Beat the street: Investors eye Fed speakers; big-ticket earnings; Eli Lilly; Palantir
Investors brace for a raft of big earnings and Fed commentary before deciding on the market’s next move.
Ford reports after the close. Palantir, all-sessions, head higher on its AI revenue boost. Eli Lilly sees 2024 profit above estimates thanks to solid demand for its weight-loss and diabetes drugs.
(AI Video Summary)
Big company earnings reports lowdown
In this video of "Beat the Street," Angeline Ong talks about what's going on with some big pharmaceutical companies and what the Federal Reserve speakers are saying about interest rates. Eli Lilly & Co is expecting to make more money in 2024 because their weight loss drug is in high demand. Palantir Technologies also had a good year because people wanted their AI products. The stock market is kind of quiet right now because investors are waiting for the Fed speakers and earnings reports. But trading with the US dollar is still active. The dollar is getting stronger because people don't think there will be an interest rate cut until May. That's bad news for the euro, British pound, and Japanese yen because their values go down when the dollar goes up.
Eli Lilly and Novo Nordisk are popular companies that make weight loss drugs. Since these drugs are in high demand, the prices of their shares are going up. If the drugs keep being popular and they show even more benefits like helping your liver and metabolism, these companies could make even more money.
On Wall Street, things are a little nervous even though the market reached new records on Friday. Palantir had a great fourth quarter because lots of people wanted their AI products. NVIDIA, which also focuses on AI, has been doing really well too. Before the market opened, Hertz was supposed to release their earnings, and it was expected to be bad news because they had a big loss in the fourth quarter. After the market closed, Ford Motor Company was going to share their results. Investors are curious about how the auto workers' strike and the slowdown in electric car sales affected them.
Lowdown on Chinese stocks
Chinese stocks have been doing well because the government is helping support them. This has made the Hang Seng and other stock indices go up. But some people think it's just a temporary improvement and that overall, Chinese stocks are still going down. They might be a good deal compared to stocks from other countries.
In the end, the market is kind of slow right now because people are waiting for earnings reports and what the Fed speakers have to say. It's expected that trading will start off slow with a big focus on earnings from companies like Ford.
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