Nasdaq 100 Index recorded its most substantial weekly rally since October 2023, rising sharply after a previous week of losses, driven by favorable economic data that raised expectations for an interest rate cut by the Federal Reserve. Additionally, the iShares iBoxx $ High Yield Corporate Bond ETF moved down slightly, reflecting broader market sentiment that may also influence QQQ.

EXAS |+4.7%|+601.1M
Exact Sciences Corp | Biotechnology
Exact Sciences Corp. shares have risen following the announcement of performance data for its blood-based colorectal cancer screening test. The data, presented at the European Society for Medical Oncology Congress, reveals sensitivities of 88.3% for colorectal cancer and 31.2% for advanced precancerous lesions, alongside a specificity of 90.1% for negative samples confirmed by colonoscopy. This significant advancement in diagnostic capabilities was made public just 22 minutes ago. Additionally, analysts have shown a generally optimistic outlook on the company, with multiple firms reaffirming "buy" ratings and one initiating coverage with an "overweight" rating. Exact Sciences Corp is currently outperforming its sector peers.

AAPL |-2.5%|-83.1B
Apple Inc | Technology Hardware, Storage & Peripherals
Apple Inc. has experienced a price decline of 2.5%, aligning with a broader downturn in the Technology Hardware, Storage & Peripherals sub-sector. Analyst Ming-Chi Kuo reported lower than expected demand for the iPhone 16 Pro and Pro Max models, with initial pre-order sales at approximately 37 million units, reflecting a year-over-year decline. The shorter delivery times for these models suggest weaker demand, attributed to the absence of significant selling points at launch. Additionally, Apple has announced a $20 price increase for battery replacements for the iPhone 16 Pro and Pro Max, bringing the cost to $119. This follows the recent unveiling of the iPhone 16 series, which did not meet heightened expectations regarding new features.

NTRA |+6.7% | +1.1B
Natera Inc | Biotechnology
Natera Inc. has reported significant advancements in its cancer diagnostic capabilities, with new data from the GALAXY study presented at the European Society for Medical Oncology (ESMO) Congress. This data reveals that Natera's Signatera demonstrated nearly a tenfold advantage in overall survival at 36 months based on circulating tumor DNA (ctDNA) status. Additionally, it showed a 50% reduction in the risk of death for Signatera-positive patients treated with adjuvant chemotherapy (ACT). Furthermore, Natera announced the simultaneous publication of three peer-reviewed papers, bringing the total to over 85 peer-reviewed publications on Signatera, highlighting its growing recognition in oncology. The GALAXY study is one of the largest prospective studies on ctDNA testing in resectable colorectal cancer.

NUVL |+23.5% | +1.6B
Nuvalent Inc | Biotechnology
Nuvalent Inc. has experienced a notable increase in its stock price, attributed to significant developments in its clinical trials for zidesamtinib and NVL-655. Updated Phase 1 dose-escalation data suggests their potential as best-in-class treatments for ROS1 and ALK-positive non-small cell lung cancer (NSCLC). Rapid enrollment in the Phase 2 portions of the ARROS-1 and ALKOVE-1 trials is underway, with pivotal data anticipated in 2025. Additionally, a Phase 3 trial, ALKAZAR, for NVL-655 is slated to commence in the first half of 2025. The company has also initiated a public offering of $350 million in shares. Following these developments, Stifel raised its price target for Nuvalent's stock to 135. Recent presentations at the European Society for Medical Oncology (ESMO) Congress further highlighted the advancements in their clinical trials.

GIS | +1.0% | +439.2M
General Mills Inc | Packaged Foods & Meats
Citigroup has raised its price target for General Mills Inc to 76 from 68, reflecting a more favorable outlook. The company currently holds an average hold rating, with analysts establishing a price target range between 62 and 76. This revision occurred shortly before the market close on September 16, 2024. Additionally, General Mills is set to announce its Q1 FY2025 earnings on September 18, 2024, with an estimated EPS of 1.05, down from a previous estimate of 1.09, and a revenue estimate of 4.8 billion, reduced from 4.9 billion. The accompanying conference call is scheduled for 9:00 AM.

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