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Friday, July 12

Some of the largest macro moves in the market today include: Gold -0.7%. Silver -2.9%.

Recent economic data releases have significantly impacted market movements. In the United States, core producer prices rose by 0.4% in June, surpassing expectations and indicating higher inflationary pressures than anticipated. Additionally, factory gate prices increased more than expected due to a rise in service costs despite a decline in gasoline prices.

China's trade figures also influenced global markets as exports surged by 8.6% year-on-year in June while imports unexpectedly fell by 2.3%. This resulted in China posting its largest trade surplus since July 2022 at USD 99 billion for the month of June.

In Japan, industrial production growth was revised upward to show an increase of 3.6% month-over-month for May from initial estimates of a lower figure; this marks significant recovery momentum within Japanese manufacturing sectors after previous declines earlier this year.

IWM [+0.8%]
The iShares Russell 2000 ETF (IWM) experienced significant movement in its holdings, with stocks like ARRY and CVNA making positive strides due to analyst actions. Mixed U.S. stock futures on Friday may have influenced the overall market sentiment today, potentially shifting investor focus towards specific stocks within the index. Additionally, small-cap stocks outperformed large-caps significantly amidst diverging market trends driven by unexpected consumer inflation data for June 2024, possibly signaling a shift favoring smaller businesses over larger corporations in response to evolving economic conditions.

SLV [-2.9%]
The iShares Silver Trust has decreased since the previous close, showing a high correlation with Gold during this period. Silver's price may be influenced by mixed openings in China's commodity futures market, with Shanghai gold and silver up while other metals are down. Traders' sentiment towards Silver is predominantly long based on IG Client Sentiment Updates, suggesting potential interplay between precious metals due to high correlation with Gold which experienced a smaller decline recently. US Producer Prices rose more than expected in June 2024; this could impact SLV movements significantly as it typically reacts strongly to such releases.

WFC |-5.5% | -10.8B
Wells Fargo & Co reported Q2 earnings exceeding expectations with higher EPS and revenues. Despite the positive results, net interest income fell impacting profit due to tepid loan demand while focusing on risk control measures. The company maintains a cautious outlook amid challenges in managing expenses and declining net interest income going forward.

C |+3.5%|+4.5B
Citigroup Inc reported strong Q2 earnings with higher EPS and revenues, beating expectations. The company also saw an increase in banking revenue by 38%. Citigroup remains committed to medium-term targets despite market fluctuations. Additionally, the US Producer Price Index for June showed a slightly stronger increase than expected, with services prices rising notably while goods prices fell due to lower gasoline costs. Overall, Citigroup seems to be outperforming its sector peers recently.

T |-2.4%|-3.2B
AT&T Inc disclosed a significant cybersecurity incident involving unauthorized access to call and text records of millions of wireless customers, but no personal information was compromised. The company is cooperating with law enforcement while assuring that the breach did not materially impact operations or finances. Additionally, social media reports indicate an underperformance compared to sector peers recently.

BK | +2.9% | +1.4B
Bank of New York Mellon Corp reported strong Q2 results, surpassing EPS and revenue expectations. The company also raised its quarterly dividend for common stockholders. Social media buzz highlighted the positive financial indicators contributing to the recent increase in stock price, potentially influenced by correlated assets like Direxion Daily Small Cap Bull 3x Shares and Russell 2000 Index movements.

TSLA |-1.7%|-12.7B
Tesla Inc faces scrutiny over delays in Robotaxi plans and introduces a new Model 3 variant eligible for tax credits. Analysts have mixed reactions, with Citi and Wedbush increasing price targets while UBS downgrades to "Sell" citing valuation concerns. Reports of Robotaxi event delays led to stock declines but rebounded slightly after Mizuho raised its price target. Tesla also expanded its Model 3 lineup amidst ongoing changes this year, contributing significantly to overall deliveries. UBS's downgrade due to rapid valuation growth driven by AI optimism poses risks if growth opportunities fall short.

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