Apple defied skeptics 31/01/2025

HOT stories for today
 

Apple defied skeptics
 

• Apple beats estimates as services surge, and iPhone struggles in China . Apple posted better-than-expected earnings in its fiscal first quarter, driven by a strong 14% growth in services revenue, which hit a record $26.3 billion with a 75% gross margin. Mac and iPad sales also climbed, up 16% and 15%, respectively.
• However, iPhone sales slipped 1%, with an 11% decline in China weighing on overall revenue. Analysts cited stiff competition but noted that Apple Intelligence, the company’s AI-powered software, could help reignite demand as newer models are released. Despite initial post-earnings volatility, Apple’s guidance for slight growth in the March quarter reassured investors, sending the stock 3% higher after hours. CEO Tim Cook highlighted that iPhones performed better in markets with Apple Intelligence, fueling optimism for a future rebound.

 
 
Stocks on the move:       

• Walgreens Boots Alliance (WBA) — Shares of the struggling pharmacy chain dropped 9% in after-hours trading after the company announced it would suspend its quarterly cash dividend. Walgreens stated that it is undergoing a turnaround effort, prioritizing balance sheet improvements.
• Intel (INTC) — The semiconductor giant saw its stock climb nearly 4% following better-than-expected fourth-quarter earnings and revenue. However, the company provided cautious guidance, citing seasonal factors and economic uncertainty.
• Visa (V) — Shares of the global payments company gained almost 3% after it reported fiscal first-quarter results that exceeded Wall Street expectations.
• Atlassian (TEAM) — The enterprise software firm surged 19% after delivering strong second-quarter earnings, beating analyst forecasts and issuing optimistic revenue guidance for the current quarter.

 
Today’s action

• Asian markets mostly advanced on Friday, following Wall Street’s overnight gains as investors assessed earnings from major technology companies. Japan’s Nikkei 225 rose 0.24%, while the broader Topix index gained 0.21%. Meanwhile, Tokyo’s consumer price index (CPI), excluding fresh food, increased 2.5% year-on-year in January, aligning with expectations and slightly up from 2.4% in the previous month. Japan’s unemployment rate for December fell to 2.4%, missing estimates of 2.5%.
• In the U.S., stock futures edged higher early Friday as traders analyzed earnings reports from Apple and other major firms ahead of releasing the personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation measure. Futures tied to the S&P 500 rose 0.24%, while Nasdaq 100 futures climbed 0.51%. Dow Jones Industrial Average futures added 57 points (0.13%). Investors will also watch economic data on employment costs and personal income, while Chevron and Exxon Mobil are set to release their earnings before the market opens.

Wahtclist: AAPL, WBA, V, TEAM, INTC, XOM, CVX, DECK

Bitcoin

• Bitcoin’s rally lost steam late Thursday after President Trump reaffirmed plans to impose 25% tariffs on Mexico and Canada starting February 1, citing concerns over immigration, drug trade, and subsidies. After dipping below $98,000 earlier in the week, bitcoin had climbed back above $106,000, approaching its all-time high of $109,000. However, following Trump’s comments, risk assets pulled back, with stocks retreating from earlier gains and bitcoin slipping to $104,800.
• Smaller cryptocurrencies, including Ether and Solana, also gained before losing momentum alongside broader market declines. Meanwhile, the Federal Reserve opted to pause its monetary easing cycle on Wednesday. In his post-meeting remarks, Chair Jerome Powell signaled that policymakers need to see further progress on inflation before considering additional interest rate cuts, reinforcing a cautious stance on future policy moves.
  Watchlist: Bitcoin: 89 000-109 000, Ethereum: 2900-4120, Solana: 170-298

Forex

• EUR/USD extended its losing streak for a fourth consecutive session on Thursday, briefly touching 1.0450 before retreating below the 1.0400 mark. The euro’s recent bullish momentum appears to be fading as traders await German economic data set for release on Friday, followed by a key US inflation report that could influence market sentiment. Investors are also assessing whether the Federal Reserve’s rate decision earlier this week was the right call.
• Meanwhile, USD/JPY declined as the latest US GDP data showed slower-than-expected growth of 2.3%, missing the 2.6% forecast. Despite stronger-than-expected jobless claims, concerns over the broader economic outlook kept the US dollar under pressure. The yen gained strength as policy divergence between the Federal Reserve and the Bank of Japan became more pronounced, with the BoJ maintaining its tighter stance while the Fed held rates steady. USD/JPY slipped 0.76% in early North American trading, dipping below 154.00 as traders reacted to signs of weaker US economic growth.
  Watchlist: EUR/USD: 1.0170-1.0650, USD/JPY: 153.50-159

Basic Materials

• West Texas Intermediate (WTI) crude oil prices edged higher to around $72.85 in early Asian trading on Friday, as investors weighed the potential impact of 25% tariffs on Canadian and Mexican crude imports, set to take effect on Saturday under President Trump’s trade policy. Traders are also keeping a close watch on the OPEC+ ministerial meeting scheduled for Monday, which could influence future production decisions.
• Meanwhile, the European Central Bank (ECB) cut interest rates by 25 basis points, in line with expectations. However, the preliminary fourth-quarter GDP estimate came in weaker than anticipated, adding to concerns about economic growth in the eurozone. Gold prices continue their upward momentum, with XAU/USD trading near $2,790, just shy of its all-time high. Macroeconomic pressures have weighed on the US dollar, fueling demand for the precious metal as it moves toward testing the $2,800 threshold.
  Watchlist: GOLD 2600-2800, US Oil: 71.80-79.60

Key Economic Events Today:

EST time

02:00 am: EUR German Prelim CPI
08:30 am: USD Core PCE Price Index
08:30 am: USD Employment Cost Index
08:30 am: USD FOMC Member Bowman Speaks
10:00 am: USD Chicago PMI

Earnings:

BMO (Before the US Market opens)

XOM       Exxon Mobile Corp.
CVX        Chevron Corp. 
ABBV     AbbVie Inc.
AON       AON plc.
PSX       Phillips 66

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

The TEFS Analyst team wishes you a successful day!