To The Moon

Wall Street continues to rise as earnings season heats up

🇺🇸 S&P 500 Index: +0.39% 📈

🇺🇸 Nasdaq: +0.19% 📈

🇪🇺 Stoxx 600 Index: +0.47% 📈

🇯🇵 Nikkei 225 Index: +0.09% 📈

🇭🇰 Hang Seng Index: -0.93% 📉

🇨🇳 CSI 300 Index: -0.58% 📉

🇸🇬 Straits Times Index: -0.20% 📉

Market Updates

US stock markets closed higher, with the S&P 500 up 0.4% and the Nasdaq Composite up 0.2%, driven by strong performance in the tech sector and expectations of future Federal Reserve rate cuts.

US service sector activity unexpectedly slowed, with the ISM Non-Manufacturing PMI falling from 54.1 in December to 52.8, indicating cooling demand and easing price pressures.

In January 2025, US private-sector businesses added 183,000 new jobs, while December's job numbers were revised up to 176,000, exceeding expectations of 148,000.

The eurozone's service sector saw moderate growth in January, with the final services PMI at 51.3, slightly below December's 51.4 and expectations. This helped offset the decline in manufacturing and stabilize overall business activity in the eurozone.

Asia-Pacific stock markets declined, with the Hang Seng Index down -0.9% and the CSI 300 Index down -0.6%, as investors assessed ongoing trade tensions with the US. Meanwhile, tech stocks performed well, driven by strong investor enthusiasm for the domestic AI sector.

In January, China's Caixin Services PMI fell from 52.2 to 51.0, missing expectations but remaining in expansion territory. Service sector growth slowed due to the Lunar New Year holiday, as some restaurants temporarily closed and sent employees home.

💡 Key Announcements:

On Thursday, the US will release unemployment claims data.

On Friday, the US unemployment rate will be published.

Things to Know Today

1. Former US President Donald Trump announced plans for the US to take control of Gaza and redevelop it into the "Riviera of the Middle East" after resettling Palestinians. The proposal has been strongly condemned by regional powers, including Saudi Arabia, and has raised widespread questions about the future US role in the Israeli-Palestinian conflict.

Riviera of Middle East

2. China's antitrust regulators are preparing to investigate Apple's $Apple(AAPL)$  App Store policies, targeting its 30% commission on in-app purchases and restrictions on external payment methods. This comes amid escalating US-China trade tensions following recent US tariffs and retaliatory measures by China against American companies.

Antitrust probe of Apple App Store

3. Qualcomm $Qualcomm(QCOM)$ reported first-quarter revenue of $11.67 billion, driven by demand for AI-enhanced smartphones. However, investors are concerned that revenue may remain flat due to the expiration of its patent licensing agreement with Huawei.

Qualcomm

4. Walt Disney's $Walt Disney(DIS)$  fourth-quarter earnings per share surged 44% to $1.76, boosted by the box office success of Moana 2, a 31% increase in operating income to $5.1 billion, and rising streaming profits. However, early signs indicate potential subscriber losses for Disney+.

Walt Disney

5. Nissan has canceled merger talks with Honda due to deepening disagreements, particularly over Honda's proposal to turn Nissan into a subsidiary. The potential $60 billion+ deal was expected to make the two companies the world's third-largest automaker. Its termination has raised concerns about Nissan's ability to pursue recovery independently.

Nissan - Honda merger

✅ Key Takeaway:

Uncertainty is rising, as both the US and China have made their positions clear, but it remains unclear whether a full-blown trade war has begun or when it might escalate.

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