Stock futures dip as December jobs report beats expectations
Stock futures are slightly down on Friday following a stronger-than-expected December jobs report. The positive report raises concerns that the Federal Reserve will maintain higher interest rates for a longer period. This has potential implications for the three major averages, which are on track to break their nine-week winning streaks. Furthermore, treasury yields have risen, with the benchmark 10-year trading at around 4.08%.
Market broadens as tech stocks take a back seat
While the “Magnificent Seven” tech stocks have been dominant, there is a shift occurring as the rest of the market gets stronger. Retail investors have been showing increased interest in money funds, indicating a growing diversification in investment trends.
Netflix explores monetizing its gaming offerings
According to a report in The Wall Street Journal, Netflix is looking for ways to generate revenue from its gaming sector. Last year, Netflix games, which are currently free for all subscribers, were downloaded 81.2 million times globally, experiencing significant growth from 2022’s 28.7 million downloads.
Costco reports strong December sales
Costco, the well-known club holding, has announced a 9.9% increase in net sales from the previous year. Total comparable sales also rose by 8.5%. December’s extra shopping day contributed to a 3% boost in both total and comparable sales. As a result, Oppenheimer and Deutsche Bank have raised their price targets for Costco, leading to a nearly 1% rise in the retail giant’s share prices during premarket trading.
Carrefour stops selling PepsiCo products due to price increases
Carrefour, a French supermarket chain, has decided to discontinue the sale of PepsiCo products in its stores across France, Belgium, Spain, and Italy. The move comes as a response to what Carrefour considers “unacceptable price increases.”
Barclays raises price targets for cyclicals
Barclays has raised its price targets for cyclicals, suggesting a positive outlook for these stocks. However, there are concerns about the market caps of these companies compared to tech giants like Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla.
Jefferies upgrades Monday.com and raises price targets for HubSpot, Bill, and ServiceNow
Jefferies has upgraded enterprise software company Monday.com from hold to buy. The company has experienced significant growth in recent years, despite an 8% decline this year. Additionally, analysts have raised the price targets for HubSpot, Bill, and ServiceNow, indicating a positive sentiment towards these companies.
Foxconn reports weak December sales, impacting Apple
Taiwan’s Foxconn Technology, Apple’s largest assembler of iPhones, has reported a 29.6% decline in December sales compared to November and a 26.9% decrease from the previous year. This development is expected to have negative repercussions for Apple.
U.S. venture capital fundraising hits a 6-year low
Venture capital firms in the United States have experienced a significant drop in fundraising, reaching a six-year low with $67 billion raised in 2023. This represents a 60% decrease from 2022 levels and the lowest amount since 2017. The decline can be attributed to numerous failed ventures and a saturated market.
JPMorgan adjusts price targets for regional banks
JPMorgan has raised price targets for several regional banks, including KeyCorp, Huntington Bancshares, Texas Capital, Webster Financial, and Cullen/Frost. However, they have reduced the price target for Zion Bancorporation.
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As the market landscape continues to evolve, investors should closely monitor these top 10 trends to stay informed and make informed decisions.