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Friday, December 12

Noteworthy macro moves today: Gold +1.3%. Nasdaq 100 Index (US) -0.9%. Platinum +3.8%. Noteworthy US mega-cap moves today: Broadcom Inc (AVGO) -5.5%.

In Europe, equity indices are generally higher despite disappointing GDP data from the UK, which showed a contraction of 0.1% in October, marking four consecutive months without growth. Meanwhile, Germany's inflation rate held steady at 2.3%, aligning with expectations but raising questions about future monetary policy adjustments.

Asian markets are experiencing lower trading volumes as investors digest mixed signals from Wall Street and ongoing concerns regarding tech stocks' performance amid rising operational costs related to AI investments. The Nikkei index saw gains today, reflecting optimism from improved industrial production figures in Japan, while other regional indices remain cautious.

VanEck Gold Miners ETF (GDX) [+2.6%]
Gold prices are currently strong, nearing 4,300, influenced by recent Federal Reserve actions and profit-taking on the U.S. dollar following rate cut announcements. This has positively impacted mining stocks, resulting in a daily return of 2.24% for the VanEck Gold Miners ETF (GDX). Among its holdings, notable contributors include NEM, AEM, GOLD, FNV, and WPM, all of which have registered positive returns. Additionally, gold has increased by 1.09%, underscoring the correlation between gold prices and the performance of gold mining equities. Meanwhile, social media discussions have emerged around a competing ETF, the SGM ETF, which claims to focus exclusively on top-performing assets and suggests it may outperform GDX.

VanEck Semiconductor ETF (SMH) [-0.9%]
Broadcom reported better-than-expected fourth-quarter earnings, which initially bolstered sentiment in the semiconductor sector. The company announced a quarterly dividend increase but subsequently faced a significant decline in share price during premarket trading due to concerns over declining margins linked to an increased mix of AI revenue. The top contributors to the VanEck Semiconductor ETF (SMH) performance included Broadcom, Micron Technology, Qualcomm, Lam Research, and Analog Devices, all of which experienced notable drops. Additionally, the Nasdaq 100 Index declined, reflecting broader market sentiment that may influence SMH's recent drop of 0.9%. This downturn coincides with a recent surge in cannabis stocks following President Trump's potential reclassification of marijuana, which could indirectly affect market dynamics relevant to SMH's holdings.

LULU | +9.9% | +2.4B
Lululemon Athletica Inc | Apparel, Accessories & Luxury Goods
Lululemon Athletica Inc. has announced a CEO succession plan, with Calvin McDonald set to step down on January 31, 2026. Marti Morfitt will take on the role of Executive Chair, while Meghan Frank and Andre Maestrini will serve as interim co-CEOs. The company reported third-quarter earnings per share of $2.59, surpassing estimates of $2.21, and revenue of $2.57 billion, exceeding the forecast of $2.48 billion. Lululemon raised its full-year EPS guidance to a range of $12.92 to $13.02 and increased its revenue outlook to between $10.96 billion and $11.05 billion. Additionally, the board authorized a $1 billion increase in its stock repurchase program, raising the total available for buybacks to approximately $1.6 billion. Following these announcements, LULU shares experienced a significant surge in after-hours trading.

Broadcom Inc (AVGO) [-5.4%, -9.7B]
Semiconductors
Broadcom Inc (AVGO) reported strong fourth-quarter results, achieving revenue of 18.02 billion and adjusted earnings per share of 1.95, both exceeding analyst expectations. The company experienced a notable 74% surge in AI revenue, driven by increased demand for AI semiconductors, and projected Q1 revenue of approximately 19.1 billion, surpassing the consensus estimate. Despite these positive figures, the stock declined significantly due to management's cautious guidance on gross margins, which are expected to narrow by about 100 basis points, and an anticipated increase in tax rates. Concerns were also raised regarding non-AI revenue remaining flat at 4.1 billion year-over-year. Additionally, CEO Hock Tan indicated that revenue from its contract with OpenAI is not expected to materialize significantly until 2027, contributing to mixed analyst reactions and subsequent volatility in the stock. The Nasdaq 100 Index's decline may further correlate with Broadcom's price movement.
—𝑆𝑜𝑢𝑟𝑐𝑒: 𝑀𝑎𝑟𝑘𝑒𝑡𝑅𝑒𝑎𝑑𝑒𝑟 𝐼𝑛𝑐 @ 𝐷𝑒𝑐. 12𝑡ℎ 8:40 𝐴𝑀

TLRY | +33.6% | +3.1B
Tilray Brands Inc | Pharmaceuticals
Tilray Brands Inc. shares surged significantly in pre-market trading, reflecting a 33.9% increase. This follows the announcement of its new Amped Live Resin Liquid Diamond product line, which features 1g 510 cartridges with strains like Space Age CK and Blueberry DNTS. The formulation consists of 80% Legit Live Resin and 20% Liquid Diamonds, designed to deliver strain-specific terpenes and full-spectrum cannabinoids. Additionally, reports surfaced that former President Donald Trump may direct federal agencies to consider reclassifying marijuana from Schedule I to Schedule III, potentially impacting the cannabis market. The live resin vape category has seen notable growth in Canada, with national distribution of Tilray's new products planned for early 2026. Furthermore, the AdvisorShares Pure US Cannabis ETF has also experienced a significant increase, aligning with the movements within the cannabis sector.

SNDL | +29.4% | +175.4M
SNDL Inc | Pharmaceuticals
SNDL Inc has experienced a notable increase of 29.4% during pre-market trading, coinciding with significant movement in cannabis stocks attributed to rumors regarding rescheduling. This surge follows substantial activity in after-hours trading, where discussions on social media highlighted SNDL Inc among other cannabis companies. Additionally, the AdvisorShares Pure US Cannabis ETF (MSOS) has surged by over 37%, reflecting a strong upward trend within the cannabis sector. This broader market sentiment appears to be influencing SNDL Inc's price movement, aligning with its historical correlation to the ETF.

RBLX | -3.0% | -1.8B
Roblox Corp | Interactive Home Entertainment
Roblox Corp's stock has dropped significantly following a downgrade from J.P. Morgan Chase. The downgrade, which occurred this morning, shifted the rating from Overweight to Neutral and reduced the price target from 145 to 100. This change reflects expectations of moderated engagement and bookings growth after a surge in 2025, driven by viral hits. Additionally, margin compression is anticipated as peak experiences fade. Concurrently, a social media post noted that a video update regarding Roblox is set to go live today, suggesting ongoing interest in the stock despite the recent downgrade.

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