ADDX GO Market Morning Wrap - 12th Feb

Stock Market

Key Events

• Apple $AAPL & Alibaba $BABA: Apple and Alibaba will collaborate to develop AI features for iPhone users in China, aiming to boost sales amid declining performance in the region. Apple rose over 2%, while Alibaba gained more than 1% overnight.
• Super Micro Computer $SMCI: Shares surged over 8% post-market after the company reported Q2 net sales of $56B–$57B, in line with its previous guidance. Adjusted EPS is expected to be $0.58–$0.60, slightly below analysts' estimate of $0.64. Full-year net sales guidance was revised to $235B–$250B, down from $260B–$300B.
• Tesla $TSLA: Chief designer Franz von Holzhausen revealed on Jay Leno’s show that Tesla plans to launch Cybercab services in Austin, Texas, this June. While testing is underway, details on the scale of operations and expansion plans remain unclear.
• Intel $INTC: Shares surged over 6% as the Intel Core Ultra 9 275HX topped PassMark’s benchmark rankings, outperforming AMD Ryzen 9 7945HX3D. Reviewers praised its performance and improved battery efficiency.
• GDS Holdings $GDS: Shares soared over 17%, reaching the highest level since July 2022. Reports suggest GDS International (GDSI) is considering a U.S. IPO to raise approximately $500M, though the plans are still under review.
• Upstart $UPST: Shares skyrocketed nearly 26% post-market as Q4 revenue hit $219M, beating the estimated $182M, marking a 56% YoY growth. For Q1 2025, Upstart expects $200M in revenue, surpassing the $184.6M estimate, with full-year revenue guidance at $1B, exceeding the $823.1M consensus.
• Gilead Sciences $GILD: Q4 revenue reached $7.57B, exceeding the $7.13B estimate. Veklury sales came in at $337M (vs. $380.1M expected), while Trodelvy sales hit $355M (vs. $321.5M expected). The company forecasts 2025 adjusted EPS of $7.7–$8.1, above analysts' $7.54 projection. Shares jumped over 4% post-market.
• The Hong Kong General Chamber of Commerce proposed expanding the Cross-boundary Wealth Management Connect scheme and widening product availability. It also suggested lowering the eligibility threshold for “Southbound Connect” investors and exempting mainland investors from the 20% tax on Hong Kong stock purchases.

Forex

Key Events

• Federal Reserve Chair Jerome Powell reaffirming the Fed’s commitment to price stability and maximum employment, noting that while inflation has eased significantly, it remains slightly above the 2% target. U.S. economic growth continued at a solid pace in 2024, with GDP expanding by 2.5%, driven by resilient consumer spending. The labor market remains stable, with the unemployment rate at 4% in January. The Fed has lowered interest rates by one percentage point after holding them steady for 14 months but sees no urgency for further adjustments. Policymakers will assess economic data before deciding on future rate changes, ensuring a balanced approach to inflation and growth. The Fed’s policy review, expected by late summer, will refine its strategy while maintaining the 2% inflation target.

Cryptocurrency

Key Events

• Goldman Sachs significantly increased its holdings in the top two spot Bitcoin ETFs in Q4 2024, according to its latest 13F filing. As of Dec. 31, the bank held $1.27 billion in BlackRock’s iShares Bitcoin Trust ETF (IBIT), an 88% increase, and $288 million in Fidelity’s Wise Origin Bitcoin Fund (FBTC), a 105% jump. The bank also reported reducing or closing smaller Bitcoin ETF positions.