Market Overview
The stock market began the week on a positive note, recovering from Friday's declines with a buy-the-dip trend. The Nasdaq Composite increased by 1.0%, the S&P 500 rose by 0.7%, and the Dow Jones Industrial Average closed 0.4% higher. The major indices ended the day at their highs, with many stocks contributing to the gains.
Mega-Cap Stock Performance
- NVIDIA (NVDA, Financial) rose to 133.57, gaining 3.73, or 2.9%.
- Microsoft (MSFT) increased to 412.22, up by 2.47, or 0.6%.
- Amazon.com (AMZN) climbed to 233.14, adding 3.99, or 1.7%.
The Vanguard Mega Cap Growth ETF (MGK) also saw a 1.0% increase.
Earnings Reports Impact
- McDonald's (MCD) reported strong results, closing at 308.42, up by 14.12, or 4.8%.
- Rockwell Automation (ROK) surged to 302.34, gaining 33.94, or 12.7%.
- Monday.com (MNDY) soared to 326.58, increasing by 68.34, or 26.5%.
Impact of Tariff Announcement
President Trump's announcement of new 25% tariffs on steel and aluminum did not dampen market sentiment. Stocks related to these metals experienced significant gains:
- Nucor (NUE) rose to 137.53, up by 7.27, or 5.6%.
- Alcoa (AA) increased to 36.92, adding 0.80, or 2.2%.
Consumer Expectations and Bond Market
The New York Fed's Survey of Consumer Expectations showed stable inflation expectations, with one-year and three-year projections at 3.0%, and five-year expectations slightly higher at 3.0%. The bond market saw steady yields, with the 10-year Treasury yield rising by one basis point to 4.49%.
Economic Data and Market Indices
No significant U.S. economic data was released today. Tomorrow's schedule includes the January NFIB Small Business Optimism survey at 6:00 ET.
Guru Stock Picks
Scott Black has made the following transactions:
Murray Stahl has made the following transactions:
PRIMECAP Management has made the following transactions:
David Tepper has made the following transactions:
Chuck Royce has made the following transactions:
Diamond Hill Capital has made the following transactions:
Brandes Investment Partners, LP has made the following transactions:
First Eagle Investment has made the following transactions:
Today's News
Elon Musk has made headlines with an unsolicited $97.4 billion bid for the non-profit entity controlling OpenAI. Musk's lawyer, Marc Toberoff, confirmed the submission of the bid to OpenAI's board, aiming to revert OpenAI to its original open-source model. OpenAI's CEO, Sam Altman, humorously countered by suggesting a potential purchase of Twitter for $9.74 billion. This move comes amidst Musk's ongoing legal actions against OpenAI.
Meta Platforms (META, Financial) continues its impressive growth trajectory, closing higher for the 15th consecutive session. The company's stock has surged over 52% in the past year, significantly outperforming the broader market. Meta plans to invest $65 billion in artificial intelligence this year, a substantial increase from last year's expenditure and above analysts' expectations, signaling a strong commitment to technological advancement.
Shares of Super Micro Computer (SMCI, Financial) soared by 8.7% as the company prepares to report its latest financial results. The information technology firm has gained 45% over the past five trading sessions, with analysts anticipating earnings of $0.75 on $5.94 billion revenue for its fiscal second quarter. The market eagerly awaits clarity on the company's FY2024 financials and its recent engagement with a new auditor.
OppFi (OPFI, Financial) experienced a sharp decline of up to 16% in trading after a significant rise in its stock value over the past months. Despite reaching an all-time high recently, the lack of specific news to explain the drop suggests investors might be securing profits from previous gains. The stock's short interest stands at 22.3%.
Astera Labs (ALAB, Financial) saw its shares fall by 2% despite reporting strong fourth-quarter results, driven by AI-related spending. The company posted a 179% year-over-year revenue increase, surpassing analyst expectations. Astera's CEO highlighted the success of their Aries PCIe Retimer products and Taurus Smart Cable Modules as key growth drivers.
Illumina (ILMN, Financial) faced a downgrade from Barclays, which cited potential sanctions in China and increased competition from Roche. Barclays expressed concerns over Illumina's ability to meet its long-range guidance and reduced the stock's price target from $130 to $100, reflecting these challenges.
Intel (INTC, Financial) shares rose by 3% as its latest processor, the Intel Core Ultra 9 275HX, received positive reviews for its performance and battery life enhancements. The new processor has been recognized as the fastest on the market, surpassing AMD's Ryzen 9 7945HX3D chip, and contributing to Intel's recent positive financial results.
Groq, an AI semiconductor company, secured a $1.5 billion commitment from Saudi Arabia to expand its AI processor deployment. Known for its language processing units, Groq is seen as a competitor to Nvidia (NVDA, Financial) and has been valued at $2.8 billion following a recent funding round.
Hawaiian Electric Industries (HE, Financial) saw a 5% rise in shares after the Hawaiian Supreme Court ruled on insurance settlements related to the Maui wildfires. The decision allows a $4 billion settlement to proceed, with Hawaiian Electric responsible for $2 billion of the total.
GuruFocus Stock Analysis
- Rockwell Automation Skyrockets 13.7% After Surprise Earnings Beat--But There's a Catch by Khac Phu Nguyen
- Wolfe Research Upgrades Oneok to Outperform, Citing Undervalued Stock by Faizan Farooque
- Motorcar Parts of America Surges 13% After Record Q3 Sales, Margin Expansion by Faizan Farooque
- Evercore ISI Upgrades Nvidia to Tactical Outperform Ahead of Earnings by Faizan Farooque
- J.P. Morgan Downgrades Nio, Citing Weaker Outlook by Faizan Farooque
