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Wednesday, October 16

Some of the largest macro moves in the market today include: Gold +0.6%. 

The UK inflation rate has fallen to 1.7% in September, the lowest since April 2021, which was below market expectations of 1.9%. This decline is primarily attributed to lower transport costs and has led markets to anticipate accelerated interest rate cuts by the Bank of England.

In Canada, manufacturing sales decreased by a smaller margin than initially estimated for August at -1.3%, compared with an expected drop of -1.5%. The decrease was driven mainly by declines in primary metal and petroleum products but offset partially by increases in aerospace product production and wood product sales.

US import prices fell sharply by 0.4% month-over-month in September due largely to significant drops in fuel imports; this marks the steepest monthly decline so far this year while non-fuel import prices saw slight gains over consecutive months indicating mixed trends within different sectors.

SPDR Gold Shares (GLD) [+0.7%]
SPDR Gold Shares (GLD) has seen an increase of 0.7% in pre-market trading, following a 0.7% rise in gold prices since Tuesday. This uptick coincides with declining US Treasury yields, heightened geopolitical tensions in the Middle East, and increased demand from central banks. Central bankers from Mexico, Mongolia, and the Czech Republic have recently expressed support for larger gold reserves, reflecting a broader trend among central banks to boost their gold holdings amid economic uncertainties. Social media discussions have highlighted that, despite a strong dollar, gold is approaching record highs and has surged over 25% in 2024, outperforming U.S. equities and bonds. Additionally, silver prices have risen by 1.23%, indicating a correlation with gold's performance. Inflation expectations are also on the rise, further influencing market dynamics.

iShares Russell 2000 ETF (IWM) [+0.8%]
The iShares Russell 2000 ETF (IWM) has seen a pre-market increase of 0.8%. On October 15, social media highlighted a slight gain of 0.05% for IWM, contrasting with declines in major indices such as the S&P 500 and NASDAQ. A subsequent post on October 16 noted that all calls related to IWM were exited with an average gain of 70%. Aspen Aerogels Inc. contributed positively to the ETF's performance, having secured a significant loan for a new factory aimed at producing fire-suppressing materials for electric vehicle batteries. This facility is expected to enhance battery safety and support substantial production growth. In addition, recent U.S. economic indicators have influenced market expectations regarding Federal Reserve policy, while weaker inflation figures from Canada may indirectly affect sentiment towards U.S.-based small-cap stocks.

MS | +3.4% | +6.5B
Morgan Stanley | Investment Banking & Brokerage
Morgan Stanley reported robust third-quarter earnings, with an adjusted earnings per share (EPS) of 1.88, surpassing analyst expectations of 1.58. The firm achieved net revenues of 15.38 billion, exceeding the consensus estimate of 14.41 billion. Wealth Management net revenue reached 7.27 billion, reflecting a year-over-year increase of 14%. Institutional Securities generated net revenues of 6.8 billion, buoyed by strong performance in both Equity and Fixed Income segments. Additionally, total client assets surpassed 7.5 trillion, supported by favorable market conditions and net asset inflows. Net interest income also exceeded estimates at 2.20 billion, compared to the expected 1.87 billion. Social media highlighted that two significant earnings reports, including Morgan Stanley's, are scheduled for release tomorrow, further amplifying attention on the firm.

INTC | -1.6% | -1.5B
Intel Corp | Semiconductors
Intel Corp's shares have experienced a notable decline in premarket trading, dropping significantly amid recommendations from the China Cybersecurity Association. The association has suggested a review of Intel products sold in China, citing concerns over national security and the rights of consumers. This recommendation is particularly impactful given the association's connections to the Chinese state. Concurrently, social media discussions have highlighted ongoing vulnerabilities and reliability issues with Intel’s CPUs, further amplifying concerns about the company's products. Additionally, Qualcomm is reportedly delaying its decision regarding a potential acquisition of Intel until after the upcoming US presidential election, influenced by antitrust considerations and US-China relations.

NVCR | +19.5%| +444.8M
Novocure Ltd | Health Care Equipment
Novocure Ltd's stock has surged following the FDA's approval of its Optune Lua device for treating metastatic non-small cell lung cancer (NSCLC). This device can now be used alongside PD-1/PD-L1 inhibitors or docetaxel for adult patients who have progressed after platinum-based chemotherapy. The Phase 3 LUNAR study demonstrated a statistically significant 3.3-month increase in median overall survival for patients using Optune Lua compared to standard treatment. CEO Asaf Danziger underscored the urgent need for new treatment options in this aggressive cancer type. Social media discussions reflect a positive reception to the FDA decision, with users expressing optimism about Novocure's market potential and noting that the stock previously traded above $200, suggesting it may currently be undervalued. The approval has notably energized premarket trading, contributing to the stock's significant price movement.

JBHT |+7.0%|+1.3B
J B Hunt Transport Services Inc | Cargo Ground Transportation
J.B. Hunt Transport Services, Inc. reported third-quarter earnings that surpassed analyst expectations, with earnings per share of 1.49, exceeding the consensus estimate of 1.41. Revenue for the quarter reached 3.07 billion, above the anticipated 3.02 billion, although this marked a 3% decline from the previous year. The intermodal segment generated revenue of 1.56 billion, remaining flat year-over-year, while dedicated contract services revenue fell to 846 million, down 5%. Notably, intermodal volumes increased by 5%. Following the announcement, shares rose significantly in after-hours trading, reflecting positive market reception to the earnings beat. Social media discussions highlighted the company's operating income of 224.1 million, a 7% decline year-over-year, alongside a notable surge in call volume related to J.B. Hunt, reaching 8,000 calls, which is significantly above the 30-day average.

OMC | -3.5% | -691.5M
Omnicom Group Inc | Advertising
Omnicom Group Inc reported third-quarter earnings that exceeded consensus estimates, with revenue of $3.88 billion and adjusted earnings per share (EPS) of $2.03. This performance reflects a 6.5% organic revenue growth and a 7.9% increase in EBITA. Despite these positive figures, the stock declined by approximately 2.5% in pre-market trading, attributed to an 8.8% rise in operating expenses, which reached $265.2 million. The net income was reported at $385.9 million, with diluted EPS at $1.95 and a non-GAAP adjusted EPS of $2.03. Operating income was $600.1 million, resulting in an EBITA margin of 16%. Following the earnings announcement, shares initially indicated a slight increase but subsequently dropped significantly within the hour.

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