Eksentricity

Tech

Global Solar Energy Market

• China’s Market Dominance: China controls approximately 80% of global solar panel manufacturing, a 34% year-on-year export increase in 2023, fueled by significant government investment since 2012. This creates geopolitical concerns for other nations.
• US Tariffs and First Solar’s Performance: US tariffs on Chinese solar panels, ranging from 21% to 271%, aim to counter dumping and benefit domestic producers like First Solar. First Solar reported an 11% revenue increase to $887 million in Q3 2024, but Q4 missed revenue expectations.
• IEA’s Net-Zero Report: The IEA highlights solar energy as crucial for achieving net-zero emissions by 2050, emphasizing the technology’s rapid growth but also the challenges of market concentration.

Tech Company Litigation

• DXC Technology Class Action Lawsuit: A class action lawsuit against DXC Technology alleges misrepresentation of cost-reduction efforts, leading to artificially inflated stock prices between May 26, 2021, and May 16, 2024. A $250 million expenditure disclosure caused a 17% stock drop.
• Nextracker Class Action Lawsuit: A class action lawsuit against Nextracker claims misrepresentation of project delays and financial prospects between February 1 and August 1, 2024. The lawsuit alleges false statements about project timelines and competitive standing.

Leadership Changes and Stock Performance

• Meta’s Leadership Shift and Stock Rise: Meta Platforms replaced its president of global affairs, Nick Clegg, with Joel Kaplan. This coincided with a 2.34% stock increase to $599.24, and a 73.04% year-to-date surge in 2024.

Global Electric Vehicle (EV) Market

• BYD and Tesla’s Market Share: BYD surpassed Tesla as the world’s largest BEV seller in Q4 2024 (595,413 vs. 495,570), but Tesla remained the top pure EV brand for the year (1,789,226 vs. 1,764,992). Tesla’s deliveries declined 1.1% year-over-year, while BYD saw a 12% increase.
• Tesla’s Energy Storage Growth: Tesla achieved record energy storage deployments in 2024, reaching 31.4 GWh—a 114% year-over-year increase, despite lower vehicle deliveries.

US Tech Industry Performance and Outlook

• Business Software Services: This sector shows strong growth (e.g., Q2 Holdings with 131.9% share growth in 2024), driven by digital transformation, but faces headwinds from geopolitical uncertainty, high interest rates, and elevated expenses. The industry’s forward P/E ratio is 29.4X.
• Diversified Communication Services: This industry faces challenges including high 5G upgrade costs and supply chain disruptions, yet 5G rollout and fiber expansion offer long-term growth. Its trailing 12-month EV/EBITDA is 9.2X.

Other Notable Tech News

• Apple Siri Settlement and Other News: Apple settled a lawsuit regarding unauthorized Siri recordings for $95 million, potentially paying up to $20 per eligible device. This section also encompasses various other announcements including company partnerships, product launches, and lawsuits against various companies, positive outlook forecasts and manager transactions, as well as information on various stock performances in the industry.

Finance

Fintech Performance and Litigation

• PayPal Stock Decline and Analyst Views: PayPal (PYPL), with an $86 billion market cap, saw a 1.65% stock price drop to $87.60 on January 3, 2025. Analyst opinions are divided; some see it as overvalued after a 57% 2024 surge, while others remain bullish long-term.
• SoFi Downgrade and Overvaluation Concerns: SoFi Technologies (SOFI) experienced an 8% drop after a downgrade to “underperform” from Keefe, Bruyette & Woods, citing a 57% 2024 price increase and overvaluation.
• Fintech Class Action Lawsuits: Multiple class-action lawsuits targeted fintech firms like Celsius Holdings (CELH) and Marqeta (MQ) for allegedly misleading statements and regulatory issues, highlighting growth strategy and regulatory risks.

Shareholder Returns and Dividends

• European and US Buyback Programs: ING Group announced a €2 billion buyback program (ending April 30, 2025), while US companies like MRC Global Inc. ($125 million program) also initiated share repurchases, aiming to return value to shareholders. Other companies like PayPoint plc and OSB Group plc also repurchased shares.
• Dividend Announcements Across Sectors: Several companies, including ING (€0.161 per share), Alta Equipment Group Inc. ($625 per preferred share), Fairfax Financial Holdings Limited (US$15.00 per share), and Bank OZK (42 cents per share), announced dividend distributions, showcasing financial strength and commitment to shareholder returns.

Market Sentiment and Economic Indicators

• Market Volatility and Investor Fear: The S&P 500 and Nasdaq experienced their longest losing streak since April, driving the CNN Business Fear & Greed Index to 26.1 (“Fear”), reflecting market uncertainty and negative sentiment.
• Mixed Economic Data Impact: Conflicting economic data—lower jobless claims (211,000) but weaker manufacturing PMI and construction spending—increased market uncertainty, highlighting the challenges in interpreting economic signals.

Corporate Governance and Leadership

• Analyst Ratings and Stock Valuations: Analyst upgrades and downgrades reflected the dynamic nature of stock valuations and market sentiment, emphasizing the importance of thorough fundamental analysis.
• Executive Appointments and Transitions: Several companies, including Compatriot Capital and Fairfax Financial Holdings Limited, announced management changes, illustrating the ongoing evolution of corporate leadership and strategic adjustments.

Legal and Regulatory Scrutiny

• Securities Class Action Lawsuits: Several securities class action lawsuits targeted companies like Capri Holdings Limited (CPRI) and Tapestry, Inc. (merger-related), PACS Group, Inc. (fraudulent practices), and Transocean Ltd. (RIG) (asset valuation), highlighting the need for transparency and accurate disclosures.
• Ongoing Investigations and Potential Violations: Investigations into companies like Hasbro (HAS), DMC Global Inc. (BOOM), FAT Brands Inc. (FAT), Zeta Global Holdings Corp. (ZETA), and Symbotic Inc. (SYM) for potential securities violations or misleading statements underscore the risks of investing in publicly traded companies and the need for due diligence.

Investment Strategies and Sector Outlook

• Long-Term Investment Approach: News emphasizes long-term investment strategies, risk management through diversification and dollar-cost averaging, particularly relevant during market dips.
• Varying Sectoral Outlooks: Sector-specific outlooks highlight fintech’s regulatory uncertainty, energy infrastructure’s long-term growth potential, and regional banks’ potential benefits from interest rate cuts.

Healthcare

Biotech Investment Trends

• Iovance Biotherapeutics’ Promising Outlook: Analyst Benjamin Burnett’s buy recommendation for Iovance Biotherapeutics (IOVA) cites Amtagvi’s strong performance and Proleukin’s potential. Limited competition for Amtagvi in late-line melanoma suggests significant revenue potential.
• Acelyrin’s Thyroid Eye Disease Treatment: Acelyrin (SLRN) will present updated Phase 2 data for lonigutamab, a potential best-in-class Thyroid Eye Disease (TED) treatment, at a virtual investor event. The over 100,000 TED sufferers in the U.S. represent a substantial market.
• Nona Biosciences’ ADC Acquisition: BeiGene acquired global rights to an antibody-drug conjugate (ADC) from DualityBio, showcasing Nona Biosciences’ innovative drug discovery approach.

Pharmaceutical Market Dynamics

• Large-Cap Pharma Performance: Large-cap pharmaceutical companies underperformed the S&P 500 (-1.2% vs +26.2%) due to political factors and Q3 results. However, 2025 projections are positive, driven by innovation in oncology, rare diseases, and other areas. M&A activity remains robust.
• Individual Company Outlooks: Eli Lilly (LLY), J&J (JNJ), AbbVie (ABBV), AstraZeneca (AZN), and Pfizer (PFE) show varied outlooks. J&J and Eli Lilly project sales growth, while Pfizer anticipates a decline in COVID revenues but non-COVID growth. AbbVie faces Humira sales decline but expects growth from new drugs. AstraZeneca projects strong growth. The industry’s forward P/E ratio is 18.64X, lower than the S&P 500’s 25.08X.

Medical Services Landscape

• Digital Health Growth: The medical services industry is rapidly adopting digital technologies, including telehealth and AI. The U.S. digital health market is projected to grow at a 9.2% CAGR (2024-2028), and the global big data in healthcare market to $540 billion by 2035 (19.20% CAGR). AI implementation reduced treatment costs by 50% and improved patient outcomes by over 50%.
• Nursing Care Shortages: Despite an aging population and growing healthcare needs, the nursing care market faces a severe worker shortage. Employment of certain nursing roles is projected to grow 40% (2023-2033), but a projected deficit of over 73,000 nursing assistants by 2028 will increase costs.

Company Updates & Presentations

• Eton Pharmaceuticals’ Acquisition: Eton Pharmaceuticals (ETON) acquired Galzin for Wilson Disease, targeting U.S. commercialization in Q1 2025. Fewer than 5,000 U.S. patients are currently treated for this disease.
• SpringWorks and Agios Presentations: SpringWorks Therapeutics (SWTX) and Agios Pharmaceuticals (AGIO) will present at the J.P. Morgan Healthcare Conference, highlighting their focus on rare diseases and cancer therapies.

Healthcare Financial Performance

• Medical Services Underperformance: The Zacks Medical Services industry underperformed its sector and the S&P 500 (-13.7% vs -6.2% and +25.3%, respectively). Its forward P/E ratio is 14.79X. Doximity (DOCS), BrightSpring (BTSG), and Embecta (EMBC) show potential.
• Large-Cap Pharma Relative Performance: The Zacks Large Cap Pharmaceuticals industry outperformed its sector but underperformed the S&P 500 (-1.2% vs -6.1% and +26.2%, respectively). Its forward P/E ratio is 18.64X.

Legal and Regulatory Developments

• Healthcare Investigations and Lawsuits: BioVie Inc. (BIVI) faces a class action lawsuit alleging misleading statements. AstraZeneca (AZN) faces an investigation in China regarding illegal drug imports and potential fraud, causing a 15% stock decline and a U.S. lawsuit.
• Surgeon General’s Alcohol Warning: Surgeon General Vivek Murthy’s advisory on alcohol’s cancer risks (the third leading preventable cause of cancer in the U.S.) impacted alcohol stocks negatively.

Economy & Real estate

US Market Overview

• Initial Market Reaction: The first trading day of 2025 saw a mixed market opening. The Dow Jones Industrial Average fell 0.36% to 42,392.27, the S&P 500 dropped 0.22% to 5,868.55, and the Nasdaq Composite decreased 0.16% to 19,280.79. This extended negative trends from December.
• Job Market Strength and Construction: Initial jobless claims unexpectedly fell to 211,000, suggesting a robust labor market. However, November construction spending was flat, missing projected growth.
• Pre-Market Rebound and Bond Yields: Pre-market futures indicated a potential recovery, with gains projected for major indices. Bond yields remained elevated, with the 10-year yield at 4.54% and the 2-year at 4.23%.
• Upcoming Economic Indicators: Key employment reports this week—including JOLTS, ADP employment, jobless claims, and the Employment Situation report—will significantly influence Federal Reserve policy decisions.

Global Market Performance

• European Market Dip: European markets experienced a slight decline in post-holiday trading, with the STOXX 600 down 0.2%, despite weekly gains. Concerns about economic data and geopolitical factors contributed to this downturn.
• Mixed Asian Market Results: Asian markets showed varied performance. Australia’s S&P/ASX 200 rose 0.60%, while India’s Nifty 50 fell 0.82%. China’s Shanghai Composite and Shenzhen CSI 300 experienced declines, extending negative trends. Hong Kong’s Hang Seng closed up 0.70%.
• China’s Deflationary Pressures: China’s government bond yields hit record lows, reflecting deflationary concerns. The People’s Bank of China may consider interest rate cuts. Producer prices have fallen for 26 months, down 2.5% year-over-year in November.
• US Dollar Strength: The US Dollar Index reached a two-year high of 109.4, up 5.54% since November 5th, driven by higher interest rate expectations. The yuan weakened against the dollar.

US Steel Acquisition Blocked

• Biden Administration’s Decision: President Biden blocked Nippon Steel’s $14.9 billion acquisition of US Steel, citing national security concerns. The Committee on Foreign Investment in the United States (CFIUS) review raised concerns about potential production cuts.
• CFIUS’s Rationale: CFIUS worried that the acquisition could reduce US steel output, impacting national security. Nippon Steel’s concessions were deemed insufficient.
• Market Impact and Potential Legal Action: US Steel’s stock price fell after the blocked acquisition. Both companies warned of possible legal challenges, creating potential for strained US-Japan relations.
• No further details on other potential impacts of the blocked acquisition were found.

Commodity Price Movements

• Oil Price Decline: Crude oil prices (WTI and Brent) fell slightly, with WTI at $72.88/bbl and Brent at $75.69/bbl.
• Natural Gas Price Drop: Natural gas prices declined 3.33% to $3.538.
• Precious Metal Fluctuations: Gold saw a slight decrease to $2,667.99, while silver increased 0.74% to $30.120. Copper fell 0.04% to $4.0245.
• Other Commodities: No other significant commodity price changes were reported.

US Auto Industry Performance

• Tesla’s Delivery Miss: Tesla missed delivery targets for December and the full year, leading to a 6% stock price drop. This reflects challenges from slowing global demand and increased competition.
• Rivian’s Successful Deliveries: Rivian reported 14,183 deliveries in December and 53,179 for the year, meeting expectations and showing supply chain improvements.
• Other Auto Sales Data: Other manufacturers’ December sales figures were anticipated.
• No further details about other automakers were mentioned.

Trade and Tariff Concerns

• Trump’s Tariff Threat: Goldman Sachs predicts a 90% chance of President-elect Trump implementing tariffs on Chinese goods.
• Potential Economic Impact: Tariffs could raise costs and lower profit margins for US producers, leading to potential retaliatory tariffs from China and impacting various sectors.
• Rare-Earth Material Risk: China restricting rare-earth exports could create supply chain issues for the US.
• Economic Uncertainty: The potential consequences of tariffs are substantial and create significant uncertainty.

Retail

Retail Sustainability Trends

• RS Group’s ESG Initiatives: RS Group implemented a “Sustainable Life Enriching” strategy encompassing social investment, environmental protection (net-zero by 2050), and health initiatives. The strategy includes waste reduction at festivals (2,081 kg managed in 2024) and donations from recycled materials (over $8,700 USD).
• Sustainable Home Furnishings: The home furnishings sector shows growth fueled by e-commerce and consumer demand for sustainable products. Companies are adapting to this trend by investing in eco-friendly materials and supply chain optimizations.
• Apparel’s Sustainability Focus: Apparel companies are increasingly integrating sustainability into their operations, addressing concerns around ethical sourcing, waste reduction, and carbon emissions. This shift is driven by consumer demand and regulatory pressures.
• Global Sustainability Efforts: Retailers worldwide are adopting various sustainability practices, indicating a broader industry shift towards environmentally and socially responsible operations.

Apparel and Footwear Market Performance

• US Apparel Market Growth and Challenges: The US apparel and footwear industry shows growth potential (Zacks Industry Rank #67), driven by activewear and healthy lifestyle trends. However, rising costs and reduced consumer spending pose challenges. Stock prices declined 21.7% in the last year, with a forward P/E ratio of 24.55X.
• TJX Companies’ Growth and Cost Pressures: TJX Companies reported a 3% increase in comparable store sales (Q3 fiscal 2025) and is expanding its store footprint (56 new stores in Q3 2025, 1200 planned). Rising costs, however, threaten profitability.

E-commerce and Market Consolidation

• Hepsiburada’s Acquisition (Turkey): Hepsiburada, a Turkish e-commerce platform, sold 65.4% of its shares to Kaspi.kz, highlighting industry consolidation. The deal requires board changes and articles of association amendments.
• US E-commerce Growth: US e-commerce continues to expand, driving growth in the home furnishings and apparel sectors. Companies invest in digital platforms and supply chain improvements to maintain competitiveness.

Retailer Strategies and Financial Performance

• Dollar General’s Delivery Experiment: Dollar General is testing same-day delivery (75 locations initially) to combat declining stock value (-40% past 12 months) and weak same-store sales growth (1.3%). Profit margins are a concern.
• TreeHouse Foods Acquisition (US): TreeHouse Foods acquired Harris Tea for $205 million, strengthening its private-label tea business. The company, however, faces challenges from weak consumer trends and has a Zacks Rank #5 (Strong Sell).

International Retail News

• Ryanair’s Passenger Growth (Europe): Ryanair reported an 8% year-over-year increase in passenger traffic (13.6 million in December 2024) and expects 8% growth in fiscal 2025, despite Boeing delivery delays. The stock has a Zacks Rank #1 (Strong Buy), but declined 12.5% over the last year.
• Marucci and Victus MLB Deal (US): Marucci Sports’ multi-year licensing agreement with MLB makes Marucci and Victus the official bats, boosting brand presence.

Discount Retail and Market Trends

• US Discount Retail Trends: The discount retail sector faces fluctuating consumer confidence and increased competition. Companies are implementing strategies like same-day delivery to boost sales and remain competitive.

Infrastructure

Renewable Energy Investments in the US

• Offshore Wind Power in New York: Equinor’s $5 billion Empire Wind 1 project, securing over $3 billion in financing, will generate 810 megawatts, powering 500,000 homes by 2027. A 25-year power supply agreement with New York State was finalized at $155.00/MWh.
• Nuclear Power Plant Extension (Minnesota): Xcel Energy’s Monticello plant received a 20-year license extension, enabling operation until 2050 (pending approval). This plant supplies power to over 500,000 homes annually.
• US Renewable Energy Growth: Xcel Energy, Dominion Energy, and Duke Energy’s significant investments in renewable energy sources are projected to increase renewable energy’s share of US electricity generation to 23% in 2024 and 25% in 2025.
• Clean Energy Transition Initiatives: Xcel Energy aims for 100% carbon-free electricity by 2050, reducing emissions by over 80% by 2030. This reflects a broader industry trend towards cleaner energy sources.

North American Energy Infrastructure Expansion

• US Natural Gas Pipeline Expansion: Kinder Morgan’s $1.4 billion Mississippi Crossing Project will increase natural gas transport capacity by 1.5 billion cubic feet per day in the Southeast US by 2028. Further expansion of 0.4 Bcf/d is under discussion.
• Canadian Oil and Gas Infrastructure Acquisition: Pembina Pipeline Corporation acquired a 50% stake in Whitecap Resources’ Kaybob Complex, investing up to C$300 million in battery and gathering infrastructure, and C$400 million in Lator area infrastructure. The K3 facility is expected to open in Q3 2025.

International Defense Infrastructure Projects

• Romania’s Patriot Missile System Enhancement: Raytheon secured a $946 million contract to supply Romania with additional Patriot air and missile defense systems, boosting Romania’s defense capabilities.

Global Logistics and Supply Chain Technology

• Supply Chain Visibility Improvements: Nippon Express Holdings partnered with Tive, Inc. to use 5G IoT devices for real-time cargo monitoring, enhancing its transportation services, particularly in the semiconductor industry.

US Infrastructure Company Financial Performance

• Alta Equipment Group Dividend: Alta Equipment Group declared a quarterly dividend of $0.625 per Depositary Share, payable January 31, 2025.
• Tutor Perini Stock Performance: Tutor Perini’s stock declined 10.6% in the past month, underperforming the S&P 500 and its sector, despite positive earnings growth projections.

Forthcoming Infrastructure Company Earnings Reports

• Brookfield Infrastructure Earnings: Brookfield Infrastructure Partners’ fourth-quarter 2024 earnings call is scheduled for January 30, 2025.
• Brookfield Renewable Earnings: Brookfield Renewable’s fourth-quarter 2024 earnings call is scheduled for January 31, 2025.

Commodities

Mining Industry Trends

• Montana Mining Project Approval: The Montana Supreme Court approved Sandfire Resources America’s Black Butte Copper Project water rights, concluding a four-year legal battle. This allows the company to proceed with feasibility studies and potential mine construction.
• Blocked US Steel Acquisition: President Biden blocked Nippon Steel’s acquisition of US Steel due to national security concerns, despite concessions. US Steel’s stock price dropped 9.82% overnight on Robinhood following the announcement.
• KoBold Metals Funding Round: AI-driven miner KoBold Metals secured $537 million in Series C funding, totaling $1 billion and valuing the company at $2.96 billion. This funding will accelerate exploration and development globally.
• Algoma Steel Q4 Guidance: Algoma Steel projected Q4 2024 steel shipments of 545,000-550,000 tons and an adjusted EBITDA of -C$55 million to -C$65 million, despite headwinds, strong plate division performance is anticipated.

Energy Market Dynamics

• Record US LNG Demand: US LNG demand reached a record 15.2 billion cubic feet per day (bcfd) on December 31, 2024, projected to increase to 24.2 bcfd by 2028. This surge benefits US LNG producers.
• Chevron vs. ExxonMobil Comparison: Chevron’s higher dividend yield (4.5% vs. ExxonMobil’s 3.7%) stands out, despite ExxonMobil’s stronger current performance. Chevron’s pending Hess acquisition faces legal challenges.
• Namibia Oil and Gas Discovery: Galp Energia announced an oil and gas discovery in Namibia’s Orange Basin, highlighting Namibia’s growing importance in oil exploration. Further analysis will determine commercial viability.
• Knot Offshore Stock Surge: Knot Offshore’s stock increased 8.1% due to optimism in the tanker market and post-COVID-19 economic recovery.

Precious Metals Performance

• Gold Price Surge: Gold prices increased over 27% in 2024, driven by declining bond attractiveness, increased central bank purchases, and anticipated Federal Reserve rate cuts.

Agricultural and Chemical Industries

• Phibro Animal Health Growth: Phibro Animal Health’s stock surged 82.8% in the past year due to strong performance in its Animal Health business, though geopolitical risks remain.
• Thai Union Sustainability Award: Thai Union Group PCL ranked first in the food products industry on the 2024 Dow Jones Sustainability Indices.

Global Commodity Market Overview

• Diverse Company Performance: Several companies experienced significant events: Mosaic completed a transaction with Ma’aden; Energroup is expanding into cannabis; Transpacific Resources made acquisitions and management changes. Air Products faces headwinds in China and Europe while others (like H.B. Fuller) experienced lower than expected results. Various companies experienced significant stock price movements due to earnings, acquisitions, and market sentiment.
• Industry-Specific Challenges: Softness in China and Europe impacted diversified chemicals and consumer durables. The beverage industry faces shifts towards healthier options and raw material inflation. The oil and gas drilling sector shows declining US rig counts but strong international demand. Alcohol producers face challenges from a U.S. Surgeon General’s warning.

Politics

H-1B Visa Program Debate

• Sanders’ Criticism of H-1B Program: Senator Bernie Sanders criticized Elon Musk’s support for the H-1B visa program, arguing it displaces American workers. He cited data showing that top corporations laid off 85,000 American workers while hiring 34,000 H-1B workers. Sanders highlighted that 33% of new IT jobs are filled by guest workers, despite unemployed Americans with STEM degrees. He cited low salaries at Tesla for H-1B workers, while 7,500 American workers were laid off.
• Musk and Trump’s H-1B Support: Elon Musk’s and President-elect Trump’s support for the H-1B program, despite past restrictions, has sparked controversy, particularly among Trump’s base.
• Proposed H-1B Program Reforms: Sanders proposes using the H-1B program temporarily, raising guest worker minimum wages, allowing easier job switching, and prioritizing American workers.
• Impact on US Workforce: The debate highlights concerns about the impact of H-1B visas on American job security and wages within the tech sector.

US Cryptocurrency Policy

• Speculation on Trump’s Bitcoin Strategy: Analysts speculate on President-elect Trump’s potential Bitcoin strategy, ranging from quiet acquisition to restricting sales of government-held Bitcoin.
• Government-Held Bitcoin: The U.S. government holds 198,109 Bitcoins in asset forfeiture funds. Analysts suggest that restricting the sale of these Bitcoins would create a de facto reserve.
• Lummis’ BITCOIN Act Proposal: Senator Lummis’s BITCOIN Act proposes purchasing 1 million Bitcoin over five years for the Treasury Department, with no sales for at least 20 years (Bitcoin price: $97,181.82).
• Impact on Crypto Market: Uncertainty over the incoming administration’s stance on cryptocurrency influences the Bitcoin market.

US and UK Energy Policies

• Trump’s Criticism of UK Energy Tax: President-elect Trump criticized the UK’s 38% windfall tax on North Sea oil and gas producers, urging them to “open up the North Sea” and remove windmills. This followed APA Corp.’s cessation of North Sea operations.
• UK’s Energy Security Challenges: Offshore Energies UK highlighted record low UK energy production, with nearly 40% of energy demand met by imports. They emphasized the need for a diverse energy mix.

International Relations & US Investment

• Meloni’s Stance on Musk’s Investments: Italian Prime Minister Giorgia Meloni stated that Elon Musk’s investments do not threaten Italy’s national security, highlighting Italy’s new regulatory framework for foreign space companies.
• Biden Blocks US Steel Acquisition: President Biden blocked Nippon Steel’s $14.9 billion acquisition of U.S. Steel, citing national security concerns, causing U.S. Steel’s stock to fall over 6%. The United Steelworkers union supported the block.
• Growing Protectionism in the US: Biden’s decision reflects a growing bipartisan trend toward protectionism in the U.S., driven by geopolitical concerns.

US House Speakership Election

• Johnson Re-elected House Speaker: Republican Rep. Mike Johnson was re-elected Speaker of the House on the first ballot, with President-elect Trump’s endorsement playing a key role.

Bitcoin and the Trump Administration

• Saylor-Trump Family Bitcoin Discussions: Michael Saylor’s meeting with Eric Trump fueled speculation about Bitcoin’s role in the incoming Trump administration’s agenda, given Eric Trump’s public support for Bitcoin.

Stock Picks

US Market Summary

• Major Indices: US major indices experienced a slight downturn on January 2nd, 2025. The Dow Jones Industrial Average fell 0.4% to 42,392.27, the S&P 500 dropped 0.2% to 5,868.55, and the Nasdaq Composite decreased by nearly 0.2% to 19,280.79. This reflects a cautious market sentiment.
• Retail Investor Activity: Retail investors showed significant interest in several stocks, including Carvana, Unity Software, SuperCom, Rigetti Computing, and Tesla. Performance varied widely across these selections.
• Analyst Views on Tesla: Analyst opinions on Tesla’s Q4 delivery numbers were mixed, creating uncertainty about its 2025 prospects.
• Pre/Post-Market Volatility: Pre-market saw significant swings, with Check-Cap (+52.2%), Treasure Global (+151.2%), and BioLineRx (+91.4%) surging, while Coeptis Therapeutics (-30.4%) and T Stamp (-19.8%) plummeted. Post-market saw mixed results, with United States Steel falling sharply due to potential acquisition blockage by Nippon Steel.

High-Growth Stock Performance

• Top Zacks Rank #1 Stocks: Three stocks—Norwegian Cruise Line Holdings (NCLH), monday.com (MNDY), and Pitney Bowes (PBI)—boasted Zacks Rank #1 (Strong Buy) ratings and strong growth indicators. Sixty-day earnings estimate improvements were 4.4% for NCLH, 15.5% for MNDY, and 8.6% for PBI, suggesting positive investor sentiment.
• Additional Strong Buys: Under Armour (UAA), BellRing Brands (BRBR), RB Global (RBA), Surmodics (SRDX), and Coterra Energy (CTRA) also received Zacks Rank #1 ratings on January 3rd, reflecting positive earnings estimate revisions over the past 60 days.

Buffett-Style Investments

• Sirius XM (SIRI): Berkshire Hathaway’s continued investment in Sirius XM, despite a 59% year-over-year decline, suggests a long-term value play. The company’s strategic moves to enhance its streaming services and partnerships, and reduce capital expenditures, are viewed favorably. It currently trades at roughly 7 times projected 2025 earnings.
• Amazon (AMZN): Amazon’s generative AI initiatives are generating billions, driving substantial revenue growth. Expansion in cloud computing (Bedrock) and affordable GPU development are key growth catalysts. AWS sales growth accelerated to 19% year-over-year in Q3.

Market Sentiment and Valuation

• Overbought Consumer Discretionary Stocks: Garrett Motion (GTX) (RSI 72.3) and Urban Outfitters (URBN) (RSI 73.8) were deemed overbought, indicating potential for short-term corrections.
• Undervalued Momentum Stocks: Accuray (ARAY) and REV Group (REVG) presented as undervalued stocks with momentum, meeting criteria of a Zacks Rank #1 or #2, reasonable valuations, and recent price increases.

Long-Term Growth Prospects

• Carnival Cruise Lines (CCL): Carnival’s strong recovery post-pandemic shows record revenue ($25B in FY2024) and projected 20%+ adjusted net income growth in 2025, highlighting its potential for continued expansion.
• On Holding (ONON) Switzerland: This Swiss company exhibits impressive 33.2% year-over-year revenue growth (recent quarter). Despite a high valuation (over 100x earnings), its consistent top-line growth attracts growth-focused investors.