Articles

The major US stock indices snapped back from the late-day tariff news on Canada and Mexico and is closing higher on the day .

The final numbers are showing:

• Dow industrial rose 160.61 points or 0.38% at 44882.31
• S&P index rose 31.86 points or 0.53% at 6071.17.
• NASDAQ index rose 49.43 points or 0.25% and 19681.75
• Russell 2000 rose 24.3 point points or 1.07% and 2307.45

Looking at the S&P sectors, the gains are led by utilities and healthcare. On the downside, information technology was the only sector that saw a decline of -0.56%.

• Utilities (S5UTIL): +2.13%
• Health Care (S5HLTH): +1.15%
• Consumer Discretionary (S5COND): +0.61%
• Consumer Staples (S5CONS): +1.07%
• Materials (S5MATR): +1.00%
• Real Estate (S5REAS): +1.02%
• Energy (SPN): +0.52%
• Financials (SPF): +0.95%
• Telecommunication Services (S5TEL): +1.15%
• Industrials (S5INDU): +0.76%
• Information Technology (S5INFT): -0.56% (weakest)

in after-hours earnings:

• Visa Inc (V) Q1 2025: EPS $2.75 (BEAT; exp. $2.66), Revenue $9.50B (BEAT; exp. $9.34B).. Shares of Visa are trading up $8.20 or 2.39% at $351.56.
• Intel Corp (INTC) Q4 2024: EPS $0.13 (BEAT; exp. $0.12), Revenue $14.26B (BEAT; exp. $13.81B)

  Q1 Guidance: EPS $0.00 (MISS; exp. $0.08), Revenue $11.7–$12.7B (MISS; exp. $12.87B), Gross Margin 36% (MISS; exp. 39.3%). Intel shares are trading up $0.38 or 1.85% at $20.42.

This article was written by Greg Michalowski at www.forexlive.com.

Tariff man again:

This article was written by Eamonn Sheridan at www.forexlive.com.

Two Russian Tu-95 bombers, accompanied by a pair of fighter jets, conducted an eight-hour flight over the Sea of Okhotsk and the Sea of Japan on Thursday. The operation led Japan to scramble fighter jets after the bombers entered its air defense identification zone (ADIZ).

The news on this was out late Thursday, Japan time, but its getting some more attention here today.

There is a detailed report here for more:

• Russian Bomber Mission Prompts Japanese Fighter Scramble

This pic of the incursion comes via that linked article, above.

This article was written by Eamonn Sheridan at www.forexlive.com.

Japanese PM Ishiba is speaking in the Diet:

• says Japan will continue to invest and create jobs in the US
• says will urge the US to provide a stable energy supply

That second point is critical to Japan – the country is a big importer of energy.

Speaking of the Japanese parliament, Ueda will be there during the afternoon, local time:

• Bank of Japan Governor Ueda is speaking soon – appearing in the Diet

This article was written by Eamonn Sheridan at www.forexlive.com.

Some further encouraging inflation (admittedly at the producer level, not consumer) data for the Reserve Bank of Australia.

Australia PPI (Q4) ++0.8% q/q

• expected +1.0%, prior +0.9%

For the y/y +3.7%

• prior +3.9%

This week we’ve seen all four of Australia’s biggest banks switch the forecasting a February RBA rate cut, NAB joined ANZ, CBA and Westpac:

• National Australia Bank forecasting a February Reserve Bank of Australia interest rate cut

***

The Producer Price Index (PPI) measures a change in input prices of raw, semi-finished or finished goods and services.

• If input costs rise, some will be absorbed by the producer and some passed on to the consumer. Conversely, if input costs fall, some of the decline will be enjoyed as wider profit margins by the producer and some will be passed on to the consumer in the form of lower prices.
• Because PPI impacts consumer prices, it is watched by central bankers as part of fulfilling their mandate of price stability.

This article was written by Eamonn Sheridan at www.forexlive.com.

I find this thinking tough to square given ultra-low ECB rates for years ahead of the pandemic and no inflation.

This article was written by Adam Button at www.forexlive.com.

China’s Lunar New Year, marking the start of the Year of the Snake, fell on Wednesday, January 29.

• The official public holiday spans 8 days, from January 28 (New Year’s Eve) to February 4.
• During this period, many businesses and government offices close, allowing people to travel home for family reunions. Celebrations traditionally continue for 16 days, culminating with the Lantern Festival on February 12.
• Mainland Chinese markets will be closed for all the holidays.

Hong Kong was closed on January 29 and 30. Markets in HK remain closed today, the third day of Lunar New Year – 31 January, Friday

This article was written by Eamonn Sheridan at www.forexlive.com.

FBI & White House investigating whether DeepSeek got Nvidia (NVDA) chips through Singapore

This article was written by Eamonn Sheridan at www.forexlive.com.

Pres. Trump speaks to the crash where a Blackhawk helicopter ran into a commercial airline. Playing the blame game on DEI.

HMMM.

The video shows a Blackhawk helicopter running into the commercial aircraft.

Why did the Army helicopter run into the plane? Why was it crossing a landing path?

My two cents… Plane is coming in for a normal landing. . That is an airport that services commercial aircraft. Army is training in that airspace, coming in from the side and runs into the aircraft. They are infringing on that airspace. Why was that happening across that flight path.

It is a tragedy where lives were lost. Blaming air traffic controllers and DEI is a stretch. There is a time and a place. This is not it.

This article was written by Greg Michalowski at www.forexlive.com.

Congressional offices are being warned not to use DeepSeek, Axios with the report.

• “At this time, DeepSeek is under review by the CAO and is currently unauthorized for official House use,” the House’s Chief Administrative Officer said in a notice to congressional offices.

This article was written by Eamonn Sheridan at www.forexlive.com.

Japan Industrial Production for November 2024, preliminary reading:

Outlooks:

• Manufacturers see January output at +1% m/m (previous forecast was +1.3%)
• see February output at +1.2% m/m

This article was written by Eamonn Sheridan at www.forexlive.com.

Japan Retail sales

A solid beat indeed for retail sales in December. More encouragement for the Bank of Japan.

This article was written by Eamonn Sheridan at www.forexlive.com.