US Open: Wall Street tries to rebound after yesterday sell-off 🗽US100 and US500 gains slightly, General Motors tumbles 8%

• U.S. indices open Tuesday's session lower; US100 drops 0.5%, US500 retreats 0.2%
• The U.S. dollar gains over 0.5%, and 10-year Treasury yields rise to 4.57% despite weaker December durable goods orders and CB consumer confidence index 
• Stocks in the semiconductor, software, and automotive sectors decline, with Big Tech continuing its slide as Nvidia loses another 0.6%.
• Markets are awaiting the Richmond Fed regional index and consumer sentiment data from the Conference Board.

U.S. indices started today's session on a weaker note, continuing the downward momentum that began yesterday. The market is still assessing the impact of China’s AI DeepSeek on artificial intelligence investments and companies responsible for infrastructure within the tech sector.

The biggest losers today include Hewlett-Packard (HPE.US) and General Motors (GM.US). Declines are also visible in the semiconductor segment, led by ASML, Applied Materials, and Lam Research. In the defence sector, Boeing and RTX Corp are gaining, while Lockheed Martin is seeing significant losses. Source: xStation5

US macro

US December 2024 Durable Goods Orders: -2.2% MoM (Forecast 0.6%, Previous -1.2%; revised to -2%)

• US Core Durable Goods 0.3% MoM (Forecast 0.3%, Previous -0.2%)

As we can read inside the December report 'Excluding transportation, new orders increased 0.3 percent. Excluding defense, new orders decreased 2.4 percent. Transportation equipment, also down four of the last 5 months, drove the decrease, $6.9 billion or 7.4 percent to $86.1 billion.'

US House Price Index YoY: 4.2% (Previous 4.5%)

• US House Price Index MoM: 0.3% (Forecast 0.3%, Previous 0.4%)

US CaseShiller 20 YoY: 4.33% (Forecast 4.24%, Previous 4.2%, Revised 4.23%)

US CB Consumer Confidence (January): 104.1 (Forecast 105.85, Previous 104.7)

Richmond Fed Index (January): -4 (Forecast -10, Previous -10)

US100 (M15 interval)

Source: xStation5

Company News

• General Motors Co:

The automaker released its Q4 2024 results and 2025 earnings forecast, exceeding Wall Street expectations. The company continues to experience strong demand for its high-priced gasoline-powered trucks and SUVs, which sold for an average of $50,000 in 2024. For 2025, GM expects North American pricing to drop by 1-1.5% and a slight decline in gas-powered vehicle volume, leaving the company in a relatively strong position. Projected net income for 2025 ranges from $11.2 billion to $12.5 billion, surpassing analysts' expectations of $10.8 billion. Q4 revenue was $47.7 billion, beating the $43.9 billion forecast. Adjusted EPS for the quarter was $1.92, exceeding the estimate of $1.89.

• Kimberly-Clark Corp:
The Kleenex maker forecasts annual adjusted profit growth ahead of Wall Street expectations, supported by stronger-than-expected quarterly sales driven by recovering demand. Q4 net sales were $4.93 billion, above analysts' average estimate of $4.86 billion. Adjusted annual EPS is expected to grow by a mid-to-high single-digit percentage, exceeding the forecasted 3.2% rise to $7.58 per share. Adjusted Q4 EPS came in at $1.50, slightly below the estimate of $1.51.

• Brown & Brown Inc:
The insurance broker surpassed Q4 profit expectations, driven by strong growth in investment returns and increased commissions and fees. Commissions and fees rose 15.4% to $1.16 billion in Q4. Investment income grew to $22 million, up from $18 million a year earlier. Adjusted net income per share was $0.86, beating estimates of $0.77.

• Nucor Corp:
The steelmaker reported a decline in Q4 revenue and profit due to lower selling prices in its mills and product segments. Nucor CEO Leon Topalian noted that steel demand weakened throughout 2024 but highlighted improving market conditions. The average sales price per ton fell by 10% in 2024 compared to the prior year.

• Royal Caribbean Cruises Ltd:
The cruise operator projects annual profits above analysts' expectations, driven by higher bookings for private destinations and premium itineraries in the Mediterranean and Alaskan regions. The company forecasts 2025 adjusted EPS between $14.35 and $14.65, compared to the $14.41 average analyst estimate. Q4 revenue rose to $3.76 billion from $3.33 billion a year ago, slightly missing the $3.77 billion forecast. Adjusted Q4 EPS was $1.63, exceeding expectations of $1.50.

• W R Berkley Corp:
The commercial insurer reported a 45% rise in Q4 profit, driven by strong performance in its investment portfolio and underwriting business. Net investment income rose 1.3% to $317.4 million compared to the same period last year. Net profit for Q4 was $576.1 million, or $1.44 per share, compared to $397.3 million, or $0.98 per share, a year earlier. "We positioned our investment portfolio well for changes in the environment, resulting in robust growth in net investment income from our fixed-maturity portfolio and strong contributions to total return from net unrealized gains on our equity portfolio," the company said in a statement.