Good morning all,
Market Movers
Biggest Gainers & Losers
DJT – Trump Media & Technology Group ▲ 21.52% to $42.91
RGTI – Rigetti Computing Inc ▼ -32.25% to $6.05
CVS – CVS Health Corp ▲ 7.31% to $51.52
QBTS – D-Wave Quantum Inc ▼ -33.62% to $3.83
News Highlights
Focus on Today’s PPI Report (2:30 PM GMT)
The Producer Price Index (PPI) is expected to show a 0.3% increase for December, making it the key market event of the day.
Why It Matters:
Cooling Inflation: Producer prices have been easing, reflecting broader disinflation trends in 2024.
Food in Focus: Look for shifts like a 7.7% rise in egg prices or a 0.3% drop in dairy prices.
Looking Ahead: This report provides critical insights into inflation trends for 2025, with food prices expected to rise just 1.9%.
Market Impact: A surprise in the data could trigger significant moves in the U.S. dollar and broader markets.
Major Earnings Reports
JPMorgan Chase (JPM):Reports tomorrow, wrapping up its 2024 performance. Analysts forecast:
Revenue growth: +7.5%
Profit growth: +30%
Despite an anticipated dip in net interest income, CEO Jamie Dimon’s outlook on 2025 will be pivotal.
Goldman Sachs (GS):Also reporting tomorrow, Goldman is expected to post:
Revenue growth: +8.7%
Net interest income growth: +56%
Shares have gained nearly 50% year-to-date, with analysts seeing an additional 10% upside.
Tech Under Pressure
Nasdaq Declines for Fourth Straight Day
The tech-heavy Nasdaq extended its losing streak, while the S&P 500 and Dow posted gains. Europe’s Stoxx 600 fell 0.55%, as rising U.K. borrowing costs stoked fears of spending cuts or higher taxes.
Quantum Computing Stocks Slide
Quantum stocks plunged following comments from Meta CEO Mark Zuckerberg, who noted the technology is still far from practical use. Nvidia’s CEO echoed similar concerns, projecting 15–30 years before quantum computing becomes commercially viable.
Key Players Affected:
Rigetti Computing: ▼ -32.25%
D-Wave Quantum: ▼ -33.62%
Short interest in quantum stocks remains high at 18%, compared to the market average of 5%, making these stocks exceptionally volatile.
Movers & Shakers
Moderna (MRNA): ▼ -16.80% to $35.15
Cut its 2025 revenue forecast by $1 billion due to slowing vaccine demand. Shares have plummeted over 90% from their 2021 peak of nearly $450.
Abercrombie & Fitch (ANF): ▼ -15.66% to $135.72
Despite raising Q4 sales growth guidance to 7%-8%, shares fell as investors expected stronger surprises. Analysts view the drop as a potential buying opportunity.
Nvidia (NVDA): ▼ -1.97% to $133.23
Fell on reports of delays in deploying AI chip racks for data centres. Concerns over rollout timelines for cutting-edge technology pressured shares.
Palantir Technologies (PLTR): ▼ -3.39% to $64.98
Extended its losing streak to five sessions, down 21% in 11 days. However, it remains up 288% year-on-year, reflecting significant long-term growth.
What to Watch
Medicare Advantage Stocks Surge:Following Biden’s announcement of 2026 rate increases, UnitedHealth rose 3.9%, and Humana gained 6.8%, though both stocks remain well below their highs.
U.S. Steel M&A Activity:Cleveland-Cliffs and Nucor are reportedly eyeing bids for U.S. Steel after Nippon Steel’s $55/share offer was blocked. A revised offer is expected in the high $30s.
Food Sector Performance:Despite surging beef futures, companies like Campbell’s, Smucker, and General Mills have each dropped about 7% year-to-date. Even Lamb Weston, a leader in frozen potato products, has fallen 9% this year.
India’s Inflation:December inflation dropped to 5.22%, beating forecasts of 5.30%. This marks a second consecutive decline, giving the Reserve Bank of India leeway for potential rate cuts amid slowing economic growth.
Boeing (BA):Shares have rebounded 13% over the past three months but remain 23% below their January 2024 peak. Watch for December order data due Tuesday for further catalysts.
Takeaway
This week’s PPI data and major earnings reports will offer valuable insights into inflation and corporate performance trends for 2025. Keep an eye on market movers, as surprises in economic or corporate data could drive significant volatility.
#Markets #Earnings #Trading #Investing #Inflation #PPI #Banking #QuantumComputing #Nasdaq #Stocks #MarketAnalysis #Economy #FinancialNews
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