Stock Talk Weekly: Edition 8

Tristan Ramachandran

Feb 7, 2025

3 min read

Reviewing the Week of February 3rd - 7th

Major Market Events:

📉 Market Dips on Hawkish Fed Sentiment: The S&P 500 declined 1.8%, and the Nasdaq dropped 2.5%, as Fed Chair Jerome Powell stressed the importance of “sustained progress” on inflation before deciding to cut rates. The fear of high interest rates weighed heavily on growth stocks, causing a 4.62% hike in the 10-year Treasury yield.

📈 Gold Hits All-Time High: Investors transitioning to conservative strategies drove gold prices to new highs, some prices being over $2,100 per ounce. The uncertainty surrounding central bank policies and global economic concerns fuel the demand for gold. Major industry gold miners like Barrick Gold rose 5.2%.

💰 Bitcoin Surges Past $110,000: Major hedge funds entered the crypto space causing Bitcoin to soar 12.3% this week. Ethereum followed suit, jumping 9.7% as investors became optimistic about blockchain ETFs and the adoption of cryptocurrencies.

📊 Retail Sector Faces More Challenges: January retail sales declined 0.6%, missing investor expectations. The threat of inflation and high borrowing costs caused consumers to reduce their spending. One of the largest e-commerce companies, Shopify, fell 4.8% this week due to unusually low sales volume. On the other hand, Dollar General became popular this week, experiencing increased sales volume as consumers sought cheaper prices.

This Week's Winners:

🟢 Barrick Gold (GOLD): Barrick Gold climbed 5.2% as investor attention turned to precious metals. Barrick Gold may see further gains as demand increases and supply lessens.

🟢 Chipotle (CMG): A strong earnings report inflated CMG shares by 6.4%. Chipotle defied fears of economic slowdown–increasing product prices and expanding digital sales contributed to the earnings report results.

🟢 Palantir (PLTR): Palantir rose 8.1% following greater demand for its data analytics solutions. Palantir established a strong presence in government and AI sectors with their newly secured U.S. defense contract.

🟢 General Electric (GE): General Electric beat its expected earnings due to increased aerospace demand. Their shares lifted 7.9% following the good news. General Electric’s aviation division saw a record number of engine orders roll in due to unusual global travel activity.

🟢 Marriott International (MAR): Following the travel frenzies, MAR shares spiked 6.7%. Marriott International expanded its luxury hotel offerings to accommodate its record-breaking number of bookings. The increased travel volume is driving large quantities of sales revenue in Marriott's direction.

This Week's Losers:

🔴 NVIDIA (NVDA): NVDA shares declined 5.2% despite its dominance in the AI market. Analysts advise to remain cautious of short-term overvaluation. Additionally, investors exiting their positions in NVDA contributed to the decline.

🔴 Shopify (SHOP): Lessened consumer spending and tighter corporate budgets have dampened the e-commerce market. The weak retail data dropped Shopify shares by 4.8%.

🔴 Pfizer (PFE): An underwhelming revenue forecast dragged PFE stock down 5.6%. As COVID threats decline, the demand for treatments does too. Furthermore, the patent expiration is near and investors are becoming increasingly concerned about the future of Pfizer.

🔴 United Parcel Service (UPS): UPS shares tumbled 5.1% following weak guidance. The decreasing global shipping volumes and increasing labor costs harmed the company’s profitability.

🔴 Disney (DIS): Disney maintains its strong theme park performance, but the streaming services are underperforming–resulting in shares sinking 4.3%. Investor sentiment turns negative as Disney’s subscriber growth declines while competition increases.

Upcoming Events:

📅 Federal Reserve Speech (February 9th): Investors are tuned in and looking for signals on future rate decisions. They will analyze statements from multiple Fed officials and make educated guesses about future rates.

🎯 Big Tech Earnings Reports: Quarterly earnings report dates are set for technology industry leaders. Meta, Alphabet, and Amazon will offer insight into digital advertising trends, AI development, and cloud computing performance.

🎯 Oil Market Updates: Crude oil inventories and OPEC+ discussions remain the hot topic. The energy market is changing due to geopolitical tensions and potential production cuts.

Next Week's Watchlist:

⭐ Meta (META): Meta had a strong holiday ad season–investors are looking to the earnings report to help identify digital advertising/AI integration trends.

⭐ Tesla (TSLA): The update on Cybertruck deliveries and EV production will set the stage for investor confidence in the remainder of 2025.

⭐ Berkshire Hathaway (BRK.B): Warren Buffett’s company is set to release earnings. Many are eager to know cash holdings and major investments within their portfolios.

⭐ JP Morgan (JPM): Banking stocks under scrutiny as investors assess loan growth, interest rate impacts, and economic outlook.

⭐ Boeing (BA): Recent production delays and regulatory concerns regarding aircraft safety have drawn attention to Boeing stock.