Mixed market performance 14/01/2025

HOT stories for today




 

Stocks on the move:    

• Honeywell (HON): Shares climbed roughly 3% after Bloomberg reported the industrial giant is exploring a breakup under pressure from activist investor Elliott Management. The restructuring move could unlock significant shareholder value amid calls for streamlined operations.
• Moderna (MRNA): The biotech firm’s stock plunged more than 20% after slashing its 2025 sales outlook by approximately $1 billion. The vaccine maker now expects revenue between $1.5 billion and $2.5 billion, signaling challenges ahead in sustaining pandemic-era growth.
• Lululemon (LULU: Shares of the athleisure brand dipped more than 2%, despite raising its holiday-quarter earnings and revenue forecast. The company now projects fourth-quarter earnings of $5.81 to $5.85 per share on revenue of $3.56 billion to $3.58 billion, slightly above analyst expectations of $5.66 per share and $3.47 billion in revenue, according to FactSet.
• KB Home (KBH): The homebuilder saw its stock surge over 8% after posting better-than-expected fourth-quarter results. KB Home reported earnings of $2.52 per share on $2 billion in revenue, beating analyst estimates of $2.45 per share on $1.99 billion in sales, according to LSEG.
• IAC Inc. (IAC): Shares in the media conglomerate rose more than 2% following news of its plan to spin off home improvement platform Angi (ANGI). The move is expected to streamline IAC’s portfolio and unlock shareholder value.

Today’s action

• Asia-Pacific markets mostly gained on Tuesday, following a mixed session on Wall Street that saw the Dow Jones surge while the Nasdaq declined, as investors shifted out of tech stocks. Hong Kong’s Hang Seng Index rose 1.8%, and mainland China’s CSI 300 climbed 2.13%. Japan’s Nikkei 225 was the outlier, dropping 1.93%, as investors turned cautious ahead of inflation data.
• In the U.S., stock futures pointed higher Tuesday morning. Dow Jones Industrial Average futures rose by 90 points, or 0.21%, while S&P 500 futures gained 0.34%, and Nasdaq 100 futures advanced 0.5%. Traders are awaiting the December producer price index (PPI), a key measure of wholesale inflation, set for release at 8:30 a.m. ET. This will be followed by the consumer price index (CPI) report on Wednesday. Both inflation readings are expected to influence the Federal Reserve’s next steps on interest rates, as markets continue to digest last week’s robust jobs data.

                                                Wahtclist: RGTI, NVDA, LULU, HON, IAC, KBH, MRNA

Bitcoin
 

• Bitcoin (BTC) experienced a volatile session on Monday, plunging from nearly $94,000 to below $90,000 by 9:35 a.m. EDT before rebounding to trade between $92,300 and $93,000. The erratic movement has divided market analysts, with some predicting a potential drop to the $80,000 range, while more bearish forecasts warn of a slide toward $70,000. Optimists, however, see a possible rally linked to upcoming macro events, including the inauguration of President-elect Donald Trump.
• Beyond bitcoin, the broader cryptocurrency market has also been caught in the turbulence. Ethereum (ETH) is struggling to maintain its position above $3,000, while Solana (SOL) and Cardano (ADA) saw the steepest declines among major digital assets, dropping 6% and 7%, respectively. Bitcoin’s wild swings underscore its dual role as both a speculative investment and a barometer of sentiment within the crypto space. As liquidations, downward pressures, and investor uncertainty converge, the market faces a pivotal moment that could determine the near-term trajectory of digital assets. While some foresee a recovery driven by macroeconomic catalysts, sentiment remains fragile as traders weigh the risks of further declines.
  Watchlist: Bitcoin: 89 000-108 000, Ethereum: 3000-3800, Solana: 170-220

Forex
 

• The EUR/USD pair remains under pressure as it trades within a descending channel pattern, hinting at persistent bearish momentum. The 14-day Relative Strength Index (RSI) has rebounded above the 30 threshold, signaling a potential recovery from oversold conditions. Immediate resistance emerges near the nine-day Exponential Moving Average (EMA) at the 1.0290 mark. After a five-day losing streak, the pair stabilizes around 1.0250 during Tuesday's Asian trading session. However, a detailed assessment of the daily chart underscores the continuation of the downward trend within the channel, keeping bearish sentiment intact.
• The Japanese Yen comes under fresh selling pressure on Tuesday as uncertainty over the Bank of Japan’s (BoJ) policy stance persists. Waning concerns over former U.S. President Trump’s tariff plans have bolstered risk appetite, further weighing on the safe-haven Yen. Meanwhile, the USD/JPY pair remains steady above the mid-157.00s during early European trade, supported by elevated U.S. Treasury yields driven by the Federal Reserve’s hawkish outlook. Comments from BoJ Deputy Governor Ryozo Himino have added to the ambiguity surrounding the timing of the next rate hike. Additionally, the widening yield gap between U.S. and Japanese bonds continues to undermine the lower-yielding Yen, keeping the currency on the defensive against the Dollar.Watchlist: EUR/USD: 1.0200-1.0460, USD/JPY: 155-158.50

Basic Materials
 

• The Gold price (XAU/USD) regains some positive traction on Tuesday, drawing support from a modest pullback in US Treasury yields. The yellow metal attracts dip-buyers, but upside momentum remains limited as it trades below the one-month high reached earlier this week. Reports suggesting that US President-elect Donald Trump’s advisors are considering a gradual tariff rollout to curb inflationary risks have eased bond yields, offering temporary relief to the non-yielding asset. However, expectations of prolonged hawkish policies by the Federal Reserve keep the US Dollar buoyant, restricting aggressive bullish moves in Gold. Additionally, a broader risk-on mood in financial markets acts as a further headwind for the precious metal.
• West Texas Intermediate (WTI), the benchmark for US crude oil, edges higher to $77.25 during Tuesday’s early Asian trading, marking its highest level since October 8. The rise is primarily driven by the US government's decision to tighten sanctions on Russian energy exports, raising concerns over reduced global supply. Meanwhile, expectations that the Federal Reserve may deliver fewer rate cuts this year are likely to limit any significant downside for the commodity, as a less aggressive Fed stance could sustain demand for the "black gold."
  Watchlist: GOLD 2600-2750, US Oil: 70.00-78.00

The TEFS Analyst team wishes you a successful day!