Market Updates: AAL Earnings, Dry January Trends, and AI Boom
Hello traders! 👋 With markets back in focus, today brings earnings, sector trends, and the latest on AI’s impact on tech and semiconductor stocks. Let’s dive in.
Dry January Weighs on Alcohol Stocks
Alcohol stocks are under pressure as Dry January trends gain traction. Key movers include:
Brown Forman: Down 2.3% on Wednesday, with a year-to-date drop of 13%.
Constellation Brands: Fell 2.25%.
Boston Beer (-1.3%) and Diageo (-1.7%) also struggled.
What is Dry January? Initiated in 2013 by Alcohol Change UK, Dry January encourages participants to take a month-long break from alcohol for health and mindfulness. This trend has gained global popularity, with millions participating annually.
Impact on alcohol stocks:
The combination of shifting consumer preferences and short-term demand drops tied to Dry January continues to challenge growth in the alcohol sector.
AAL Earnings on the Radar
American Airlines (AAL) is set to release its Q4 earnings on 23rd January, with expectations of:
EPS: $0.39.
Revenue: $13.12 billion.
Key insights:
Q3 EPS was $0.30, exceeding estimates by $0.14.
Revenue grew 1.2% year-over-year to $13.65 billion.
Analysts project FY25 EPS of $2.
AAL shares currently trade at $18.64, nearing the top of their 12-month range ($9.07–$18.65). Investors will watch closely for guidance and insights into the airline’s capacity and profitability in a challenging travel market.
Stargate AI Venture Fuels Tech Rally
President Trump’s unveiling of the $500 billion Stargate AI initiative sparked excitement across the tech sector. The project, involving OpenAI, Oracle, and SoftBank, aims to bolster U.S. AI infrastructure.
Market impact:
Oracle: Shares rose 6%.
Nvidia: Gained 4%, buoyed by its AI dominance.
Arm Holdings: Surged nearly 16%, marking its strongest day in a year.
VanEck Semiconductor ETF: Climbed to its highest level since July, reflecting investor confidence in AI-driven growth.
Movers & Shakers
S&P 500: The index touched an intraday high of 6,100 on Wednesday, its first record since December, before closing at 6,086. Tech stocks led the gains, with Netflix soaring 9.7% on strong subscriber growth.
Apple (AAPL): Edged up 0.53% to $223.83 but has shed $550 billion in market cap since December, reflecting investor caution over weak iPhone sales and limited AI growth.
Adidas (ADS.DE): Jumped 6.09% on strong Q4 results, with sales up 24%. Full-year revenue rose 11% to €23.7 billion, excluding Yeezy sales.
Coming Up Today
US Jobless Claims (Jan 18):
Release: 2:30 PM GMT.
Previous: 217K. Watch for movements in USD pairs.
Eurozone Consumer Confidence (Jan):
Release: 4:00 PM GMT.
Previous: -14.5. Focus on EUR pairs.
US Crude Oil Inventories (Jan 17):
Release: 5:00 PM GMT.
Last: -1.9M barrels. Impacts Brent and WTI prices.
Japan CPI (Dec):
Release: 12:30 AM GMT.
Expected: +2.6% YoY (prior: +2.9%). Impacts JPY pairs.
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