EQUITIES: Magnificent 7 Stocks Struggle, Focus On Nvidia Today
- Tesla is leading losses among the Magnificent Seven, pushing the gauge of the group into correction territory, with the Bloomberg Magnificent 7 Price Return Index down 10% from its December high. Tesla fell 8.39% on Tuesday and has been the biggest laggard, driven by a 45% drop in European sales last month, while rivals saw rising EV demand.
- Amazon & Apple closed little changed, while all other names closed down over 1%
- Nvidia is set to report Q4 earnings on after the US close on Wednesday, with investors watching AI spending trends amid concerns that data center operators may slow expenditures. Analysts are focused on Nvidia’s transition from Hopper to Blackwell chips, which could temporarily impact sales.
- Key estimates include Q4 revenue of $38.25b (data center: $34.06b, gaming: $3.02b), adjusted EPS of $0.84, and a 73.5% gross margin. Q1 revenue is projected at $42.26b, with 2026 revenue estimates at $198.63b. BBG Consensus ratings shows 68 buys, 7 holds, and 1 sell, with an average price target of $174.96 (38.6% upside). Nvidia shares are up 60.2% YoY, and the stock has an implied 8.5% one-day move post-earnings.
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US TSYS: Cash Bonds Bull Flatten After The Weekend’s Tariff News
TYH5 is dealing at 108-23, +0-08 from NY closing levels, in today’s Asia-Pac session.
- US stock futures are dealing lower ahead of key earnings week, with the S&P 500 down 0.9% and the Nasdaq down ~0.50%.
- “In a social media post on Sunday, Trump said he ordered an emergency 25% tariff on all Colombian goods coming into the US, which will be raised to 50% in a week. Oil, gold, coffee and flowers top the list of exports, according to Colombia’s tax authorities.” (per BBG)
- Cash bonds are dealing 2-5bps richer in today’s Asia-Pac session, with a flattening bias, after finishing Friday mildly stronger.
- The US Treasury will auction $69 billion of two-year notes and $70 billion of five-year debt later Monday.
- Focus this week is the FOMC policy announcement on Wednesday.
CHINA PRESS: China’s Electricity Demand Growth Demonstrates Industrial Upgrading
China’s eight major industries, which include ferrous, non-ferrous and construction sectors, have seen electricity demand grow by 43.5% since the start of the 14th Five-Year Plan, demonstrating the nation’s progress in industrial upgrading, according to Jiang Debin, deputy director at the China Electricity Council. The country’s electricity consumption is expected to increase about 6% this year, a recent report from the China Electricity Council showed. Electricity’s share of total energy demand will reach about 34% in 2030, up from 29% last year, the report noted. (Source: Yicai)
CHINA PRESS: Shenzhen GDP Up 5.8% In 2024, Strong Manufacturing
Shenzhen’s GDP increased 5.8% y/y in 2024, with primary, secondary and tertiary industries up 1.5%, 8.3% and 4.3% y/y, according to data from the city's Bureau of Statistics. The added value of computer, communication and other electronic equipment sectors grew 11.0% y/y, with 3D printing equipment, industrial robots up 35.8%, 31.8% y/y. Total retail sales of consumer goods rose 1.1% y/y. (Source: Yicai)
