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Friday, June 27

Noteworthy macro moves today: Gold -1.6%. Platinum -6.4%. Noteworthy US mega-cap moves today: JPMorgan Chase & Co (JPM) -0.8%. 

Recent economic data releases indicate a notable slowdown in the U.S. economy, with personal income unexpectedly falling by 0.4% month-over-month for May, contrasting sharply against market expectations of a modest increase. Additionally, consumer spending also contracted by 0.1%, further highlighting concerns about weakening demand and prompting speculation regarding potential Federal Reserve interest rate cuts.

In Europe, inflation rates have shown unexpected increases; France's annual inflation rose to 0.9% in June from an earlier low of 0.7%. This uptick has implications for monetary policy as it may influence the European Central Bank’s (ECB) approach amidst ongoing trade negotiations between the EU and US aimed at easing tariffs while addressing mutual interests.

The geopolitical landscape remains dynamic but somewhat stabilized following recent ceasefires involving Iran and Israel that alleviated some immediate supply chain fears affecting oil prices negatively during previous tensions—this backdrop is contributing to positive sentiment across equity markets globally as investors anticipate continued recovery amid improving conditions.

SPDR Gold Shares (GLD) [-1.5%]
SPDR Gold Shares (GLD) has seen a decline of 1.5% in pre-market trading. This movement coincides with a significant drop in gold prices, which have decreased by 1.4%. The easing of geopolitical tensions following a ceasefire agreement between Israel and Iran appears to have reduced demand for gold as a safe-haven asset. Additionally, expectations surrounding further Federal Reserve rate cuts are influencing market sentiment, although a positive risk tone is undermining traditional support for gold. In related developments, the cost to borrow shares of GLD has reportedly doubled, creating challenges for those holding short positions. Silver has also experienced a notable decline, falling by 1.68%, reflecting its strong correlation with gold and suggesting broader market sentiment affecting precious metals.

iShares MSCI Japan ETF (EWJ) [+1.6%]
The iShares MSCI Japan ETF (EWJ) has recorded a daily return of 1.6%, coinciding with a surge in the Japanese stock market, where the Nikkei 225 Index rose by over 580 points, or approximately 1.47%. This positive movement is attributed to favorable sentiment in the technology and export sectors, following easing geopolitical tensions due to a ceasefire between Israel and Iran. Additionally, expectations regarding potential Federal Reserve rate cuts are bolstering optimism in global markets, further benefiting assets linked to Japan’s economy. Among the ETF's holdings, Toyota Motor North America reported a significant increase in U.S. sales, driven by electrified vehicle demand, while other contributors included SONY and IX, although MFG and SMFG experienced slight declines.

NKE | +10.4% | +10.8B
Nike Inc | Footwear
Nike Inc's stock has surged significantly in pre-market trading, buoyed by a notable upgrade from HSBC, which raised its rating from Hold to Buy and set a new price target of $80. The company reported fourth-quarter earnings of $0.14 per share, surpassing estimates, alongside revenues of $11.1 billion, exceeding expectations as well. Despite these positive results, revenue declined nearly 12% year-over-year. The firm anticipates a $1 billion impact from tariffs, prompting plans for price increases starting in Fall 2025. Analysts from Needham and Baird have also increased their price targets for Nike to $78 and $88, respectively. Social media buzz reflects a mix of optimism regarding future improvements and concerns over declining sales, particularly in Greater China, where revenue fell 21% year-over-year. Overall, the footwear sector's upward movement has coincided with Nike's price increase.

NVO | +1.9% | +4.4B
Novo Nordisk A/S | Pharmaceuticals
Novo Nordisk A/S (NVO) has experienced a price increase since Thursday. Recent discussions on social media highlighted that the company ended its collaboration with HIMS regarding weight-loss medications, resulting in serious allegations against HIMS. Additionally, Novo Nordisk denied sourcing IPA exclusively from Denmark and the US, reflecting ongoing conversations about its sourcing practices. In a separate announcement, the company revealed plans to expand patient access to Wegovy® (semaglutide) through a new collaboration with WeightWatchers.

LI | -2.5% | -1.1B
Li Auto Inc | Automobile Manufacturers
Li Auto Inc. has revised its second quarter delivery forecast, now expecting to deliver approximately 108,000 vehicles, down from a prior estimate of 123,000 to 128,000. This adjustment is attributed to a temporary impact from the company's sales system upgrade. The announcement, made approximately three hours ago, has led to a pre-market stock decline of nearly 3%. Social media discussions have echoed this sentiment, noting the downward movement in stock price following the revised delivery outlook. Posts highlighted the company's confidence in completing the organizational upgrade before the launch of the Li i8, despite the lowered expectations for Q2 deliveries.

AMZN | +1.4% | +32.4B
Amazon.com Inc | Broadline Retail
Amazon.com Inc has begun selling Nike products on its platform for the first time in six years, a significant development that has already led to a post-market stock increase. The company is also intensifying its healthcare initiatives in India by launching at-home diagnostic services across six cities, complementing its existing healthcare investments. Social media discussions have noted that July is historically a strong month for Amazon, with a notable win rate and average return. Additionally, BNP Paribas Exane upgraded Amazon from Neutral to Outperform, setting a price target of 254. This upgrade coincided with conversations about potential upward movement if the stock breaks above a significant resistance level. Concerns regarding counterfeit products and fake reviews on the platform were also raised, which could impact customer experience and revenue.

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