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Thursday, November 14

Some of the largest macro moves in the market today include: US Dollar Index +0.4%. Oil (WTI) +1.5%. Euro Stoxx 50 Index (EU) +1.8%. 

Recent market movements are significantly influenced by the aftermath of the U.S. elections, where President-elect Donald Trump's victory has led to a bullish sentiment in global markets. The U.S. Dollar Index reached its highest level since November 2023 as investors anticipate favorable economic policies that could spur growth and inflationary pressures, potentially complicating future Federal Reserve rate cuts.

In terms of economic data releases today, core producer prices in the United States rose by 0.3% month-over-month for October, aligning with expectations and indicating persistent inflation concerns despite recent Fed tightening measures. Additionally, initial jobless claims fell unexpectedly to their lowest levels since May at 217,000 for early November—further supporting views on labor market strength amidst ongoing discussions about monetary policy adjustments.

Meanwhile, European equities have shown positive performance following mixed signals from industrial production figures which dropped more than expected across major Eurozone economies like Germany and France while GDP growth remained stable at 0.4%. This backdrop is compounded by comments from ECB officials suggesting potential interest rate cuts if price stability does not improve soon amid fears related to Trump’s protectionist trade policies impacting exports within Europe.

SPDR Dow Jones Industrial Average ETF Trust (DIA) [+1.0%]
During the pre-market session, the SPDR Dow Jones Industrial Average ETF Trust (DIA) has risen by 1.0%. Conversations on social media highlight that the Dow, along with the S&P 500 and Nasdaq, is reaching record highs, coinciding with Bitcoin's peak. Significant contributors to the ETF's performance include Walt Disney Company, which reported strong quarterly results, and Goldman Sachs, expected to benefit from potential regulatory easing. The Producer Price Index for October showed a slight increase, suggesting stronger inflationary pressures, while Initial Jobless Claims are anticipated to impact market dynamics. Additionally, the US Dollar has reached a year-to-date peak, influenced by elevated Treasury bond yields and optimism regarding President-elect Donald Trump's economic policies. This strength in the USD is exerting pressure on equities, including the Dow Jones 30 Spot Index. The iShares iBoxx High Yield Corporate Bond ETF has also moved up, reflecting broader market sentiment.

SPDR Gold Shares (GLD) [-0.7%]
SPDR Gold Shares (GLD) has seen a price decline of 0.7% in the pre-market session, coinciding with a broader drop in gold prices, which have decreased by 1.4% to approximately $2,550 per ounce. This marks the fifth consecutive day of decline for gold, reaching a two-month low of $2,547.42 per ounce. The recent downturn is attributed to a strengthening U.S. dollar and rising Treasury yields, which are exerting heavy selling pressure on gold. Social media discussions have highlighted this significant decline, noting that gold has fallen over 1% to its lowest point in three months. Additionally, the SPDR Gold MiniShares Trust has experienced a notable decrease of 2.5%, reflecting the challenging environment for gold ETFs amid shifting investor focus towards assets like Bitcoin, which recently surged above $90,000. Silver prices have also dropped by 1.33%, potentially influencing sentiment towards gold.

DIS | +9.1% | +16.7B
Walt Disney Co | Movies & Entertainment
Walt Disney Co reported strong fourth-quarter earnings, with adjusted earnings per share at $1.14, exceeding analyst expectations of $1.10. Revenue reached $22.57 billion, surpassing the anticipated $22.47 billion, marking a year-over-year increase of 6.3%. The direct-to-consumer segment showed significant growth, with Disney+ Core subscribers rising to 122.7 million. CEO Bob Iger noted that the quarter featured one of the best performances in the history of its film studio, supported by successful releases such as "Deadpool" and "Wolverine." Additionally, Disney announced plans for $3 billion in stock repurchases for 2025 and forecasts high-single-digit adjusted EPS growth for the upcoming fiscal year. The stock rose approximately 9.1% in pre-market trading following these results.

NU | -6.6% | -4.6B
Nu Holdings Ltd | Diversified Banks
Nu Holdings Ltd experienced a downgrade to "market perform" with a price target of 15 from Itau BBA, coinciding with the release of its third-quarter financial results. The company reported revenue of 2.94 billion, exceeding the consensus estimate of 2.85 billion, but both revenue and gross profit were slightly below estimates from KEYB. Earnings per share matched expectations at 0.11. Despite a significant increase in customer acquisition, the combination of the downgrade and mixed financial performance has contributed to a decline in share value, which dropped significantly by 6.7% since Wednesday. Social media highlighted impressive Q3 earnings, including a net income increase to 553.4 million from 303 million year-over-year, alongside a 56% year-over-year growth in revenues on an FX-neutral basis. Monthly average revenue per active customer grew by 25% to 11, reflecting strong customer engagement.

TPR | +7.6%| +969.5M
Tapestry Inc | Apparel, Accessories & Luxury Goods
Tapestry, Inc. has mutually terminated its merger agreement with Capri Holdings Limited due to the improbability of obtaining necessary U.S. regulatory approvals by the February 10, 2025 deadline. Following this decision, Tapestry announced a $2 billion share repurchase authorization and plans to redeem acquisition-related debt. The company also reaffirmed its annual dividend rate at $1.40 per common share while emphasizing its commitment to organic growth and shareholder value. In the wake of the merger termination, Tapestry shares have seen a significant uptick in trading activity. Concurrently, social media discussions have highlighted the termination as a strategic move for both companies, with notable mentions of Tapestry's ticker (TPR). Additionally, Tapestry is currently outperforming its peers in the Apparel, Accessories & Luxury Goods sector.

COIN | +4.0%| +2.9B
Coinbase Global Inc | Financial Exchanges & Data
Coinbase Global, Inc.'s Chairman and CEO, Brian Armstrong, sold 325,000 shares on November 11, with transaction prices between 300.53 and 313.44. This insider activity occurred amid a broader financial pause in risk rally. Social media discussions have highlighted a tribute to Prince related to COIN, alongside bullish sentiment regarding its weekly chart, which suggests a target range between 397 and 457 based on Elliott Wave analysis. Recent posts also noted a potential test of the $272 support level and a strategy involving shorting COIN, as Bitcoin trends upward toward $100K. Additionally, conversations reflected on COIN's current volatility and the possibility of reaching all-time highs, particularly in connection with Bitcoin's performance.

SMCI | -10.2% | -108.9M
Super Micro Computer Inc | Technology Hardware, Storage & Peripherals
Super Micro Computer Inc (SMCI) has experienced a significant decline in its stock price, dropping over 10% since Wednesday. Recent social media activity highlights substantial concerns regarding the company's impending delisting from Nasdaq, as it announced it would not file its quarterly report on Form 10-Q for the period ended September 30 in a timely manner. The deadline for compliance is November 16, and if SMCI fails to submit a plan to regain compliance, it risks official delisting. The company is also facing challenges with its auditor, as it seeks a new one following the resignation of its previous auditor. This turmoil has led to discussions about potential lawsuits involving larger players in the AI sector, such as NVIDIA. Furthermore, SMCI's share price has plummeted significantly from its all-time high earlier this year, with pre-market trading showing a continued decline.

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