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Thursday, January 23

Some of the largest mega-cap moves in the market today: UnitedHealth Group Inc (UNH) +1.6%.

Recent market movements are significantly influenced by economic data releases and political events. Initial jobless claims in the U.S. rose to 223,000 for the week ending January 18th, marking a six-week high that exceeded expectations of 220,000. This increase has implications for labor market stability as continuing claims also saw an uptick.

In Europe, business sentiment indicators from France revealed declining confidence among manufacturers, with manufacturing climate falling below expectations at a three-month low of 95.3 in January while overall consumer morale dropped sharply to -47 in the UK’s manufacturing sector—the lowest level seen since early pandemic disruptions—indicating growing concerns over inflationary pressures and demand uncertainty across sectors.

Additionally, President Trump's upcoming address at Davos is anticipated to impact global markets amid ongoing speculation about his tariff plans on Canada and Mexico set for February; this follows recent announcements regarding potential tariffs against China which have already stirred volatility within equity markets linked to these economies. The combination of rising yields on government bonds alongside cautious trading behavior reflects investor wariness ahead of further policy guidance expected from central banks later this month.

Bitcoin (BTC/USD) [-1.8%]
The cryptocurrency market, including Bitcoin (BTC/USD), has seen a notable decline, with Bitcoin dropping over $4,000 overnight. This movement coincides with disappointment regarding the lack of new regulatory actions under President Trump's administration and renewed concerns about trade tensions due to proposed tariffs on Chinese imports. Recent social media discussions highlighted that China may have sold off 194,000 BTC, while Goldman Sachs' CEO described Bitcoin as a speculative asset that does not threaten the US dollar's dominance. Additionally, a Trump-linked crypto token raised $300 million, with Bitcoin being one of the tickers of interest. Meanwhile, Ethereum (ETH/USD) also experienced a decline, reflecting a strong correlation with Bitcoin's recent movements.

iShares Russell 2000 ETF (IWM) [-0.5%]
The iShares Russell 2000 ETF (IWM) has experienced a decline of 0.4% in pre-market trading, reflecting broader market trends. Recent trading activity reveals that late buyers acquired 1,250 August $215 puts at $7.10, alongside significant algorithmic selling of 2,000 contracts each for August $260, $270, and $275 calls. Social media discussions have noted IWM's performance, with a reported drop of 0.61% compared to gains in other indices, such as the QQQ, which rose by 1.28%. The Russell 2000 Index has also declined by 0.3%, coinciding with President Trump's announcement of a 10% tariff on imports from China, adding to uncertainties in U.S. trade policies. Additionally, the S&P 500 Index has decreased by 0.17%, indicating correlated movements influenced by prevailing macroeconomic factors.

EA | -17.6% | -5.5B
Electronic Arts Inc | Interactive Home Entertainment
Electronic Arts Inc. is experiencing notable downward pressure following the release of preliminary Q3 results that fell significantly short of expectations. The company reported a preliminary net revenue of approximately 1.88 billion, compared to the 2.51 billion estimate. Preliminary net bookings were around 2.22 billion, leading to a revised fiscal year 2025 forecast of 7.00 billion to 7.15 billion, down from an earlier range of 7.5 billion to 7.8 billion. Analysts from BMO Capital and Bank of America Securities downgraded their ratings to Market Perform and Neutral, respectively, with price targets adjusted to 145 and 130. Social media discussions highlighted a significant drop in EA's stock, with reports noting a decline of approximately 15% in premarket trading, and further reductions in guidance attributed to underperformance in the Global Football franchise and challenges faced by the Dragon Age series.

AAL | -7.5%| -849.7M
American Airlines Group Inc | Passenger Airlines
American Airlines Group Inc. reported a fourth-quarter net income of $590 million, a substantial increase from $19 million the previous year. The adjusted EPS was $0.86, surpassing analyst expectations of $0.66, while revenues reached $13.66 billion, exceeding forecasts of $13.43 billion. However, the company provided disappointing guidance for the first quarter, projecting an adjusted loss per share between $0.20 and $0.40, compared to the consensus estimate of a $0.04 loss. For the full year 2025, adjusted EPS guidance is set between $1.70 and $2.70, lower than the expected $2.42. Following these announcements, shares dropped significantly in premarket trading. Social media sentiment has turned negative, with discussions highlighting concerns over the weaker outlook despite strong quarterly results and a nearly 10% drop in stock price this morning.

ELV | +4.6%| +4.4B
Elevance Health Inc | Managed Health Care
Elevance Health Inc reported better-than-expected fourth-quarter results, with adjusted earnings per share (EPS) of 3.84, surpassing the consensus estimate of 3.80. Total revenue for the quarter reached 45.44 billion, exceeding estimates of 45.21 billion. The company provided guidance for fiscal year 2025, projecting adjusted EPS between 34.15 and 34.85, slightly above analysts' expectations of 34.58. Elevance's medical loss ratio for the fourth quarter was 92.4%, better than the estimated 92.65%. Additionally, the firm declared a quarterly dividend of 1.71 per share, reflecting a 5% increase from the previous quarter. Following the earnings announcement, Elevance's stock price rose significantly, reaching 380.73, up by approximately 30 points. Social media discussions highlighted these results and the raised dividend as contributing factors to the upward movement in healthcare stocks.

GE | +8.2% | +18.4B
General Electric Co | Industrial Conglomerates
General Electric Co's Aerospace segment reported strong fourth-quarter results, with adjusted earnings per share (EPS) of $1.32, significantly exceeding the consensus estimate of $1.04. Revenue reached $10.81 billion, surpassing expectations of $9.49 billion. The company has set a fiscal year 2025 EPS guidance between $5.10 and $5.45 and anticipates adjusted operating profit of $7.8 billion to $8.2 billion. GE Aerospace plans a $7 billion share repurchase program for 2025 and intends to increase its dividend by 30%, pending board approval. Total orders surged 46% year-over-year to $15.5 billion, reflecting strong demand across its segments. In premarket trading, GE shares increased significantly, driven by these robust quarterly results and the share repurchase announcement.

RKLB | -2.8% | -402.2M
Rocket Lab USA Inc | Aerospace & Defense
Rocket Lab USA Inc. announced a partnership with OroraTech to launch a global wildfire detection and monitoring mission, as reported approximately 15 hours ago. This initiative aims to enhance environmental monitoring through advanced satellite technology. Additionally, Rocket Lab secured a contract for a responsive launch using its Electron rocket, detailed shortly thereafter. Social media discussions highlighted the contract's significance, noting that Rocket Lab will deploy eight satellites into a 550 km orbit within four months of signing. This mission will bolster OroraTech's satellite constellation, equipped with thermal infrared cameras for continuous wildfire monitoring. Concurrently, Rocket Lab's stock experienced a decline, attributed to broader market trends, as the Russell 2000 Index fell slightly. The company also completed a $355 million convertible offering earlier this year, which has been a topic of conversation among users discussing the stock's recent performance.

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