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US equity markets continued their positive momentum on Tuesday, following last week’s gains. The S&P 500 rose by 0.9%, marking its fifth gain in six trading sessions, with small-cap equities outperforming, reflecting a risk-on sentiment. Most sectors saw gains, particularly in industrials and real estate. Investor optimism was supported by a more measured approach to trade policy from the Trump administration, as it hinted at a slower rollout of tariffs, which helped ease concerns in the market. The US dollar weakened, while bond yields fell, with the 10-year Treasury yield dropping to 4.56%, offering further support to equities.
In economic news, US home prices recorded their largest annual increase in almost a year, with all 50 of the most populous metropolitan areas seeing year-over-year gains for the first time since May 2022. This was seen as a positive signal for the broader economy. However, Apple faced pressure from downgrades by analysts and reported a decline in iPhone sales in China during the December quarter, reflecting ongoing challenges in its key market.
Asian markets were generally upbeat on Wednesday, driven by strong performances in technology shares, with Japan’s Nikkei 225 and South Korea’s KOSPI rising 1.5% and 0.6%, respectively, boosted by OpenAI’s $500 billion AI infrastructure partnership. However, Chinese equities underperformed, with the Shanghai Composite and Hong Kong’s Hang Seng index both falling sharply amid concerns over potential new tariffs from the U.S. on Chinese imports.
U.S. equity futures rose on Wednesday, building on a strong rally from the previous session, as investors reacted positively to President Trump’s moderate approach to trade tariffs. The market is expected to open higher, with notable gains anticipated in shares of Oracle, Netflix, and United Airlines following strong earnings reports.
European equities rose 0.4%, driven by gains in healthcare and luxury shares, with the STOXX 600 reaching a three-month high. Healthcare was the top performer, led by Novo Nordisk, while luxury shares saw a boost from Burberry. However, uncertainty over Trump’s proposed tariffs weighed on European automakers and basic resources.
The US dollar held steady around 108.1, despite ongoing uncertainty surrounding President Trump’s tariff plans, while the euro traded at 1.0415 against the dollar. Market expectations of potential Fed rate cuts later in the year, alongside inflation concerns, continue to weigh on the euro and support the dollar’s recent strength.
Bitcoin was trading above 105,600 following news that the SEC is forming a cryptocurrency task force to clarify industry regulations. The cryptocurrency has gained over 50% since Donald Trump’s election victory, amid expectations of a more crypto-friendly regulatory environment under his administration.
Oil prices steadied in Asian trade, with Brent crude at $79.24 per barrel and WTI at $75.69, amid concerns over tightening supplies from U.S. sanctions on Russia and Trump’s push to boost domestic energy production. Market caution stemmed from the potential impact of U.S. trade tariffs, particularly on China and Canada, as well as the cold weather disrupting both supply and demand.
The following companies experienced moves in their share price driven by analyst ratings, quarterly earnings, or other news:
Netflix added 18.9 million subscribers in its holiday quarter, surpassing Wall Street expectations, and announced price hikes for most plans in the US, Canada, Portugal, and Argentina. The company reported strong earnings, with a 16% rise in revenue and exceeded its operating income target, entering 2025 with improved business fundamentals and revised revenue guidance of $43.5 to $44.5 billion. Shares rallied by over 14% in after hours trading.
United Airlines reported stronger-than-expected fourth-quarter earnings, driven by strong travel demand and improved pricing, forecasting double-digit margins in 2025. The airline expects a profit of 75 cents to $1.25 per share in the current quarter, surpassing analyst expectations, and a full-year profit forecast of $11.50 to $13.50 per share.
Nvidia has overtaken Apple as the world’s most valuable company for the third time, driven by strong demand for AI chips and a 4% rise in its shares this year. In contrast, Apple’s shares have dropped 12% in 2025, despite a 30% gain in 2024, with its iPhone sales in China falling 18.2% in the December quarter, contributing to a 5% global drop, as the company struggles to capitalise on the AI boom.
Charles Schwab reported fourth-quarter earnings of $1.01 per share, surpassing analyst expectations, and a 20% year-on-year revenue increase to $5.3 billion. The company added $114.8 billion in new assets during the quarter and saw strong client engagement, with 1.1 million new brokerage accounts opened.
D.R. Horton reported fiscal Q1 2025 earnings of $2.61 per share, exceeding expectations of $2.38, while revenue fell 1% year-over-year to $7.61 billion, surpassing the $7.12 billion estimate. The company closed 19,059 homes, above the expected 17,802, but the backlog dropped 21% to $4.30 billion, missing the $5.03 billion consensus.
Porsche confirmed a 2024 profit margin outlook of 14-15%, but warned that 2025 could be challenging due to factors like the EU withdrawal of the Macan and 718 models. The company expects a decline in sales this year, partly due to supply chain issues with the 911 model. Porsche is also working to reduce its footprint in China, with more details to be provided during the March 12 results call.
Adidas reported a 19% increase in currency-neutral revenue for Q4, exceeding expectations, with full-year revenue up 12%. Operating profit surged to €1.337 billion, while gross margin improved to 50.8%. Excluding Yeezy sales, growth remained strong. CEO Bjørn Gulden aims for continued double-digit growth, with 2025 guidance set for March 5.
e.l.f. Beauty’s sales declined by 2% YoY in the latest week, with a 4% drop excluding Amazon sales, raising investor concerns. However, the company has seen a 16% increase in sales over the past 12 weeks and continues to gain market share. Analysts suggest external factors may have influenced the decline, but growth is expected to continue in the coming weeks.
UniCredit CEO Andrea Orcel suggested he may abandon plans to acquire Commerzbank due to government and management opposition. Despite holding a significant stake in Commerzbank, Orcel emphasized the importance of pursuing mergers at the right time and under the right conditions.
Between January 13 and January 20, MicroStrategy purchased around 11,000 bitcoin for $1.1 billion, funded by the sale of over 3 million shares. This brings the company’s total bitcoin holdings to approximately 461,000, with an average purchase price of $63,610 per bitcoin.
Shares of aerospace and rocket technology companies, including Intuitive Machines, Rocket Lab USA, Redwire, and Sidus Space, surged following President Trump’s announcement of plans to send astronauts to Mars. The rally was driven by expectations of increased government support and lucrative contracts for companies involved in space technology and infrastructure development.
FTAI Aviation announced it will initiate a review in response to allegations made in a report by Muddy Waters, engaging independent advisors to thoroughly examine the claims. The company strongly disagrees with the allegations but cautioned that the review process could result in a delay in the release of its 2024 annual report.
Wall Street analysts downgraded Apple shares, with Jefferies cutting its price target to $200.75 and maintaining an underperform stance, citing weak iPhone sales and a subdued outlook for future models due to slower AI adoption. Loop Capital also lowered its rating, warning of a significant decline in iPhone demand, particularly in the upcoming quarters, as expectations for growth remain cautious amidst a challenging market environment.
Morgan Stanley sees an “increasingly attractive entry point” for Palo Alto Networks, citing strong platform deals, share gains, and promising growth, with the share price potentially doubling in 4-5 years. The firm forecasts significant revenue and free cash flow growth, with key catalysts including a major UK deal and an upcoming Investor Day. Meantime, Scotiabank adjusted Palo Alto price target to $225 from $200.
UBS remains bullish on Nvidia, dismissing recent concerns and expecting strong results driven by higher Blackwell chipset yields and improving supply chain dynamics. The firm has raised its revenue forecast for Blackwell to around $9 billion for the January quarter and maintains a price target of $185.
Bank of America maintains its “buy” rating and $510 price target for Microsoft, citing growth from Azure cloud and Office suite. The firm expects Q2 revenue upside and a positive FY25 outlook, driven by AI contributions and steady cloud migration. Azure’s growth could reach 32.5% in constant currency.
Piper Sandler raised its price target for Tesla from $315 to $500, citing growing investor interest in Tesla’s potential in “real-world A.I.” and long-term prospects. The firm projects Tesla will deliver 1.96 million units in 2025 and expects the focus to shift to full self-driving software, with a long-term delivery goal of 4.6 million units annually by 2032.
HSBC upgraded Intel to “Hold” from “Reduce,” citing limited downside following a 26% drop in its shares. Despite concerns over Intel’s future performance, including revenue declines and uncertainties about its foundry strategy, HSBC maintained its target price of $20, awaiting clearer signs of recovery.
Citi upgraded RTX Corp to “Buy” from “Neutral,” raising its price target to $153, citing improved revenue, cash flow, and progress on engine issues. The firm also upgraded Northrop Grumman to “Buy” after a 15% drop in the share price, highlighting strong visibility from its role in U.S. nuclear deterrence. Citi expects RTX’s free cash flow to reach $10 billion by 2027. The price target for Northrop Grumman remains at $587, backed by better-than-expected defence budgets.
Jefferies downgraded Mondelez from “Buy” to “Hold” due to concerns over cocoa supply constraints and the impact of rising cocoa prices on future earnings. The analysts highlighted the severe weather and disease affecting cocoa production in West Africa, which could lead to higher cocoa prices and weigh on the company’s growth prospects.
Morgan Stanley upgraded Ulta Beauty to “Overweight” and raised its price target to $500, citing strong growth prospects in 2025. The firm highlighted Ulta’s loyalty program and strategic initiatives, with beauty spending expected to grow 3.5%. Analysts project 2026 earnings per share of $26.90 and see upside potential, with a bull case of $600.
GE Vernova’s shares hit a new high, bolstered by investor confidence despite President Trump’s executive order on wind leasing. RBC Capital analysts believe the order will have little impact on the company, as GE Vernova has limited exposure to offshore wind and onshore projects on federal land. The company is scheduled to report on its Q4 earnings today before the market opens.
Citi analysts have resumed coverage of Walt Disney with a “Buy” rating, forecasting strong earnings growth and a 15% upside to a target price of $125. The company’s key growth drivers include its streaming operations, projected subscriber growth, and the recovery of the U.S. box office, although there are potential risks from economic headwinds and competition.
Deutsche Bank upgraded General Motors to “Buy” from “Hold,” citing strategic shifts in China, Cruise, and strong execution, with expectations for upside surprises in 2025. The firm forecasts flat EBIT for GM in 2025, supported by share buybacks, while highlighting potential challenges for Ford and other industry players like Rivian and Tesla.
UBS strategists lowered their EUR/USD forecast, predicting the pair could test parity soon due to stronger US economic activity, before rebounding towards the 1.05-1.10 range by year-end. They cautioned that risks, including potential US tariffs and a slowdown in US growth, could complicate the outlook and keep the euro under pressure.
Among the companies reporting today are Johnson & Johnson and Procter & Gamble. Additionally, economic data releases include the UK inflation figures while the Eurozone is expected to release its preliminary GDP estimates for Q4 2024.
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