U.S. Stocks Mixed As Earnings Season Kicks Off

The U.S. stocks saw a mix of gains and losses on Friday, capping a week where all three major indices posted overall increases.

The fourth-quarter earnings season kicked off, drawing attention to financial reports from heavyweights like Morgan Stanley and Bank of America.

Simultaneously, escalating tensions in the Middle East held investors’ focus, and the U.S. December Producer Price Index (PPI) hinted at a positive signal for decreasing inflation.

Investors kept a close watch on geopolitical developments in the Middle East, notably after U.S. and U.K. airstrikes in Yemen. The strikes targeted Houthi forces, leading to a surge in oil prices.

The fourth-quarter earnings season for U.S. stocks kicked off, with Delta Air Lines, BlackRock, Bank of America, Wells Fargo, JPMorgan Chase, and Citigroup among the companies announcing their financial results.

U.S. Stocks

Fundamental Analysis:

Tech giants displayed varied performances.

Meta surged over 1%, Microsoft rose 1%, surpassing Apple’s market value.

On the flip side, AMD and Intel slipped over 1%, NVIDIA fell 0.2%, Amazon declined by 0.36%, while Google A rose 0.4%.

Tesla experienced a significant dip of over 3%, while Lucid saw a notable drop of 7.7%.

Many Chinese concept stocks contributed to a 1.48% drop in the NASDAQ Golden Dragon Index.

Baidu plummeted nearly 7%, and other stocks like Ideal Motors, XPeng, NIO, JD.com, Bilibili, Pinduoduo, Futu Holdings, Vipshop, and Weibo registered various degrees of decline.

Alibaba, iQiyi, and Tencent Music witnessed slight declines, while NetEase recorded a modest increase.

Technical Analysis:   

(S&P 500 Index, 1-day chart)

Market Trends:

  • Dow Jones fell by 118.04 points, a 0.31% decrease, closing at 37,592.98 points.
  • Nasdaq dropped by 2.57 points, a 0.02% decrease, closing at 14,972.76 points.
  • S&P 500 Index declined by 3.59 points, a 0.08% decrease, closing at 4,783.83 points.

Hong Kong Stock Market

Fundamental Analysis:

In the Hong Kong stock market, all three major indices fell on Friday.

Notably, most tech-related stocks declined, with Baidu plummeting by 10%, Kuaishou falling nearly 3%, JD.com dropping nearly 2%, and Alibaba experiencing a nearly 1% decline.

On the other hand, Meituan rose by 0.6%, and Tencent increased by 0.2%.

New forces in the electric vehicle industry collectively declined, with XPeng Motors falling nearly 8%.

Real estate stocks generally declined, but Longfor Group stood out with an 8% increase.

Apple-related stocks were under pressure, with BYD Electronic falling nearly 5%. In the shipping sector, China Cosco Shipping surged over 8%.

Apple-related stocks were under pressure, with BYD Electronic falling nearly 5%.

On the news front, on January 15th, Apple China’s official website launched an event preview, announcing a “New Year Limited-Time Offer” from January 18th to 21st.

Apple stated that by purchasing specified products with eligible payment methods, customers could save up to ¥800.

Earlier, analysts at Jefferies, a Wall Street investment bank, reported that iPhone sales in China for the first week of 2024 declined by 30%.

Technical Analysis:  

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) fell by 0.15%, closing at 16,219.55 points.
  • Hang Seng Tech Index (HSTECH) dropped by 1.75%, closing at 3,410.06 points.
  • Hang Seng China Enterprises Index (HSCEI.) declined by 0.64%, closing at 5,447.03 points.

FTSE China A50 Index

Fundamental Analysis:

A-shares’ three major indices opened with various decreases, but after an initial market dip, they rebounded and turned positive one after another.

The Shanghai Composite Index briefly reclaimed the 2,900-point mark, but the morning market saw another decline, and the ChiNext Index turned green, closing with a decrease.

Technical Analysis:

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) rose by 0.36%, closing at 2,892.28 points.
  • Shenzhen Component Index (SZCOMP) fell by 0.01%, closing at 8,995.54 points.
  • ChiNext Index (CHINEXT) dropped by 0.38%, closing at 1,754.5 points.
  • SSE STAR Market 50 Index (SSE50) declined by 0.18%, closing at 776.97 points.

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