US stocks weekly: Deep impact

Iron Mountain

03/02/2025 11:00

(Repeats from Friday with no changes to text. Updates chart)
** 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:

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SP 500 2025 YTD THROUGH JANUARY 31    https://fingfx.thomsonreuters.com/gfx/buzz/gkplbonjbpb/SP%20500%202025%20YTD%20through%20Jan%2031.jpg
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(Lance Tupper and Terence Gabriel are Reuters market analysts.
The views expressed are their own)
((lance.tupper@tr.com
terence.gabriel@tr.com))