BY TYLER DURDEN
TUESDAY, JAN 07, 2025 – 08:29 AM
US equity futures are up small this morning as yields continue to rise (SPX +17bps; NDX +5bps; US 10 year yield higher at 4.64%). As a reminder equities typically struggle when rates rise by 2 standard deviations in a given month, which in today’s terms is ~60bps. Stocks remain wobbly after yesterday’s performance which saw big tech \the standout, vs the Dow and S&P equal weight down on the day. Nvidia rose 1.9% in premarket trading to a new record high after CEO Jensen Huang announced a raft of new chips, software and services. Uber also gained on news about a collaboration with Nvidia for autonomous driving technology. Overnight, Europe is broadly higher with Eurozone inflation coming in line with forecasts, though ECB survey shows consumer inflation expectations picked up. Asia closed mixed (Shanghai +71bps/Hang Seng -1.22%/Nikkei +1.97%) with Japan leading the way driven by tech strength (Tokyo Electron +11%). The yen weakened to a 6-month low in the morning before verbal intervention from Finance Minister Kato. The macro focus for today will be Richmond Fed President Barkin (voter) speaks (8am est), JOLTS (10am est, GS 7,750k, consensus 7,745k, last 7,744k), ISM Services Index (10am, GS 53.5, consensus 53.5, last 52.1), & Treasury selling $39B of 10-year notes.
In premarket trading, mag 7 names are mixed: Apple (AAPL) -1%, Nvidia (NVDA) +2%, Microsoft (MSFT) +0.3%, Alphabet (GOOGL) -0.2%, Amazon (AMZN) is flat, Meta Platforms (META) -0.7% and Tesla (TSLA) -1%. Nvidia rises 2% after CEO Huang announced a raft of new chips, software and services, aiming to stay at the forefront of artificial intelligence computing. Apple dropped 1% as MoffettNathanson downgrades the iPhone maker, citing high valuation, antitrust overhang and weakening position in China. Tesla (TSLA) slips 1% after BofA stepped away from its bullish rating, citing valuation and execution risks. Here are some other notable premarket movers:
- Arbe Robotics jumps 11% after the robotics systems maker announced a collaboration with Nvidia to enhance radar-based free space mapping.
- Aurora Innovation soars 43% as the self-driving technology company partners with Continental and Nvidia to deploy driverless trucks at scale.
- Micron rises 3% after Nvidia CEO Jensen Huang said the company is providing memory chips for its new GPUs.
- Moderna gains 3%, along with other vaccine developers, as seasonal flu cases across the country continue to increase.
- Uber rises 2% after the ride-hailing company said it’s teaming up with Nvidia in order to accelerate the development of autonomous driving technology.
European stocks gained after money markets shrugged off an uptick in regional inflation and kept expectations for European Central Bank interest-rate cuts steady. The Stoxx 600 rose 0.2%, clawing back earlier losses of as much as 0.4% led by gains in financial services, retail and real estate. Data showed euro-area consumer prices rose 2.4% from a year ago in December, up from 2.2% in November and matching the median estimate in a Bloomberg poll. The increase was largely driven by energy costs, which climbed for the first time since July, Eurostat said. Swaps pricing points to just over 100 basis points of ECB easing by year-end. Here are the biggest movers Tuesday:
- European retail stocks outperform on Tuesday after UK clothing seller Next boosted its profit forecast, driven by a strong showing from its international online business
- Kion shares rose as much as 10% in Frankfurt trading after the company said it’s working with Accenture to optimize supply chains using Nvidia’s AI and simulation technologies
- BE Semiconductor shares rise as much as 5.4% to the highest since July after UBS raises its recommendation to buy from neutral, saying 2025 could mark the turning point for the company, with demand for mainstream chip packaging equipment recovering
- Boliden gains as much as 4.1% after UBS raised the stock to neutral from sell, seeing a more balanced risk/reward ratio after the acquisition of Lundin Mining’s operations in Nerves-Corvo in Portugal and Zinkgruvan in Sweden
- Next shares advance as much as 4.3%, after the UK clothing retailer boosted its full-year earnings forecast. Sales to date are ahead of previous guidance, driven by the strength of international online operations, RBC analysts said
- Deutsche Lufthansa shares rally as much as 2.4% after Citi double upgraded the airline to buy. Analysts say 2024 was likely a trough year for the German flagship airline and see potential for capacity growth and greater productivity
- Sodexo drops as much as 9.5%, the most since late September, after delivering a first-quarter performance below analyst expectations. The French catering company maintained its organic growth target for the full year
- Alstom falls as much as 6.1%, after Goldman Sachs downgraded the French rolling-stock manufacturer to sell from neutral, projecting the company’s 94% surge in 2024 will be “difficulty to sustain”
- Pennon slides as much as 5.1%, the most in over five months, after Deutsche Bank downgrades to give the water company its only sell recommendation, citing the likelihood of a large equity raise
- Sika declines drop as much as 2.3% after Barclays downgrades the building materials company by two notches to underweight from overweight and slashes its price target to CHF215 from CHF330
Please read more at the below link
https://www.zerohedge.com/markets/us-futures-rise-nvda-new-all-time-high