Market Reacts to Walmart's Conservative Sales Forecast

Market Reacts to Walmart's Conservative Sales Forecast

Thursday, February 20, 2025 / No Comments

 

On Thursday, February 20, 2025, U.S. stock markets experienced notable declines following Walmart's release of a cautious sales forecast for the upcoming fiscal year. The Dow Jones Industrial Average fell by 450 points, or 1%, closing at 33,700. The S&P 500 and Nasdaq Composite also saw decreases of 0.4% and 0.5%, respectively.

Walmart reported fourth-quarter earnings of 66 cents per share, surpassing Wall Street expectations. However, the retail giant projected net sales growth of 3% to 4% for the upcoming year, below analysts' forecasts of approximately 5%. This conservative outlook led to an 8.2% drop in Walmart's stock during premarket trading and a decline of over 6% in morning trading.

The company's cautious guidance has raised concerns about consumer spending and the broader economic landscape. Bank stocks were also affected, with JPMorgan Chase and Goldman Sachs each closing down about 4%.

Despite a strong performance during the holiday quarter, with total revenue increasing by 5.3% to $180.5 billion, Walmart's measured outlook reflects uncertainties in consumer behavior and global economic conditions. CFO John David Rainey emphasized the company's resilience but acknowledged potential challenges ahead.

As the largest private employer in the U.S., Walmart's projections are closely watched as indicators of economic health. The recent stock market reaction underscores investor sensitivity to signals from major corporations regarding future growth prospects.

Top Stock Movers: Cleveland-Cliffs, Rockwell Automation, Onsemi, and More

Top Stock Movers: Cleveland-Cliffs, Rockwell Automation, Onsemi, and More

Monday, February 10, 2025 / No Comments

 

U.S. equities showed positive movement at midday, driven by notable gains in tech stocks as well as steel and aluminum manufacturers. The Nasdaq saw an uptick of 1%, with the Dow Jones Industrial Average and S&P 500 also seeing upward momentum. Among the standout performers in the market were Nucor, Cleveland-Cliffs, and Alcoa, all of which surged following President Trump's announcement that he would impose 25% tariffs on steel and aluminum imports, a move that lifted sentiment around U.S.-based manufacturers in these sectors. The new tariff measures are expected to benefit domestic steel and aluminum producers, sparking buying interest in these stocks.

Rockwell Automation emerged as the top-performing stock within the S&P 500, with the industrial automation firm reporting better-than-expected earnings. The company also indicated that it had experienced an uptick in orders, a sign of strong demand in the industrial sector. The positive performance of Rockwell Automation reflects optimism surrounding industrial technology solutions, which have gained significant traction in recent years. The company's strong results were welcomed by investors, bolstering its position as a key player in automation and industrial technology.

On the other hand, Monday.com, a provider of business management software, saw its shares skyrocket after reporting earnings that exceeded expectations. The company also offered robust guidance, which was driven by strong demand, especially from clients seeking solutions powered by artificial intelligence (AI). This positive outlook indicates that Monday.com is well-positioned to capitalize on the increasing integration of AI into business management platforms.

However, not all stocks had a successful day. ON Semiconductor, known for its production of power chips, faced significant losses after missing earnings, revenue, and guidance forecasts. The company continues to struggle with difficult market conditions, which led to a selloff in its stock. Similarly, Semtech, a semiconductor company, saw its stock plunge after issuing a warning about underperforming sales of its products, which are used in active copper cables. The cautionary outlook sent shockwaves through the market, further dampening sentiment around semiconductor stocks.

Meanwhile, on the commodities front, oil and gold futures rose, reflecting a general risk-on sentiment in the markets. The U.S. dollar also gained ground against several major currencies, including the euro, pound, and yen, bolstered by investor confidence in the dollar’s relative strength. In the cryptocurrency space, most major digital currencies posted gains, offering a brighter outlook for digital assets. The yield on the 10-year Treasury note slipped, contributing to a favorable environment for riskier assets.

Overall, the midday trading session was marked by volatility as investors responded to both positive earnings surprises and concerns about economic challenges in certain sectors. The focus remains on how geopolitical developments, such as tariffs, as well as earnings reports, will continue to shape market trends in the coming weeks.

Novo Nordisk Stock Rises as Q4 Wegovy Sales More Than Double Despite Slower 2025 Growth Outlook

Novo Nordisk Stock Rises as Q4 Wegovy Sales More Than Double Despite Slower 2025 Growth Outlook

Wednesday, February 5, 2025 / No Comments

 

Novo Nordisk’s (NVO) U.S.-listed shares surged 4% in premarket trading after the Danish pharmaceutical giant reported better-than-expected fourth-quarter results. The maker of popular weight-loss drugs Ozempic and Wegovy posted a 30% year-over-year sales increase, reaching 85.68 billion Danish kroner ($11.97 billion), surpassing analyst estimates of DKK80.62 billion. Profit also exceeded expectations, coming in at DKK28.23 billion.

Wegovy Drives Strong Growth

Sales of Wegovy skyrocketed 107% at constant exchange rates, hitting DKK19.87 billion, slightly below projections. Ozempic, another key product, grew by 12% to DKK33.85 billion, outperforming forecasts. Despite these impressive figures, Novo Nordisk projects a slower sales growth for 2025, estimating a rise of 16% to 24% at constant exchange rates, down from 26% in 2024.

Challenges Ahead with Growing Competition

The company attributed its conservative outlook to "intensifying competition and continued pricing pressure" in the diabetes and obesity care markets. Novo Nordisk faces stiff rivalry from Eli Lilly, the maker of Mounjaro and Zepbound, which has been expanding its footprint in the weight-loss drug sector.

Looking to the Future with CagriSema

CEO Lars Fruergaard Jorgensen emphasized the company's focus on commercial execution, research and development, and production expansion in 2025. Novo Nordisk also announced plans to file for the first regulatory approval of its new weight-loss drug, CagriSema, in the first quarter of 2026. This move comes after disappointing trial results impacted the company’s stock in December.

Despite recent volatility, Novo Nordisk’s strong Q4 performance highlights its resilience in a competitive landscape, with growth opportunities on the horizon driven by its expanding drug portfolio.

Top Stock Movers: Apple, AbbVie, Tesla, Deckers Outdoor, and More

Top Stock Movers: Apple, AbbVie, Tesla, Deckers Outdoor, and More

Friday, January 31, 2025 / No Comments

 

U.S. stocks were mostly up at midday on January 31, 2025, with tech earnings and a report on December inflation fueling market optimism. The Nasdaq gained 1%, and the S&P 500 also saw an uptick, while the Dow Jones Industrial Average remained flat.

Apple (AAPL) saw its shares rise after reporting stronger-than-expected results, driven by a surge in services revenue. AbbVie (ABBV) also saw an increase in stock price following a beat on sales estimates and a positive outlook for its Skyrizi and Rinvoq treatments.

Tesla (TSLA) saw gains as news spread that the company could greatly benefit from new emissions regulations set to take effect in Europe. On the other hand, Deckers Outdoor (DECK) posted the steepest losses in the S&P 500, with concerns about its future outlook for the Ugg and Hoka brands weighing on its stock.

Colgate-Palmolive (CL) faced a setback with shares falling after it reported disappointing sales and provided a weak forecast, impacted by unfavorable foreign exchange rates. Walgreens Boots Alliance (WBA) also faced a sharp decline in stock price after it announced the suspension of its dividend, focusing on securing cash for a broader long-term turnaround strategy.

Meanwhile, oil and gold futures edged up slightly, and the yield on the 10-year Treasury note remained largely unchanged. The U.S. dollar strengthened against the yen but slipped against the euro and pound. Most major cryptocurrencies posted gains.

S&P 500 Slides as Fed Holds Rates Steady; Moderna and Starbucks Steal the Spotlight

S&P 500 Slides as Fed Holds Rates Steady; Moderna and Starbucks Steal the Spotlight

Wednesday, January 29, 2025 / No Comments

 

On Wednesday, January 29, the S&P 500 edged 0.5% lower as investors digested the Federal Reserve’s decision to maintain interest rates. While the move was widely anticipated, the market showed mixed reactions amid corporate earnings reports and concerns about future economic policies.

Moderna and Packaging Corporation of America Drag Down Index

Shares of Moderna took a heavy hit, plunging 9.4%, following a downgrade by Goldman Sachs. The investment firm reduced its rating from "buy" to "neutral" and cut the price target, citing uncertainty around revenue prospects for Moderna’s respiratory vaccine business. Analysts also raised concerns about high operating expenses.

Packaging Corporation of America also weighed on the S&P 500, falling 9.8% after issuing lower-than-expected profit guidance. Despite exceeding revenue estimates, the company struggled with rising costs and seasonal challenges, leading to weaker earnings.

Bright Spots: Starbucks and T-Mobile Rally

On the positive side, Starbucks saw its stock climb 8.1% after surpassing quarterly sales and profit expectations. CEO Brian Niccol highlighted progress in the company’s turnaround strategy, which includes streamlining menu items to enhance efficiency.

T-Mobile shares also surged 6.3% following better-than-expected earnings and subscriber growth. The telecom giant reported record-low churn rates and strong financial performance, echoing recent successes from competitors Verizon and AT&T.

Market Overview

The Nasdaq mirrored the S&P 500 with a 0.5% drop, driven by underperformance in the tech sector. Meanwhile, the Dow Jones Industrial Average slipped 0.3%. Investors remain cautious as they await earnings reports from major tech firms and further clarity on the Federal Reserve’s economic outlook.

Fed Chair Jerome Powell emphasized a “wait-and-see” approach, noting that officials are evaluating the impact of new government policies on the economy. This measured stance leaves markets bracing for potential shifts in monetary policy later this year.

Despite some standout performers like F5, which surged 11.4% on robust earnings, the broader market struggled to gain momentum. Investors continue to balance corporate earnings results with ongoing concerns about inflation and economic growth.

Markets News:Tech Stocks Surge, Nvidia Jumps 9% Amid Earnings Focus and Fed Meeting

Markets News:Tech Stocks Surge, Nvidia Jumps 9% Amid Earnings Focus and Fed Meeting

Tuesday, January 28, 2025 / No Comments

 

Stocks ended Tuesday on a strong note, driven by a recovery in the technology sector. The Nasdaq Composite climbed 2%, while the S&P 500 gained 0.9%, and the Dow Jones Industrial Average rose 0.3%. This rebound followed Monday's sharp tech-sector selloff sparked by fears over Chinese startup DeepSeek's cost-efficient AI models.

Nvidia (NVDA), which lost nearly $600 billion in value during Monday's rout, bounced back with an 8.9% gain. Rival Broadcom (AVGO) also rose 2.6%. Oracle (ORCL) rebounded 3.6% after Monday's 14% plunge, buoyed by optimism surrounding its $500 billion AI partnership with OpenAI and SoftBank.

Big tech stocks joined the rally, with Apple (AAPL) and Microsoft (MSFT) advancing 3.7% and 2.9%, respectively. Alphabet (GOOGL), Amazon (AMZN), Meta Platforms (META), and Tesla (TSLA) also posted gains.

Investors are now eyeing key earnings reports from Microsoft, Meta, and Tesla, due Wednesday, followed by Apple on Thursday. Meanwhile, Boeing (BA) rose 1.5% after confirming its fourth-quarter loss in line with preliminary results, while General Motors (GM) and Lockheed Martin (LMT) dropped roughly 9% after reporting quarterly results that disappointed investors.

As earnings season continues, attention also shifts to the Federal Reserve, which began a two-day policy meeting on Tuesday. While no change in interest rates is expected, market participants eagerly await insights on the Fed's economic outlook and future rate decisions.

In other markets, Bitcoin traded at $101,000, slightly down from its morning peak of $103,700. Gold futures climbed 1.2% to $2,770 per ounce, while WTI crude oil futures rose about 1%.

Among S&P 500 stocks, Royal Caribbean (RCL) led the pack with a 12% surge, buoyed by better-than-expected profits and a positive outlook for 2025. Meanwhile, CrowdStrike (CRWD) soared 9.3% after news of a cyberattack on DeepSeek highlighted rising cybersecurity demands.

Top stock Movers now : American Express, CF Industries and more

Top stock Movers now : American Express, CF Industries and more

Saturday, January 25, 2025 / No Comments

 

U.S. stock markets remained relatively flat by midday Friday following a week of strong gains, with the S&P 500 reaching an all-time high fueled by optimism around earnings and easing interest rate concerns.

American Express shares dipped after the company released its 2025 revenue forecast, which largely fell short of Wall Street expectations.

Telecom equipment maker Ericsson saw its American depositary receipts (ADRs) plummet after posting earnings that missed estimates. The company also cautioned about the potential impact of looming U.S. tariffs.

CF Industries shares slid after JPMorgan downgraded the fertilizer producer, citing higher natural gas prices expected to drive up production costs.

On the flip side, NextEra Energy surged, leading the S&P 500, as reports indicated the utility giant might move to restart a nuclear facility in Iowa.

Allurion Technologies, a maker of gastric balloon weight-loss devices, saw its stock skyrocket over 200% after announcing a study integrating its product with popular weight-loss drugs.

Verizon Communications gained ground, with the telecom giant exceeding expectations for profit and revenue thanks to price increases.

Meanwhile, commodity markets reflected mixed sentiment. Oil prices continued to slide, while gold edged higher. The 10-year Treasury yield declined, and the U.S. dollar softened against major currencies, including the euro, pound, and yen. Cryptocurrencies also trended upward, with most of the top coins posting gains.

Stock Movers now: Netflix, Oracle, Travelers, Moderna, Johnson & Johnson, and More

Stock Movers now: Netflix, Oracle, Travelers, Moderna, Johnson & Johnson, and More

Wednesday, January 22, 2025 / No Comments

 

U.S. equities saw midday gains on Wednesday, driven by an artificial intelligence (AI) initiative announced by the White House, alongside strong earnings reports from major companies.

Notable Stock Performers:

• Netflix (NFLX): Shares soared after the streaming giant reported a significant increase in subscribers and announced price hikes.
• Oracle (ORCL): Stock prices jumped when President Trump announced a $500 billion AI joint venture involving Oracle, OpenAI, and Japan’s SoftBank.
• Travelers Cos. (TRV): Travelers’ stock rose following better-than-expected earnings, thanks to higher premium revenue.
• Moderna (MRNA): Moderna shares surged after positive clinical trial results for its vaccine.
• Walgreens Boots Alliance (WBA): Walgreens’ stock moved higher after announcing strong quarterly results driven by a rebound in pharmacy sales.

Market Overview: Oil futures and the 10-year Treasury yield remained little changed. Gold prices rose, while the U.S. dollar gained against the yen, weakened slightly against the euro, and remained steady against the pound. Most major cryptocurrencies traded lower.

Stocks Making Moves Today: Morgan Stanley, KLA, UnitedHealth Group, Target, and More

Stocks Making Moves Today: Morgan Stanley, KLA, UnitedHealth Group, Target, and More

Thursday, January 16, 2025 / No Comments

 

U.S. stocks remained largely unchanged midday on Thursday, January 16, following strong gains the previous day, driven by positive earnings from major banks and a softer-than-expected inflation report.

Morgan Stanley (MS) saw an uptick in its shares after the financial firm surpassed earnings and revenue forecasts, particularly driven by robust performance in its equities trading unit and increased activity in initial public offerings (IPOs).

KLA (KLAC) and other semiconductor stocks also experienced gains after TSMC (Taiwan Semiconductor Manufacturing Company) reported strong results, benefiting from high demand for AI chips.

Symbotic (SYM) surged as the AI robotics company expanded its partnership with retail giant Walmart (WMT), fueling investor interest.

On the other hand, UnitedHealth Group (UNH) saw its stock fall after the health insurer reported weak revenue from premiums and higher-than-expected medical payouts.

Target (TGT) shares dipped after the retailer chose not to raise its profit outlook, even though holiday sales exceeded initial projections.

Southwest Airlines (LUV) also turned lower following a downgrade from Citi, which flagged concerns over valuation and earnings stability.

In commodities, oil futures dropped, while gold prices climbed. The 10-year Treasury yield continued to trend downward, and the U.S. dollar strengthened against the pound and euro but weakened against the yen. Most cryptocurrencies traded higher during midday trading.

Walgreens Surges After Strong Q1 Results, Store Closure Plans Announced

Walgreens Surges After Strong Q1 Results, Store Closure Plans Announced

Friday, January 10, 2025 / No Comments

Walgreens recently experienced a significant jump in its stock price after announcing first-quarter results that exceeded analysts’ expectations. The pharmacy retailer reported $39.46 billion in revenue, up from $36.71 billion during the same period last year, while posting a net loss of $265 million, which was lower than the small profit analysts had anticipated. However, after accounting for various one-time charges, such as store closures, Walgreens recorded an adjusted net income of $440 million, or 51 cents per share—well above the $329.34 million and 38 cents per share that analysts had forecasted.

In its quarterly report, Walgreens revealed plans to close approximately 1,200 underperforming stores over the next three years, including 500 closures in the current fiscal year. The decision comes as part of a broader turnaround strategy aimed at refocusing on profitable, retail pharmacy operations. Despite experiencing one of the worst performances among S&P 500 stocks in 2024—losing over 60% of its value—Walgreens’ recent progress has provided renewed optimism. CEO Tim Wentworth emphasized that while the turnaround will take time, early results reinforce confidence in a more sustainable operating model.

Overall, Walgreens’ first-quarter performance has demonstrated resilience amid ongoing challenges, offering a glimpse into potential recovery as the company takes steps to streamline operations and focus on long-term growth.

Tesla, Moderna, Ulta Beauty, and More: Key Stock Movers Now

Tesla, Moderna, Ulta Beauty, and More: Key Stock Movers Now

Tuesday, January 7, 2025 / No Comments

 

On January 7, 2025, U.S. equities experienced mixed movements amid inflation concerns stemming from a new services sector report. The Nasdaq declined by 1.2%, the S&P 500 also saw a decrease, while the Dow Jones Industrial Average registered a slight increase.

Tesla Inc. (TSLA): Shares fell following the initiation of a federal investigation into potential issues with its "Actually Smart Summon" feature. Additionally, Bank of America downgraded the stock, contributing to the decline.

Moderna Inc. (MRNA): The stock rose significantly on expectations for its bird flu vaccine amid new U.S. cases. The first U.S. bird flu death was reported, increasing interest in Moderna's H5N1 vaccine development.

Ulta Beauty Inc. (ULTA): Shares increased due to strong holiday sales and the announcement of a leadership change, with Kecia Steelman appointed as the new CEO. The company also provided an improved fourth-quarter sales forecast, attributing it to stronger holiday trends.

Getty Images Holdings Inc. (GETY) and Shutterstock Inc. (SSTK): Both companies announced a merger, leading to substantial gains in their stock prices.

Palantir Technologies Inc. (PLTR): The stock continued to decline following a warning from Morgan Stanley about its high valuation.

Meta Platforms Inc. (META): Shares faced a downturn after the company discontinued its third-party fact-checking system.

Additionally, oil and gold futures rose, the 10-year Treasury yield gained, the U.S. dollar appreciated against other major currencies, and most major cryptocurrencies experienced a dip.

Rivian Stock Surges as Production Issues Resolved and 2024 Vehicle Output Exceeds Expectations

Rivian Stock Surges as Production Issues Resolved and 2024 Vehicle Output Exceeds Expectations

Friday, January 3, 2025 / No Comments

 

Rivian's Stock Surge After Production Issues Resolved

On January 3, 2025, Rivian Automotive, the well-known electric vehicle (EV) maker, experienced a significant increase in its stock value. This surge was triggered by the company’s announcement regarding its production numbers for 2024, which not only exceeded initial estimates but also highlighted the resolution of a key production issue that had been affecting the company for several months.

Company Announces Higher-Than-Expected Production Numbers

Shares of Rivian soared by an impressive 23% on the morning of January 3, bringing the stock to its highest levels in five months. The surge followed Rivian’s announcement that it had produced a total of 49,476 electric vehicles in 2024, slightly exceeding the high end of its revised forecast. This is a noteworthy achievement for the company, especially considering the production challenges it faced earlier in the year.

In October 2024, Rivian had reduced its production forecast significantly, cutting its original estimate of 57,000 vehicles down to a range of 47,000 to 49,000 units. The revision came after the company faced disruptions caused by a shortage of a critical component that was shared across its electric vehicle models, including the R1T electric pickup truck, the R1S electric SUV, and the RCV electric commercial van. These disruptions had led to delays in production and concerns over the company’s ability to meet its goals.

However, Rivian’s latest statement confirmed that this shortage was no longer a limiting factor for the company’s production. The issue with the shared component had been resolved, allowing Rivian to accelerate its manufacturing process and exceed the previously lowered production estimates.

Detailed Production and Delivery Figures

Rivian’s annual report for 2024 revealed that of the 49,476 vehicles produced, 12,727 were built in the fourth quarter alone. This production pace in the final quarter was a key factor in the company’s ability to exceed its adjusted production target. Moreover, Rivian reported that it had delivered 14,183 vehicles during the fourth quarter, bringing the total number of vehicles delivered in 2024 to 51,579.

The company had initially projected deliveries of between 50,500 and 52,000 vehicles for 2024, so it came very close to meeting this target despite the earlier production setbacks. The fact that Rivian was able to meet its delivery goal despite the challenges demonstrates the company’s ability to recover from setbacks and continue growing its output.

Stock Performance and Investor Sentiment

Despite the positive news, Rivian’s stock performance over the past year has been less than stellar. While the shares saw a boost on January 3, the overall trend in 2024 showed a decline of approximately 20%. This drop reflects the broader challenges faced by Rivian in meeting its production targets and dealing with supply chain disruptions. Nevertheless, the latest developments indicate that Rivian is on a path to recovery, with production issues now resolved and the company’s future outlook looking more promising.

This surge in stock value also highlights how investor sentiment can be influenced by the company’s ability to address key operational issues. With production constraints now lifted, Rivian is likely to benefit from increased confidence among investors, who are hoping that the company can continue ramping up production and scaling its operations in the coming year.

Market Movers Today: Amentum Holdings, Humana, Nvidia, Tesla, and More

Market Movers Today: Amentum Holdings, Humana, Nvidia, Tesla, and More

Tuesday, December 17, 2024 / No Comments

 

U.S. stocks dropped in afternoon trading, with the Nasdaq retreating from its record-setting close from the previous day, while the Dow Jones Industrial Average extended its losing streak. The S&P 500 also faced declines as investors awaited the Federal Reserve's decision on interest rates scheduled for tomorrow.

Amentum Holdings (AMTM) saw the steepest decline in the S&P 500 after company executives stated in their earnings call that they expect fiscal 2025 growth to be impacted by a reduction in certain government programs.

Shares of health insurers such as Humana (HUM) and UnitedHealth Group (UNH) took a hit after President-elect Donald Trump expressed plans to eliminate the "middle man" in health insurance.

Nvidia (NVDA) continued its downward trend, with shares falling further after the semiconductor company's stock entered correction territory.

Pfizer (PFE) saw its stock rise after providing 2025 guidance that met analysts' expectations, despite anticipating a $1 billion hit due to changes in the Medicare Part D prescription drug program.

Tesla (TSLA) shares surged to another record high following an upgrade from Mizuho, which, along with other analysts, predicted that the electric vehicle maker would benefit from the policies of the incoming Trump administration.

SolarEdge Technologies (SEDG) experienced a significant jump in its stock price after a double upgrade from Goldman Sachs, which forecast a turnaround for the solar power company in 2025.

Oil and gold futures dropped, while the yield on the 10-year Treasury note also declined. The U.S. dollar strengthened against the euro but weakened against the pound and yen. Bitcoin, although down from its record high of $108,000, remained higher overall.

Today's Top Stock Gainers: Alphabet, Netflix, Tesla, and More

Today's Top Stock Gainers: Alphabet, Netflix, Tesla, and More

Wednesday, December 11, 2024 / No Comments

U.S. stock indexes rose on Wednesday afternoon after new data on consumer inflation fueled hopes that the Federal Reserve could lower interest rates next week. The Nasdaq reached a new record, driven by gains in tech stocks. Meanwhile, the Dow and S&P 500 also posted gains.

Shares of Alphabet (GOOGL) hit an all-time high, driven by enthusiasm over its new quantum computing chip, Willow, which is being hailed as a significant breakthrough.

Netflix (NFLX) shares also reached a new peak after JPMorgan raised its price target for the stock from $850 to $1,010, citing strong content offerings and optimistic expectations for 2025 ad revenue.

Tesla (TSLA) saw its stock hit a new high as well, following news that the company was pushing ahead with plans for a $30,000 electric vehicle, with a potential release as soon as next year. Goldman Sachs also raised its price target for Tesla, adding to the stock's momentum after a similar move by Morgan Stanley.

In contrast, Walgreens Boots Alliance (WBA) saw its shares decline after a sharp rise the previous day, following reports that the company was in talks to be acquired by Sycamore Partners.

Macy's (M) stock fell sharply after the company released its delayed third-quarter earnings report and lowered its full-year guidance, with sales coming in below analysts' expectations.

Meanwhile, oil and gold futures climbed, and the yield on the 10-year Treasury note ticked higher. The U.S. dollar strengthened against the euro, pound, and yen. Most major cryptocurrencies surged, with Bitcoin surpassing $101,000.

Uber and Lyft stocks Drop as Google's Waymo Launches Driverless Taxis in Miami

Uber and Lyft stocks Drop as Google's Waymo Launches Driverless Taxis in Miami

Thursday, December 5, 2024 / No Comments

 

Google's Waymo is expanding its self-driving taxi service to Miami, a move that caused a sharp decline in shares of Uber Technologies (UBER) and Lyft (LYFT) as investors considered the potential threat to their businesses.

In a blog post on Thursday, Waymo revealed plans to bring its driverless ride-hailing service to Miami. The company has previously conducted tests in the city, which presented "challenging rainy conditions" for its autonomous vehicles.

Waymo, a subsidiary of Alphabet (GOOGL), has already launched its self-driving ride-hailing services in Phoenix, Los Angeles, San Francisco, and Austin. The company plans to begin training its all-electric Jaguar I-PACE vehicles on Miami streets in early 2025, with an official launch set for 2026.

Additionally, Waymo announced a partnership with African fintech provider Moove to help manage its Miami expansion. Moove will also take over the fleet management operations for Waymo’s service in Phoenix.

Shares of Uber and Lyft fell by approximately 10% on Thursday, as investors assessed the competitive risk posed by Waymo’s growth. Uber is already collaborating with Waymo in Austin and Atlanta to offer autonomous rides in those cities.

Citi: Trump Tariffs May Cut S&P 500 Earnings

Citi: Trump Tariffs May Cut S&P 500 Earnings

Wednesday, November 27, 2024 / No Comments

 

Citi analysts have warned that President-elect Donald Trump's proposed increase in trade tariffs could negatively impact corporate earnings, particularly for U.S. companies with significant exposure to Canada, Mexico, and global trade. With Trump's plan to impose higher tariffs, including a 10% duty on China and a 25% duty on Canada and Mexico, sectors tied to these regions could face increased costs, especially in areas like energy exports from Canada.

The analysts estimate that these tariffs could reduce S&P 500 earnings by a few percentage points in 2025 and potentially erode gross margins by over 250 basis points. However, Citi also pointed out that many companies were granted exemptions during Trump’s first term, and there is still some uncertainty about the exact nature of the tariffs in his second term. Markets are transitioning from election uncertainty to policy uncertainty, as investors remain unclear about how Trump's new term will affect the economy.

US Stock Inflows to Hit Record $448B in 2024: BofA"

US Stock Inflows to Hit Record $448B in 2024: BofA"

Friday, November 22, 2024 / No Comments

US equity funds are on track for a record-breaking year, with annualized inflows projected to hit $448 billion, according to Bank of America.

Money market funds are also experiencing unparalleled demand, expected to receive a substantial $1.1 trillion in 2024.

During the week ending November 11, equity funds saw inflows of $14.4 billion, while bonds received $9.1 billion, and cryptocurrencies gained $900 million. On the other hand, gold experienced outflows of $600 million, and money market funds saw withdrawals of $1.3 billion, as reported in BofA’s weekly "Flow Show" report, which referenced EPFR global data.

Other key movements include Treasuries, which experienced outflows of $6.4 billion in the past two weeks, marking the highest level since December 2023. Sector-wise, Financials saw inflows of $6 billion over the last four weeks, the largest since February 2022, while tech stocks had their biggest inflow in six weeks, at $5.4 billion. In contrast, healthcare stocks saw outflows of $1.1 billion, the largest since December.

Geographically, US equities saw their seventh consecutive week of inflows, totaling $16.4 billion. Emerging market equities, however, faced outflows for the sixth consecutive week, totaling $1.8 billion, while Europe continued its losing streak, with $3.6 billion in outflows for the eighth straight week.

Bank of America strategists, led by Michael Hartnett, are optimistic about the S&P 500, predicting another significant double-digit rise in 2025, driven by falling bond yields, which they see as the "secret sauce" for sustaining equity gains and avoiding sharp reversals. They believe that a "melt-up" in stocks and crypto is likely to continue in the coming months, fueled by the newly elected Trump administration’s focus on rising markets as a tool to enhance economic sentiment, with few believing Trump will allow a bear market.

Additionally, "boomy" global macroeconomic data is surfacing in the short term, as companies rush to accelerate activities ahead of potential tariffs—highlighted by record-high imports at the Port of Long Beach—and stockpile labor in anticipation of immigration controls. This has contributed to a notable decline in unemployment claims.

In the fixed income market, investment-grade bonds continued their inflow streak for the 56th week, attracting $10.2 billion, while high-yield bonds maintained a 15-week streak of inflows, drawing $1.5 billion. However, Treasury funds experienced $2.9 billion in outflows, adding to the previous week’s withdrawals.

Nvidia earnings more important than CPI, Fed: Barclays Predicts

Nvidia earnings more important than CPI, Fed: Barclays Predicts

Tuesday, November 19, 2024 / No Comments

 

Barclays analysts believe that Nvidia's upcoming earnings report on November 20 will be the most crucial market event of the year, overshadowing traditional economic indicators such as CPI data and Federal Reserve decisions. This anticipation highlights the significant impact AI has on the market and the growing enthusiasm among retail investors seeking potential gains.

In their note, Barclays notes that Nvidia's earnings will likely serve as the final major catalyst for market movements in 2024. The bank points to a surge in activity surrounding Nvidia and similar stocks like Tesla, Coinbase, and Palantir, emphasizing the dominance of single-stock dynamics in driving market sentiment.

Options markets are predicting an 8% move in Nvidia's stock after earnings, which is slightly lower than the two-year average. Barclays warns of asymmetric risks due to speculative activity in Nvidia-related products, particularly leveraged exchange-traded products (ETPs) that could amplify volatility.

The influence of Nvidia's earnings isn't just limited to U.S. markets—Europe's semiconductor giant ASML is also seeing heightened interest tied to Nvidia's results, with options indicating a larger-than-usual implied move of 3.3%.

Barclays advises caution in approaching Nvidia's earnings, as high expectations combined with speculative activity could lead to unpredictable market swings.

Israel’s TA 35 Sees Slight Uptick, Closing Up 0.04%

Israel’s TA 35 Sees Slight Uptick, Closing Up 0.04%

Sunday, November 17, 2024 / No Comments

Israeli stocks experienced a slight uptick on Sunday, driven by strength in the Insurance, Financials, and Banking sectors. At market close, the TA 35 index edged up by 0.04%.

Among the session's top performers, Harel Insurance (TASE: HARL) surged by 4.98%, reaching an all-time high of 4,220.00 points. Israel Corp (TASE: ILCO) advanced 3.01% to 87,910.00 points, while ICL Israel Chemicals Ltd (TASE: ICL) climbed 2.94% to 1,682.00 points.

On the downside, Nova (TASE: NVMI) led the losses, dropping 6.04% to 67,210.00 points. Camtek Ltd (TASE: CAMT) and Tower Semiconductor Ltd (TASE: TSEM) also fell sharply by 5.87% and 5.05%, respectively.

Overall, advancing stocks outpaced decliners on the Tel Aviv Stock Exchange, with 283 gainers against 167 losers, and 88 stocks remaining unchanged.

In commodities, crude oil for January delivery dropped by 2.45% to $66.92 per barrel, and Brent oil fell 2.09% to $71.04 per barrel. Gold futures dipped slightly, declining 0.11% to $2,570.10 per troy ounce.

Currency-wise, the USD/ILS exchange rate was steady at 3.74, while the EUR/ILS rose by 0.25% to 3.94. Meanwhile, the US Dollar Index Futures ticked up marginally by 0.02%, reaching 106.62.

European Stocks Gain Momentum; Siemens Outperforms with Strong Results

European Stocks Gain Momentum; Siemens Outperforms with Strong Results

Thursday, November 14, 2024 / No Comments

 

The eurozone’s economy expanded more than anticipated in the third quarter compared to the previous period, with data released on Thursday confirming a 0.4% growth. While this was above forecasts, it highlighted ongoing vulnerabilities within the eurozone economy.

In contrast, eurozone industrial production experienced a sharper-than-expected decline in September, with Germany posting the steepest decrease among the region’s major economies. This 2.0% drop surpassed expectations of a 1.4% decrease, and last month’s initially strong 1.8% rise was revised down to 1.5%, suggesting that the anticipated recovery may be delayed further.

Adding to investor concerns is the possibility of a trade conflict with the incoming Trump administration in the U.S. Meanwhile, U.S. consumer inflation data for October, released Wednesday, met market expectations but indicated persistent inflation. This inflation reading has reinforced expectations of a potential rate cut by the Federal Reserve in December, though the longer-term outlook remains uncertain as inflationary policies under Trump could influence future rate decisions.

Siemens impresses with results

Thursday brought a flurry of corporate updates across Europe, with several major companies reporting strong performance.

Siemens (ETR) saw its stock rise nearly 6% after the German engineering firm reported results that exceeded expectations and expressed confidence in managing global political and trade challenges.

Deutsche Telekom (ETR) gained 4% as the telecom giant posted a strong third-quarter performance, largely fueled by solid growth in Germany, and raised its financial guidance.

French reinsurance company Scor (EPA) rose over 7% following strong third-quarter results, while ASML (AS), Europe’s largest tech company, climbed 5% after projecting an 8% to 14% sales increase over the next five years, driven by surging demand in AI-related sectors.

Burberry (LON) surged 17% as new CEO Joshua Schulman presented his strategy to rejuvenate the luxury fashion brand, despite reporting a half-year operating loss.

Aviva (LON) also gained 4% after the British insurer announced a 15% increase in general insurance premiums over the first nine months and expressed confidence in meeting its group targets.

Crude bounces despite demand concerns 

Oil prices inched up on Thursday morning, though gains remained modest due to ongoing concerns over global demand growth and rising production levels.

As of 06:40 ET, Brent crude rose by 0.1%, reaching $72.65 per barrel, while U.S. West Texas Intermediate (WTI) crude futures increased by 0.5%, trading at $68.78 per barrel.

Earlier in the week, the Organization of Petroleum Exporting Countries (OPEC) lowered its projections for global oil demand growth in 2024 and 2025, largely due to uncertainty over China’s demand. The International Energy Agency (IEA) is expected to follow with similar adjustments in its monthly report later today.

On the supply side, the U.S. Energy Information Administration (EIA) slightly revised up its 2023 U.S. oil production forecast and also raised its 2024 global oil output expectations. The EIA is set to release its weekly report on crude and product stockpiles later today, a day later than usual due to the Veterans’ Day holiday earlier this week in the United States.