Oil Giants Report and PCE: The Fed’s Inflation Reading
Apple Earnings - A Mixed Quarter
Apple posted record revenue for its holiday quarter, but iPhone sales fell short of expectations by 3%, and revenue from China declined by 15%. With rising competition from Huawei, Apple faces a challenge in regaining market share. Could "Apple Intelligence" be its next breakthrough?
Why it Matters:
Apple’s stock had a rough start in 2025, down 11% year-to-date—its worst monthly performance since December 2022. However, investor sentiment shifted this week, pushing shares up 4%. Despite the decline in iPhone sales, the overall revenue beat estimates, with Apple shares rising 3% in after-hours trading. The company’s AI strategy could be its next major growth driver.
Apple’s Supply Chain Performance:
Top Performers: Jabil and Broadcom, up 31% and 22% in three months.
Underperformer: AMD, down 20% in the same period.Apple’s supply chain plays a crucial role in its stock movement, making supplier performance a key indicator for investors.
ECB Rate Cut: What’s Next for Europe?
The European Central Bank (ECB) cut interest rates to 2.75% in its fifth reduction since June. The eurozone economy stagnated last quarter, failing to meet even modest growth expectations.
Why it Matters:
Lower rates could boost spending and investment.
A weaker euro could drive investors towards the US dollar and British pound.
The US is considering new tariffs on European goods, which could offset any economic benefits of the rate cut.
Big Oil Earnings in Focus
Chevron, ExxonMobil, and Phillips 66 are set to release earnings. Investors are keen to see if energy giants can capitalize on rising oil prices, which have increased by 6% over the past three months.
Chevron: Up 5.6% in three months.
ExxonMobil & Phillips 66: Struggled despite strong crude demand.
Market Movers & Shakers
Atlassian (TEAM): Shares soared 20% post-earnings, with 30% YoY growth in subscription revenue. The stock is up 65% in three months.
Walgreens Boots Alliance (WBA): Dropped 9% after suspending dividends to focus on financial recovery. Investors reacted negatively to its turnaround strategy.
Intel (INTC): Shares rose nearly 4% after exceeding Q4 earnings expectations, though weak forward guidance raised concerns.
Visa (V): Reached an all-time high after beating earnings forecasts. The payments giant continues its dominance in digital transactions.
Coming Up Today
US PCE (Dec) - 2:30 PM GMT: Prices expected to rise 0.3% MoM and 2.6% YoY. Core PCE forecasted at +0.2% MoM. (Markets: USD crosses)
Chicago PMI (Jan) - 3:45 PM GMT: Expected at 37.2 (from 36.9). (Markets: USD crosses)
What to Watch
Silver Prices Surge: Demand for silver in tech, jewellery, and space industries is outpacing supply. Prices have hit a 12-year high in 2024, outperforming gold. With increasing scarcity, silver is gaining traction as both a safe-haven asset and a high-growth investment.
Samsung Earnings: Revenue jumped 12% YoY, but operating profit fell 30% QoQ due to rising R&D costs. AI-powered premium devices remain a growth driver, though semiconductor weakness continues to pressure margins. Shares fell 2.2%.
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