
US EQUITY OPEN: Equities extend after the open as Trump's inauguration awaits
Analysis details (14:52)
OPEN: US indices (SPX +0.9%, NDX +1.4%, RUT+0.9%, DJIA +0.8%) opened in firmer territory with outperformance in the tech-heavy Nasdaq 100, with initial upside not driven by one singular headline. Futures have been buoyed throughout the EZ morning as yields narrowed across the curve, alongside general sentiment, and a rebound in AAPL after it was hit yesterday, with strength also seen in mega-cap names such as NVDA. In more recent trade, a bout of upside was seen on the remarks from Trump on his call with China's Xi. As mentioned, the calendar today has been thin, and is light ahead, as participants await Trump’s inauguration on Monday. Note, it is MLK Day. Sectors are exclusively in the green with mega caps (Tech, Consumer Discretionary, Communications) sitting atop of the pile after being the only ones to close in the red on Thursday. Elsewhere the Dollar is firmer with all G10 FX peers in the red with the JPY lagging. WTI and Brent are essentially flat and on USD 78/bbl and 81/bbl handles, respectively. Treasuries are mixed and curve flattening. Precious metals are lower are weighed on by the Dollar strength as spot silver underperforms its peer.
EARNINGS
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Truist Financial (TFC): EPS, revenue and NII beat; FY profit view topped. -
Citizens Financial (CFG): Q1 NII guidance light. -
SLB (SLB): EPS, revenue and adj. EBITDA surpassed expectations. -
Fastenal (FAST): Top and bottom line missed with higher-than-expected FY25 capex. -
State Street (STT): Q4 metrics largely beat but weak FY25 NII guidance. -
J.B Hunt (JBHT): Mixed results with disappointing operating income.
STOCK SPECIFICS
- Starboard Value acquired a 7.7% stake in Qorvo (QRVO), worth USD 500mln.
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General Motors (GM) settled with the FTC after allegations that it shared drivers’ location & behaviour data without consent. -
Western Digital (WDC) guided Q2 profit at lower end of guidance range. -
Vistra Corp (VST): A fire broke out at the battery facility on Vistra's Moss Landing power plant in Monterey County, California, with 40% of the building consumed as of late Thursday containing lithium-ion batteries. -
Intel (INTC) is an acquisition target, according to SemiAccurate citing sources. -
FIGS (FIGS) rejected Private Equity firm Story3 Capital Partners' offer to acquire the company, after last month's offer of USD 6/shr
BROKER MOVES
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Salesforce (CRM): Upgraded at TD Cowen; said its IT survey screened favourable for CRM, while its recent checks have been "highly constructive" on interest levels of Agentforce, seeing "several new growth levers emerging" in the model for 2025 and 2026. -
Spotify (SPOT): Downgraded at Wolfe Research arguing revenue forecasts look "full" following price hikes, marketing cuts, and developed markets beginning to saturate. -
Robinhood Market (HOOD) named top pick at Morgan Stanley.
17 Jan 2025 - 14:52- EquitiesResearch Sheet- Source: Newsquawk
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