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Wednesday, September 18

Some of the largest macro moves in the market today include: USD/CNH -0.3%. 

The most significant market event currently is the anticipation of a Federal Reserve interest rate decision, with expectations split between a 25 or 50 basis point cut. This has led to cautious trading in global markets as investors await further guidance from Fed Chair Jerome Powell's press conference and economic projections.

In addition, recent US housing data showed stronger-than-expected performance with housing starts rising by 9.6% and building permits increasing by 4.9% in August, indicating resilience in the real estate sector despite broader economic uncertainties.

Lastly, inflation rates have remained steady at lower levels across major economies such as the UK (2.2%) and Eurozone (also confirmed at 2.2%), which could influence upcoming central bank policy decisions amidst ongoing concerns about growth prospects.

USD/CNH (USD/CNH) [-0.3%]
The USD/CNH is currently down, reflecting a daily return influenced by expectations of an interest rate cut from the Federal Reserve. This anticipated decision could apply selling pressure on the US Dollar. Concurrently, Japan's trade deficit figures have surpassed expectations, which may signal broader economic conditions affecting currency valuations in Asia and impacting sentiment towards the Chinese Yuan. Additionally, the USD/CHF has also declined, suggesting that shifts in this currency pair may correlate with the recent movements observed in USD/CNH. Overall, these factors are contributing to fluctuations in USD/CNH trading dynamics ahead of key monetary policy announcements from major central banks.

United States Oil Fund LP (USO) [-1.0%]
The United States Oil Fund LP (USO) has experienced a price decline since Tuesday, coinciding with a reported increase in U.S. crude inventories. As of September 13, the American Petroleum Institute indicated a build of 1.96 million barrels, contrary to expectations for a slight decline. This unexpected rise in supply has contributed to a decrease in WTI crude prices, which fell premarket. Additionally, Brent crude oil dropped during market hours. The Federal Reserve is expected to announce its first interest rate cut in over four years today, with speculation of a significant reduction. This anticipated easing of monetary policy may affect global financial markets and oil prices, while concerns regarding tight supply are moderated by uncertainties surrounding demand from China.

GIS |-1.4%|-595.4M
General Mills Inc | Packaged Foods & Meats
General Mills Inc reported a 14% decline in net income for the first quarter, totaling $579.9 million, or $1.03 per share, compared to the previous year's $673.5 million, or $1.14 per share. Adjusted earnings per share were $1.07, slightly above the consensus estimate of $1.06. Revenue fell 1% to $4.85 billion, surpassing the analyst forecast of $4.79 billion. The company's gross margin decreased by 130 basis points to 34.8%, attributed to input cost inflation and margin pressures. Following the earnings announcement at 7:00 am NY, General Mills experienced a price drop of 1.9%. The company reaffirmed its fiscal 2025 outlook, expecting organic net sales to range from flat to up 1%, while adjusted diluted EPS is projected to decline by 1% to increase by 1%.

X |+4.0%|+342.9M
United States Steel Corp | Steel
Nippon Steel is anticipated to receive an extension for the security review of its proposed $14.1 billion acquisition of United States Steel Corp, as reported by Bloomberg. This extension is likely to delay the decision until after the upcoming U.S. elections in November. The Committee on Foreign Investment in the United States (CFIUS) has raised national security concerns regarding the deal, which has garnered political opposition from figures including President Biden and former President Trump, who emphasize the importance of maintaining U.S. ownership of the steel company. The extension permits Nippon Steel to refile its merger application, initiating a new 90-day review period.

APLT |+41.6% | +313.9M
Applied Therapeutics Inc | Biotechnology
Applied Therapeutics Inc announced a significant regulatory update regarding its New Drug Application (NDA) for govorestat, intended for the treatment of Classic Galactosemia. The company completed its late-cycle review meeting with the FDA, which confirmed that an Advisory Committee meeting is no longer necessary. The Priority Review of the NDA is proceeding as scheduled, with the Prescription Drug User Fee Act (PDUFA) target action date set for November 28, 2024. This announcement has coincided with a notable increase in the company's stock price. Additionally, the FDA review of the NDA continues to progress as planned, reaffirming the PDUFA date outcome announced on September 18, 2024.

USFD |-1.3% | -189.3M
US Foods Holding Corp | Food Distributors
Wells Fargo has raised its price target for US Foods Holding Corp (NYSE: USFD) to 75.00 from 66.00, while maintaining an Overweight rating. This adjustment follows recent meetings with the management team and reflects a positive outlook on the company's performance. Approximately two hours ago, this news was released. In addition, analysts have noted a downgrade from StockNews.com, shifting US Foods from a strong-buy to a buy rating. Despite this downgrade, several analysts, including Deutsche Bank, have increased their price targets, further indicating an overall positive sentiment towards the company. US Foods reported earnings of 0.93 per share for the last quarter, aligning with estimates, and demonstrated a year-over-year revenue increase, totaling 9.71 billion. Analysts maintain a consensus rating of Moderate Buy for the company.

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