To The Moon

Friday's Session

On Friday, stock markets closed nearly flat, marking the start of the earnings season with mixed reports from major banks. $JPMorgan Chase(JPM)$ missed expectations, while Bank of America and Citigroup exceeded them. Shares of JPMorgan, Bank of America, and Wells Fargo declined, while Citigroup's rose. Delta Air Lines reported solid Q4 results but gave a gloomy outlook for the year, resulting in significant declines in airline stocks. In the technology sector, Microsoft officially surpassed Apple as the world's largest company by market value.

The Dow Jones Industrial Average, $NASDAQ(.IXIC)$ , and  $S&P 500(.SPX)$  were each changed less than 0.1% on the day.

Week Key Events

Throughout the week, several events influenced the markets:

• Inflation data: Initial concerns about slightly higher-than-expected inflation in December, but markets rebounded.

December inflation data was Thursday's highlight. The headline Consumer Price Index increased by 0.3% last month, a tenth of a point more than expected. The core CPI, which excludes food and energy components, also rose 0.3% in December. That stretched their year-over-year increases to 3.4% and 3.9%, respectively, both faster than in the 12 months through November. 

CPI

• Earnings Reports: Mixed results from major banks, with disappointments from JPMorgan and strong performances from Bank of America and Citigroup. $Delta Air Lines(DAL)$ reported strong results but a cautious outlook for the year.

• Changes in the Technology Sector: $Microsoft(MSFT)$

  surpassed $Apple(AAPL)$ as the world's largest company.

AAPL vs MSFT

• Oil Market:

  Oil prices were influenced by tensions in the Red Sea, Saudi Arabia's price adjustments, and upward revisions in U.S. production.

Market scenario

Investors sought clues about the timing of rate cuts, with Wall Street rising, led by technology stocks.

Rate Cut

Currently, the market is characterized by uncertainty surrounding Apple's growth and mixed bank results. Investors are increasingly interested in Microsoft due to its artificial intelligence-related prospects. Airlines experienced significant losses due to bleak outlooks, while the technology sector, though relatively stable, saw a significant shift with Microsoft surpassing Apple in market capitalization.

Looking ahead, attention turns to upcoming earnings reports, particularly from Apple and Microsoft, to assess the evolving competition between the two tech giants. Concerns persist about oil price fluctuations, influenced by geopolitical tensions and global supply and demand dynamics. Investors remain attentive to signals of rate reductions, especially after slightly elevated inflation data.

• In conclusion, the week featured mixed results, significant shifts in the technology sector, and ongoing concerns about inflation and economic outlook. Investors remain cautious, seeking clues to navigate through a constantly evolving financial environment.

The market outlook is subject to change based on evolving economic indicators and geopolitical developments.

Disclaimer: The information provided in this summary is for informational purposes only and does not constitute financial advice. Investment decisions should be made after thorough analysis and considering individual financial situations. Financial markets can be volatile, and past performance does not guarantee future results.

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