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Friday, October 11

Some of the largest macro moves in the market today include: A50 Index (China) -2.2%. Some of the largest moves among US mega-cap stocks include: Tesla Inc (TSLA) -6.5%. JPMorgan Chase & Co (JPM) +1.7%. 

The Canadian labor market showed unexpected strength in September 2024, with the unemployment rate dropping to 6.5% and a significant increase of 46,700 jobs added, surpassing expectations. This marks the first monthly decrease in unemployment since January and highlights robust full-time employment growth.

In Germany, inflation was confirmed at its lowest level since February 2021 for September at an annual rate of 1.6%, down from August's figure of 1.9%. The decline is largely attributed to falling energy costs despite slight increases in food prices; core inflation also moderated slightly during this period.

US producer price data indicated that factory gate prices remained unchanged month-over-month for September compared to previous gains seen earlier this year. While service-related pricing saw modest rises alongside declines within goods categories leading overall PPI figures lower than anticipated.

iShares China Large-Cap ETF (FXI) [-1.5%]
The iShares China Large-Cap ETF (FXI) has experienced a decline of 1.5%. This follows a broader downturn in Chinese markets, with the Shanghai Composite falling significantly and the Shenzhen CSI 300 also experiencing a notable drop. Concurrently, U.S. markets closed lower, impacted by higher-than-expected inflation and increased jobless claims. Within FXI's holdings, significant contributors to its performance included JD, TCOM, and LI, all of which reported negative returns. Additionally, fluctuations in the USD/CNH currency pair contributed marginally to FXI's performance. The AUD/USD pair also moved slightly down, reflecting broader market sentiment that may have influenced FXI's recent decline.

Invesco QQQ Trust Series I (QQQ) [-0.2%]
Invesco QQQ Trust Series I (QQQ) has seen a slight decline of 0.2% in pre-market trading. Social media discussions highlight upcoming macroeconomic releases, including the Producer Price Index and Core PPI for September, along with Michigan Inflation Expectations and Consumer Sentiment, which could influence market dynamics. Additionally, the S&P 500 Closing Bell Heatmap indicated a marginal decline for QQQ, reflecting broader market trends with the Dow Jones Index also slightly down. Notably, significant movements among QQQ's holdings included Tesla, which dropped sharply following an unveiling event that raised concerns about production timelines. Other contributors to the ETF's performance, such as AVGO and TXN, also experienced declines amid shifting market sentiment and analyst downgrades. Furthermore, PDD Holdings faces legal scrutiny over its Temu platform, adding to the volatility surrounding QQQ's holdings.

UBER | +5.1% | +8.8B
Uber Technologies Inc | Passenger Ground Transportation
Uber Technologies Inc. shares rose significantly following Tesla's recent Robotaxi event, which fell short of investor expectations. Jefferies analysts described Tesla's Cybercab unveiling as lacking substance for Uber, prompting a renewed focus on Uber's fundamentals. Citi analysts noted that the event clarified Tesla's vision, resulting in a more favorable outlook for Uber, which they rated as a Buy, emphasizing its potential to collaborate with autonomous vehicle developers. BMO Capital Markets highlighted the challenges Tesla faces in scaling its driver supply to match Uber's. Social media sentiment displayed a mix of skepticism and optimism, with posts indicating Uber was trading at $81.50 in pre-market and referencing a strategy to go long on Uber ahead of an anticipated robotaxi event. Additionally, there were concerns about the legitimacy of accounts promoting Uber investments alongside other stocks.

WFC | +3.1% | +6.5B
Wells Fargo & Co | Diversified Banks
Wells Fargo & Co reported its Q3 2024 financial results, showing a net income of $5.11 billion, down from $5.78 billion year-over-year, with earnings per share (EPS) at $1.42, exceeding the consensus estimate of $1.28. Total revenue reached $20.37 billion, slightly below the expected $20.41 billion. The bank's net interest income fell 11% year-over-year to $11.69 billion, primarily due to rising funding costs as customers shifted to higher-yielding deposit products. Conversely, noninterest income rose 12% to $8.67 billion, supported by improved performance in investment banking and asset-based fees. Social media discussions highlighted the earnings report, noting total average deposits of $1.34 trillion, just under the anticipated $1.35 trillion, and expectations for Q4 net interest income to align closely with Q3 figures.

JPM |+1.6%|+9.8B
JPMorgan Chase & Co | Diversified Banks
JPMorgan Chase & Co. reported strong third-quarter 2024 results, with a net income of $12.9 billion, translating to earnings per share of $4.37, surpassing expectations of $4.01. Managed net revenue reached $43.3 billion, a 6% increase year-over-year, exceeding the forecast of $41.63 billion. Notably, net interest income was $23.5 billion, above estimates of $22.8 billion. The Commercial & Investment Bank segment generated a net income of $5.7 billion, bolstered by a 31% rise in investment banking fees. Despite a 31% decline in the Consumer & Community Banking segment's net income, Card Services & Auto revenue rose by 11%. CEO Jamie Dimon highlighted concerns over geopolitical risks while emphasizing the bank's strong balance sheet and plans for $6 billion in stock repurchases. Following the earnings announcement, shares rose approximately 2% in premarket trading.

TSLA | -6.1% | -43.4B
Tesla Inc | Automobile Manufacturers
Tesla Inc shares opened significantly lower following the recent unveiling of its Cybercab robotaxi, which was perceived as lacking crucial details on production timelines and operational capabilities. Analysts have raised concerns that the anticipated Cybercab may not enter production until at least 2026 or 2027, a timeline viewed as too distant. The absence of traditional controls in the vehicle design has also drawn skepticism regarding regulatory approvals. Following the event, Tesla's stock dropped to approximately $224.80, reflecting a decline of about 6%. Concurrently, Uber's shares rose, as market participants considered Tesla's announcements insufficiently robust to challenge Uber's position. Social media discussions highlighted widespread disappointment with the event, with many users expressing dissatisfaction over the lack of substantive information, despite excitement surrounding the new vehicle models.

BLK | +2.1%| +3.0B
BlackRock Inc | Asset Management & Custody Banks
BlackRock Inc reported strong third-quarter results, with assets under management reaching $11.48 trillion, a significant increase year-over-year. Adjusted earnings per share came in at $11.46, surpassing the consensus estimate of $10.38, while revenue was reported at $5.20 billion, exceeding expectations of $5.01 billion. The firm achieved record net inflows of $221 billion, markedly higher than last year's $2.57 billion and well above estimates of $127.2 billion. The adjusted operating margin improved to 45.8%, compared to 42.3% the previous year. Additionally, BlackRock repurchased shares worth $375 million during the quarter and completed the acquisition of Global Infrastructure Partners, enhancing its client asset base. Social media discussions highlighted these results shortly after their announcement, noting the positive impact on BlackRock's stock price.

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