US stocks weekly: Deep impact

Iron Mountain

31/01/2025 21:41

** S&P 500  .SPX  breaks two-week winning streak, finishes down 1% in rocky trading as China's AI push weighs amid bevy of corporate reports, tariff talk  .N 
    ** Dow  .DJI  ticks up ~0.3%, while Nasdaq Composite  .IXIC  loses 1.6%
** Week starts out with DeepSeek deep-sixing U.S. stock futures, but SPX finds support, regroups a bit off its low, but still ends week down about 1.3% from its record close
** This, with the U.S. 10-Year Treasury yield  US10YT=RR  on the back foot, back down to around 4.55%
** In any event, out of the gate this year, dividends proving noble, while banks brighten, tech tarnished
    ** Majority of sectors get hit; Tech and Energy crater most, while Communication Services most resilient
** Tech  .SPLRCT  dives 4.6%. Nvidia  NVDA.O , AI-linked stocks tumble after Chinese startup DeepSeek rolls out discount model
Intel  INTC.O  down on Fri despite results that top estimates, as challenges persist with investors waiting for a new CEO
    Semiconductor index  .SOX  sags 6% on week
Microsoft  MSFT.O  drops after disappointing cloud growth forecast, while some analysts view outlook a 'short-term blip'
 On the bright side, Apple  AAPL.O  rises at first on Fri after positive sales outlook signals iPhone recovery, Wall Street hikes PTs, but ends session in the red. Still, AAPL scores 6% weekly gain
IBM  IBM.N  surges as software strength, boosted by AI-related spending, drives Q4 profit beat
** Energy  .SPNY  slides 3.8%. Chevron  CVX.N  falls after Q4 earnings miss on weak refining results, Exxon Mobil  XOM.N  posts profit beat on higher production, but group declines as oil prices dip  O/R 
** Utilities  .SPLRCU  power down by 2.1%. Power cos slump as AI-related stocks slide. Constellation Energy  CEG.O  and Vistra  VST.N  shed 14% and 12%, respectively
** Industrials  .SPLRCI  lose 1.9%. UPS  UPS.N  skids 14% as plans to slash millions of Amazon.com  AMZN.O  deliveries dent 2025 rev forecast
** Real Estate  .SPLRCR  edges down 0.3%. Data center shares extend DeepSeek-triggered losses. Digital Realty  DLR.N  and Iron Mountain  IRM.N  both retreat ~9%
** Consumer Discretionary  .SPLRCD  up 0.8%. Tesla  TSLA.O  shares rise on Musk vow to launch cheaper EVs, autonomous ride-hailing service
Starbucks  SBUX.O  percolates as better-than-expected results point to turnaround taking root
** Consumer Staples  .SPLRCS  rise 1.9%. Though Walgreens  WBA.O  tumbles after suspending dividend amid restructuring efforts
** Communication Services  .SPLRCL  jumps 2.7%. Facebook parent Meta  META.O  notches 6% weekly gain after Q4 rev beat, AI payoff signs
** Meanwhile, individual investor bears bounce back, and when it comes to AI, could bets on picks and shovels be a mistake?
    ** SPX performance YTD:
     
 Comm Svcs                   9.0%
 Healthcare                  6.6%
 Financials                  6.4%
 Materials                   5.5%
 Industrials                 5.0%
 Discretionary               4.4%
 Utils                       2.9%
 SPX                         2.7%
 Energy                      2.0%
 Staples                     1.9%
 Real Estate                 1.7%
 Tech                        -2.9%
     

(Lance Tupper and Terence Gabriel are Reuters market analysts. The views expressed are their own)
((lance.tupper@tr.com
terence.gabriel@tr.com))