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Tuesday, September 17

Some of the largest macro moves in the market today include: Bitcoin +1.9%. Some of the largest moves among US mega-cap stocks include: Microsoft Corp (MSFT) +1.8%. 

U.S. retail sales for August 2024 edged up by 0.1%, surpassing expectations of a decline and indicating continued consumer spending strength, particularly in miscellaneous stores and nonstore retailers. This data comes ahead of the Federal Reserve's highly anticipated interest rate decision tomorrow, where market participants are divided on whether there will be a 25 or 50 basis point cut.

In Canada, inflation decelerated to an annual rate of 2% in August from July’s figure of higher levels due to lower gasoline prices; this is below forecasts but aligns with the Bank of Canada's projections that inflation would approach around these levels later in the year before potentially rising again due to base effects from fuel costs.

European markets have reacted positively despite mixed economic signals such as Germany's ZEW Economic Sentiment Index dropping significantly more than expected while U.K.'s FTSE rose amid anticipation surrounding upcoming central bank decisions including those from both the Fed and BoE which could influence future monetary policy paths based on recent economic indicators like industrial production figures set for release today.

SPDR S&P 500 ETF Trust (SPY) [+0.4%]
The SPDR S&P 500 ETF Trust (SPY) advanced by 0.42% to reach new overnight highs of 5723. This movement coincided with a broader increase in the S&P 500 Index, which rose by 0.5% during market hours on Tuesday. Contributing to this performance, Microsoft (MSFT) announced a 10% increase in its quarterly dividend and initiated a $60 billion share repurchase program. Amazon (AMZN) is reviving its Prime Big Deal Days while expanding its collaboration with Intel (INTC) for custom chip designs. Intel is also deepening its partnership with AWS and restructuring its foundry operations. Meanwhile, Google's (GOOGL) advertising practices are under scrutiny amid an antitrust trial. Market expectations for a 50 basis point interest rate cut by the Federal Reserve have risen from 59% to approximately 70%, further influencing market dynamics.

iShares China Large-Cap ETF (FXI) [+1.4%, +65.6M]
The iShares China Large-Cap ETF (FXI) has seen a price increase of 1.2% since Monday. Significant contributors to this performance include TCEHY, which rose, contributing positively, along with LI and JD, both of which also saw notable gains. In broader market news, U.S. markets displayed mixed results, with the S&P 500 slightly higher. The NY Empire State Manufacturing Index exceeded expectations, reaching its highest level since April 2022. Meanwhile, Asian markets showed divergence; Japan’s Nikkei 225 declined, while Hong Kong’s Hang Seng index increased. China's markets were closed for the Mid-Autumn Festival holiday. European markets reflected positive sentiment, as evidenced by an uptick in the STOXX 50 index. Crude oil prices experienced slight declines amid concerns regarding U.S. production and demand in China.
—𝑆𝑜𝑢𝑟𝑐𝑒: 𝑀𝑎𝑟𝑘𝑒𝑡𝑅𝑒𝑎𝑑𝑒𝑟 𝐼𝑛𝑐 @ 𝑆𝑒𝑝. 17𝑡ℎ 8:30 𝐴𝑀

INTC |+6.9%|+6.6B
Intel Corp | Semiconductors
Intel Corp has announced a significant expansion of its collaboration with Amazon Web Services (AWS), which includes a multi-year, multi-billion-dollar framework for custom chip designs. This partnership aims to enhance U.S.-based semiconductor manufacturing and features the production of an AI fabric chip on Intel's 18A process node, along with a custom Xeon 6 chip. AWS is set to invest $7.8 billion to expand its data center operations in Central Ohio, aligning with Intel's ongoing manufacturing projects in the region. Additionally, Intel is establishing its foundry as an independent subsidiary to improve operational clarity and flexibility.

MSFT |+1.8%|+60.3B
Microsoft Corp | Systems Software
Microsoft Corp announced a quarterly dividend increase to 0.83 per share, marking a 10% rise from the previous quarter's dividend of 0.75. The new dividend is set to be paid on December 12, 2024, to shareholders of record on November 21, 2024. Additionally, the board approved a new share repurchase program authorizing up to 60 billion in stock buybacks, with no expiration date attached. These announcements were made on September 16, 2024, highlighting the company's commitment to enhancing shareholder value. In pre-market trading, Microsoft shares have increased by 1.8%. The Nasdaq 100 Index has also moved up, reflecting broader market sentiment that often influences technology stocks, including Microsoft.

RYAAY |+4.1% | +5.2B
Ryanair Holdings PLC | Passenger Airlines
Ryanair Holdings PLC has seen a 4.1% increase in its stock price, coinciding with CEO Michael O'Leary's remarks on improved booking momentum for August and September, which necessitates fewer fare discounts. He anticipates this trend of reduced fare discounts to continue into September, October, and November. Despite the positive outlook on bookings, O'Leary cautioned that the airline's full-year profit is expected to be slightly down compared to the previous year. Additionally, he expressed optimism regarding the timely delivery of Boeing 737 Max 10 aircraft, although he did not provide a definitive confirmation. Ryanair is currently outperforming its sector peers.

HPE |+3.8% | +875.5M
Hewlett Packard Enterprise Co | Technology Hardware, Storage & Peripherals
Hewlett Packard Enterprise Co's stock has increased significantly, following an upgrade from Bank of America Merrill Lynch, which moved its rating from neutral to buy and raised the price target from 21.00 to 24.00 per share. Additionally, the Competition and Markets Authority released the full text of its decision regarding HPE's acquisition of Juniper Networks, initially announced on August 7, 2024. These developments have surfaced in recent hours, coinciding with a broader market uptick, as the S&P 500 Index has also risen. Notably, HPE is currently outperforming its sector peers.

MRVL | -1.1% | -10.3B
Marvell Technology Inc | Semiconductors
Marvell Technology Inc. saw its stock price drop following Intel's announcement of a substantial co-investment deal with Amazon Web Services aimed at enhancing custom chip designs. This news coincided with a 2% decline in Marvell's stock. Additionally, Dr. Ford Tamer's resignation from the Board of Directors, effective September 15, 2024, was reported to be unrelated to any disputes regarding the company's operations or policies. In the previous quarter, Marvell reported revenue of $1.27 billion, slightly exceeding expectations, although it represented a year-over-year decline. The company has declared a quarterly dividend of $0.06, supported by a low payout ratio, and analysts project earnings of $1.75 per share for the upcoming year. Despite these factors, Marvell is underperforming compared to its sector peers.

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