Weekly Recap: 2/3/25-2/7/25
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Market Summary:
MAJOR INDICES:
SPX decreased -0.24% ($6,025.99), DJI decreased -0.54% ($44,303.40), and IXIC decreased -0.53% ($19,523.40). RUT fell -0.35% ($2,279.71). The VIX is at 16.54.
SECTORS & STOCKS:
Real Estate (XLRE) rose +1.33% while Consumer Discretionary (XLY) fell -2.84%. Doximity (DOCS) jumped +34.06% ($79.23), and Venture Global (VG) decreased -14.23% ($17.54).
INTERNATIONAL EQUITIES:
EFA increased +0.47% ($79.61), and EEM added +1.12% ($43.20). MCHI rose +2.73% ($49.73), while INDA fell -0.96% ($50.50).
US MACRO:
DXY was flat at $108.10 while the US 10-year yield fell -1.79% (4.4870%).
GLOBAL MACRO:
The Japan 10-year yield added +7.08% (1.3010%), while the Euro 10-year yield decreased -6.64% (2.3640%).
COMMODITIES:
Gold is at $2,886.10, Crude is at $71.06, and BTC is at $96,171.00.
Sources:
https://www.tradingview.com/markets/
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Context:
All three major indices finished in the red this week as Trump began to implement tariffs, the January jobs report showed strength in the labor market, and a surprising consumer sentiment reading indicated future inflation. Trump signed and then paused tariffs on Canada and Mexico, went through with tariffs on China, and mentioned additional “reciprocal tariffs on trading partners”. The January jobs report, released on Friday, showed unemployment falling to 4.0% from 4.1% and a better-than-expected increase in hourly wages. The University of Michigan’s Consumer Sentiment Index reported a reading of 67.8 in February, weaker than the 71.3 expectation from economists. Participants also thought the 1-year inflation rate would be at 4.3%, which is the “highest level since November 2023.” Doximity (DOCS) jumped after beating on revenue and guidance. Venture Global (VG) dropped after its offer to supply oil to Total Energies was rejected by the latter. Japan’s Finance Minister, Katsunobu Kato, forecasted rising prices. Since DeepSeek, China’s tech stocks increased, driving indices in the region higher.
Sources:
https://apnews.com/article/stock-market-china-tech-trump-tariffs-64ae8ef35f189b71cde8fc50d5c56e88
https://www.cnbc.com/2025/02/06/stock-market-today-live-updates.html
https://www.cnbc.com/2025/02/07/doximity-shares-pop-30percent-on-revenue-beat-rosy-guidance.html
https://finance.yahoo.com/news/why-venture-global-vg-stock-122531076.html
https://www.fxstreet.com/news/japans-kato-sees-inflation-pressure-continuing-to-rise-202502060110
Story of The Week: Amazon guidance disappoints
Amazon reported its quarterly earnings on Thursday, bringing in better-than-expected revenue and EPS but disappointing guidance. Revenue for the quarter was $187.8 billion, while its EPS was $1.86, with the latter being 25% higher than what analysts had expected. Its AWS segment was in line with expectations at $28.8 billion, but the Advertising segment came in soft, missing expectations at $17.3 billion. The company forecasted revenue between $151 billion and $155.5 billion for the quarter, which missed the $158.5 billion expectation from analysts polled by LSEG. Capital expenditures for 2025 are expected to reach $100 billion, with the quarter seeing $27.8 billion. In 2024, the company spent $83 billion on capex.
Sources:
https://www.cnbc.com/2025/02/06/amazon-amzn-q4-earnings-report-2024.html
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