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Thursday, July 11

Some of the largest macro moves in the market today include: US 2Y Treasury Bond +0.2%. US 10Y Treasury Bond +0.6%. Gold +1.1%. 

The annual inflation rate in the US fell to 3% in June, marking its lowest level since June 2023. This decline was accompanied by a decrease of 0.1% from the previous month, contrary to expectations for an increase; core consumer price inflation also eased further below forecasts.

In Europe, Germany's final CPI data confirmed that annual inflation slowed down to 2.2%, consistent with preliminary estimates and reflecting lower energy costs despite rising food prices. Meanwhile, UK economic indicators showed growth as GDP expanded by 0.4% month-over-month in May after stalling previously.

Global markets are reacting positively: major indices such as Japan’s Nikkei and Hong Kong’s Hang Seng saw significant gains driven partly by tech stocks' performance amid optimism about potential interest rate cuts following dovish signals from central banks like the Federal Reserve.

Gold (XAU/USD) [+1.5%]
Gold prices are rising as markets anticipate interest rate cuts following Federal Reserve Chairman Jerome Powell's testimony, hinting at a potential policy shift to combat inflation. Central banks continue to hoard Gold despite fluctuations in demand from major consumers like China. Analysts forecast higher price targets for Gold based on expectations of increased central bank buying and positive market sentiment towards the asset influenced by trade wars and fiscal policies concerns.

Bitcoin (BTC/USD) [+2.3%]
Bitcoin's recent price movement coincided with the release of US CPI data, affecting market sentiment and monetary policies. The cryptocurrency saw a temporary surge but retreated from June highs due to downward pressure. Traders are eyeing key levels like $65,300 for potential bullish signals in both Bitcoin and stock markets as analysts anticipate significant moves ahead based on inflation indicators.

DAL |-8.2% | -2.3B
Delta Air Lines Inc reported Q2 earnings slightly below expectations but with higher revenues. Despite challenges in stock price and reduced guidance for Q3, the company reaffirmed its full-year EPS outlook of $6-$7 and plans to increase dividends by 50%. Social media buzz highlighted concerns over increased expenses impacting profitability ratios, including fuel cost increases affecting margins year over year.

PFE |+2.7%|+4.4B
Pfizer Inc is advancing the development of a once-daily formulation for its oral GLP-1 receptor agonist, Danuglipron. The company plans to conduct dose optimization studies in the second half of 2024 based on favorable pharmacokinetic profiles observed. This focus on innovative drug development could positively impact Pfizer's future growth prospects amidst outperforming sector peers recently.

COST |+1.9%|+7.6B
Costco raised annual membership fees, leading to increased stock price and higher analyst price targets. Positive June sales growth of 5.3% was reported along with a rise in net sales year over year, boosting investor sentiment towards Costco's future performance amidst industry competition. Membership fee hikes aim to support competitive pricing amid inflation pressures from rivals like Sam's Club and BJ's Wholesale Club.

PEP | -2.6% | -5.6B
PepsiCo Inc reported mixed Q2 earnings with higher EPS but lower revenues, citing challenges like subdued category performance in North America convenient foods. The company expects 4% organic revenue growth for FY24 and aims to improve margins despite weakened demand due to product recalls and changing consumer preferences towards private labels.

QS |+32.9%|+1.2B
QuantumScape surged after partnering with Volkswagen to advance solid-state lithium-metal battery technology for electric vehicles, addressing global demand. Institutional holdings shifted, insiders sold shares recently, and analyst ratings varied post quarterly earnings miss on April 24th. The company's stock outperformed sector peers since the previous close.

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