In spite of the gains at the opening, major US indices trade in the red, moderating yesterday’s hikes inspired by the lack of pro-inflationary surprises in the CPI report. Nasdaq dipped the most (-0.4%), followers by DJIA (-0.2%), S&P500 (-0.1%) and Russell 2000 (-0.07%).
US jobless claims came in slightly higher than expected (217K vs est. 210K), rebounding for the first time since mid-December. Retail sales in December, on the other hand, fell 0.2% percentage point short of analysts' estimates (0.4% MoM vs est. 0.6%).
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Source: Volatility currently observed on Wall Street. Source: xStation5
US100 (D1)
Contracts for Nasdaq 100 index are trading flat after bullishly returning above 21400 from its local low yesterday. Although mixed performance of Magnificent 7 stocks prevents the tech heavy composite from a decisive comeback, the promising AI demand forecasts declared today by TSM might help fostering regained enthusiasm on Wall Street.
Source: xStation5
Corporate news:
- Bank of America (BAC.US) trades 0.9% down despite beating the estimates with its latest earnings report. BofA’s strong performance last quarter was mainly driven by an increased net interest income and investment-banking fees.
- Revenue: $25.35b (vs est. $25.16b)
- EPS: $0.82 (vs est. $0.77)
- Net interest income: $14.36b (vs est. $14.12b)
- Investment banking revenue: $1.65b (vs est. $1.47b)
- Meta (META.US) loses 0.7% following a report stating that Donald Trump considers delaying the TikTok ban by 60-90 days. Speculations about ByteDance selling TikTok to Elon Musk add more ambiguity about the future shape of the social media market, with hopes of user migration to Meta platforms diminishing significantly.
- Morgan Staneley (MS.US) adds 2% thanks to the estimate beat for Q4, as reported in today’s earrings report. The company exceeded the analysts forecasts in all key categories, with the equities and trading revenue turning 25% higher than previously expected.
- Rev. $16.2b (vs est. $16.06b)
- EPS $2.22 (vs est. $1.69)
- Equities sales & trading rev $3.33B (vs est. $2.63B)
- Net interest income $2.55B (vs est. $2B)
- Taiwan Semiconductor Manufacturing (TSM.US) shares hike 5.4% on the latest sales projections. The guidance encompasses revenue estimates of $25-$25.8 bn (6% higher than expected) and increased spending of $38-$42 bn (+19%) on technology due to higher AI hardware demand.
- United Health (UNH.US) shares are down 4.5% due to the weaker-than expected financials for Q4 2024, hindered primarily by high medical costs and poor performance of the insurance division.
- Adj EPS $6.81 (vs est. $6.71)
- Rev. $100.81b (vs est. $101.68b)
- Insurance revenue: $74.1b (vs est. $75.2b)
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