Markets React to Rising Yields and Oil Prices Amidst Losses

Markets are experiencing turbulent times with stocks extending last Friday's losses due to rising bond yields and crude oil prices. The S&P 500 has hit a 2-1/4 month low, indicating investor uncertainty amidst inflation concerns.

Date: 14-01-2025

AI Rating: 4

Earnings Per Share (EPS): No specific EPS data was mentioned in the report. Revenue Growth: Moderna reported cutting its 2025 revenue estimate, leading to concerns about its growth potential. The forecast was revised down to $1.5 billion-$2.5 billion from $2.5 billion-$3.5 billion, signifying a negative outlook. Similarly, iRobot fell short of revenue expectations for Q4, reporting preliminary revenues of $171 million against a consensus of $188 million. Net Income: There was no mention of net income figures in the report. Profit Margins: Profit margins were not discussed, leaving no specific insights on this metric. Free Cash Flow (FCF): The report did not include any references to free cash flow. Return on Equity (ROE): No information on return on equity was provided. The overall market reaction shows negative sentiment, driven by rising bond yields that reached a 14-month high, which diminishes the prospects for Fed rate cuts. This is coupled with inflation concerns fueled by increasing crude oil prices. Energy stocks are benefiting from rising oil prices, although technology stocks—particularly large-cap names like Nvidia, Meta, and Apple—are experiencing losses, contributing to the weakness in the broader market. Positive developments include support for health insurance stocks due to Medicare proposed plans, while Chinese trade figures show stronger-than-expected growth that might help global sentiment. However, the prevailing outlook remains cautious as investors await upcoming U.S. consumer price reports and retail sales data, which will be critical in assessing consumer health and inflation trajectories.

Stocks: NVDA META AAPL TSLA GOOGL AMZN MRNA EIX PCG SRE ANF INSP AS M HUM CVS UNH VLO MPC APA HAL SLB BKR FANG HES DVN COP OXY X CF ITCI CCK DFS