The Strength of the U.S. Economy Amidst Global Weakness

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Hey there, Daniel Silva! Are you ready to dive into today's market action? Let's get started!

The theme of U.S. economic hardiness versus weakness elsewhere gained new evidence with weak trade data from China and further signs that Germany’s industrial engine needs a major tune-up. It comes on the heels of still strong U.S. services-sector performance. That difference in economic fortunes is playing out in markets. The dollar hovered near its strongest level in 10 months. Asian stocks slid Thursday and Nasdaq futures, weighed down by high bond yields, pointed to another down day. 🚨 Follow our live coverage throughout the day for the latest news affecting markets.

Meanwhile, Eliot Brown and Rory Jones take you to the marble lobby of the Four Seasons in Abu Dhabi, where cash-starved American investors line up cap in hand to raise money from the region’s oil-rich monarchies.

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Stocks to Watch:

  • Apple (AAPL): Apple shares traded down 2.6% premarket, building on Wednesday's declines, as investors assessed the implications of China’s ban on iPhone use for government officials at work.
  • Nvidia (NVDA), Tesla (TSLA): The technology heavyweights slipped more than 1% in early premarket trading, suggesting Wednesday's selloff could extend into a new session.
  • WestRock (WRK): Shares jumped in off-hours trading, after The Wall Street Journal reported WestRock was nearing a roughly $20 billion merger with Europe's Smurfit Kappa (SMFKY). Smurfit Kappa later confirmed that it was in talks about a potential deal, which could create a global paper and packaging powerhouse.
  • GameStop (GME): The videogame retailer reported a smaller-than-expected quarterly loss, as revenue beat consensus forecasts. GameStop shares gained about 5% in premarket trading.
  • C3.ai (AI): The buzzy artificial-intelligence stock fell nearly 10% in early premarket trading. Late Wednesday, C3.ai said it didn't expect to be profitable, on an adjusted basis, in the last quarter of this financial year, as it invests in generative AI.

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The Middle East Becomes the World’s ATM

Five years ago, Saudi officials watched a wave of American finance executives pull out of a free investment confab in Riyadh after the murder of a dissident journalist made the kingdom a toxic place to do business. This year, the conference, nicknamed “Davos in the Desert,” is expecting so much demand it is charging executives $15,000 a person. Middle East monarchies eager for global influence are having a moment on the world’s financial stage. They are flush with cash from an energy boom at the very time traditional Western financiers—hampered by rising interest rates—have retreated from deal making and private investing. The region’s sovereign-wealth funds have become the en vogue ATM for private equity, venture capital, and real-estate funds struggling to raise money elsewhere. Keep reading.

That's it for today's market update! Stay tuned for more news and analysis. Have a great day, Daniel Silva!

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