Market Wrap
On Thursday, February 6, 2025, the U.S. stock market exhibited mixed performance amid various economic and political developments. The S&P 500 rose by 0.4%, closing at 6,083.57, and the Nasdaq Composite increased by 0.5% to 19,791.99, while the Dow Jones Industrial Average declined by 0.3%, ending at 44,747.63.
Investors are closely monitoring the labor market, with initial jobless claims rising to 219,000, slightly above forecasts. Attention is now focused on the upcoming nonfarm payrolls report from the Labor Department, scheduled for release on Friday, which is expected to provide further insights into employment trends.
In the bond market, U.S. Treasury yields have decreased this week amid easing tariff tensions and cooling inflation, relieving pressure on bond markets and aiding stock recoveries. Yields have dropped below 4.5%, the lowest this year, influenced by lower business costs, labor market news, and delays in U.S. tariff hikes. The Federal Reserve is anticipated to proceed with gradual rate cuts, with two reductions forecasted for the year. Treasury Secretary Scott Bessent emphasized lowering 10-year yields without Fed cuts, believing deregulation and private investment will normalize rates.
On the international front, global markets showed strength, with significant gains in Europe and Asia. London's FTSE 100, Paris, Hong Kong, and Tokyo markets all experienced notable increases, contributing to the positive sentiment in the U.S. markets.
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Eli Lilly and Company (LLY)
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Day Change: 3.3% | Market Cap: $716.7b
Business Excellence2:
94
| Valuation2:
18
Eli Lilly's stock rose 3% after surpassing earnings expectations with strong demand for its diabetes and obesity treatments. The company set a favorable outlook for 2025.
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Philip Morris International In (PM)
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Day Change: 10.9% | Market Cap: $195.8b
Business Excellence2:
78
| Valuation2:
56
Philip Morris International's stock gained 10.9% following better-than-expected profits, driven by strong performance of its Zyn nicotine pouches.
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QUALCOMM Incorporated (QCOM)
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Day Change: -3.7% | Market Cap: $191.7b
Business Excellence2:
99
| Valuation2:
70
Qualcomm's stock fell 3.7% after reporting strong profits but warning that its patent-licensing business would not grow this year due to the expiration of a key license agreement with Huawei.
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Honeywell International Inc. (HON)
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Day Change: -5.6% | Market Cap: $151.6b
Business Excellence2:
44
| Valuation2:
47
Honeywell International's stock fell 5.6% after announcing a plan to split into three independent entities. Despite solid earnings, lower-than-expected profit and revenue guidance for 2025 led to the decline.
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Roblox Corporation (RBLX)
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Day Change: -11.1% | Market Cap: $42.8b
Business Excellence2:
35
| Valuation2:
6
Roblox's stock declined 11% after reporting fourth-quarter bookings and daily active users below Wall Street forecasts, despite year-over-year increases.
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Ford Motor Company (F)
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Day Change: -7.5% | Market Cap: $39.6b
Business Excellence2:
29
| Valuation2:
98
Ford's stock dropped 7.5% after reporting a fourth-quarter operating profit of $2.1 billion, exceeding estimates. However, its 2025 operating profit forecast missed expectations, disappointing investors.
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Tapestry, Inc. (TPR)
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Day Change: 12.0% | Market Cap: $17.4b
Business Excellence2:
72
| Valuation2:
73
Tapestry's stock rose 12% after strong quarterly profits and an improved forecast signaled robust consumer demand for its Coach and Kate Spade brands.
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Skyworks Solutions, Inc. (SWKS)
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Day Change: -24.7% | Market Cap: $14.6b
Business Excellence2:
88
| Valuation2:
79
Skyworks Solutions' stock plunged 25% after announcing that its business supplying Apple with radio frequency components will decline by 20-25%, impacting revenue starting in the fiscal fourth quarter.
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Peloton Interactive, Inc. (PTON)
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Day Change: 12.0% | Market Cap: $3.2b
Business Excellence2:
34
| Valuation2:
15
Peloton Interactive's stock initially surged over 25% after reporting better-than-expected revenue and raising its full-year adjusted EBITDA outlook, driven by cost-cutting and a strategic focus on app-based subscriptions.
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