Wild Wednesday market moves 10/01/2025

HOT stories for today



 

Stocks on the move:

• First Solar (FSLR, -3%): Wells Fargo reduced its price target on the stock to $209 from $240 while maintaining an 'Overweight' rating. The firm expressed a pessimistic outlook for the clean energy sector in 2025, citing continued political uncertainty surrounding the Inflation Reduction Act (IRA) and elevated interest rates.
• Exxon Mobil (XOM, -2%): In a regulatory filing, the oil giant indicated that its upstream segment earnings for the fourth quarter may drop by $500 million to $900 million compared to the prior quarter due to a decline in liquid prices.
• Lyft (LYFT, -6%): Delta Air Lines announced that Uber will become its exclusive rideshare and delivery partner in the U.S. starting this spring, replacing Lyft.
• Advanced Micro Devices (AMD, -5%): HSBC analysts issued a double downgrade on the stock, lowering their rating from ‘Buy’ to ‘Reduce’ and cutting the price target from $200 to $110.
• UniFirst Corporation (UNF, +5%): The provider of uniform and workwear services, as well as facility and safety supplies, posted better-than-expected earnings, driving the stock higher.

Today’s action

• Asia-Pacific markets mostly declined on Friday as investors digested Japan’s latest wages and household spending data for November. Japan's actual household spending slipped 0.4% year-over-year in November, a milder drop compared to the 0.6% contraction anticipated by a Reuters survey of economists. The decrease was also smaller than the 1.3% decline recorded in October. Meanwhile, Japan's average real household income rose to 514,409 yen ($3,252.98) in November, a 0.7% increase from last year.
• U.S. stock futures edged lower on Friday morning as investors awaited the release of key economic reports. Futures linked to the S&P 500 were down 0.28%, while Nasdaq 100 futures slid 0.32%. Dow Jones Industrial Average futures fell by 79 points, or 0.18%. The New York Stock Exchange remained closed on Thursday in observance of a national day of mourning for former President Jimmy Carter. Market participants are closely watching December’s nonfarm payrolls report, which is set to be released later. The report is especially significant as uncertainty looms over the Federal Reserve’s approach to rate adjustments this year. Current Fed funds futures suggest a strong probability that policymakers will hold interest rates steady at their upcoming meeting.
  
  Wahtclist: STZ, DAL, WBA, NVDA, LYFT, AMD, RGTI, GOOGL

Bitcoin
 

• Bitcoin speculators panicked as prices briefly dipped to $92K, prompting what analysts view as a "buy the dip" opportunity. Research from CryptoQuant suggests short-term holders are selling off, signaling accumulation for long-term investors. Robert Kiyosaki, author of Rich Dad Poor Dad, reiterated warnings of an economic collapse, referencing his 2013 prediction of a significant crash. He linked the downturn to policies from the 2008 crisis and expects further declines in housing, automotive, and retail sectors through 2025, along with rising geopolitical tensions.
• Despite the bleak outlook, Kiyosaki sees opportunities in falling asset prices. He plans to buy real estate, gold, silver, and Bitcoin, calling the crypto dip a chance to "buy low and HODL. " He highlights Bitcoin's limited supply as a long-term advantage.
  Watchlist: Bitcoin: 91 000-108 000, Ethereum: 3100-3800, Solana: 175-220

Forex
 

• The Japanese Yen (JPY) continues to weaken against the US Dollar (USD) as doubts linger over the timing of the Bank of Japan’s (BoJ) next rate hike. The US-Japan yield gap, driven by the Federal Reserve’s hawkish stance, further pressures the lower-yielding JPY. As a result, USD/JPY hovers near multi-month highs ahead of the US Nonfarm Payrolls (NFP) report.
• Meanwhile, EUR/USD remains under pressure, softening to around 1.0300 during Friday’s Asian session. The Greenback gains support as several Fed officials signal a slower pace of rate cuts. Additionally, Eurozone Retail Sales showed weak growth in November, contributing to the pair's mild negative bias as traders await the key US NFP data later in the day.
  Watchlist: EUR/USD: 1.0200-1.0460, USD/JPY: 155-158.50

Basic Materials
 

• Gold prices (XAU/USD) continue to rise for the fourth consecutive day on Friday, trading near a four-week high amid safe-haven demand. Persistent geopolitical concerns and uncertainty over U.S. trade policies contribute to the metal’s appeal as a hedge against rising risks. However, gains remain limited by the Federal Reserve's hawkish stance, elevated U.S. bond yields, and a stronger U.S. Dollar. Traders are also holding back ahead of the key U.S. Nonfarm Payrolls (NFP) report later in the day.
• Meanwhile, oil prices show modest gains, with both Brent crude and West Texas Intermediate trending higher, signaling a more resilient market than anticipated. According to JP Morgan analysts, global oil demand is expected to increase by 1.6 million barrels per day in Q1 2025, driven primarily by colder weather in Europe and the U.S., boosting demand for heating oil, kerosene, and LPG. Concerns over the Biden administration's potential last-minute sanctions on Russia could further disrupt supply and support prices.
  Watchlist: GOLD 2600-2750, US Oil: 70.00-75.50

The TEFS Analyst team wishes you a successful day!