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Market Moves Yesterday
S&P 500 @ 5,836.22 ( ⬆️ 0.16%)
Nasdaq Composite @ 19,088.10 ( ⬇️ 0.38%)
Bitcoin @ $94,833.82 ( ⬆️ 0.26%)
Hey Scoopers,
Happy Tuesday! Let’s have a great week.
👉 China might sell TikTok U.S. to Elon Musk
👉 China’s EV sales might slowdown in 2025
👉 S&P 500 earnings season to begin
So, let’s go 🚀
VaultCraft V2 secures $100M+ BTC from Matrixport
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Matrixport entrusts VaultCraft with $100M+ Bitcoin
OKX Web3 rolls out Safe Smart Vaults with $250K+ rewards
Market Wrap
Hey, Scoopers!
The stock market showed a tale of two sectors on Monday, with old economy stocks rising while tech leaders retreated. Here's what you need to know:
Market Movers:
Dow Jones climbed higher
Tech stocks faced selling pressure (Nvidia -2%, Palantir -3%)
Energy sector jumped +2% as oil prices increased
Key Context: Energy has emerged as January's top performer (+5%), boosted by new Russian oil sanctions. Meanwhile, tech and real estate sectors are down -2.8% this month.
What's Driving Markets:
Bond yields hit their highest level since November (10-year at 4.79%)
Strong jobs report has investors rethinking Fed rate cut expectations
Looking Ahead:
Major bank earnings start Wednesday (JPMorgan, Goldman Sachs)
Important inflation data incoming (CPI on Wednesday, PPI on Tuesday)
Bottom Line: January's volatile start reminds us why diversification matters. While tech stumbles, traditional sectors like energy are picking up the slack.
Trending Stocks 🔥
Nvidia - Shares of Nvidia and other chip stocks declined after the Biden administration revealed new artificial intelligence chip export caps. Nvidia lost more than 2%.
Moderna - Shares shed over 16% after the vaccine maker cut its 2025 sales guidance by about $1 billion to between $1.5 billion and $2.5 billion.
Quantum stocks - Quantum computing stocks dropped after Meta Platforms CEO Mark Zuckerberg became the latest high-profile executive to ease expectations for the technology. Rigetti Computing dropped 27%.
Elon Musk & TikTok: A Surprising Deal 🔍
In an unexpected twist in the TikTok saga, China is reportedly exploring a bold solution to keep the app running in the U.S. – having Elon Musk take over its American operations.
Source: eMarketer
Here's what matters:
The Situation:
U.S. law requires ByteDance (TikTok's owner) to sell by January 19
China is considering Musk as a potential buyer for U.S. operations
It would put both X (Twitter) and TikTok US under Musk's control
Key Context:
Supreme Court currently reviewing TikTok ban law
The government argues that ByteDance ownership poses a security risk
TikTok claims the ban would violate users’ free speech rights
Market Impact:
The potential deal could affect several major tech stocks and social media platforms, and its outcome could create ripples in the digital advertising market.
What's Next:
January 19 deadline approaching
Supreme Court appears to favor the government's position
The new administration might seek a different resolution
Bottom Line: While the story reads like science fiction, it highlights how geopolitics can create unexpected business opportunities and risks.
It reminds investors that understanding the broader market context matters as much as financial metrics.
Note: TikTok has dismissed this report as "pure fiction." As always, we'll keep you updated as the story develops.
China's EV Market: From Boom to Reality Check 🚗
After years of explosive growth, China's electric vehicle (EV) market is bracing for a slowdown in 2025. Here's what investors need to know:
The Numbers Tell the Story:
2023: 42% growth (11 million vehicles sold)
2024 Forecast: 20% growth (HSBC)
2025 Forecast: 15-20% growth (Fitch)
Profitability Challenge:
Only three companies made money in 2023:
BYD
Tesla
Li Auto
Most EV manufacturers are losing money amid price wars.
Market Reality Check:
EVs account for 50% of new car sales in China
Intense price competition squeezing margins
Companies shifting focus to smart features for differentiation
Many automakers are struggling financially, cutting R&D
Investment Implications:
The slowdown could trigger industry consolidation, creating opportunities for more prominent players with well-capitalized balance sheets.
Bottom Line: The EV revolution isn't over, but it's maturing. The transition phase could separate long-term winners from the pack, making careful stock selection more crucial than ever.
Bank Earnings Week: Your Complete Guide 📊
Big banks kick off earnings season this week, and the numbers look promising. Here's your simplified breakdown:
The Big Picture:
The financial sector is expected to lead the market with 39.5% earnings growth
Banks showing strongest performance (187% growth)
80% of financial companies report this week
Key Players to Watch:
JPMorgan Chase
Bank of America
Goldman Sachs
Citigroup
Morgan Stanley
Wells Fargo
What's Working:
✅ Steeper yield curve driving profits
✅ Loan growth up 7.7%
✅ Deposit growth up 7.2%
✅ Credit card spending is strong
Watch Out For:
⚠️ Commercial real estate concerns
⚠️ Lower investment banking activity
⚠️ Pressure on the mortgage business
⚠️ Consumer credit stress
Bottom Line:
While bank stocks are reasonably valued, results will be mixed. The sector's strong projected growth is partly due to easy comparisons from last year's weak numbers.
Savvy investors should focus on banks with strong deposit bases and diverse revenue streams.
Headlines You Can't Miss!
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India’s inflation slows to 5.2% in December
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DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.