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Below are AI-generated insights on today’s premarket moves, powered by MarketReader technology.

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Wednesday, December 4

Some of the largest macro moves in the market today include: Ethereum +2.5%. USD/CNH -0.2%. AUD/USD -1.2%. Some of the largest moves among US mega-cap stocks include: Broadcom Inc (AVGO) +2.7%. Eli Lilly and Co (LLY) +1.9%.

Recent economic data releases have highlighted a mixed outlook for the U.S. labor market, with private businesses adding 146K jobs in November—below expectations of 150K and marking the lowest increase in three months. Additionally, mortgage rates fell to their lowest level since early October at 6.69%, which has spurred an uptick in mortgage applications by 2.8%. These developments come ahead of key reports such as ADP employment figures and ISM Services PMI that are expected later today.

In Europe, political uncertainty is impacting markets significantly; France's government faces a no-confidence vote against Prime Minister Michel Barnier following controversial legislative maneuvers without parliamentary approval. This situation adds pressure on European equity indices while also influencing currency movements within the Eurozone amid ongoing discussions about potential interest rate cuts from the ECB next week.

Geopolitical tensions remain elevated globally as well: President-elect Donald Trump threatened military action if hostages held by Hamas are not released soon after taking office, contributing to volatility across various asset classes including oil prices—which briefly rose above $70 before reversing course due to these geopolitical concerns alongside OPEC+ production decisions anticipated this Thursday.

AUD/USD (AUD/USD) [-1.2%]
The Australian Dollar (AUD) has experienced significant weakening against the US Dollar (USD), with a notable decline attributed to weaker-than-expected GDP growth figures for Q3 2024. The GDP growth recorded a modest increase, falling short of market expectations, which has led to speculation regarding potential interest rate cuts by the Reserve Bank of Australia in early April next year. Additionally, Australia's GDP Chain Price Index for Q3 showed a decrease, though it improved from the previous decline. Social media discussions have highlighted concerns over stagnation in household spending and political turmoil affecting global sentiment, particularly referencing events in France. This backdrop has contributed to the selling pressure on AUD/USD as market participants reassess their outlook on Australia's monetary policy amidst ongoing global uncertainties.

Ethereum (ETH/USD) [+2.5%]
Ethereum is currently experiencing a rally, bolstered by record-breaking ETF inflows and positive sentiment in the cryptocurrency market. This surge occurs amidst broader volatility linked to political turmoil in South Korea, where President Yoon Suk Yeol's brief declaration of martial law has influenced various markets. Recent social media discussions reveal that Binance US is set to list the memecoin PEPE, which may indirectly affect Ethereum's market sentiment. Notably, on December 3rd, approximately 36,370 ETH were purchased through ETFs, with net inflows totaling $132.6 million. Additionally, bullish support levels for Ethereum are identified at 3,601.77 and 3,558.02, while resistance levels are noted at 3,662.72 and 3,762.72. Some users speculate that Ethereum is attempting to reach the 3.8K mark overnight, reflecting a positive outlook among certain market participants.

CRM | +12.0% | +43.3B
Salesforce Inc | Application Software
Salesforce Inc. reported its Q3 2024 earnings on December 3, revealing revenues of $9.44 billion, surpassing estimates of $9.35 billion. Adjusted earnings per share (EPS) were $2.41, slightly below the expected $2.44. The company projected fourth-quarter adjusted EPS between $2.57 and $2.62, with full-year adjusted EPS anticipated to range from $9.98 to $10.03. Subscription and support revenue reached $8.88 billion, exceeding estimates of $8.82 billion. Following the earnings announcement, analysts raised price targets significantly, with Barclays and Baird setting targets at $425 and $430, respectively. Social media highlighted Salesforce's strong performance, including a new all-time high of $357 per share post-announcement, alongside optimism regarding its AI initiatives and an increase in full-year revenue guidance to between $37.8 billion and $38.0 billion, reflecting an 8% to 9% year-over-year increase.

MRVL | +12.6% | +177.6B
Marvell Technology Inc | Semiconductors
Marvell Technology Inc. reported strong third-quarter results, with adjusted earnings per share of 0.43, exceeding the consensus estimate of 0.41. Revenue for the quarter reached 1.52 billion, surpassing the anticipated 1.46 billion and reflecting a year-over-year increase of 6.9%. The company provided optimistic guidance for the fourth quarter, projecting revenue of 1.80 billion, compared to the consensus estimate of 1.65 billion. Additionally, analysts have raised their price targets significantly, with several firms now setting targets between 115 and 135, influenced by robust demand for AI-related products and custom silicon solutions. The CEO noted that the data center segment grew 98% year-over-year, now constituting 73% of Marvell's overall business. Following the earnings report, MRVL shares experienced a notable increase in after-hours trading.

PSTG | +22.3%| +4.8B
Pure Storage Inc | Technology Hardware, Storage & Peripherals
Pure Storage Inc has announced a significant collaboration with Kioxia to develop high-performance storage solutions for hyperscale environments, addressing the limitations of traditional hard disk drives. The new platform will utilize Kioxia's QLC flash memory to enhance performance while minimizing energy consumption and data center footprint. In its third-quarter earnings report, Pure Storage achieved adjusted earnings per share of $0.50 and revenue of $831.1 million, both surpassing analyst estimates. The company anticipates fourth-quarter revenue of $867 million, exceeding prior forecasts. Following the earnings announcement, Pure Storage's stock surged significantly. Additionally, an upgrade from Piper Sandler analyst James Fish raised the price target from $56 to $76, reflecting positive sentiment around the company’s performance and outlook.

OKTA | +13.3%| +2.1B
Okta Inc | Internet Services & Infrastructure
Okta Inc. reported its third-quarter financial results on December 3, 2024, achieving adjusted earnings of $0.67 per share, exceeding the consensus estimate of $0.58 by 15.52%. Revenue for the quarter reached $665 million, surpassing expectations of $649.7 million and marking a 14% increase from $584 million in the same period last year. The company raised its fourth-quarter guidance, projecting adjusted EPS between $0.73 and $0.74 and revenue of $667 million to $669 million, both above analyst forecasts. Okta also increased its full-year revenue outlook to approximately $2.595 billion to $2.597 billion, with adjusted EPS expectations rising to $2.75 to $2.76. Following these announcements, shares surged significantly in after-hours trading, reflecting strong profitability and cash flow highlighted by the CEO. Additionally, subscription revenues rose 14% year-over-year, and the number of customers with over $100K in annual contract value increased by 8%.

CPB | -3.7% | -485.1M
Campbell Soup Co | Packaged Foods & Meats
Campbell Soup Co reported its first-quarter fiscal 2025 results, with net sales of $2.77 billion, below the $2.80 billion analyst estimate. Net earnings decreased to $218 million from $234 million a year prior. Adjusted earnings per share were $0.89, surpassing the consensus estimate of $0.87, but down from $0.91 in the same quarter last year. The company announced a 5% increase in its quarterly dividend, raising it from $0.37 to $0.39 per share. Concurrently, Mick Beekhuizen has been appointed to succeed Mark Clouse as CEO, effective February 1, 2025. Following these announcements, Campbell's shares declined by 4.2% in extended trading after closing the previous day. Additionally, discussions on social media highlighted competition from private-label brands and declines in soup and snack sales, contributing to a 4% drop in shares.

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