To The Moon

Wall Street rose slightly on strong corporate earnings, and improved market sentiment lifted Chinese stocks.

📈 Major Index Performance:

🇺🇸 S&P 500: +0.36%

🇺🇸 Nasdaq: +0.51%

🇪🇺 Stoxx 600: +1.17%

🇯🇵 Nikkei 225: +0.61%

🇭🇰 Hang Seng Index: +1.43%

🇨🇳 CSI 300: +1.26%

🇸🇬 Straits Times Index: +0.44%

Market Highlights

U.S. stock markets closed higher, with the S&P 500 up 0.4% and Nasdaq Composite up 0.5%. Gains were driven by strong earnings reports from companies like Philip Morris and Ralph Lauren, while bank stocks rose after the Federal Reserve's stress test suggested milder economic shocks.

U.S. initial jobless claims for the week ending February 1 increased by 11,000 to 219,000, slightly above market expectations of 214,000, indicating a mild slowdown in the labor market. Despite layoffs remaining low, the ratio of job openings per unemployed person fell from 1.15 in November to 1.1 in December.

Asia-Pacific markets closed higher, with the Hang Seng Index soaring 1.4% and the CSI 300 gaining 1.3%, as investors grew optimistic about potential progress in U.S.-China trade negotiations, particularly after China strengthened its stance following initial tariff hikes under the Trump administration.

Upcoming Events

📌 Friday: U.S. unemployment rate report

Key Things to Know Today

1. Amazon $Amazon.com(AMZN)$ reported Q4 revenue of $149.2 billion, exceeding expectations. However, its cloud computing division, AWS, slightly missed forecasts at $28.79 billion, and a weaker-than-expected Q1 revenue outlook of $151-155 billion led to a 5% drop in after-hours trading.

Amazon

2. The Bank of England cut interest rates by 0.25% to 4.5%, citing weakened business and consumer confidence and lowering its growth forecast by 0.75%. Concerns over Chancellor Rachel Reeves' employer tax hike, a potential U.S.-led trade war, and rising costs have left the U.K. economy stagnant since mid-2024.

Bank of England

3. Eli Lilly $Eli Lilly(LLY)$ , the world's most valuable healthcare company, dominates the weight-loss treatment market and forecasted annual profits above Wall Street expectations. This comes as a relief to investors after sales of its blockbuster diabetes and weight-loss drugs fell short for a second consecutive quarter.

Eli Lily

4. Ford $Ford(F)$ expects a decline in 2025 profits, forecasting EBIT to drop from $10.2 billion in 2024 to $8.5 billion, citing a 2% decline in industry pricing and higher costs for launching new SUVs. The automaker also anticipates market challenges, including a slight drop in wholesale volumes.

Ford

5. Malaysia has launched an anti-dumping investigation into flat-rolled steel imports from China, South Korea, and Vietnam following a complaint by CSC Steel Sdn Bhd. Domestic producers claim these imports are priced below market value, causing significant harm to the local steel industry.

CSC Steel

Key Takeaway

✅ If inflation rises or progress stalls in 2025, the Federal Reserve will face a tough decision—determining whether inflation is driven by an overheating economy or tariff pressures.

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