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Tuesday, October 15

Some of the largest macro moves in the market today include: USD/CNH +0.4%. Oil (WTI) -1.8%. US 10Y Treasury Bond +0.3%. Some of the largest moves among US mega-cap stocks include: UnitedHealth Group Inc (UNH) -3.7%. Exxon Mobil Corp (XOM) -2.5%. Apple Inc (AAPL) +1.3%. 

The Canadian inflation rate fell to 1.6% in September, marking the lowest level since February 2021 and below market expectations of 1.9%. This decline has increased speculation that the Bank of Canada may continue its cycle of interest rate cuts.

In Europe, industrial production in the Euro Area rose by a significant 1.8% month-over-month in August, with Germany experiencing notable growth at a pace not seen since early last year. Meanwhile, France's annual inflation dropped more than initially estimated due to falling energy prices.

Global markets are reacting to geopolitical developments as oil prices have decreased sharply following reports indicating Israel will limit military actions against Iran without targeting crude infrastructure or nuclear facilities; this news contributed significantly to declines across major equity indices globally today.

Financial Select Sector SPDR Fund (XLF) [+0.8%]
The Financial Select Sector SPDR Fund (XLF) is up by 0.8% in pre-market trading, reflecting a complex interplay of market dynamics. The S&P 500 and Dow Jones Industrial Average reached record highs, buoyed by strong earnings from major banks like JPMorgan Chase & Co., which exceeded expectations in its third-quarter results. Conversely, Bank of America reported a decline in Q3 profits due to weaker interest income, a topic of discussion on social media. Notably, XLF is also noted for reaching another 52-week high, suggesting a positive sentiment despite the mixed financial reports. Among the top contributors to XLF's performance, Charles Schwab reported robust Q3 results, while Goldman Sachs and Bank of America also posted strong earnings, albeit with some caution regarding profit declines.

United States Oil Fund LP (USO) [-4.0%]
The United States Oil Fund LP (USO) has experienced a notable decline in price, reflecting broader market dynamics as crude oil prices have dropped significantly. Brent crude is now priced at $74.18 per barrel, while West Texas Intermediate (WTI) stands at $70.59 per barrel. This downturn follows reports that Israel will not target Iranian oil facilities in its military actions, easing geopolitical tensions. Additionally, OPEC has revised its global oil demand growth forecasts downward for 2024 and 2025, citing reduced expectations for Chinese demand. Social media discussions have highlighted these developments, with users noting the correlation between falling crude prices and USO's performance, particularly following announcements regarding Israeli military strategies and their implications for oil supply stability.

GS | +2.8% | +4.9B
Goldman Sachs Group Inc | Investment Banking & Brokerage
Goldman Sachs Group Inc reported strong third-quarter results, with earnings per share reaching 8.40, significantly exceeding last year's 5.47 and surpassing analysts' expectations of 6.92. Revenue for the quarter was 12.70 billion, above the consensus estimate of 11.87 billion, reflecting a year-over-year growth of 7.47%. The bank's net provisions for credit losses were 397 million, while operating expenses decreased by 8% to 8.32 billion. Additionally, Goldman Sachs repurchased 2 million shares for 1 billion and returned 1.98 billion of capital to shareholders, achieving an annualized return on average tangible common shareholders' equity of 11.1%. Social media discussions highlighted the anticipation surrounding the upcoming earnings release on October 15 and noted that October typically has the highest win rate for the stock. In related news, Charles Schwab Corp experienced a significant increase following its strong Q3 results, which may be influencing Goldman Sachs' stock movement.

BAC | +2.0% | +6.6B
Bank of America Corp | Diversified Banks
Bank of America Corp reported its Q3 2024 financial results, revealing earnings per share of $0.81, surpassing the consensus estimate of $0.78. Total revenue reached $25.35 billion, slightly above expectations of $25.29 billion. Net interest income was reported at $14.11 billion, exceeding the estimate of $14.07 billion. Average deposit balances increased by 2% to $1.92 trillion. Global markets revenue rose by 14% to $5.6 billion, while global banking revenue declined by 6% to $5.8 billion. The net charge-off rate stood at 0.58%. Despite a year-over-year decline in net income to $6.9 billion from $7.8 billion, shares rose in premarket trading. Concurrently, Charles Schwab Corp experienced a significant increase following its strong Q3 results, which may have influenced Bank of America's price movement due to their historical correlation within the financial sector.

BA | +1.0%| +955.1M
Boeing Co | Aerospace & Defense
Boeing Co has filed a $25 billion mixed securities shelf registration, enabling the company to raise funds through various debt and equity instruments. This filing coincides with a $10 billion supplemental credit agreement established with major banks, including Bank of America, Citibank, Goldman Sachs, and JPMorgan, aimed at providing additional liquidity amid ongoing operational disruptions from a labor strike affecting over 30,000 employees. Currently, Boeing has not utilized this credit facility. Additionally, social media reports indicate that Boeing plans to issue layoff notices in November as part of a strategy to reduce its workforce by 17,000 jobs. This comes as the company faces significant financial pressures, including the ongoing strike costing approximately $1 billion per month and an impending $4.7 billion share issuance related to Spirit AeroSystems.

C |+2.0%|+2.5B
Citigroup Inc | Diversified Banks
Citigroup Inc is experiencing a price increase, aligning with significant upward movement in the Diversified Banks sub-sector. The company recently reported its Q3 2024 results, achieving revenue of $20.32 billion, surpassing estimates. Adjusted earnings per share reached $1.51, exceeding expectations, while markets revenue also outperformed forecasts at $4.82 billion. FICC sales and trading revenue reached $3.58 billion, above the estimate. Additionally, services revenue grew by 8% to $5.03 billion. Total loans increased by 3% to $689 billion, with total deposits also rising to $1.3 trillion. Meanwhile, Bank of America Corp has seen a notable increase following its own Q3 results, which exceeded earnings expectations and reported higher total revenue, likely contributing to Citigroup's price movement. Social media discussions highlight internal challenges Citigroup faces in training employees for risk and compliance roles.

JNJ | -1.1% | -4.0B
Johnson & Johnson | Pharmaceuticals
Johnson & Johnson has revised its fiscal year 2024 guidance, lowering the expected adjusted operational EPS to a range of 9.88 to 9.98, down from a prior estimate of 9.97 to 10.07. The company reported third-quarter adjusted EPS of 2.42, exceeding the consensus estimate of 2.21, with revenues reaching 22.5 billion, surpassing expectations of 22.16 billion. J&J also raised its full-year operational sales guidance to between 89.4 billion and 89.8 billion, up from the previous range of 89.2 billion to 89.6 billion. Despite strong performance in the Innovative Medicine segment, which saw a notable increase in operational sales, net income declined significantly year-over-year. Additionally, social media discussions highlight Goldman Sachs' biotechnology analyst Chris Shibutani maintaining a Neutral stance on JNJ ahead of the earnings report.

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