To The Moon

Last Week's Recap

The US Market - The S&P 500 hit a record high

• The S&P 500 indexes hit a record high as stock market rallied in President Donald Trump's first week back in the White House, issuing a slew of executive orders on energy, bitcoin and more, as well as a variety of tariffs.

• All three major averages posted their second straight positive week, signaling that the bull market is back in full force after December’s pullback. Trump’s pro-business policies has largely pushed risk assets higher last week.

• Notably, Trump said on Thursday that he would “demand that interest rates drop immediately” when addressing world leaders in Davos, Switzerland.

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The US Sectors & Stocks - NFLX shares surged to nearly $1000

• All S&P 500 sectors set weekly gains, despite the energy sector, losing 1.4% for the week, as crude oil set for its largest weekly decline since November, also its first weekly decline in five weeks.

• Netflix (NFLX) broke out after the internet TV beat estimates for the fourth quarter thanks to a rush of new subscribers. Netflix added 18.91 million new subscribers in the fourth quarter, ending 2024 with 301.63 million worldwide. Netflix sees 2025 revenue rising 13% to $44 billion, based on the midpoint of its guidance, just above consensus.

• Apple (AAPL) declined another 2.4% last week, following several analysts lowered their price targets for Apple before its earnings. Jefferies analyst Edison Lee downgraded Apple’s stock rating to underperform, pointing out weak iPhone sales and the lack of AI-related growth momentum. Lee believes Apple’s Q1 2025 revenue is unlikely to meet expectations, and guidance for the March quarter may also disappoint. Read AAPL earnings preview

• Twilio (TWLO) skyrocketed 20% after reporting strong preliminary Q4 results, it achieved positive operating income on a GAAP basis for the fourth quarter. The company also issued an upbeat long-term targets and a $2 billion buyback.

• Meta Platforms (META) rose to hit an all-time high before its earnings, as Zuckerberg announced in a Facebook post that the company plans to invest around $60 billion to $65 billion in capital expenditure this year as it builds out its AI infrastructure.

• Oracle (ORCL) jumped 14.02% as U.S. President Donald Trump said the company would make a large investment in artificial intelligence infrastructure, alongside OpenAI and SoftBank.

• Novo Nordisk (NVO) rallied more than 10% after the Danish drug company announced data for anew weight-loss drug that appeared to be more efficient than its blockbuster Ozempic and Wegovy drugs currently on the market.

• The energy stocks boom, such as the nuclear power firm Constellation Energy Corp (CEG) rose 10% and Vistra energy (VST) jumped 12% as expectations of growing energy demand to support AI.

• Texas Instruments (TXN) dropped 7.5% last Friday, after the chip company reported fourth-quarter earnings and revenue that beat analysts’ estimates but issuedweak profit guidancefor the current first quarter. The company said on a conference call that the auto end market in Europe, U.S., and Japan continued to be weak.

• Moderna (MRNA) jumped 21.6% as the biotech firm announced that the U.S. government has awarded it more than a half a billion dollars to develop a vaccine that can be used against bird flu.

Hong Kong Market - HSI rallied 2.5%

• Hong Kong stocks rose, tracking a rally on Wall Street, and the prospect of warmer US-China relations following US President Donald Trump’s speech to the World Economic Forum further aided sentiment. The Hang Seng Index (HSI) set a 2.5% gain, ending higher for a second week.

Singapore Market - Singapore central bank eased monetary policy

• Singapore stocks fell slightly last week, with the STI down 0.2%, as Singapore's central bank on Friday loosened its monetary policy, the first such move since 2020, saying it expects inflation and growth to be slower than it initially forecast this year.

Australian Market - ASX 200 rose 1.2%

• Australian shares closed the week on a positive note, buoyed by local retailers and a turnaround in Australian mining stocks’ fortunes in late trading on Friday. The S&P/ASX 200 index closed up 1.2% last week. Trump on Friday urged OPEC to “bring down the cost of oil” to drive down inflation and interest rates. Elsewhere, the Bank of Japan raised interest rates to their highest level in 17 years.

The Week Ahead

Macro Factors - FOMC and Big techs earnings on deck

• A packed week of fourth-quarter earnings reports and interest-rate decisions from the Federal Reserve and European Central Bank will keep the week busy.

• On Wednesday, the Federal Reserve will also announce its latest monetary policy decision, with the central bank expected to keep interest rates unchanged and investors focused on what Fed Chair Powell has to say about the balance of 2025.

• President Trump’s comments last Thursday at the World Economic Forum, at which he said he will “demand that interest rates drop immediately,” could add friction to a central bank meeting this week.

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Earnings

• S&P 500 companies have had a strong start to earnings season. The index is expected to grow earnings by 12.7% compared to the year prior in the fourth quarter, per FactSet data.

• But much of that growth still relies on the performance of the "Magnificent Seven" tech stocks. And four of those companies — Tesla, Meta, Microsoft, and Apple — will report in the week ahead.

Tesla Q4 Preview: Can the EV King Be Trusted?

Meta Q4 Earnings Preview: Ad Boost From TikTok, Llama 4 Spending Are Keys

Microsoft Q2 Preview: Balanced Growth Expected, Focus on AI and Cloud

Apple Q1 Preview: Bracing for a Potentially Grim Outcome