Pre-market traders will try to build on the S&P 500 (SPY) edging back its record. The SPY ETF added 1.87% in gains last week, albeit at around half the volume compared to the start of the year.
In the banking sector, Citi’s (C) aggressive layoff did not hurt market sentiment. It only helped it, since job cuts and an economic slowdown will force the Federal Reserve to cut interest rates. Lower rates increase valuations for stocks. BlackRock’s (BLK) huge deal to buy Global Infrastructure Partners for $150 billion boosted markets. Expect BLK stock to break out above $800 as it attempts to retake the $970 high last reached in November 2021.
JPMorgan’s (JPM) impressive revenue of $38.57 billion, up 11.8% Y/Y, did not impress markets. Shares peaked at ~$175 before closing at $168.85 in after-hours trade on Jan. 12. JPM stock has a good chance of attracting buyers after shares dipped.
Microsoft (MSFT) is officially the most valuable public company again. Getting ahead of Apple (AAPL) is only a start. The software giant has too much cash flow growth from software in the consumer and corporate markets. Its Surface and laptop hardware are secondary growth drivers. Conversely, Apple still depends greatly on unit volume growth for iPhones. Still, bearish analysts who dismiss Apple are wrong to do so. Apple has a strong user base willing to upgrade to new devices.
