ADDX Go Market Morning Wrap - 29th Jan
Stock Market
The S&P 500 closed up 55.42 points, or 0.92%, at 6067.70. The Dow Jones Industrial Average, which is closely related to the economic cycle, closed up 136.77 points, or 0.31%, at 44850.35. The Nasdaq, which is dominated by technology stocks, closed up 391.75 points, or 2.03%, at 19733.59. The Nasdaq 100 closed up 1.6%. The Nasdaq Technology Market Capitalization Weighted Index (NDXTMC), which measures the performance of the Nasdaq 100 technology industry components, closed up 2.8%. The Russell 2000 small-cap index, which is more sensitive to the economic cycle, closed up 0.2%. The VIX index fell more than 8% to 16.41.
$NVDA , which plunged 17% yesterday, rose more than 8.9%, and $AAPL rose 3.65%, rebounding for the second consecutive trading day; $MSFT rose 2.91%, $META Platforms rose 2.19%, $GOOGL , which announced the open source Pebble smartwatch operating system, rose 1.82%, $AMZN rose 1.16%, and $TSLA rose 0.24%.
Key Events
- $SBUX Starbucks' sales decline in the fourth quarter was not as prominent as the market feared, and its stock price rose by about 4% after the market closed
- $BA Boeing rose 7.6% and closed up 1.5%. Its fourth-quarter loss per share was worse than expected, and its revenue was not good, but the CEO said that Boeing's 737 production efficiency had made "significant" progress and that more than 30 737 aircraft would be delivered in January
- $GM General Motors fell nearly 9%. Both its fourth-quarter report and performance guidance were higher than expected, but investors were worried about the Trump administration's tariff threats
- $LMT Lockheed Martin, a military stock, fell more than 9%, and its net sales in the fourth quarter were lower than expected.
- $JBLU JetBlue, a low-cost airline in the United States, fell nearly 26%. Its fourth-quarter loss per share was better than expected, but its performance guidance was disappointing
- $QRVO (Qorvo Semiconductor), a major global supplier of power amplifiers and filters in the Apple supply chain, reported third-quarter results and revenue outlook that exceeded expectations, with its stock price rising 13% after the market closed.
- Among the popular Chinese stocks, $BABA Alibaba rose 6.7% and Tencent ADR rose nearly 3%.
- LVMH Group, the parent company of Louis Vuitton, did not have as bad sales in 2024 as the market feared, with unexpected organic growth. Its ADR stock fell more than 8% in the intraday trading, but the decline was halved
Forex
Trump's tariff threat rekindled and lifted the dollar. The dollar index once rose above 108. Non-US currencies generally fell. The yen fell to 156. The offshore RMB once fell below 7.28 yuan. The euro fell to 1.04 against the US dollar, the pound fell to 1.24 against the US dollar, the Canadian dollar continued to fall slightly, and the Mexican peso rebounded by about 0.8%
Cryptocurrency
$BTC , the largest cryptocurrency by market value, rose by more than 3%, once surpassing the $103,000 mark, but fell below $101,000 in late trading.
The main contract of CME $ETH futures DCR was quoted at $3,054.00, down 3.54% from Monday.
Treasury
Waiting for the Fed's decision on Wednesday, risk aversion has receded, and European and American bond yields have rebounded. Long-term bond yields have risen more, and U.S. bond yields have fallen from a low of more than a month. However, the gains narrowed significantly at the end of the trading day
Key Events
- JPMorgan Chase's U.S. Treasury bond clients' net long position reached its highest level since October 2010. JPMorgan Chase believes that the trillion-dollar stock market value evaporation caused by DeepSeek on Monday has little impact on the bond market, but concerns about a general increase in volatility may have a negative impact on credit spreads. As inflation cools, Morgan Stanley recommends going long on U.S. Treasuries, betting that they will outperform inflation-protected bonds.
Gold
The uncertainty of Trump's tariff policy has re-boosted the safe-haven demand for gold. On Tuesday, despite the rise of the US dollar and US bond yields, spot gold continued to rise and stood above $2,760.
Market Events and Most Anticipated Earnings Releases
