S&P 500 hits a record high 23/01/2025

HOT stories for today
 

AI expands beyond tech

• The first wave of investment in generative AI has focused on expanding data center capacity to support its development. Joe Davis, global chief economist at Vanguard, expects AI soon to influence sectors like healthcare, finance, and manufacturing, driving economic growth. He advises against overweighting tech stocks, as much of AI’s potential is already priced in, and suggests broad exposure to the U.S. stock market through index funds such as the SPDR S&P 500 ETF Trust (SPY) or Vanguard Total Stock Market ETF (VTI).
• For those seeking opportunities outside technology, analysts have highlighted non-tech companies with strong revenue growth potential from 2024 to 2026. Examples include Eli Lilly (LLY) , Diamondback Energy (FANG), Uber Technologies (UBER) and Mastercard (MA). These companies span diverse industries and offer growth potential, though investors should research their business strategies and competitiveness before making decisions.

Stocks on the move:

• Electronic Arts (EA) shares dropped 10 percent after the company lowered its fiscal third-quarter and full-year net bookings guidance citing a slowdown in its Global Football franchise
• Discover Financial (DFS) gained 1 percent as fourth-quarter earnings surpassed expectations reporting $5.11 per share compared to the $3.25 analysts predicted
• Alcoa (AA) declined 1 percent despite beating fourth-quarter estimates with $1.04 adjusted earnings per share on $3.49 billion in revenue
• Kinder Morgan (KMI) rose nearly 2 percent despite missing fourth-quarter expectations posting 32 cents per share in adjusted earnings and $3.99 billion in revenue
• Knight-Swift Transportation (KNX) jumped 5 percent after fourth-quarter results showed improved operating margins

Today’s action

• Asia-Pacific markets traded mixed on Thursday as investors analyzed regional economic data, with Chinese stocks leading the gains. Hong Kong’s Hang Seng index rose 0.24%, and the CSI 300 climbed 1.01%. China’s financial regulators encouraged large state-owned mutual funds and insurers to purchase more shares to support the struggling stock market.
• In the US, stock futures showed minimal movement early Thursday as Wall Street approached record highs. S&P 500 futures slipped 0.11%, Dow Jones Industrial Average futures edged down 25 points (less than 0.1%), and Nasdaq 100 futures fell 0.21%. Optimism around tax cuts, deregulation under President Donald Trump, and steady economic growth fueled market sentiment. Investors will also review key economic updates later in the day, including initial jobless claims and Kansas City Fed manufacturing data.

Wahtclist: EA, DFS, KMI, GE, UNP, FCX, NVDA, ARM, TSLA

 

Bitcoin
 

• Larry Fink, CEO of BlackRock Inc., the world’s largest asset manager, has suggested that bitcoin could reach $700,000 if funds allocate just 2% to 5% of their portfolios to the cryptocurrency. Since the inauguration of the new U.S. president, bitcoin has traded within a range of $100,000 to $110,000, stabilizing after the “Trump pump” rally.
• One analyst predicts that this sideways movement could persist until the Federal Open Market Committee meeting on January 28–29. With a 99.5% chance, according to the CME FedWatch tool, that interest rates will remain steady at 4.25% to 4.5%, a further price dip may be possible. However, a dovish press conference or signals of quantitative easing to support market liquidity could spark another rally for risk assets like bitcoin.
  Watchlist: Bitcoin: 89 000-109 000, Ethereum: 2900-3600, Solana: 220-296.5

Forex
 

• The Japanese Yen weakens for a second consecutive day against the US Dollar, sliding to a one-week low during Thursday’s Asian session. Despite Japan’s better-than-expected Trade Balance data, the safe-haven Yen is pressured by a bullish tone in global financial markets and a modest rebound in the US Dollar, supported by rising US Treasury bond yields. Traders are now eyeing President Trump’s upcoming speech for further direction ahead of the Bank of Japan’s policy decision on Friday.
• The EUR/USD pair trades slightly lower around 1.0410 during Thursday’s Asian session. The Euro faces pressure following President Trump’s renewed tariff threats targeting the Eurozone and China. Additionally, dovish expectations surrounding the European Central Bank weigh on the Euro against the Dollar. Investors await the European Commission’s Consumer Confidence report for January, along with the US weekly Initial Jobless Claims, for further market cues.
  Watchlist: EUR/USD: 1.0170-1.0500, USD/JPY: 154.7-159

Basic Materials
 

• Gold prices retreat from a near three-month high during Thursday’s Asian session, slipping from the $2,763-2,764 range reached the previous day. The pullback is driven by an uptick in US Treasury bond yields and a rebound in the US Dollar from its monthly lows. Despite this, expectations for further Fed interest rate cuts may limit fresh bullish bets on the USD, while concerns over Trump’s tariff plans continue to provide underlying support for the safe-haven metal.
• West Texas Intermediate (WTI) crude oil prices also edge lower, trading around $75.00, marking a fresh one-week low. The decline comes as traders weigh the potential impact of President Trump’s proposed tariffs on global energy demand. Adding to the pressure, the American Petroleum Institute (API) reported an unexpected crude oil inventory build last week, further dampening sentiment in the oil market.
  Watchlist: GOLD 2500-2800, US Oil: 75.00-79.50

Key Economic Events Today:

EST time

10:00 am: EUR Consumer Confidence
08:30 am: USD Unemployment Claims
11:00 am: USD President Trump speaks
11:00 am: USD Crude Oil Inventories

Eranings 

BMO (Before the US Market opens)

GE              GE Aerospace
UNP            Union Pacific Corp.
ELV            Elevance Health Inc.
FCX            Freeport-McMoran Inc.
NTRS          Northern Trust Corp.

AMC (After the US Market closes): ISRG, TXN, CSX 

The TEFS Analyst team wishes you a successful day!