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Friday, July 26

Some of the largest macro moves in the market today include: Nasdaq 100 Index (US) +1.1%. S&P 500 Index (US) +0.7%. Bitcoin +2.1%. Some of the largest moves among US mega-cap stocks include: NVIDIA Corp (NVDA) +3.2%. Broadcom Inc (AVGO) +2.6%. Meta Platforms Inc (META) +1.7%.

The US core PCE price index, the Federal Reserve’s preferred gauge for measuring underlying inflation, rose by 0.2% in June 2024 from the previous month, marking an acceleration from May's figure. This data has implications for future Fed policy decisions as it suggests persistent inflationary pressures despite recent rate hikes.

Global financial markets are experiencing shifts due to disappointing corporate earnings reports and concerns over economic conditions in major economies like China and parts of Europe. These factors have led investors to reassess their strategies amid speculation about potential faster or deeper interest rate cuts by central banks such as the Federal Reserve.

In Japan, Tokyo's core consumer price index increased by 2.2% year-on-year in July 2024—the highest level since March—supporting arguments for possible monetary tightening measures ahead of next week's Bank of Japan meeting where a small rate hike is anticipated with around a two-thirds probability priced into markets.

SPY [+0.9%]
SPDR S&P 500 ETF Trust is moving higher in line with the overall market, driven by strong performances from top holdings like NVDA, AAPL, and AMZN. Notably, Nvidia's CEO sold a significant amount of common stock, while Apple benefited from positive news related to Fortnite and AI safeguards. The market movement may have been influenced by robust Q2 GDP and PCE data, supporting expectations of a September interest rate cut. Additionally, a substantial outflow of $42.3 billion from the ETF was observed, coinciding with upcoming macro releases and market sentiment towards key indicators. The S&P 500 Index and Dow Jones Index also experienced notable increases since the previous close.

QQQ [+1.2%]
Invesco QQQ Trust Series I (QQQ) rose by 1.2% following the Russell 2000 Index's 1.41% increase, reflecting a positive trend in the broader market. Key contributors to QQQ's performance were NVDA, AVGO, AAPL, AMZN, and META, with notable news including Nvidia's CEO stock sale, Apple's positive movement due to Fortnite's return, Amazon's Outperform rating, and Meta Platforms' performance issues. The price movement coincided with strong Q2 GDP data release and expectations of a September interest rate cut, potentially influencing market sentiment. Additionally, QQQ experienced a significant outflow of $42.3 billion and the tech sector within QQQ is nearing correction territory, highlighting crucial support levels around 458.

DXCM |-38.2%|-10.1B
Dexcom Inc (DXCM) experienced a significant stock price drop of about 38% after reporting mixed Q2 results and lowering its full-year revenue guidance. Analysts from various firms subsequently downgraded Dexcom's price targets, citing weaker results and guidance, with challenges including fewer new customers and lower revenue per customer post-salesforce revamp. Despite the setbacks, Dexcom's CEO remains optimistic about long-term prospects. Rival company PODD saw a premarket share value increase following Dexcom's weaker results announcement. The company's stock decline coincides with the overall movement in its sector, reflecting broader market trends.

NVDA | +3.0% | +84.1B
NVIDIA Corp's stock price has increased by 2.8% in the pre-market session, coinciding with CEO Jensen Huang's sale of $28.9 million in common stock, involving 240K shares on July 23rd as part of an option exercise. This sale, totaling $424 million over the last 6 weeks, could be a notable event influencing the stock price movement. Additionally, social media buzz highlighted JPMorgan launching an artificial intelligence tool similar to a research analyst, providing information and advice to asset management employees, with a mention of NVIDIA in the tweet.

COIN |+5.1%|+3.0B
Coinbase Global Inc's stock price increased by 5.1% in the pre-market session, coinciding with the broader market moving positively. This follows the company's recent addition of three new board members, including a former White House staffer and OpenAI executive, as part of its strategic efforts to influence U.S. crypto policy. Additionally, anticipation surrounds Coinbase's upcoming Q2 FY2024 earnings announcement, with an expected EPS estimate of $1.07 and revenue estimate of $1.4B, reflecting a significant improvement from the previous quarter.

MMM |+6.1% | +3.7B
3M Co's stock price surged +6.1% after beating analyst expectations in their Q2 2024 earnings report, with adjusted EPS at $1.93 and sales at $6.3 billion. The company raised its 2024 adjusted EPS guidance to $7.00-$7.30 and maintained a flat to up 2% organic sales growth projection for the year. Additionally, 3M's new CEO's efforts were highlighted as the company revised its full-year profit forecast, showing progress in revitalization efforts, leading to a 5% increase in the stock price.

DECK |+12.6%|+3.0B Deckers Outdoor Corp (DECK) surged by 11.8% pre-market, driven by its Q1 FY2025 results exceeding expectations. The company reported a 22% revenue increase to $825 million, with earnings per share up by 87% to $4.52. Notably, the HOKA brand saw a sales increase of 29.7%, while UGG brand sales rose by 14%. Deckers raised its full-year 2025 guidance, expecting a 10% increase in net sales to $4.7 billion and a gross margin of 54%, with EPS between $29.75 to $30.65. Analysts from various firms raised their price targets on DECK, reflecting confidence in the company's performance.

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