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Thursday, February 6

Some of the largest macro moves in the market today: US Dollar Index +0.4%. Bitcoin +1.9%. GBP/USD -1.0%. 

The Bank of England (BoE) has cut its benchmark interest rate by 25 basis points to 4.50%, marking the third reduction since August last year, with a unanimous vote from all members of the Monetary Policy Committee. This decision reflects growing concerns about economic growth and inflation dynamics in the UK, as recent data indicated that GDP contracted slightly in Q4 2023 while construction activity showed signs of weakness.

In addition to central bank actions, initial jobless claims in the US rose unexpectedly by 9,000 to reach 219,000 for late January—above market expectations—and recurring claims also increased significantly. These figures suggest potential softening within an otherwise robust labor market context and may influence future Federal Reserve policy decisions regarding interest rates amid ongoing discussions around tariffs imposed under President Trump's administration.

Market sentiment is currently mixed but leaning towards optimism following these developments; European equity indices are trading higher alongside gains seen across major Asian markets earlier today. The FTSE index notably outperformed due to positive corporate earnings reports despite lingering trade tensions between China and the United States impacting broader investor confidence globally.

Bitcoin (BTC/USD) [+2.2%]
Bitcoin's price increased by 2.2% today, reaching approximately 98,370. This uptick coincides with positive movements in related stocks such as CLSK and COIN. Meanwhile, initial jobless claims in the U.S. rose to 219,000, surpassing expectations and reflecting ongoing economic uncertainties. Social media discussions have highlighted a favorable sentiment surrounding Bitcoin, with Eric Trump endorsing investment in the cryptocurrency. Notably, the Royal Government of Bhutan transferred 377.77 BTC to two wallets, raising speculation about market implications. Additionally, Grayscale has requested to convert its Litecoin trust into a spot ETF, while BlackRock plans to list a Bitcoin exchange-traded product in Europe. Conversations also suggest that ultra-wealthy individuals are increasingly allocating significant funds into cryptocurrencies, viewing Bitcoin as a modern store of value akin to gold.

GBP/USD (GBP/USD) [-1.0%]
The GBP/USD pair has dropped significantly, reflecting a 1.04% decline since Wednesday. The Bank of England has cut its interest rate by 25 basis points to 4.50%, a move driven by concerns over inflation and weaker economic growth. This marks the third rate cut since August 2024. Social media discussions indicate that the Bank's Monetary Policy Committee voted 9-0 in favor of the cut, surpassing expectations. Concurrently, the UK's S&P Global Construction PMI for January showed a contraction at 48.1, below the expected 53.5, highlighting ongoing challenges in the construction sector. In the U.S., a decline in the ISM Services PMI suggests slower growth in the services sector, which may also affect USD valuation. These developments collectively contribute to the current pressure on GBP against the USD.

PM | +8.7% | +19.2B
Philip Morris International Inc | Tobacco
Philip Morris International reported its fourth-quarter results, achieving adjusted earnings per share of 1.55, surpassing the consensus estimate of 1.50. Revenue for the quarter reached 9.71 billion, exceeding expectations of 9.44 billion and reflecting a year-on-year increase of 7.28%. Shipment volumes for oral products rose significantly, with a notable 25% increase driven by demand for Zyn nicotine pouches. For the first quarter of FY2025, the company anticipates adjusted EPS in the range of 1.58 to 1.63, above analyst estimates of 1.50. Looking ahead to 2025, Philip Morris expects organic revenue growth between 6% and 8%, alongside adjusted EPS guidance of 7.04 to 7.17, outpacing the consensus estimate of 6.99. Following the earnings report, the stock price increased significantly, reflecting positive market sentiment.

TPR | +16.7% | +3.3B
Tapestry Inc | Apparel, Accessories & Luxury Goods
Tapestry Inc. reported its fiscal Q2 results, revealing revenue of $2.20 billion, surpassing the FactSet estimate of $2.11 billion. Adjusted earnings per share (EPS) were $2.00, exceeding the consensus of $1.75. The company raised its fiscal 2025 EPS outlook to between $4.85 and $4.90, up from the previous estimate of $4.50 to $4.55, while projecting revenue of over $6.85 billion, exceeding prior guidance and consensus estimates. Additionally, Tapestry plans to return more than $2 billion to shareholders in fiscal 2025. Social media discussions have highlighted the record revenue and growth, particularly a 10% increase at Coach, contributing to a notable stock price movement of approximately 15% since Wednesday.

BMY | -6.3% | -7.1B
Bristol-Myers Squibb Co | Pharmaceuticals
Bristol-Myers Squibb reported a significant decline in profit for the fourth quarter, dropping to $72 million from $1.762 billion the previous year. Despite this, the company exceeded earnings estimates with an EPS of $1.67, surpassing the expected $1.47. Revenue rose 7.5% year-over-year to $12.34 billion, exceeding analyst projections of $11.54 billion. However, the company's fiscal year 2025 guidance fell short, forecasting total revenues of approximately $45.5 billion against a consensus estimate of $46.27 billion. The adjusted EPS guidance of $6.55 to $6.85 also missed expectations of $6.92. Social media discussions highlighted concerns over weak overall guidance while noting a positive outlook for Camzyos, projected to generate $223 million in Q4, up from previous quarters. Additionally, market reactions were influenced by rising U.S. jobless claims data, contributing to volatility in Bristol-Myers Squibb's stock performance.

SWKS | -27.8% | -2.8B
Skyworks Solutions Inc | Semiconductors
Skyworks Solutions Inc has encountered significant challenges, primarily due to competitive pressures affecting its relationship with Apple. The company anticipates a 20% to 25% decline in its content position for the upcoming iPhone 17, as discussed by CFO Kris Sennesael during the earnings call. This negative revenue impact is expected to commence in Q4 2025 and extend through fiscal 2026. Analysts have responded by lowering price targets, with Piper Sandler, Loop Capital, and JPMorgan setting new targets at $70. Stifel downgraded the stock to Hold from Buy, citing lost designs at its largest customer. Following the Q1 earnings report, where adjusted EPS slightly beat estimates but revenue declined 11% year-over-year, shares dropped significantly in pre-market trading, reflecting concerns over declining mobile segment revenues and broader industry worries regarding smartphone demand. Additionally, Skyworks authorized a $2 billion buyback program amid these developments.

RBLX | -21.3% | -8.1B
Roblox Corp | Interactive Home Entertainment
Roblox Corp reported its fourth-quarter financial results, revealing bookings of $1.36 billion, slightly below the estimated $1.37 billion. Revenue reached $988.2 million, surpassing expectations of $967.2 million. The company posted a loss per share of $0.33, better than the anticipated loss of $0.44 but a decline from the previous year's loss of $0.52 per share. Daily active users totaled 85.3 million, falling short of the expected 88.39 million. Following this announcement, shares dropped significantly in premarket trading, reflecting concerns over future revenue guidance, which fell below market expectations for both Q1 FY2025 and FY25. The implied move for Roblox's stock was projected at $8.14, indicating potential volatility following the earnings report.

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