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Below are AI-generated insights on today’s biggest premarket moves, powered by MarketReader technology.

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Tuesday, March 12, 2024

The overall market is currently experiencing normal macro volatility.

Some of the largest moves in the market today include: S&P 500 Index (US) has experienced a move of +0.6%. Nasdaq 100 Index (US) has experienced a move of +0.6%.

The US annual core consumer price inflation rate, excluding food and energy, was slightly above expectations at 3.8% for February 2024—up from the forecasted 3.7%. Meanwhile, overall inflation unexpectedly rose to a higher-than-anticipated level of 3.2%, with shelter and gasoline prices driving much of this increase despite predictions it would hold steady at January’s rate of 3.1%. This data has heightened market focus on potential shifts in Federal Reserve interest rates as traders await further cues from monetary policy before making significant moves across major currencies or equity indices.

Gold dipped by half a percent ahead of these developments.

AI-generated summaries of notable ETF and macro asset moves:

VANECK SEMICONDUCTOR ETF | SMH $224.90 +1.8%
The VanEck Semiconductor ETF experienced positive price movement, coinciding with NVIDIA’s partnership with Oracle for cloud services and analysts’ optimistic outlook on Taiwan Semiconductor reaching a $150 target price. The high correlation of 0.88 between the VanEck Semiconductor ETF and Direxion Daily Technology Bull 3x Shares ETF suggests broader trends impacting technology-related assets may influence semiconductor stocks in the portfolio.

ISHARES CHINA LARGE-CAP ETF | FXI $24.52 +2.1%
The iShares China Large-Cap ETF, tracked under $FXI, has shown a 20% increase from recent lows sparking discussions about potential market bottom signals. YUM China Holdings (YUMC) is the top contributor to FXI’s return with a 3.3% gain and no news associated at this time. The synchronized movement of Bilibili Inc suggests strong positive momentum in Chinese large-cap stocks as both securities are moving together.

AI-generated summaries of notable stock moves:

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(Even if you don’t have an account, you can still see real-time summaries of the top 6 most unusual asset moves at the moment)

Oracle Corp | ORCL $127.40 +11.6%
Information Technology, Systems Software
Oracle Corp reported higher than expected Q3 earnings, with EPS at $1.41 versus an expected $1.38 and revenues below expectations at $11.4B vs $13.3B; they provided positive guidance for Q4 2024 after the announcement yesterday evening in New York City.
The unexpected rise in US inflation rates may have contributed to market volatility impacting Oracle Corp alongside their solid quarterly performance.

Analysts raising price targets on ORCL stock post-earnings could be a contributing factor to its recent upward movement since it outperformed sector peers and received upgrades based on strong cloud growth prospects.

Southwest Airlines Co | LUV $30.95 -8.4%
Industrials, Passenger Airlines
Southwest Airlines is facing challenges with Boeing, impacting its capacity and financial guidance. Delays in aircraft deliveries have led to a decrease in expected revenue per available seat mile for the current quarter. The company anticipates higher non-fuel costs this quarter, expects a net loss in Q1 but aims to return profitability by March. Southwest has halted pilot and flight attendant hiring due to uncertainties surrounding Boeing’s delivery schedule. Additionally, it appears to be underperforming sector peers since the previous close. 

3M Co | MMM $98.14 +4.3%
Industrials, Industrial Conglomerates
3M Co experienced a price increase coinciding with the unexpected rise in US inflation rate YoY to 3.2% in February, surpassing expectations of 3.1%. Core inflation slightly eased to 3.8%, suggesting an uptick in overall price growth amid ongoing disinflationary trends within the US economy for that period. Additionally, it appears that 3M Co is outperforming its sector peers post previous close. 

Archer-Daniels-Midland Co | ADM $56.38 +2.7%
Consumer Staples, Agricultural Products & Services
Archer-Daniels-Midland Co reported lower than expected Q4 earnings and revenues, with EPS guidance for FY 2024 set below expectations. The US Core Inflation Rate YoY was slightly above forecasts in February, potentially impacting the Consumer Staples sector where ADM operates. Social media buzz suggests positive market sentiment post-earnings report despite underperformance relative to sector peers since previous close. 

Boeing Co | BA $188.82 -1.9%
Industrials, Aerospace & Defense
Boeing Co faces challenges as Southwest Airlines plans capacity cuts due to Boeing issues, potentially impacting delivery schedules. Ongoing legal proceedings involving whistleblower John Barnett over safety concerns and recent incidents raise scrutiny on production standards at Boeing and supplier Spirit AeroSystems. FAA audits reveal compliance failures in MAX production process, prompting immediate safety protocol enhancements by Boeing.

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