Weekly Update - 1|14|24

Weekly UPDATES

On January 11, the Stock indexes crashed after December CPI report as inflation went up to 3.4% in December from 3.1% in November. However, after hitting a low, stocks recovered and rallied for the rest of the day. 


On Jan 12, the producer price index (PPI - wholesale prices), fell 0.1% in December and up 1% from a year ago. This was a good news. Despite the good PPI report, the stock indexes were down on Friday due to uncertainty as U.S carried strike against Yemen’s Houthi forces on Friday to protect shipping in the "Red Sea". Because they are creating a supply chain crisis for several countries in the World. 


Microsoft (MSFT) officially overtook Apple as the world’s most valuable company with its $2.885 trillion market cap just above Apple’s $2.871 trillion value at the close of trading. This would be a stock to watch this year.


Nvidia (NVDA) At the Consumer Electronic Show (CES) the company launched a plethora of new AI chips, which further emphasizes that the AI spending boom of 2023 will only accelerate in 2024. 


What’s happening with Tesla shares?

  • First the good news. Tesla (TSLA) has upgraded Model 3 is now available in North America. Mileage increased to 341 miles with no change in cost. Long range and Rear wheel drive cost $43,990 and 38,990 respectively.
  • Bad news: Tesla had a small cut on the price for its Model 3 and Model Y prices in China. The company also said its production at Berlin Plant in Germany will be impacted for 2 weeks due to ongoing problem in Red Sea causing supplier disruption. It was also reported that Hertz is selling some of the Model 3 Tesla cars as many renters do not know to drive and other ridiculous reasons... 
  • My View: Tesla reports Earnings on 1/24. Obviously momentum is not with Tesla stock at this time. We will see how the earnings go. The earnings and earnings call will be the determinant for Tesla's stock price. The company is also gearing up for a grand entry to the Indian EV market and expected to invest about $30 billion in next 5 years. I think it has some turbulence in the near term but opportunities to accumulate for long-term. I may be wrong though. More after the earnings.
The Semiconductor market is finally turning around. The semiconductor sales were up 5.3% in November 2023. Nvidia (NVDA) is back to the runway after announcing new products at CES.


Mortgage applications jump to start the new year. Despite a slight rise in the average 30-year fixed mortgage rate, mortgage applications jumped nearly 10% in the first week of 2024.


Q4 EARNINGS

  • JPMorgan Chase (JPM) the U.S.’s largest bank reported adjusted earnings per share of $3.04 on revenues of $39.94 billion. Revenues beat, but earnings dipped 15% YoY due to a $2.9 billion fees.
  • Bank of America (BAC) revenues fell well short of expectations at $22.1 billion vs. $23.74 billion. Adjusted earnings topped expectations
  • Citi (C) Group posted a huge $1.8 billion fourth-quarter loss due to massive restructuring. Revenues also failed to meet analysts expectations. 
  • One key earnings to watch this week: Taiwan Semiconductor (TSM). Next week we will see two huge earnings Tesla (TSLA) on 1/24 and Netflix (NFLX) on 1/23.
Economy Reports this week
  • WED, 1/17: Retail Sales (DEC).
  • FRI, 1/19: Existing Home Sales (DEC), Consumer Sentiment (JAN).
Stocks to watch this week: MSFT, NVDA, TSLA, NFLX.






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