Pre-Market Futures Climb Higher

As we begin the week of January 7, 2025, pre-market futures are starting to show a positive trend. Following a strong day on the tech-heavy Nasdaq but remaining flat on the Dow and S&P 500, the blue-chip Dow is currently leading the charge with a +120 point increase. The S&P 500 has followed suit with a +13 point gain at this hour, while the Nasdaq is up by +18 points. Meanwhile, the small-cap Russell 2000 has also seen an uptick of +7 points.

NVIDIA’s CES Keynote Address

At the Consumer Electronics Show (CES) in Las Vegas last night, NVIDIA CEO Jensen Huang took to the stage for a keynote address that generated moderate excitement about the company’s new offerings. Wearing a sleek Tom Ford lizard-skin motorcycle jacket, Huang unveiled several key products, including:

  • GeForce RTX 5090: A new graphics card designed specifically for gaming on desktop PCs.
  • GB10: A smaller AI chip that is a stripped-down version of the company’s GB200. According to Huang, many companies are already showing interest in this product.
  • Cosmos platform: A new training platform aimed at enabling robots and self-driving cars to learn and adapt.

While it remains to be seen whether this address will spark another significant surge in NVDA stock, the fact that NVIDIA shares have gained around +90% over the 10 weeks following last year’s CES is certainly a promising sign. Currently, the company’s stock is up by +2% ahead of today’s opening bell.

Interestingly, this has resulted in NVIDIA once again becoming the world’s largest company in terms of market capitalization, surpassing Apple for now.

November Trade Deficit: A Mixed Bag

The U.S. trade balance for November has been released, showing a deficit of -$78.2 billion. While this is a significant figure, it is not as deep as the expected -$78.4 billion. This represents the deepest deficit since September of last year but still remains below the all-time low of -$101.9 billion recorded in March 2022.

What to Expect from Tuesday’s Stock Market

Later today, after the opening bell, we can expect two key economic metrics to be released:

  • ISM Services for December: This metric is expected to show a slight increase to +53.4% from last month’s +52.1%. Growth above the 50% threshold indicates expansion within the services sector, which has been driving the U.S.’ strong economy.
  • Job Openings and Labor Turnover Survey (JOLTS) for November: The expected figure is 7.7 million job openings, a number that has remained steady over the past few months. While any significant move in this data could be noteworthy, it’s unlikely to have a substantial impact on the Fed’s interest rate decisions.

Conclusion

As we navigate the week of January 7, 2025, investors will be keeping a close eye on these key economic metrics and their potential implications for the stock market. With pre-market futures showing a positive trend and NVIDIA’s CES keynote address generating excitement about new products, it promises to be an interesting few days ahead.

Stock Market Outlook

With the release of these two important economic metrics later today, investors will be looking for any signs of growth or contraction within the services sector and job market. While a deeper dive into the numbers may reveal some nuance, one thing is clear: the stock market remains a dynamic and ever-changing entity that requires careful attention.

Investing in the Stock Market

For those considering investing in the stock market, it’s essential to stay informed about market trends, economic indicators, and company performances. By doing so, you can make more informed decisions and potentially maximize your returns.

Free Stock Analysis Report: Apple Inc. (AAPL)

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