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Tuesday, November 26

Some of the largest macro moves in the market today include: Ethereum -2.6%. EUR/USD +0.6%. Some of the largest moves among US mega-cap stocks include: Eli Lilly and Co (LLY) +5.0%.

Recent market movements are significantly influenced by President-elect Donald Trump's announcement of proposed tariffs. He has threatened to impose a 25% tariff on all imports from Canada and Mexico, along with an additional 10% on Chinese goods unless these countries take action against illegal immigration and drug trafficking. This news has led to increased volatility in the markets, particularly affecting currencies like the Canadian Dollar (CAD) and Mexican Peso (MXN), which have seen declines as traders react to potential trade disruptions.

In economic data releases today, U.S. building permits fell slightly by 0.4%, indicating some cooling in housing activity despite previous expectations for stability or growth in this sector. Additionally, wholesale sales figures from Canada showed a modest increase of only 0.5%, falling short of forecasts that anticipated stronger performance at 0.9%. These developments suggest mixed signals regarding consumer confidence and construction activities across North America.

Market sentiment is further shaped by upcoming events such as the release of FOMC meeting minutes later today; insights into future monetary policy direction will be scrutinized amid ongoing discussions about interest rate cuts versus maintaining current levels due to inflationary pressures linked with Trump’s tariff proposals impacting overall economic conditions.

iShares MSCI Canada ETF (EWC) [-1.1%]
The iShares MSCI Canada ETF (EWC) has experienced a decline of 1.1% since Monday. This movement coincides with President-elect Donald Trump's announcement of a 25% tariff on imports from Canada, which is expected to significantly impact trade relations and the Canadian economy. The top contributors to the ETF's performance included Canadian Pacific Railway, Enbridge, Toronto-Dominion Bank, Shopify, and Canadian National Railway, all of which posted negative returns. Additionally, the Russell 2000 Index has also declined, reflecting broader market sentiment that may influence EWC's performance in the current environment.

USD/MXN (USD/MXN) [-0.3%]
The Mexican Peso has weakened significantly today, following President-elect Donald Trump's announcement of plans to impose a 25% tariff on goods entering the U.S. from Mexico and Canada. This decision primarily targets Mexico, raising concerns over illegal migration and drug trafficking, and has led to notable volatility in currency markets. The USD/MXN has declined as a direct response to this development. Concurrently, the S&P 500 Index has experienced a modest increase, reflecting broader market sentiment. This movement may also correlate with the recent decline in USD/MXN, as both assets often respond to similar macroeconomic factors.

ZM | -7.4% | -1.9B
Zoom Video Communications Inc | Application Software
Zoom Video Communications reported third-quarter earnings with adjusted earnings per share of 1.38, surpassing the consensus estimate of 1.31. Revenue reached 1.18 billion, exceeding expectations of 1.16 billion. The company disclosed 192,400 enterprise customers, surpassing the estimated 188,954. However, it reported a decline in customers contributing over 100,000 annually, totaling 3,995 against an expected 4,212. For the fourth quarter, Zoom anticipates revenue between 1.175 billion and 1.18 billion and adjusted EPS of 1.29 to 1.30. The guidance for fiscal year 2025 revenue is projected at 4.656 billion to 4.661 billion, below prior market expectations. Despite positive growth metrics and a record low churn rate of 2.7%, shares declined significantly in after-hours trading following the earnings report.

AMGN | -10.3% | -14.5B
Amgen Inc | Biotechnology
Amgen Inc. reported Phase 2 study results for its obesity drug candidate, MariTide, showing average weight loss of up to 20% for patients without Type 2 diabetes and 17% for those with the condition. The study also demonstrated improvements in cardiometabolic parameters, including a reduction in hemoglobin A1C by up to 2.2 percentage points for diabetic patients. Despite these results, which lacked a weight-loss plateau, expectations were higher, with analysts anticipating at least 20-25% weight loss. This led to skepticism regarding MariTide's competitive position in the obesity drug market. Following the announcement, Amgen's shares declined significantly, while competitors Eli Lilly and Novo Nordisk saw their stock prices rise. In premarket trading, Amgen's shares experienced a drop, reflecting disappointment in the trial outcomes and concerns over adverse effects associated with the treatment.

RIVN | +9.1%| +1.2B
Rivian Automotive Inc | Automobile Manufacturers
Rivian Automotive Inc has secured a conditional commitment for a loan of up to $6.6 billion from the U.S. Department of Energy's Advanced Technology Vehicle Manufacturing Program. This funding includes $6 billion in principal and approximately $600 million in capitalized interest, aimed at supporting the construction of a new electric vehicle manufacturing facility in Stanton Springs North, Georgia. The facility is expected to enhance Rivian's production capacity by 400,000 units annually, particularly for its R2 and R3 vehicle platforms, with production slated to begin in 2028. The project is projected to create around 7,500 operational jobs and 2,000 construction jobs, bolstering the domestic electric vehicle ecosystem. This announcement has coincided with a significant upward movement in Rivian's stock price.

ADI | +6.6%| +7.8B
Analog Devices Inc | Semiconductors
Analog Devices Inc. reported its fiscal Q4 results, posting adjusted earnings per share (EPS) of 1.67, surpassing the consensus estimate of 1.64. Revenue for the quarter reached 2.44 billion, slightly above the expected 2.41 billion. The company anticipates Q1 adjusted EPS to be between 1.43 and 1.63, with revenue projected at 2.2 to 2.5 billion, aligning closely with estimates. CFO Richard Puccio highlighted a recovery in bookings during Q4, particularly in the automotive sector, despite significant inventory headwinds throughout fiscal 2024. Year-over-year comparisons reveal a decline in EPS by 17% and a revenue drop of 10%. Gross margin fell to 67.9%, down 230 basis points, while operating margin decreased by 360 basis points to 41.1%. In premarket trading, shares rose over 6% following the earnings announcement, reflecting positive market sentiment.

DKS | +8.4% | +1.6B
DICK'S Sporting Goods Inc | Other Specialty Retail
DICK'S Sporting Goods reported its third-quarter results, revealing net sales of $3.06 billion, exceeding analyst expectations of $3.03 billion. The adjusted earnings per share (EPS) reached $2.75, surpassing the consensus estimate of $2.68. Comparable sales rose by 4.2%, significantly above the anticipated growth of 2.5%. Following these results, the company raised its fiscal 2024 guidance for EPS to a range of $13.65 to $13.95 and net sales to between $13.2 billion and $13.3 billion, an increase from previous forecasts. Social media discussions have highlighted these earnings, noting DICK'S strong performance relative to other retailers like Best Buy and Kohl's, which faced declines. The stock experienced a notable increase of approximately 10% shortly after the earnings announcement, reflecting the positive reception of the financial results and guidance adjustments.

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