To The Moon

Last Week's Recap

The US Market - The Dow advanced 3.7%

• The stock market rally showed strong, broad-based gains, as a tame CPI inflation report sent Treasury yields tumbling. Strong earnings from major banks also boosted stocks last week.

• The three major averages posted their first weekly gain of the new year with the Dow and S&P 500 advancing 3.7% and 2.9%, respectively. Both indexes posted their biggest weekly advance since the week of the U.S. presidential election in November.

• Two key inflation reports showed that inflationary pressures softening somewhat. December CPI reading met the expectations, while the core inflation rose less than expected year on year. The PPI also had a smaller-than-anticipated increase for December.

• A new meme coin called “Official Trump” (TRUMP), announced on Trump’s social media accounts and issued on the Solana blockchain. TRUMP coin skyrocketed more than 2000% and had a market cap of more than $50 billion, according to CoinGecko.

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The US Sectors & Stocks - Banks broke out

• The S&P 500 financial sector was up 6% for the week, while basic materials, real estate, industrials, utilities and energy sectors all rose more than 4%, outperforming the index.

• The biggest underperformer is the healthcare sector, as Eli Lilly (LLY) tumbled after its Q4 revenue missed its previous guidance.

• Goldman Sachs (GS), Morgan Stanley (MS) and Bank of America (BAC) earnings more-than doubled from last year to beat estimates, while BlackRock (BLK), JPMorgan Chase (JPM) and Wells Fargo (WFC) saw EPS gains range from 23% to 66%. Citigroup (C) delivered a strong profit vs. a year-earlier loss, and also announced a $20 billion stock buyback program. Broad banks driver in Q4 included investment banking and capital markets revenue growth, as well as increased fee and lending income. Analysts forecast 2025 net interest income and margins will grow, while a looser regulatory environment should also bolster bank performance throughout the year. Shares of GS、MS and C were each roughly 12% higher on the week, while JPM and WFC gained 8% and 10%, respectively. Read more: 🎉Global Major Banks Profit Reach 3-Year High

• Apple (AAPL) declined 4% last Thursday, closing the week for a 3% loss, following several reports of lackluster iPhone sales in China. The headlines started with Reuters reporting that Apple is no longer the top smartphone provider in China. Apple's share of the market has been in decline over the last year as Huawei and Xiaomi have been increasing competition. Since 2025, shares of AAPL fell nearly 9%.

• TSMC (TSM) beat Q4 expectations with a 53% EPS gain as revenue swelled 36% to $26.88 billion, thanks to strong sales of chips for artificial intelligence. The world's largest contract chipmaker guided up on Q1 sales, while 2025 capex spending plans also topped expectations. TSM stock and shares of major chip-gear makers surged on the news.

• Novo Nordisk (NVO) fell nearly 9% last week to a 17-month low as its diabetes fighter Ozempic and weight-loss injection Wegovy were named Friday as among the next batch of prescription drugs facing Medicare price negotiations.

• Intuitive Surgical (ISRG) reported preliminary fourth-quarter revenue of $2.41 billion vs forecasts of $2.2 billion. The robotic surgical systems maker installed 493 da Vinci systems in Q4, including 174 new da Vinci 5 robotic surgery systems. For 2025, the company projects 13% to 16% procedure growth. Share jumped 8% to a new high.

• UnitedHealth (UNH) beat Q4 earnings expectations, but it missed on revenue and costs ran higher than expected. UnitedHealth predicted that its 2025 medical care ratio, or benefit costs as a percentage of premiums, would rise 150 basis points vs. 2024. UNH declined on the outlook.

• Intel (INTC) rose 9% after some vague takeover speculation about the chipmaker. A report from SemiAccurate was circulating on Friday about a company looking to acquire Intel. According to a Citi note, Elon Musk was mentioned as a potential buyer behind the paywall of SemiAccurate.

• Qorvo (QRVO) jumped 14% after activist investor Starboard Value amassed a 7.7% position in the company, which makes radio-frequency chips for connectivity in Apple iPhones, iPads, Apple Watches, and other wireless devices.

Hong Kong Market - HSI rallied

• Hong Kong stocks rallied as official data showing China’s fourth-quarter growth exceeded expectations. The Hang Seng Index (HSI) advanced 2.7%.

• China’s economy expanded by 5.4% in the fourth quarter year on year, the National Bureau of Statistics said on Friday. That beat the consensus estimate of 5% growth by the economists tracked by Bloomberg. Full-year growth was 5%, meeting the government’s annual target.

• “The stock market’s moderate response reflects investor caution as they await further policy clarity,” said Zhu Chaoping, a strategist at JPMorgan Asset Management in Shanghai. “The fiscal plan to be announced in early March at National People’s Congress will play a significant role in managing expectations and ensuring the sustainability of economic recovery. Maintaining policy consistency and coordination will be crucial.”

• Vanke (HK:2202) tumbled 3.1% to HK$4.71 amid rumours the company’s CEO had been detained by the police, adding to woes for the developer as investors question its ability to repay its debts.

Singapore Market - STI was up 0.24%

• Singapore shares slightly rallied this week, with the STI up 0.24% over the week. Singapore's non-oil domestic exports (NODX) expanded by 9.0% in December 2024, extending the 3.4% increase in the preceding month, according to data released by Enterprise Singapore.

• Developers in Singapore could sell more new homes this year, excluding executive condominiums, says Tricia Song, CBRE's head of research for Singapore and Southeast Asia, in a commentary. Developers are more likely to push ahead with launches this year, as buying appetite returned in 4Q 2024 amid lower mortgage rates, she adds.

Australian Market - ASX 200 rose 0.2%

• Australian shares took a bit of a breather on Friday, shedding a little of their impressive Thursday rally with banks and telcos the major casualties. However, the ASX 200 closed slightly higher for the week, rising 0.2%.

• Rio Tinto (ASX: RIO) caught a lot of interest following on from Bloomberg reports that the world’s second biggest miner was holding talks with fellow mining giant Glencore about merging their businesses. If that were to happen it would produce a combination that would jump over BHP (ASX: BHP) to become the world’s biggest miner.

The Week Ahead

Macro Factors - All attention to Trump's inauguration

• This will be an unusual week for markets. U.S. markets will be closed on Monday for the Martin Luther King Jr. holiday. However, all attention to President-elect Donald Trump's inauguration. Investors have been closely tracking where Trump's tariff and tax policies will land and their eventual impact on American corporations. These activities could set off a big bout of market instability all week.

• Trump said Sunday morning he's inclined to give TikTok and potential buyers 90 days to negotiate a deal. TikTok was back.

• Donald Trump's inauguration will take place at noon Monday (E.T.) in the rotunda of the U.S. Capitol building. The audience will include the political establishment with a bevy of billionaires in the audience, including Elon Musk, Trump advisor and CEO of Tesla (TSLA) ; Mark Zuckerberg, CEO of Facebook-parent Meta Platforms; and Shou Zi Chew, the CEO of TikTok.

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Earnings

• Netflix, Johnson & Johnson and United Airlines are among the 35 S&P 500 companies slated to post their latest quarterly results. Those come after a week in which big banks reported blockbuster numbers. Overall, just over 40 S&P 500 companies have reported thus far. Of those, 76% have beaten analyst expectations, according to FactSet.

• Netflix Earnings Preview: Will Content Strategy and Live Sports Expansion Boost Q4 Earnings