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Wednesday, January 14

Noteworthy macro moves today: Gold +1.1%. Silver +5.6%. A50 Index (China) -1.5%. 

Global equity indices are trading lower following disappointing U.S. economic data, particularly the Core Producer Price Index (PPI), which showed no month-over-month increase against expectations for a rise. This has raised concerns about inflationary pressures and potential implications for future monetary policy, contributing to negative sentiment across markets.

In addition, U.S. retail sales figures exceeded forecasts with a month-over-month increase of 0.6%, indicating stronger consumer spending than anticipated. However, this positive news was overshadowed by the flat core PPI results, leading to mixed reactions in market sentiment as investors weigh the implications for economic growth.

Meanwhile, silver prices surged by over 5% amid geopolitical tensions and increased demand for precious metals as safe-haven assets. The rise in silver is part of a broader trend where commodities like gold also saw gains, reflecting investor behavior amidst ongoing uncertainties in global markets.

iShares Silver Trust (SLV) [+5.9%]
Silver prices have surged to historic levels, breaking above $90 per ounce, following weaker-than-expected U.S. inflation data and ongoing geopolitical tensions. Reports indicate that silver spot prices reached an all-time high, attributed to safe-haven demand and favorable macroeconomic conditions. The Core CPI remains steady at 2.6% year-on-year, solidifying expectations for potential Federal Reserve rate cuts later this year. Social media discussions highlight significant trading activity related to the iShares Silver Trust ETF (SLV), with mentions of a "record silver frenzy" and substantial call buying. Additionally, crude oil prices have risen sharply due to escalating tensions between the U.S. and Iran, further driving interest in precious metals. Meanwhile, platinum has increased significantly, reflecting broader market sentiment affecting silver.

SPDR Gold Shares (GLD) [+1.1%]
SPDR Gold Shares (GLD) experienced a price increase of 1.1% during the pre-market session on Wednesday. A significant call sweep for GLD was noted amid rising geopolitical tensions, particularly related to rhetoric concerning Iran. Earlier, gold prices briefly reached new highs before retreating, with concerns expressed about gold's performance relative to silver. In the early Asian session, gold prices rose as geopolitical tensions intensified, reflecting broader market dynamics that typically enhance gold's appeal as a safe-haven asset. Simultaneously, silver prices surged significantly, which historically correlates with movements in GLD. The U.S. dollar strengthened but remains influenced by ongoing global economic factors that may affect gold's performance in the near term.

TCOM | -15.1% | -6.2B
Trip.com Group Ltd | Hotels, Resorts & Cruise Lines
Trip.com Group Ltd is currently under significant regulatory scrutiny due to an ongoing investigation by China's State Administration for Market Regulation (SAMR) regarding potential anti-monopoly violations. This investigation was confirmed approximately three hours ago and is anticipated to affect the company's operational landscape. Social media discussions reflect growing concerns about this scrutiny, with users noting that the stock is "under pressure" as a result of the probe into suspected monopolistic practices. Earlier today, it was reported that the stock had dropped significantly in pre-market trading, with declines exceeding 10%. The negative sentiment surrounding Trip.com appears to stem from these regulatory developments and their implications for the company's market position.

INTC | +2.9% | +6.1B
Intel Corp | Semiconductors
KeyBanc Capital Markets has upgraded Intel Corp to Overweight, setting a price target of 60. This upgrade is attributed to a surge in demand from data centers and cloud customers, following recent checks in Asia that suggest a favorable operational outlook for Intel. Discussions on social media reflect this sentiment, noting that Intel and Advanced Micro Devices (AMD) both rallied after the upgrade. Intel's stock closed significantly higher on that day. Additionally, there is speculation regarding potential price movements, with posts indicating that if Intel breaks the 50 level, it could reach 58. The interconnectedness of tech stocks was also highlighted in discussions about NVIDIA's plans in the sector.

INFY | +2.8% | +2.1B
Infosys Ltd | IT Consulting & Other Services
Infosys Ltd has raised its FY26 revenue growth guidance following a robust third-quarter performance, reporting revenues of 5.1 billion, a slight sequential increase in constant currency. The adjusted operating margin stood at 21.2%, with total contract value from large deals reaching 4.8 billion, of which a significant portion were net new contracts. Analysts noted strong demand signals and broad-based growth, particularly in Europe, where revenue increased quarter-on-quarter. Large deal signings surged year-on-year, contributing to the upward revision in revenue guidance to a range of 3% to 3.5%. The company maintained its operating margin guidance of 20% to 22% and expanded its workforce by over 5,000 employees during the quarter. Despite these positive developments, actual earnings per share came in lower than expected at 0.18 compared to the anticipated 0.20.

FTNT | -2.9% | -1.7B
Fortinet Inc | Systems Software
Shares of Fortinet Inc. have declined following a report indicating that cybersecurity stocks, including Fortinet, were adversely affected by China's crackdown on U.S. and Israeli software. This development coincides with analysts lowering their price targets for Fortinet, with the average target now at 83.29, down from 86.50. Social media discussions highlight concerns over a Chinese directive ordering domestic firms to stop using cybersecurity software from several U.S. and Israeli companies, including Fortinet, due to national security issues. As a result, Fortinet's stock price has dropped significantly to 78.33. Despite these challenges, TD Cowen reported that Fortinet has minimal exposure to China, with only 1%-2% of its sales linked to the country.

BABA | +2.6% | +84.9B
Alibaba Group Holding Ltd | Broadline Retail
Alibaba Group Holding Ltd's shares have risen notably, driven by advancements in its artificial intelligence initiatives. A recent report revealed that the company's Qwen AI models have surpassed 700 million downloads on Hugging Face, making Qwen the most widely adopted open-source AI system. This milestone coincides with a significant increase in Alibaba's capital expenditure budget for Alibaba Cloud, aimed at enhancing revenue growth amid robust demand for AI services. Over the past week, Alibaba's stock has gained approximately 14%. Social media discussions indicate anticipation surrounding a major event related to the Qwen app on January 14th, with expectations of reaching $180.00 per share by week's end. Concurrently, the stock experienced a rise in Hong Kong, contributing to an increase in the Hang Seng Tech Index, fueled by strong performances from other AI-related companies.

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