Market Summary for Jan 28th

Market Overview

U.S. stocks rebounded on Tuesday, January 28, 2025, recovering some losses from the previous session’s selloff driven by AI-related uncertainty. Investors turned their focus to the Federal Reserve’s upcoming interest rate decision on Wednesday.

• S&P 500: +0.9%
• Nasdaq Composite: +2.0% (boosted by a tech sector recovery)
• Dow Jones Industrial Average: +0.3%

Top Gainers

1. Royal Caribbean (RCL) | +12%

   • Shares of Royal Caribbean soared to an all-time high after the cruise operator posted stronger-than-expected fourth-quarter profits.
   • The company also provided a bullish outlook for 2025, citing:
     • Strong bookings and higher pricing.
     • Record onboard revenue.
     • New river cruise offerings.
   • Competitors Carnival (CCL) +8.1% and Norwegian Cruise Line (NCLH) +7.8% also surged.

2. CrowdStrike (CRWD) | +9.3%

   • The cybersecurity firm hit a record high after reports surfaced that Chinese AI startup DeepSeek suffered a large-scale cyberattack.
   • Rising concerns over AI-related security risks drove investor interest in cybersecurity stocks.
   • Additionally, CrowdStrike’s Falcon platform achieved a perfect score in a real-world ransomware test, further boosting sentiment.

3. Invesco (IVZ) | +9%

   • The investment management firm beat quarterly sales and profit expectations, supported by:
     • Strong asset inflows.
     • Growing demand for exchange-traded funds (ETFs).
     • Expansion in the Asia-Pacific region.

Top Losers

1. Lockheed Martin (LMT) | -9.2%

   • Despite topping adjusted earnings estimates, the defense giant reported a decline in net sales and lower-than-expected 2025 profit guidance.
   • Key challenges included:
     • Delays in the F-35 fighter jet program.
     • Supply chain constraints.
     • Efficiency initiatives under the new administration affecting defense budgets.

2. General Motors (GM) | -8.9%

   • GM posted an unexpected net loss for Q4 due to:
     • A costly restructuring in China.
     • The shutdown of its Cruise robotaxi division.
   • Despite exceeding revenue and adjusted earnings forecasts, concerns about future profitability weighed on investor sentiment.

3. Hewlett Packard Enterprise (HPE) | -6.5%

   • Shares fell after reports that the Justice Department may block its $14 billion acquisition of networking firm Juniper Networks (JNPR).
   • The European Union has already approved the deal, but if the acquisition fails, HPE may face termination fees.
   • Juniper Networks (JNPR) also declined 6.1%.

Sector Update

• Tech stocks rebounded, helping the Nasdaq surge 2% after Monday’s AI-driven selloff.
• Defense stocks struggled, with Lockheed Martin dragging down the sector due to F-35 program delays.
• Consumer discretionary stocks, particularly travel and leisure, rallied, led by Royal Caribbean.

Bond & Commodities Market

• U.S. 10-year Treasury yield: +1.4 basis points to 4.54%.
• U.S. 2-year Treasury yield: +1 basis point to 4.20%.
• West Texas Intermediate (WTI) crude oil: +0.9% to $73.89 per barrel.

Trading Volume

• Total volume: 13.87 billion shares traded across U.S. exchanges.
• Recent 20-day average: 15.5 billion shares, indicating slightly lower-than-average trading activity.