Hello readers!
Today, we have an exciting mix of news in stocks and technology to share with you. Let's dive right in!
Is this email difficult to read? View it in a web browser. Airlines helped lift the market. But bond markets are signaling more turbulence ahead for shares. Hopes for an imminent interest-rate cut appeared to continue to fade, thanks to strong recent economic data. The 10-year yield finished at 4.142%, its highest afternoon level of the year. Yet the S&P 500 index jumped 0.9%, and the Nasdaq Composite added 1.4%. The Dow Jones Industrial Average added 201 points, or 0.5%. Perhaps more investors believe that the $8.8 trillion of money-market and certificate-of-deposit cash will eventually 'come off the sidelines' to power another rally. But higher-for-longer rates won't help with that, as people enjoy those enticing yields. Air carriers were among the top performers in the S&P 500, with take-offs for Southwest Airlines and American Airlines Group. They both rose more than 6%. United Airlines was up nearly 5%. JetBlue, whose acquisition of Spirit Airlines was blocked by a federal judge earlier this week, was up nearly 8%. But Spirit shares were down another 7%. The Journal reported that the discount carrier was exploring restructuring options. Meanwhile, Discover Financial Services dropped more than 10% after the card lender's quarterly earnings fell short of analysts' expectations. Despite the broader rally, banks continued their tough streak this earnings season. The KBW Nasdaq Bank index was off by 0.5%, its seventh straight losing session.
Next, let's talk about luxury goods. Shares in Rolex retailer Watches of Switzerland lost a third of their value on Thursday after the company said operating profit for its current financial year could be 25% lower than guidance it gave to investors at the start of December. But Richemont, the Swiss luxury group that owns watch and jewelry brands Cartier and Jaeger-LeCoultre, gained 11% on Thursday after the company reported an 8% increase in sales for the three months through December compared with the same period of 2022. The difference between Richemont and Watches of Switzerland may be partly down to what they sell and where. American shoppers who spent overseas in cities like Paris and Milan last year are buying luxury goods at home instead. But Watches of Switzerland’s domestic U.K. market, which still generates around half of its sales, is in a slump. Richemont’s European business was also weak in the quarter. Read More
Now, let's move on to the exciting world of technology. South Korean electronics giant Samsung recently unveiled its latest Galaxy smartphones. These new devices are the company's first to feature on-device AI, allowing them to process generative AI data directly on the hardware without relying on sending the data up to the cloud. The Galaxy S24 family will begin shipping at the end of this month. Samsung is hoping that AI-enabled devices can reverse the trend of declining sales it experienced in 2023. While new software features historically haven't had the same impact on hardware sales as physical form-factor changes, Samsung is betting on the power of AI to attract consumers. Read More
That's all for today's news roundup! Stay tuned for more updates and make sure to subscribe to our newsletter for the latest news in stocks and technology.
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