Apple, IBM, Trump, and Tesla in Focus!
Apple’s Earnings: Strong iPhone Sales, Modest GrowthTrump Media Surges on Crypto & ETF ExpansionTesla Rallies as Musk Teases AI AdvancementsIBM Beats Estimates, AI Revenue SkyrocketsFederal Reserve Holds Rates, Inflation Worries Linger
Market Movers
NAAS – NaaS Technology Inc ▲ 16.67% | $1.68
DJT – Trump Media & Technology Group ▲ 6.76% | $32.07
DB – Deutsche Bank ▲ 0% | $20.11
IBM – International Business Machines Corp. ▲ 1.32% | $228.63
News Highlights
The Fed Holds Rates Steady
As widely expected, the Federal Reserve left interest rates unchanged at 4.25%-4.5%, pausing after three consecutive cuts. However, the Fed removed language that suggested inflation was nearing its 2% target, signalling ongoing concerns. The strong labour market contrasts with persistent inflation, leaving investors debating when the next cut will happen.
💡 Market Reaction: Investors now anticipate the first rate cut in June 2025, with only two reductions expected for the year. Stocks initially dipped as traders adjusted to the Fed’s cautious stance. Meanwhile, Trump has openly demanded immediate rate cuts, setting up further tensions between the White House and the central bank.
Apple’s Earnings – Key Takeaways
Apple’s December quarter is typically its best for iPhone sales, but analysts predict flat year-over-year growth despite strong sequential sales of the iPhone 16. The company’s services sector remains its second-largest revenue driver, showing steady double-digit expansion. Additionally, Apple’s gross margins have increased due to vertical integration and rising services revenue. Watch for the latest financial results after the market close today.
Visa & Mastercard Earnings Preview
Visa and Mastercard are set to report Q4 earnings on Jan. 30. Analysts expect double-digit EPS growth, with Mastercard projected to report $3.69 EPS on $7.38B revenue (+16% YoY), while Visa is expected to post $2.66 EPS on $9.34B revenue (+10.4% YoY). Both companies have a strong history of beating estimates, with analysts maintaining bullish outlooks.
Intel’s Struggles Continue – Q4 Preview
Intel’s Q4 earnings are set for release after market close today. Despite cost-cutting efforts and a Q3 revenue beat, the stock remains down 55% year-over-year. Q4 revenue is expected to be between $13.3B and $14.3B, but leadership uncertainty following CEO Pat Gelsinger’s exit and acquisition rumours continue to weigh on sentiment.
ECB Rate Decision – What’s Expected?
The European Central Bank (ECB) meets on Jan. 30, with markets anticipating a 25bps rate cut, lowering the deposit rate to 2.75%. While inflation has cooled, core inflation remains stubbornly high, adding uncertainty. EUR/USD has already declined in anticipation, and volatility is expected around the decision. Traders will be watching closely for hints on future cuts.
Movers & Shakers
Deutsche Bank (DB) | $20.11
Deutsche Bank reported a larger-than-expected drop in Q4 profits, scrapping its cost-cutting target. The financial shortfall has raised concerns about the bank’s profitability and expense management, impacting its long-term outlook.
Trump Media (DJT) | $32.07 ▲ 6.76%
Trump Media surged after unveiling Truth.Fi, a new crypto & ETF-focused financial services division targeting “Patriot Economy investments.” Trump’s 114.75 million shares in the company further cement his involvement, positioning the venture as a potential competitor to Musk’s expanding financial ecosystem.
Tesla (TSLA) | $389.10 ▼ 2.26%
Tesla shares jumped 4% after hours despite missing revenue and earnings estimates. CEO Elon Musk teased a full self-driving (FSD) rollout in June, calling 2025 a pivotal year for Tesla’s AI development. Investors remain bullish, with Tesla shares up 55% since Trump’s election victory.
IBM (IBM.EXT) | $247.85 ▼ 0.15%
IBM reported better-than-expected Q4 earnings, with $3.92 EPS on $17.55B revenue, beating forecasts. The company’s generative AI division saw a $2 billion revenue boost quarter-over-quarter, reinforcing IBM’s position in the AI and cloud computing space.
Meta (META.EXT) | $686.97 ▼ 0.15%
Meta shares rose 5% following a Q4 earnings beat, reporting $8.02 EPS on $48.39B revenue. Additionally, reports surfaced that Trump agreed to a $25 million settlement related to a 2021 lawsuit. Investors remain optimistic about Meta’s AI and advertising-driven growth.
Key Events Today
📊 11 AM GMT – Eurozone GDP (Q4, flash): Growth expected to slow to 0.3% QoQ (from 0.4%) but rise to 1.2% YoY (from 0.9%).
📉 2:15 PM GMT – ECB Rate Decision: Expected cut to 2.9% (from 3.15%).
📊 2:30 PM GMT – US GDP (Q4) & Jobless Claims: GDP forecast at 3.1% (from 3%), jobless claims to rise to 228K (from 223K).
What to Watch
Microsoft shares dipped 2%, despite surpassing earnings expectations. Azure cloud revenue grew 31%, slightly below forecasts of 31.1%, raising concerns about slowing momentum in Microsoft’s core business segment.
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