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, September 26

Some of the largest macro moves in the market today include: USD/CNH -0.7%. Oil (WTI) -2.6%. Copper +2.3%. Some of the largest moves among US mega-cap stocks include: NVIDIA Corp (NVDA) +2.5%. Broadcom Inc (AVGO) +1.9%. Exxon Mobil Corp (XOM) -1.7%. 

Recent economic data from the United States has shown a mixed picture. Jobless claims fell to 218,000 for the week ending September 21st, reaching a four-month low and beating market expectations of 225,000. Additionally, US GDP growth was confirmed at an annualized rate of 3% in Q2 with corporate profits rebounding by more than expected.

China's markets have surged following announcements that Beijing is considering injecting up to one trillion yuan into its largest state banks as part of broader stimulus measures aimed at boosting lending and stabilizing the economy. This news has lifted sentiment across global equity indices including significant gains in Chinese stocks like A50 Index (up over 3%) and Hang Seng Index (also up over 3%).

In Europe, bank lending growth picked up pace in August while German consumer morale showed signs of improvement heading into October despite ongoing economic challenges such as rising inflation and unemployment rates. The Eurozone saw strong performances on major stock exchanges driven partly by these positive developments alongside China's fiscal support initiatives.

SPDR S&P 500 ETF Trust (SPY) [+0.8%]
The SPDR S&P 500 ETF Trust (SPY) has seen a price increase of 0.8% since Wednesday. Key contributors to this performance include notable returns from NVIDIA, which showcased new holographic glasses at a Meta event, and Micron Technology, which reported strong quarterly results driven by AI demand. Microsoft is linked to OpenAI's transition to a for-profit model, while Apple's iPhone 16 series has underperformed in sales expectations, affecting its supply chain. Additionally, the Federal Reserve's Kugler indicated that current monetary policy remains restrictive, with discussions on rate cuts, and the American Association of Individual Investors reported a slight increase in the bull-bear spread. Social media discussions have noted SPY's recent fluctuations, including a prior decline and bullish futures leading into macroeconomic data releases. Overall, positive sentiment from China's stimulus measures and strong earnings reports in the semiconductor sector have bolstered the S&P 500 Index.

United States Oil Fund LP (USO) [-2.8%]
United States Oil Fund LP (USO) has experienced a decline in pre-market trading, reflecting broader market trends. Oil prices have dropped significantly, with WTI crude sliding amid uncertainty regarding demand outlooks and easing concerns about supply disruptions in Libya. Saudi Arabia is reportedly preparing to abandon its unofficial price target of $100 per barrel while planning to increase production starting December 1st. This potential policy shift coincides with Brent Spot Oil experiencing a modest decline. Additionally, social media discussions have emerged regarding crude oil breaking out of a flag pattern, which includes references to USO and Bitcoin's movement toward range highs.

MU |+16.6%|+20.5B
Micron Technology Inc | Semiconductors
Micron Technology Inc reported strong fourth-quarter earnings, generating $7.75 billion in revenue and adjusted earnings per share of $1.18, both exceeding market expectations. This performance reflects a substantial year-over-year revenue increase of 93%, largely driven by demand for data center DRAM products and high-bandwidth memory linked to artificial intelligence applications. For the upcoming fiscal first quarter, the company projects revenue between $8.5 billion and $8.9 billion, with adjusted EPS guidance of $1.66 to $1.82. Following the earnings announcement, analysts raised their price targets, with some projections reaching as high as $250. The stock experienced significant upward movement, surging nearly 17.2% in pre-market trading after a notable rise in after-hours trading post-earnings release.

ACN | +4.3%|+10.0B
Accenture PLC | IT Consulting & Other Services
Accenture PLC has announced a $4 billion stock repurchase plan and expects to return at least $8.3 billion to shareholders through dividends and buybacks in fiscal year 2025. The board approved a 15% increase in the quarterly dividend to $1.48 per share, payable on November 15, 2024. For the first quarter of fiscal 2025, Accenture anticipates revenues between $16.85 billion and $17.45 billion, reflecting projected growth of 2% to 6% in local currency. The company reported fourth-quarter revenue of $16.41 billion, surpassing the consensus estimate of $16.39 billion, with an adjusted EPS of $2.79, exceeding the estimate of $2.77. New bookings for the quarter totaled $20.1 billion, driven by strong demand in consulting and managed services. The stock traded at approximately $337.05, reflecting a positive market reaction following these announcements.

BABA | +6.9% | +136.7B
Alibaba Group Holding Ltd | Broadline Retail
Alibaba Group Holding Ltd (BABA) has experienced a notable increase in its stock price, recently surpassing 97 and even crossing 99 during trading. This movement reflects an almost 6% rise in Hong Kong trading. Social media discussions indicate optimism for BABA to reach triple digits soon, with mentions of achieving new yearly highs. Trading volume has been significant, with approximately 83 million shares exchanged by lunchtime on September 26, potentially rivaling previous high volumes. This activity coincides with China's announcement of economic stimulus measures, including rate cuts and a substantial capital injection, contributing to a bullish outlook for Chinese equities. Notably, BABA has been outperforming the QQQ year-to-date. Additionally, the Direxion Daily FTSE China Bull 3X Shares (YINN) surged significantly, reflecting strong movements in the broader Chinese market.

NVDA | +2.1% | +63.7B
NVIDIA Corp | Semiconductors
NVIDIA Corp's CEO Jensen Huang recently appeared at Meta Platforms' Connect event, where Meta showcased its new Orion holographic glasses. These glasses, touted as less bulky than Apple's Vision Pro, are intended for various functions, including browsing and messaging. Meta is making significant investments in NVIDIA's GPUs, which are vital for advancements in AI and augmented reality. Huang commended the Orion glasses for their superior head tracking, brightness, color contrast, and field of view. Concurrently, social media discussions reflect a bullish sentiment around NVIDIA's stock performance, particularly following Micron Technology's earnings report, which positively influenced NVIDIA's market cap. Additionally, the Direxion Daily Semiconductor Bull 3x Shares has surged, indicating strong momentum in the semiconductor sector, while the Nasdaq 100 Index has also increased, suggesting broader market strength that may correlate with NVIDIA's recent price movement.

DEO | +5.8% | +18.0B
Diageo PLC | Distillers & Vintners
Diageo PLC's shares have increased notably, attributed to an upcoming investor meeting and the company's plans to pay off certain obligations. This positive sentiment was reported shortly before market opening. During its recent Annual General Meeting (AGM) trading update, Diageo indicated that expectations remain unchanged despite a challenging global environment. The company reported good progress on strategic initiatives, particularly in enhancing its US route-to-market strategy, with indications that growth will return. This context coincided with a reported increase in stock price during trading hours.

Thank you for spending a minute with us. 

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