Anti-Clickbait News Summaries for January 24, 2025
Nvidia emerges as top stock choice for investors betting on AI growth in 2025
Hi, it’s Jack and The Signals.Doctor team with your daily news summaries 😇
The Markets:
Futures Highlights
Futures traded in a mixed range, with oil and gold edging higher, while major equity indexes dipped modestly. Natural gas saw the steepest decline among the group.
🟢 Crude Oil: 74.92 (+0.30 | +0.40%)
🔴 Natural Gas: 3.8260 (-0.1190 | -3.02%)
🟢 Gold: 2791.50 (+26.50 | +0.96%)
🔴 Dow: 44645.00 (-104.00 | -0.23%)
🔴 S&P 500: 6141.25 (-10.75 | -0.17%)
🔴 Nasdaq 100: 22001.00 (-37.25 | -0.17%)
🔴 Russell 2000: 2320.60 (-5.70 | -0.25%)
Forex & Bonds
Currencies mostly strengthened against the dollar, while bond yields were mixed. Notably, the euro and pound gained over half a percent, and the 30-year Treasury yield remained steady.
🟢 EUR/USD: 1.0472 (+0.0057 | +0.54%)
🟢 USD/JPY: 156.31 (+0.27 | +0.17%)
🟢 GBP/USD: 1.2419 (+0.0067 | +0.54%)
🟢 BTC/USD: 105196.00 (+599.20 | +0.57%)
🔴 5-Year Treasury: 4.439 (-0.003 | -0.07%)
🟢 10-Year Treasury: 4.64 (+0.002 | +0.04%)
⚪ 30-Year Treasury: 4.869 (0 | 0.00%)
Major News
Stocks were led by Boeing’s strong rally, with financials and telecoms also seeing healthy gains. Tech names showed smaller movements, while Tesla and Reddit slipped into negative territory.
(From biggest winners to biggest losers)
🟢 BA: +2.12%
🟢 SCHW: +1.84%
🟢 ERIC: +1.71%
🟢 BAC: +1.31%
🟢 AXP: +1.12%
🟢 CNH: +1.10%
🟢 NVO: +0.66%
🟢 VZ: +0.59%
🟢 HOOD: +0.40%
🟢 AMZN: +0.17%
🟢 MSFT: +0.11%
🟢 NVDA: +0.10%
🔴 GOOGL: -0.20%
🔴 GOOG: -0.22%
🔴 TSLA: -0.66%
🔴 RDDT: -0.95%
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The Daily News Podcast
Events Affecting The Markets Today
The News Summaries
Podcast:
Read:
Today:
On Friday, January 24, 2025, several events are scheduled that could influence the U.S. stock market:
Corporate Earnings Reports:
American Express (AmEx): AmEx is set to release its fourth-quarter 2024 earnings today. Analysts anticipate earnings per share (EPS) of $3.05 on revenue of $17.17 billion. Investors will focus on metrics such as card member spending, net card fee revenues, and new card acquisitions, especially considering the strong holiday season spending trends. AmEx's performance is often viewed as a barometer for consumer spending, which can have broader implications for the financial sector and the overall economy.
Verizon Communications: Verizon is also reporting its fourth-quarter 2024 earnings today. The company has already announced that it will present results on a webcast beginning at 8:30 a.m. Eastern Time. Investors will be keen to assess the impact of recent price hikes on wireless plans and the rate of customer upgrades. Additionally, Verizon's guidance for 2025, particularly its projected adjusted earnings per share growth of 0% to 3%, will be scrutinized to gauge the company's future prospects.
Economic Data Releases:
University of Michigan's Consumer Sentiment Index (Final): At 10:00 a.m. Eastern Time, the final reading of the University of Michigan's Consumer Sentiment Index for January will be released. This index measures consumer confidence, which is a key indicator of consumer spending—a major component of economic activity. A higher-than-expected reading could signal increased consumer spending, potentially boosting sectors like retail and services. Conversely, a lower reading might raise concerns about economic growth.
Existing Home Sales: Also scheduled for release at 10:00 a.m. Eastern Time, the National Association of Realtors will report existing home sales data for December 2024. This data provides insights into the housing market's health, which has implications for related industries such as construction, banking, and consumer goods. Analysts expect a slight increase in sales, reflecting continued strength in the housing sector.
Federal Reserve Observations:
While no policy changes are expected today, investors are closely monitoring the Federal Reserve ahead of its meeting on January 28-29. Recent economic data, including stable inflation rates and strong job growth, suggest that the Fed may maintain the current interest rate range of 4.25%-4.50%. However, any unexpected statements or data releases today could influence market expectations regarding future monetary policy.
Global Economic Developments:
International events can indirectly impact the U.S. stock market. Notably, the Bank of Japan has raised interest rates, leading to a stronger yen. Additionally, positive business growth in the eurozone and recent comments from President Donald Trump regarding potential trade deals with China have influenced global markets. These developments could affect multinational companies and sectors sensitive to currency fluctuations and international trade dynamics.
The News Summaries:
Trump's first week in office signals shift to coercive foreign policy
Donald Trump’s first week in office has shown a shift towards a coercive foreign policy. He has threatened tariffs on Canada, Mexico, and China, focusing on strongarming allies rather than addressing recognized adversaries.
Trump's proposed tariffs aim to secure concessions without implementation, while targeted countries prepare retaliatory measures. He has also linked tariffs to the ownership of TikTok, suggesting he may avoid them if certain conditions are met.
Additionally, Trump has withdrawn the U.S. from the Paris Climate Agreement and the World Health Organization, signaling a departure from cooperative global efforts. In contrast, China has promoted a message of economic collaboration at the World Economic Forum.
Trump addresses economic disparities with new executive orders on housing and regulations
Donald Trump has resumed the presidency and is focusing on economic disparities. He signed executive orders aimed at increasing housing supply and reducing regulations to help lower-income Americans.
Investors are concerned about tariffs and other key issues, including energy and tax policy. The economic divide, known as the K-shaped economy, highlights the growing gap between the wealthy and the poor.
Trump faces challenges in balancing U.S. growth with global economic relations. The approach to trade and tariffs may impact both domestic and international economies. Investors are questioning the potential benefits of Trump's trade strategies.
US natural disaster economic losses surge to $217.8 billion in 2024
In 2024, economic losses from natural disasters in the U.S. reached $217.8 billion, an 85.3% increase from 2023. This rise was driven by Hurricanes Helene and Milton, which caused significant flooding and damage across multiple states.
Insured losses also rose, climbing 36% to $112.7 billion. The severe storms and droughts in the U.S. contributed to these high figures, marking the largest annual losses since 2017.
Globally, economic losses from natural disasters fell to $368 billion, a 7.3% decrease from 2023. However, this amount remains about 14% above the average since 2000. The start of 2025 has already seen devastating wildfires in California, projected to be among the costliest in U.S. history.
Source: https://ca.finance.yahoo.com/news/us-economic-losses-natural-disasters-110246656.html
Google DeepMind's new mind evolution approach boosts AI performance in trip planning
Google DeepMind has introduced a new AI approach called "mind evolution," which significantly improves the performance of large language models in practical tasks like trip planning. This method uses a genetically inspired algorithm to generate and evaluate multiple answers, enhancing accuracy.
In tests, the Gemini 1.5 Flash model achieved a 95.2% success rate on the TravelPlanner benchmark, a major increase from previous models that scored only 5.6% and 11.7%. The more advanced Gemini Pro model reached nearly perfect accuracy at 99.9%.
While mind evolution requires more computing power and resources than traditional methods, it proves to be more efficient in refining solutions. The approach combines broad solution searching with a dialogue between an author and a critic to improve output quality.
AI tool aims to reduce pharmaceutical development costs by predicting trial outcomes
A new AI platform from GATC Health can predict with 87% accuracy whether new drugs will succeed in clinical trials. This technology aims to reduce the high costs and lengthy timelines of drug development, which currently average $1 billion and 10-15 years.
Medical and Commercial International Limited is partnering with GATC to fund and insure trials that the AI predicts will be successful. This collaboration could lead to more successful drug candidates reaching the market, addressing the current 90% failure rate in trials.
GATC is also developing its own drugs, including a non-opioid treatment for opioid dependence, expected to begin human trials this year. The AI technology has garnered interest from 90 biotech companies, potentially leading to significant cost savings in drug development.
Davos forum highlights AI concerns and new approaches to global employment issues
At the World Economic Forum in Davos, discussions focused heavily on artificial intelligence (AI), with many attendees expressing concerns about becoming obsolete. CEO Marc Benioff raised the question of whether AI should be considered a basic human right, highlighting differing views on the technology's impact.
President of Singapore, Tharman Shanmugaratnam, emphasized the need for broader solutions to global employment issues, stressing the importance of early childhood education and relevant skills training. He noted that many future jobs may be informal, requiring new approaches to skill development.
Cloudflare CEO Matthew Prince opted for networking on the ski slopes instead of traditional meetings, believing this approach would lead to more business opportunities. His experience suggests a shift in how business relationships may be built in the future.
Source: https://www.businessinsider.com/davos-world-economic-forum-ai-donald-trump-economy-2025-1
Agentic AI reshapes communication and collaboration in the workplace
Recent advancements in generative AI and machine learning are reshaping communication and collaboration. The rise of Large Language Models (LLMs) is leading to the development of agentic AI, which allows machines to reason and take action within workflows.
This new layer of AI builds on previous technologies, moving beyond text generation to executing tasks autonomously. It represents a significant shift in how humans and machines interact, potentially creating hybrid languages that blend human syntax with machine-friendly structures.
Language has evolved from primitive gestures to complex programming languages, and now to AI-driven communication. As AI continues to develop, it may create new languages tailored for specific technologies, further transforming how we communicate and work.
Stock futures decline and dollar weakens as Trump hints at easing China tariffs
U.S. stock futures and the dollar fell on Friday as Asian markets gained. This shift followed President Trump's comments indicating he would prefer not to raise tariffs on China, suggesting a potential easing of trade tensions.
Trump's remarks come as he prepares to impose a 25% tax on goods from Canada and Mexico starting February 1. His recent statements have led to speculation about the future of tariffs on China.
Analysts noted that Trump's comments may signal a less aggressive approach toward China, although significant tariff changes have not yet occurred since his return to office.
Nvidia emerges as top stock choice for investors betting on AI growth in 2025
Investors have shown strong interest in artificial intelligence (AI) stocks, driving significant gains in major market indexes last year. Analysts predict the AI market, currently valued at $200 billion, could exceed $1 trillion by 2030.
Nvidia is highlighted as a leading stock for those looking to invest in AI. The company is known for its high-performance AI chips, which are essential for AI tasks. Nvidia has reported consistent revenue growth and maintains a strong profit margin.
Nvidia is launching new products, including its Blackwell architecture, which is expected to generate substantial revenue. The company is also expanding its AI offerings, targeting various industries, which could further enhance its growth potential in the AI market.
Tech billionaires align with Trump as policies spark oligarchy debate
Tech billionaires, including Elon Musk, Mark Zuckerberg, and Jeff Bezos, attended President Trump's inauguration, highlighting their close ties. Discussions are ongoing about potential policies benefiting these tech leaders.
The focus is on whether the U.S. is becoming a "tech oligarchy." Analysts are examining Trump's early actions in office for signs of this trend.
For further insights, Ashley Parker's article "The Tech Oligarchy Arrives" in The Atlantic explores these developments in detail.
Source: https://www.npr.org/2025/01/24/1226561708/trump-billionaires-tech-oligarchy
Trump leads global rise of hardline conservative populism in second term
President Donald Trump has begun his second term amid a rise in hardline conservative populism globally. He is seen as a key figure inspiring nationalist parties in Europe, which share tough stances on immigration and traditional values.
European right-wing parties differ from Trump in their rhetoric and policies. While Trump advocates for strict immigration measures, some leaders, like Italy's Giorgia Meloni, have moderated their positions since taking office, focusing on winning and maintaining power.
The war in Ukraine has created divisions among these parties. Some, like Hungary's Fidesz, oppose military aid to Ukraine, while others, like Meloni's Brothers of Italy, support it. Immigration remains a central issue, with varying approaches across the parties.
Chinese firms face new challenges in avoiding US tariffs through overseas operations
Chinese companies may face increased scrutiny as they set up operations abroad to avoid U.S. tariffs. The focus could shift from where goods are produced to the ownership of companies, potentially blocking Chinese firms from accessing the U.S. market.
This change comes as many Chinese firms relocate production to countries like Mexico, aiming to diversify supply chains. In 2023, Chinese investments in Mexico's auto sector reached $2.7 billion, primarily in vehicle parts manufacturing.
Concerns over China's overproduction have led to accusations of protectionism from the West. The U.S. and Europe argue that China's practices harm global competition, while China claims these concerns are attempts to hinder its economic growth.
Trump softens tariff stance, dollar value declines as focus shifts to inflation
Former President Trump has softened his stance on tariffs, now suggesting a maximum of 10% on Chinese imports, down from the 60% he previously proposed. This shift is impacting the value of the dollar.
Trump has expressed a desire for a weaker dollar and is calling for quicker interest rate cuts from the Federal Reserve. He claims to understand interest rates better than the Fed.
As tariff concerns ease, attention is shifting back to inflation and labor market data. The dollar's recent strength has diminished, reflecting these new developments.
Source: https://www.forexlive.com/news/the-dollar-has-lost-its-trump-card-20250124/
SpaceX to launch 23 Starlink satellites from California today
SpaceX is set to launch 23 Starlink satellites today, January 24, from Vandenberg Space Force Base in California. The launch window opens at 9:07 a.m. EST.
A Falcon 9 rocket will carry the satellites to low Earth orbit, deploying them about 64 minutes after liftoff. This mission marks the 11th Falcon 9 launch of 2025.
The Starlink network now includes over 6,900 operational satellites, making it the largest satellite constellation in history.
Morgan Stanley finds growing interest among traders to sell the U.S. dollar
Morgan Stanley reports a growing number of traders are looking to sell the U.S. dollar, despite its current strength in global markets. This "silent plurality" of investors is waiting for the right moment to act.
The firm notes that upcoming inflation data and prolonged fiscal negotiations could signal a potential Federal Reserve rate cut, which may weaken the dollar. Recent bullish positions on the dollar have been driven by expectations of U.S. tariffs impacting other currencies.
Morgan Stanley suggests shorting the dollar against the euro, yen, and pound. They believe investors may be more ready to sell the dollar than previously thought, focusing on timing rather than direction.
Source: https://ca.finance.yahoo.com/news/morgan-stanley-says-traders-waiting-003532498.html
China boosts AI capabilities with new smartphone launch and competitive language model
HONG KONG, Jan 24 (Reuters) - China is advancing in artificial intelligence, highlighted by Huawei's launch of the Mate 60 Pro smartphone featuring a domestically produced chip. Additionally, startup DeepSeek claims to have developed a competitive language model at a lower cost.
Despite U.S. sanctions limiting access to advanced technology, China is investing heavily in domestic AI and chip development. Companies like Huawei and Cambricon Technologies are emerging as key players, with significant research and development spending.
China's AI adoption is growing, with a survey showing 83% of Chinese industrial decision-makers using generative AI. The country leads in industrial robot installations, indicating strong integration of AI in manufacturing.
Source: https://www.reuters.com/breakingviews/how-china-can-keep-pace-global-ai-race-2025-01-24/
Meta addresses AI chatbot errors on U.S. president's identity
Meta's AI chatbot is facing urgent issues identifying the current U.S. president. Despite Donald Trump being inaugurated on January 20, 2025, the chatbot still incorrectly states that Joe Biden is president.
Meta has initiated emergency procedures to address this problem, known as a "site event." This is the third such incident related to the presidential transition this week.
Additional issues include users being forced to re-follow Trump and other officials on social media, and problems with hashtag searches on Instagram. Meta acknowledged these issues but stated they affected various hashtags, not just those related to Democrats.
S&P 500 reaches record high as U.S. stocks rise
U.S. stocks reached a record high, with the S&P 500 rising 0.5% and surpassing its previous peak. The Dow Jones increased by 0.9%, while the Nasdaq gained 0.2%. Trading remained calm amid mixed Treasury yields.
President Trump signed an executive order to promote artificial intelligence development, aiming to eliminate perceived barriers from past policies. The order emphasizes creating AI systems free from ideological bias but does not specify which policies will be revoked.
Purdue Pharma and the Sackler family agreed to pay $7.4 billion to settle lawsuits related to OxyContin. This settlement is an increase from a previous deal rejected by the Supreme Court, which sought to protect family members from civil lawsuits.
Rolls-Royce secures $11 billion contract for UK nuclear submarine reactors
Britain has awarded Rolls-Royce an $11 billion contract to design and support nuclear reactors for its submarines. This eight-year deal aims to enhance the Royal Navy's deterrent capabilities and strengthen the AUKUS defense pact.
The new contract, named Unity, consolidates previous agreements and promotes cost-efficient production. It will focus on the Dreadnought class of submarines.
The government expects the Unity contract to create 1,000 new jobs and protect 4,000 existing positions in the UK.
Trump's push for smaller federal real estate footprint could benefit local economies
Since President Trump took office, efforts to reduce the federal government's real estate holdings have intensified. This follows similar initiatives that began during the Obama administration.
The focus on a smaller government aims to impact communities beyond Washington, D.C. The U.S. government currently manages one of the largest property portfolios globally.
These changes could lead to a shift in how federal properties are utilized, potentially benefiting local economies.
Trump orders release of classified documents on JFK, RFK and MLK assassinations
President Donald Trump has ordered the release of thousands of classified documents related to the assassinations of John F. Kennedy, Robert F. Kennedy, and Martin Luther King Jr. This action comes during his second term and follows previous promises to declassify such records.
The executive order requires the director of national intelligence and the attorney general to create a plan for releasing the remaining JFK records within 15 days and the others within 45 days. Previously, Trump had withheld some documents due to national security concerns.
Only a few thousand of the millions of records related to JFK's assassination remain classified. While some researchers believe the released documents may not reveal significant new information, there is ongoing interest in the details surrounding these historical events.
Source: https://apnews.com/article/trump-jfk-mlk-rfk-assassination-files-e92f89d694eb55c595175f71a72cb5bc
Chinese hackers target critical U.S. infrastructure raising cybersecurity concerns
Chinese hackers are increasingly targeting critical U.S. infrastructure, including energy and water systems. Recent breaches, such as those involving telecom companies and the Treasury Department, highlight vulnerabilities in American cybersecurity.
The White House confirmed ongoing investigations into these cyberattacks, attributed to groups like Volt Typhoon and Salt Typhoon. Lawmakers are urged to collaborate with the private sector to address weaknesses in infrastructure security.
The U.S. has imposed sanctions on a Chinese cybersecurity firm and an individual linked to the attacks. Experts warn that the scale of the threat from Chinese hackers far exceeds U.S. cybersecurity resources.
Space Capital forecasts major changes in commercial space industry
Space Capital predicts that Boeing and Airbus will sell their space divisions in 2025, signaling a major change in the commercial space industry. This shift reflects challenges these companies face in keeping up with rapid developments in the sector.
The report highlights increased defense spending as a key factor influencing the industry. Concerns over China's space capabilities are prompting U.S. initiatives to enhance GPS infrastructure through partnerships with commercial firms.
Several companies are adapting to this trend. Redwire plans to acquire Edge Autonomy for $925 million, while Voyager Technologies is restructuring to focus on defense. Other firms, like Planet and K2 Space, are hiring former defense officials to pursue military contracts.
Source: https://spacenews.com/space-venture-firm-predicts-industry-shakeup/
Trump signs executive order to promote cryptocurrencies and explore national digital asset stockpile
President Donald Trump signed an executive order on January 23, 2025, to promote cryptocurrencies in the U.S. and explore the creation of a national digital asset stockpile. This marks a shift from his previous criticism of crypto during his first term.
The order establishes a working group to consider a stockpile potentially sourced from cryptocurrencies seized by the government. It also emphasizes protections for blockchain users and developers, allowing them to operate without heavy regulation.
Trump's administration is appointing pro-crypto leaders, including Paul Atkins for the SEC and Scott Bessent for the Treasury. This aligns with his campaign promises to support the digital asset industry and enhance the U.S. position in global innovation.
Source: https://www.cnbc.com/2025/01/23/trump-signs-executive-order-on-crypto-digital-asset-stockpile.html