Stock Talk Weekly: Edition 5
Updated: Jan 10, 2025
Reviewing the Week of December 30th - January 5th
Major Market Events:
📉 Dow Drops Amid Rate Worries: The first week of the new year ends with Dow Jones down 1.8% from Federal Reserve commentary. As the spotlight shifts towards inflation, the market expects increased rates. Growth stocks sustained the most damage, especially with the underperformance of technology-dominant indexes.
💰 Bitcoin Holds Steady at $100,000: Bitcoin went through several phases of volatility throughout 2024 and rang in the new year with relatively calm movement. Bitcoin started 2025 on a relatively stable note. As regulatory concerns grow, investors have become less enthusiastic about cryptocurrency. However, blockchain developments have kept the cryptocurrency market afloat.
📈 December Jobs Report Surprises: An increase of 200,000 jobs was expected in December and payroll data exceeded expectations with an increase of 280,000 jobs. As a result, the unemployment rate decreased to 3.6%. Payroll data returned the optimism surrounding the labor market but brought new concerns about inflation caused by increased wages.
This Week's Winners:
🟢 NVIDIA (NVDA): Increased demand for AI-related GPUs caused a 9.3% jump in NVIDIA stock. Partnering with a significant cloud provider confirms NVIDIA's dominance in the AI hardware field.
🟢 General Electric (GE): Announcing a spinoff of its energy division sent GE shares on a 7.1% hike. This move excited investors and sparked the idea of GE taking on a greater position in the renewable energy sector.
🟢 Meta Platforms (META): Meta announced its plan to provide monetization tools for creators using its Instagram and Facebook platforms. Additionally, the analysts are intrigued by Meta’s focus on augmented reality and advertising growth. The new monetization tools, coupled with a strong focus on AR, inspired a 5.8% rise in share value.
🟢 Delta Airlines (DAL): Delta stock spiked 6.7% due to this holiday’s strong travel demand, improved customer experience, and greater operational efficiency.
🟢 Procter & Gamble (PG): To combat inflationary pressures, PG reduced prices on many consumer goods. These accommodations to the changing market boosted investor confidence and proved PG's ability to adapt, driving its share price up 4.5%.
This Week's Losers:
🔴 Tesla (TSLA): Tesla announced underwhelming Q4 delivery results and the stock value took a 6.2% dive. Many are concerned by the pace of Cybertruck production, leaving customers waiting extended periods to receive their orders. Additionally, EV tax credit incentives are declining, directly impacting Tesla's revenue as it’s a critical consideration for customers purchasing their vehicles.
🔴 Rivian (RIVN): Increased competition in the EV market coupled with ongoing production challenges dropped Rivian shares 5.5%. Analysts downgraded RIVN stock over concerns about its ability to execute plans.
🔴 Moderna (MRNA): MRNA share value dipped 4.9% as the previous week’s trial results failed to meet expectations. Investors proceed with caution as MRNA's longevity beyond COVID-19 remains doubtful.
🔴 Coinbase (COIN): The growing popularity of cryptocurrency encouraged greater activity on dominant trading platforms like Coinbase, which also raised regulatory concerns. COIN stock lost 4.7% over scrutiny for staking cryptocurrency and analysts’ skeptical sentiment about long-term profitability.
🔴 Apple Inc. (AAPL): Apple’s strong product sales weren’t enough to prevent the 3.4% loss in share value from ongoing supply chain conflicts in China. Analysts shifted their focus to Apple, eager to see the impact on Q1 earnings.
Upcoming Events:
📅 Inflation Data: The December CPI statistics will be released on January 12th–a 0.3% monthly increase is expected. Investors are tuning in, searching for hints that inflation could begin trending in a positive direction.
🎯 Big Bank Earnings: Leaders in the banking industry, JPMorgan and Citigroup, are scheduled to announce earnings in the coming week. Analysts are eager to see the impact of increasing rates on credit demand and trading revenues.
🎯 Technology Sector Updates: CES 2025 is the world’s most influential technology event–held in Las Vegas from January 7 to 10, 2025. The event provides companies like AMD, Samsung, Sony, etc. a chance to showcase their latest products and excite investors about what’s to come in Q1.
📊 Oil Market Focus: The upcoming OPEC meeting will hint towards production changes considering the ongoing stabilization of oil prices. Energy investors are intrigued, paying close attention to the movement in supply and demand data.
Next Week's Watchlist:
⭐ Microsoft (MSFT): As investors wait for the latest updates on Azure performance, the focus has shifted to Microsoft’s cloud growth and AI developments.
⭐ Amazon (AMZN): Investors are awaiting the release of holiday sales data, eager to determine the significance of e-commerce and identify trends in AWS growth.
⭐ Chevron (CVX): The stabilizing oil prices draw attention to Chevron, making updates on operations and forecasts for production newsworthy information.
⭐ Bank of America (BAC): As earnings season kicks off, investors will look out for Bank of America’s numbers–specifically, the data surrounding net interest income and loan growth.
⭐ Netflix (NFLX): Statistics from Netflix’s ad-supported subscription models are expected to hint towards their strategies for the upcoming year.
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