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Thursday, January 2

Some of the largest macro moves in the market today: US 10Y Treasury Bond +0.4%. Nasdaq 100 Index (US) +1.0%. S&P 500 Index (US) +0.7%. Noteworthy US mega-cap moves today: Broadcom Inc (AVGO) +2.6%. Amazon.com Inc (AMZN) +1.4%. Microsoft Corp (MSFT) +1.2%. 

Recent economic data releases indicate a slowdown in manufacturing activity across major global economies. The HCOB Eurozone Manufacturing PMI fell to 45.1 in December, marking the sharpest decline in three months and extending a two-year contraction streak, while Germany's PMI confirmed at 42.5 reflects significant output reductions amid weak demand.

In Asia, China's Caixin General Manufacturing PMI dropped to 50.5 from November’s five-month high of 51.5, missing market expectations and highlighting concerns over export demand amidst ongoing trade tensions with the U.S., which may impact future growth prospects for both China and its trading partners.

Market reactions have been mixed as investors digest these developments; European stocks are showing subdued performance following negative manufacturing indicators, while oil prices remain supported by declining U.S crude inventories reported earlier this week alongside rising commodity prices overall on January 2nd.

SPDR Dow Jones Industrial Average ETF Trust (DIA) [+0.7%]
The SPDR Dow Jones Industrial Average ETF Trust (DIA) has risen by 0.7% since Tuesday, reflecting a broader positive sentiment in the market. The Dow Jones Index has increased by 0.8%, supported by favorable developments in the U.S. stock market and a strong performance from major indices like the Nasdaq and S&P 500. The S&P 500 Index has also moved up, contributing to the upward momentum seen in DIA. Additionally, Bitcoin's price surge has positively influenced related stocks, further enhancing market optimism. Notably, the ETF has experienced a year-to-date increase of 12.84% as of December 31, 2024, despite a downturn in December, and has recorded a substantial two-year increase, marking the largest rise since 1997-1998. Positive manufacturing data from China adds to the favorable outlook amid expectations for economic recovery.

iShares China Large-Cap ETF (FXI) [-1.4%]
Asian stock markets, including the Shanghai Composite and Hong Kong's Hang Seng Index, faced significant declines due to weak Chinese manufacturing data and uncertainties surrounding U.S.-China relations. The China Caixin Manufacturing Purchasing Managers Index for December was reported at 50.5, below estimates and prior figures, indicating slower expansion in the manufacturing sector. This decline is attributed to weakened export demand and rising trade tensions. Concurrently, UBS has reduced its estimates for Apple's iPhone sales amid declining demand in China, potentially affecting large-cap stocks tracked by the iShares China Large-Cap ETF (FXI). On a slightly positive note, China's new home prices rose marginally by 0.37% in December, attributed to government measures aimed at stabilizing the property sector. Among FXI's holdings, TCOM and JD dropped significantly, while LI saw a modest increase.

NET | +6.6%| +2.6B
Cloudflare Inc | Internet Services & Infrastructure
Cloudflare Inc. has recently attracted attention from analysts, with 11 ratings issued in the last three months, including two bullish and six indifferent assessments. The average price target has risen to 110.00, reflecting a significant increase from the prior target of 91.90. Notably, Goldman Sachs raised its target from 77.00 to 140.00, while Jefferies adjusted its target from 100.00 to 125.00. The company reported revenue growth of approximately 28.15% as of September 30, 2024, outperforming industry peers. Additionally, discussions on social media have intensified following Goldman Sachs' upgrade of Cloudflare to "Buy" from "Sell," highlighting analyst Gabriela Borges' role in this decision. Meanwhile, the S&P 500 Index has moved up by 0.72%, reflecting broader market sentiment that may coincide with Cloudflare's recent price movement of 6.6%.

TSLA | +1.6% | +20.5B
Tesla Inc | Automobile Manufacturers
Tesla Inc's stock price has increased by 1.6% since Tuesday, coinciding with significant social media discussions surrounding a tragic incident involving its Cybertruck. The vehicle was involved in an explosion outside the Trump International Hotel in Las Vegas, resulting in one fatality and seven injuries. CEO Elon Musk clarified that the explosion was due to large fireworks or a bomb carried within the rented Cybertruck, asserting that vehicle telemetry was normal at the time. Authorities are investigating the incident as a possible act of terrorism. Amidst this, anticipation is building for Tesla's Q4 auto sales report, expected to reveal around 505,000 units delivered. Concurrently, the Nasdaq 100 Index has increased by 1.02%, reflecting broader market sentiment that often influences Tesla's price movements.

MU | +1.4% | +1.3B
Micron Technology Inc | Semiconductors
Micron Technology Inc (MU) has seen a price increase of 1.4% since Tuesday. Social media discussions over the past 34 hours highlight concerns regarding MU's performance, as it remains below all moving averages, suggesting potential weakness and a risk of testing new 52-week lows. A recent post indicates that Samsung's upcoming 'Galaxy S25', scheduled for unveiling at the end of January, will feature Micron's mobile DRAM as its first supplier, marking a shift from Samsung's own components due to overheating issues. In broader industry context, posts have raised concerns about U.S. semiconductor manufacturing, mentioning MU alongside Intel and TSMC, which could have implications for its market position. Additionally, the Invesco QQQ Trust ETF rose, reflecting positive sentiment in the technology sector, which may correlate with MU's recent stock movement.

NVDA | +1.7%| +56.5B
NVIDIA Corp | Semiconductors
NVIDIA Corp is experiencing a price increase of 1.7%, coinciding with a broader market uptrend. The company has made significant investments in the artificial intelligence sector, committing $1 billion across 50 startup funding rounds in 2024, an increase from the previous year. This investment strategy focuses on "core AI" companies that require substantial computing infrastructure. Additionally, estimates indicate that shipments of NVIDIA's Hopper GPUs to its largest customers have tripled to over 2 million units in 2024. Recent discussions on social media highlighted a substantial increase in NVIDIA's market cap, which has surpassed $3 trillion, making it the second most valuable company globally. The Invesco QQQ Trust ETF and Nasdaq 100 Index have also shown positive movements, reflecting strong sentiment in technology stocks.

UBER | +1.8% | +2.3B
Uber Technologies Inc | Passenger Ground Transportation
Uber Technologies Inc is experiencing a price increase, aligning with broader market trends. The S&P 500 Index has risen, reflecting positive market sentiment. Social media discussions highlight a perception of substantial profitability for Uber, with assertions that it is undervalued. CEO Dara Khosrowshahi's openness to collaborating with Tesla has garnered attention, suggesting potential technological advancements for Uber's platform. Additionally, Goldman Sachs has placed Uber on its Conviction Buy list, setting a target price of 96, which underscores confidence in its future performance. In contrast, JMP Securities has downgraded Uber to "Market Perform," adding a note of caution amidst the prevailing optimism.

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