Welcome to the MarketReader Minute.

Below are AI-generated insights on today’s premarket moves, powered by MarketReader technology.

If you find the insights useful, you may subscribe to our new sector-specific newsletters or share this on Twitter.

Friday, January 3

Some of the largest macro moves in the market today: USD/CNH +0.2%. Nikkei 225 Index (Japan) -1.6%. Noteworthy US mega-cap moves today: JPMorgan Chase & Co (JPM) +0.8%. 

Recent economic data releases have highlighted mixed signals from major economies. In Germany, the unemployment rate held steady at 6.1% in December, slightly better than expectations but still near a high level since early 2021. Meanwhile, UK consumer credit growth has slowed to its lowest pace in seven months as net mortgage approvals unexpectedly fell below market forecasts.

Market sentiment is also being influenced by political developments surrounding President-elect Donald Trump's administration and his proposed tariffs on imports, which could significantly impact inflationary pressures and overall economic stability. Analysts are expressing concerns about potential volatility due to this concentration of power among top S&P 500 stocks that now dominate the index more heavily than during previous historical downturns.

In terms of financial markets performance today, U.S indices opened higher after recent declines; however, European stock markets showed weakness amid cautious trading conditions following holiday breaks with investors awaiting further clarity on upcoming monetary policy decisions from central banks globally amidst ongoing geopolitical tensions affecting trade dynamics.

United States Natural Gas Fund LP (UNG) [-4.7%]
The United States Natural Gas Fund LP (UNG) has seen a price decline of nearly 5% in pre-market trading. On January 2, natural gas prices dropped significantly, settling at approximately 3.54. Concurrently, the broader U.S. markets experienced a downturn, with the Dow Jones Industrial Average and S&P 500 both falling. Economic indicators reflected a decrease in initial jobless claims, yet construction spending stalled in November, not meeting forecasts. The dollar reached a two-year high, influenced by strong labor market data, contributing to cautious market sentiment. Social media discussions highlighted that cold weather conditions are now viewed as a more substantial factor impacting natural gas markets than the suspension of flows from Ukraine, a sentiment echoed by Goldman Sachs shortly before the market opened.

USD/CNH (USD/CNH) [+0.2%]
The USD/CNH has moved up by 0.2% since Thursday. The U.S. Dollar Index has reached its highest level since October 2022, driven by expectations of sustained higher U.S. interest rates and growth-oriented policies under President-elect Donald Trump. On the Chinese side, the People's Bank of China has suggested a possible interest rate cut in 2025, which could affect the USD/CNH exchange rate. Additionally, discussions on social media have highlighted China's plans for record treasury bond funding in 2025 to stimulate economic growth, further impacting market expectations for the CNH.

XIACY | +7.7%| +36.8B
Xiaomi Corp | Technology Hardware, Storage & Peripherals
Xiaomi Corp's shares have surged above HK$36, marking a new high since its IPO in 2018. The company reported the delivery of over 25,000 vehicle units in December, contributing to total sales exceeding 135,000 for 2024. Furthermore, Xiaomi plans to launch its electric SUV, the Xiaomi YU7, in mid-2025, positioning it to compete with the Model Y. This information has been actively discussed on social media, emphasizing the company's recent performance and ambitious plans in the automotive sector.

CVNA | -2.5% | -979.8M
Carvana Co | Automotive Retail
Carvana Co's stock has declined significantly, down in premarket trading to 191.80, following a short report from Hindenburg Research, which the company has labeled as "misleading and inaccurate." The stock closed at 199.56, reflecting a prior decrease of 2%. Social media conversations have turned extremely bearish, with users expressing skepticism about the sustainability of the stock price amid concerns over substantial debt and allegations of securities fraud related to Carvana's subprime loan portfolio. Additionally, Hindenburg accused the company of potentially manipulating its financial results through questionable accounting practices. Despite this turmoil, JPMorgan recommended buying Carvana amid the selloff, although there are lingering concerns regarding unrealistic gross profit per unit.

SQ | +2.9% | +1.6B
Block Inc | Transaction & Payment Processing Services
Block Inc (NYSE:SQ) has seen a positive shift in analyst ratings, with a majority now expressing bullish sentiment. Of the fifteen analysts evaluating the stock, three are bullish, seven somewhat bullish, and four indifferent, with no bearish opinions. The average price target has increased significantly to approximately $99.53, reflecting a 15.85% rise over the past month. Notable price target increases include Bernstein's Harshita Rawat raising it to $120.00 and Barclays' Ramsey El-Assal to $112.00. The company's revenue growth rate is reported at 6.38%, with a net margin of 4.75% and a return on equity of 1.45%. Additionally, Raymond James upgraded Block Inc to Outperform from Market Perform, setting a price target of $115. Social media discussions have also highlighted this upgrade, contributing to a recent price increase of approximately 2.5%.

CHWY | +3.0%| +448.8M
Chewy Inc | Other Specialty Retail
Chewy Inc has experienced a price increase following an upgrade from Wolfe Research, which moved the company's rating from Peer Perform to Outperform. This upgrade was announced after market hours yesterday, generating notable attention on social media platforms. The recent upward movement in Chewy's stock price aligns with this positive sentiment stemming from the upgrade.

X | -7.6% | -517.1M
United States Steel Corp | Steel
Shares of United States Steel Corp have dropped significantly following U.S. President Joe Biden's decision to block Nippon Steel's proposed $14.9 billion acquisition of the company. This action was taken after the Committee on Foreign Investment in the United States raised national security concerns regarding foreign ownership of a critical American steel producer. Nippon Steel had previously offered concessions, including granting the U.S. government veto power over production changes and maintaining production levels at mills across six states for a decade. The news led to a reported 8.5% decline in U.S. Steel's stock price during pre-market trading, with shares falling from nearly $34 to around $31. Social media discussions reflect disappointment over the decision and mention potential political implications related to the acquisition's blocking.

Thank you for spending a minute with us. 

If you have 2 more minutes, watch this demo of the MarketReader Platform: