US Market Rally to ASML, META, MSFT & TSLA ?
I think every investor secretly heaved a sigh of relief on Tue, 28 Jan 2025 with technology stocks rebounding and recovering their footing one day after China’s DeepSeek triggered a bruising selloff of stocks tied to artificial intelligence (AI).
By the time 4pm came around: (see above)
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DJIA : +0.31% (+136.77 to 44,850.35).
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S&P 500 : +0.92% (+55.42 to 6,067.70).
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Nasdaq : +2.03% (+391.75 to 19,733.59)
Some of the tech stocks that pummeled on Monday posted solid gains on Tuesday.
However, it is not enough to make up for the earlier session’s massive losses.
Case in point.
AI chip leader $NVIDIA(NVDA)$ manage to surge +8.9%, one day after it tumbled a “huge” -17%, wiping out more than half a trillion dollars in market cap. (see above)
Another example is database giant $Oracle(ORCL)$, another casualty of Monday’s rout. It gained +3.6% on Tuesday, after falling a massive -13.79%, a day earlier. (see above)
The Big Question.
Is Tuesday’s rally a sign of better things to come for US market this mid-week ? (see below)
Looking at US market’s future index, it looks like there’s going to be:
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A mild correction for the Dow.
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Continual marginal gains for both S&P 500 and Nasdaq.
However, statistically:
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Declining issues outnumbered advancers by a 1.13-to-1 ratio on the NYSE. There were 165 new highs and 46 new lows on the NYSE.
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On the Nasdaq, 2,188 stocks rose and 2,216 fell as declining issues outnumbered advancers by a 1.01-to-1 ratio.
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On NYSE, volume in “declining” stocks represents 51.5% of total volume.
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For Nasdaq, advancing volume is 65.8% of total volume, suggesting only the largest & most active stocks are the ones trading higher.
US Market’s catalysts:
If there is / are any catalyst/s that will sway US market on Wed, 29 Jan 2025, it should be these activities:
(1) FOMC meeting outcome.
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Market is expecting existing interest rate (4.25% to 4.5^%) to remain unchanged. If the Fed decides to trim interest by -0.25%, it might just send market rally through the roof.
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However, it is what Mr Powell has to say in the afternoon press conference that most will be interested to hear what the direction is, the Fed is heading towards.
(2) US Titans’ quarterly earnings.
The following bigwigs will be releasing their earnings either before market starts will have a steering effect on itself and the composite index it falls under.
(a) $ASML Holding NV(ASML)$. (am) The chip-making machine maker has handed in a stellar report. That should see its price rising when trading resumes.
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Earnings per share (EPS) : $7.13 vs expected $7.01.
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Net sales: $9.64 billion vs $9.44 billion expected.
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Net profit: 2.69 billion euros versus 2.64 billion euros expected.
However, net bookings for the full year 2024 fell to €18.9 billion, a decrease of -5.5% from 2023’s €20 billion.
(b) $Meta Platforms, Inc.(META)$. (pm)
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Earnings per share (EPS): Analysts predict an EPS of $6.75.
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Revenue: The expected revenue is around $47 billion.
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Net Income: The forecasted net income is approximately $23.3 billion.
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The projections follow a recent rise in Meta's stock price, which closed at $674.33 per share on Tue, 28 Jan 2025. CEO Mark Zuckerberg has outlined ambitious plans for AI development in 2025, including the Llama 4 model and a significant investment in AI infrastructure
(c) $Microsoft(MSFT)$. (pm)
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Earnings per share (EPS): Analysts expect an EPS of $3.132.
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Revenue: The expected revenue is around $68.87 billion.
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Net Income: The forecasted net income is approximately $23.36 billion.
These projections reflect a YoY growth in revenue, particularly within Microsoft's Intelligent Cloud segment.
Market will be closely watching MSFT's performance, especially in light of its possibility of acquiring TikTok US as mentioned by Trump. (see above)
(d) Tesla Motors (TSLA)$. (pm) I have a separate post on Tesla, click here! for details, Repost to share & Like to encourage ok. Thanks.
This Wednesday is so full of possibilities, I cannot wait to watch it unfold with hope that it will be another day of rally (of course!)
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Do you think the Fed will hold interest rate unchanged ?
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Do you think META, MSFT and TSLA will hand in stellar earnings reports and superchargeUS market for Thursday’s rally?
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