Market News 11 FEB
Markets in Focus – Analysis of Trends and Key Growth Factors
On Monday, U.S. stock indices closed in positive territory. The S&P 500 Index ($SPX) gained +0.67%, the Dow Jones Industrials ($DOWI) rose by +0.38%, and the Nasdaq 100 ($IUXX) climbed +1.24%. March E-mini S&P (ESH25) and E-mini Nasdaq (NQH25) futures also showed growth of +0.59% and +1.12%, respectively.
The stock market strengthened due to the rise in shares of metallurgical and mining companies, driven by the U.S. President's introduction of a 25% tariff on imported steel and aluminum. This move contributed to gold prices reaching record levels, while copper prices hit a four-month high. Additionally, the rise in shares of microchip-related companies supported the market.
Top performers among metallurgical companies:
Nucor (NUE): +5.6% (to 137.53), benefiting from expectations of increased domestic steel demand.
Alcoa (AA): +2.2% (to 36.92), as aluminum prices rose in response to tariff news and global supply constraints.
The earnings season continues, and several companies reported strong results:
Rockwell Automation (ROK): +12.7%, as the company posted better-than-expected earnings per share (EPS) and robust industrial automation demand amid increased factory digitization.
McDonald's (MCD): +4.8%, reporting a rise in Q4 sales due to price hikes and higher foot traffic, particularly in international markets.
Monday.com (MNDY): +26.5%, exceeding profit expectations, driven by strong enterprise adoption of its project management software.
At the same time, some companies faced negative investor reactions:
ON Semiconductor (ON): -8%, after issuing a weaker-than-expected revenue forecast due to softening demand in the automotive sector.
Incyte Corp (INCY): -7%, missing EPS estimates as increased R&D spending weighed on profitability, despite positive developments in its oncology pipeline.
This week, investors are closely watching:
Federal Reserve Chair Jerome Powell’s testimony before the Senate (Tuesday), which could provide clues on future monetary policy and interest rate decisions.
Release of the Consumer Price Index for January (Wednesday), expected to offer insights into inflation trends and the Fed's potential response.
Retail sales and industrial production data (Friday), which will shed light on consumer spending and economic activity strength.
Markets estimate a 7% probability of a 25 basis point Fed rate cut in March, with investors awaiting further economic data and Fed commentary for confirmation.
Company News
Meta Platforms (META) has been rising for 15 consecutive sessions (+52% YTD), driven by investor enthusiasm for its AI initiatives. The company announced plans to invest $65 billion in AI infrastructure, particularly in developing next-generation data centers and proprietary AI models.
Super Micro Computer (SMCI): +8.7% ahead of its quarterly earnings report, with investors optimistic about its AI server business, which has seen surging demand due to widespread AI adoption.
Intel (INTC): +3% following positive reviews of its new Core Ultra 9 275HX processor. Analysts note that the chip's improved energy efficiency and performance may help Intel regain market share against competitors like AMD and Apple.
Groq, an AI chip manufacturer, raised $1.5 billion from Saudi Arabian investors, reflecting the growing interest in AI semiconductor development. The investment is expected to help the company scale production and compete with industry leaders like NVIDIA.
Market Anomalies
OppFi (OPFI): -16%, declining sharply after a rapid ascent without clear news. Analysts speculate that profit-taking and short-selling activity contributed to the sell-off.
Astera Labs (ALAB): -2%, despite reporting a 179% revenue increase, as investors remain cautious about potential supply chain risks and market competition.
Illumina (ILMN): -5%, after Barclays downgraded the stock due to concerns over regulatory scrutiny and increased competition in the gene sequencing industry.
The stock market continues to show active movements, with investors mainly focused on inflation data and the Federal Reserve’s monetary policy. In the coming days, volatility may increase, creating new opportunities for speculative trades and long-term investments.