Bulls cheered Trump’s speech 24/01/2025

HOT stories for today


 

Trump pressures FED on rates
 

• President Donald Trump called for immediate interest rate cuts and lower oil prices during his address to the World Economic Forum in Davos, Switzerland, on Thursday. Appearing via videoconference, Trump said he would urge OPEC nations, including Saudi Arabia, to reduce oil prices, arguing this should prompt the Federal Reserve to lower rates. Trump reiterated his criticism of Fed Chair Jerome Powell, while Treasury Secretary nominee Scott Bessent stressed the importance of Fed independence, noting Trump’s views would not dictate policy. The Fed’s next interest rate decision is due Wednesday.
• On trade, Trump warned global manufacturers to produce in the U.S. or face tariffs, proposing levies of up to 25% on imports from Canada, Mexico, and China. Economists cautioned that such tariffs could worsen inflation, but Trump described them as vital for strengthening the U.S. economy. Markets reacted with the S&P 500 rising 0.53% and crude oil dipping as investors weighed Trump’s remarks and their potential economic impact.

 
Stocks on the move:       

• Boeing (BA): Shares of the aerospace giant fell nearly 2% in after-hours trading after the company released preliminary fourth-quarter financial results. Boeing reported it expects a loss of $5.46 per share for the quarter, attributing the setback to a nearly two-month labor strike last year and other manufacturing challenges.
• Texas Instruments (TXN): The semiconductor stock declined more than 2% in extended trading after the company provided a lackluster earnings forecast for the current quarter. Despite the weaker outlook, Texas Instruments surpassed estimates on both revenue and earnings for the previous quarter.
• CSX (CSX): Shares of the transportation giant dropped 2% in after-hours trading after the company reported revenue that came in below analysts' expectations.
• Twilio (TWLO): The cloud communications software maker’s shares surged over 11% in extended trading following the company’s optimistic profit forecast shared at a Thursday investor event. Twilio also provided strong free cash flow guidance for 2025, with revenue projections meeting analysts’ expectations.

 
 Today’s action

• Asia-Pacific markets advanced on Friday, following a record-high close for the S&P 500 overnight after U.S. President Donald Trump reiterated his push for lower interest rates and cheaper oil prices. The Bank of Japan raised its policy rate by 25 basis points to 0.5%, marking its highest level since 2008 and aligning with economists' forecasts. In response, the Japanese yen weakened slightly, trading at 155.18 against the dollar. Japan also reported a rise in its core inflation rate to 3% year-on-year in December, the highest in 16 months.
• Stock futures in the U.S. edged lower during overnight trading. Futures tied to the Dow Jones Industrial Average and the S&P 500 dipped slightly, while Nasdaq 100 futures slipped by 0.15%. The S&P 500 had earlier achieved its first record close since December 6, driven by optimism stemming from Trump’s comments on monetary policy and oil prices. Investors are also focused on upcoming economic data and earnings reports due Friday. Key releases include the S&P Global Composite PMI (9:45 am ET), Existing Home Sales (10:00 am ET), Michigan Consumer Sentiment (10:00 am ET), and the Kansas Fed Index (11:00 am ET). Pre-market earnings include reports from Verizon Communications (VZ), American Express (AXP), NextEra Energy (NEE), Ericsson (ERIC), and HCA Healthcare (HCA).

Wahtclist: BA, ORCL, NEE, AXP, VZ, HCA, CV

Bitcoin

• President Donald Trump signed a landmark executive order Thursday, setting the stage for a federal regulatory framework on cryptocurrencies. The order establishes a crypto working group tasked with proposing regulations and evaluating a national crypto reserve. It prohibits the creation of a central bank digital currency (CBDC) and calls for agencies like the SEC and Treasury to review existing crypto rules within 30 days.
• The U.S. government, which holds over $20.9 billion in seized digital assets, may stop selling confiscated crypto, potentially boosting the market. During a virtual address at the World Economic Forum in Davos, Trump reiterated his goal to make the U.S. the global leader in crypto and AI. Bitcoin traded at $104,000, flat for the day but close to its record high, while Ether rose 2.6% to $3,331. Industry leaders called the order a “sea change” for U.S. crypto policy and welcomed its ambitious timeline for action.
  Watchlist: Bitcoin: 89 000-109 000, Ethereum: 2900-3800, Solana: 220-296.5

Forex

• The Japanese Yen (JPY) saw significant gains on Friday following the Bank of Japan’s (BoJ) decision to raise interest rates by 25 basis points to 0.5%, the highest level since 2008. In its policy statement, the BoJ raised its inflation forecast, citing optimism about wage growth, and reaffirmed its commitment to further rate hikes. This hawkish stance, coupled with uncertainty surrounding U.S. President Donald Trump’s trade policies, drove strong demand for the JPY, pushing the USD/JPY pair lower as the U.S. Dollar (USD) hovered near its monthly lows. Markets now await remarks from BoJ Governor Ueda during his post-meeting press conference for further guidance.
• Meanwhile, the EUR/USD pair gained 0.30% to trade around 1.0450 during Friday’s early European session, buoyed by a weakening USD and anticipation of upcoming economic data. The Eurozone and Germany’s preliminary HCOB Purchasing Managers Index (PMI) figures for January are set to be released later in the day, which could further influence the pair. Additionally, traders are watching for the European Central Bank’s expected deposit rate cut on January 30.
  Watchlist: EUR/USD: 1.0170-1.0500, USD/JPY: 154.7-159

Basic Materials

• West Texas Intermediate (WTI), the U.S. crude oil benchmark, traded around $74.10 in the early Asian session on Friday, extending its decline after U.S. President Donald Trump called on Saudi Arabia and OPEC to reduce oil prices. This pressure comes despite the latest U.S. Energy Information Administration (EIA) report showing a drop in crude inventories by 1.017 million barrels last week, reflecting tighter supplies. Traders closely watch OPEC's response to Trump's remarks and its potential impact on crude oil prices.
• Gold prices resumed their upward momentum on Friday, climbing to their highest levels since October 31. Concerns over a potential new wave of global trade wars, combined with bets on further Federal Reserve rate cuts, are boosting the appeal of the safe-haven metal. U.S. Treasury yields edged lower after President Trump hinted he would prefer not to use tariffs on China, adding pressure on the U.S. Dollar, which fell to a fresh monthly low. This decline in the USD further supports the non-yielding yellow metal, with traders eyeing continued gains in the XAU/USD pair amid uncertainty in global markets.
  Watchlist: GOLD 2600-2795, US Oil: 74.00-79.50

Key Economic Events Today:

EST time:
04:00 am: EUR Flash Manufacturing and Services PMI
04:30 am: GBP Flash Manufacturing and Services PMI
09:45 am: USD Flash Manufacturing and Services PMI
10:00 am: USD Existing Home Sales
10:00 am: USD Consumer Sentiment, Inflation Expec.

Earnings

BMO (Before the US Market opens)
AXP        American Express  
VZ          Verizon Comm. Inc.
NEE       NextEra Energy
HCA       HCA Healthcare Inc.
ERIC      Ericsson

AMC (After the US Market closes): enjoy your weekend

The TEFS Analyst team wishes you a successful day!