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Thursday, August 14

Noteworthy macro moves today: Bitcoin -3.2%. Ethereum -3.3%. 

Recent economic data from the United States has shown stronger-than-expected inflation, with core producer prices rising by 0.9% in July compared to a flat reading in June and significantly above market expectations of 0.2%. This increase is contributing to heightened speculation regarding potential interest rate cuts by the Federal Reserve, as markets are now fully pricing in a likelihood for such actions at their upcoming meetings.

In Europe, UK GDP growth exceeded forecasts with an expansion of 0.4% month-over-month for June after previously contracting; this positive news contrasts sharply against declining industrial production figures across the Eurozone, which fell more than anticipated during that same period. The mixed signals from these regions have led investors to reassess monetary policy outlooks amid ongoing geopolitical tensions surrounding U.S.-Russia relations ahead of critical talks scheduled soon.

Market sentiment remains cautious but optimistic overall due to recent gains on major equity indices like the S&P 500 reaching record highs amidst easing trade concerns and favorable earnings reports among key sectors including technology and consumer discretionary stocks. However, analysts warn about underlying risks related particularly to labor market trends showing signs of softening despite current robust performance metrics.

Industrial Select Sector SPDR Fund (XLI) [-0.9%]
The Industrial Select Sector SPDR Fund (XLI) has experienced a decline of 0.9% in pre-market trading. Notably, top holdings such as Deere & Co. reported earnings that surpassed estimates but still led to a significant drop in share price. Illinois Tool Works Inc. faced a downgrade from Barclays, further contributing to the downward pressure on the fund. Additionally, the Russell 2000 Index saw a slight decrease, which may also affect sentiment within the industrial sector.

Ethereum (ETH/USD) [-3.2%]
Ethereum's daily return has dropped significantly, influenced by a notable increase in US producer prices, which rose month-on-month, surpassing expectations and suggesting inflationary pressures. Initial jobless claims unexpectedly fell, reflecting a mixed labor market and contributing to uncertainty regarding future interest rate cuts. Concurrently, social media highlights indicate BlackRock's substantial purchase of Ethereum, amounting to over $500 million, and a significant inflow of ETH accounting for 25% of total inflows since its launch over the past five days. Additionally, analysts have raised their year-end price target for ETH to $7,500, with expectations of reaching $6,000 soon. Conversations on social media also point to a potential liquidation alert for ETH, which could further influence price movements if it nears its all-time high. Bitcoin has mirrored this downward trend, also experiencing a notable decline, suggesting interconnected movements between the two assets.

COHR | -18.4% | -2.6B
Coherent Corp | Electronic Components
Coherent Corp. has announced the sale of its Aerospace and Defense business to Advent for $400 million, with the deal expected to close in the third quarter of 2025. This strategic move aims to reduce debt and optimize its portfolio. In its fourth-quarter results, the company reported a net loss of $96 million, an increase from a $48 million loss the previous year, while revenues rose to $1.529 billion from $1.314 billion year-over-year. Coherent also provided guidance for Q1, projecting revenue between $1.46 billion and $1.6 billion and non-GAAP EPS between $0.93 and $1.13. Following these announcements, Coherent's shares dropped significantly, reflecting market reactions to the earnings report and strategic decisions.

TPR | -12.3% | -2.8B
Tapestry Inc | Apparel, Accessories & Luxury Goods
Tapestry, Inc. reported a net loss of $517 million for the fourth quarter, with revenue of $1.7 billion, slightly above analyst estimates. Adjusted earnings per share (EPS) was $1.04, surpassing the consensus of $1.02. However, the company's fiscal year 2026 outlook projects adjusted EPS between $5.30 and $5.45, below the analyst consensus of $5.48. Following the earnings release and guidance announcement, Tapestry's shares fell approximately 16% to $94.80. The company anticipates an increase in operating margin despite challenges from tariffs and duties that may affect profitability. Additionally, Tapestry expects FY26 revenue to approach $7.2 billion, compared to a consensus of $7.1 billion.

NTES | -6.0% | -24.4B
NetEase Inc | Interactive Home Entertainment
NetEase Inc reported its second-quarter financial results, revealing a revenue of RMB 27.892 billion, a year-over-year increase from RMB 25.486 billion. The net income rose to RMB 9.088 billion, up from RMB 6.829 billion. Despite this growth, the company fell short of analyst expectations with an adjusted earnings per share (EPS) of RMB 14.81, missing the estimate of RMB 14.92 by RMB 0.11. Revenue also missed the consensus estimate of RMB 28.54 billion. The breakdown of segment revenues included RMB 22.8 billion from Games & Related Services, reflecting a significant year-over-year increase, while Youdao and NetEase Cloud Music reported smaller gains and a decline, respectively. The earnings report has garnered attention on social media, coinciding with a notable price movement of -5.9% since Wednesday.

DE | -6.1% | -8.1B
Deere & Co | Agricultural & Farm Machinery
Deere & Co. reported its third-quarter earnings today, posting an earnings per share (EPS) of 4.75, surpassing the consensus estimate of 4.67 but down significantly from 6.29 in the same quarter last year. Revenue for the quarter reached 12.018 billion, exceeding expectations of 10.311 billion, yet reflecting an 8.62% decline from 13.152 billion a year prior. The company has narrowed its fiscal year 2025 net income outlook to a range of 4.75 billion to 5.25 billion, down from a previous forecast of up to 5.50 billion. Notably, production in precision agriculture declined by 16%, small agriculture and turf sales fell by 1%, and construction and forestry sales decreased by 5%. Following these results, shares fell approximately 6% in premarket trading.

INSM | +3.4% | +701.4M
Insmed Inc | Biotechnology
H.C. Wainwright has raised its price target for Insmed Inc (NASDAQ: INSM) to 240 from 120 while maintaining a Buy rating. Truist Securities has similarly increased its price target to 139 from 126, also retaining a Buy rating. This reflects a notable upward revision in analysts' expectations for the stock. Insights from 20 financial analysts now show an average 12-month price target of 130.4, marking an increase from the previous average of 109.75. Concurrently, social media discussions have highlighted significant price movements attributed to regulatory developments, particularly following the FDA's approval of a new treatment for a chronic lung disease, shared by Insmed's CEO, Will Lewis. Users noted that INSM was trading near record highs, indicating a positive outlook for the company's future amid growing interest in its advancements.

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