Marcus Today Pre-Market Podcast – Thursday 25th January

Wall Street finished mixed overnight. The S&P 500 marked its fourth consecutive record-high close, driven by strong quarterly results from Netflix +10.7% and positive reports from chipmaker ASML +8.85%. NASDAQ Composite rose 0.36%, now ~4% below its 2021 all-time high, while the NASDAQ 100 advanced 0.3%, hitting record highs. The Dow Jones fell 99 points (-0.26%). Up 159 points at best. Down 110 points at worst. Treasury yields rebounded following strong US business activity data and ahead of a Federal Reserve meeting. Among stocks, Microsoft +0.9% reached a record high, surpassing a $3 trillion market value for the first time. Netflix gained 10.7%, reaching a two-year high, as robust subscriber growth boosted confidence.

Tesla down 2.84% in after-hours trade, following a decline in Q4 gross margin to 17.6%, down from 23.8% a year earlier, attributing it to price cuts and incentives aimed at boosting electric vehicle demand. Tesla recorded record deliveries in the quarter, achieving its 2023 deliveries target of 1.8m cars, but lost its top EV maker spot to China's BYD in Q4. Q4 revenue rose 3% to $25.17bn, marking the slowest pace of growth in over three years.

ASX poised to rise. SPI Futures up 18 points (+0.24%).

• Base metals broadly higher gaining as the USD dropped. Nickel +1.69%, Zinc +2.5%, Lead -0.16%, and Tin +1.36%.
• Copper rose to a three-week high, up 1.95%, on hopes of more stimulus measures from China.
• Aluminium edges 0.09% higher as markets gauge risks of potential EU import sanctions on major producer Russia.
• Gold down 0.81% after data showed US business activity.
• Dalian Iron ore extended gains for a second consecutive session, up 1.76% as markets eagerly await details of stimulus measures from China.
• WTI was up 1.02%, and Brent Crude advanced 0.85% to a four-week high on a bigger-than-expected US crude storage withdrawal, a drop in US crude output and a weaker US dollar.
• 10Y Bond yields – US 4.180%, Australia 4.279%, and Germany 2.349%.
• Aussie Dollar edges lower 0.05% to 65.75US cents, and the USD dropped after rising in eight of the last 10 sessions.  

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