Good morning, OP members! As we head into another trading session, here’s your comprehensive premarket rundown of key market movers, industry updates, and opportunities to seize today. Let’s dive in!
1. Futures Edge Lower After Record-High Session
US stock futures hovered below the flatline this morning following the S&P 500’s record intraday high on Wednesday. At 03:44 ET, the S&P 500 futures slipped 0.2% (-14 points), Nasdaq 100 futures dropped 0.5% (-109 points), and Dow futures eased 0.1% (-23 points).
Tech stocks propelled Wednesday’s surge, with Nvidia (NVDA) and Microsoft (MSFT) leading gains alongside a strong earnings report from Netflix (NFLX). Investor sentiment has been bolstered by robust economic data, optimism around cooling inflation, and geopolitical clarity surrounding tariffs under the Trump administration.
2. Trump’s Speech at Davos
President Donald Trump will address global business and political leaders at the World Economic Forum in Davos at 11:00 ET. Key topics remain under wraps, but his recent executive orders—ranging from environmental policy shifts to proposed Gulf of Mexico renaming efforts—hint at potential market-shaking developments.
3. Electronic Arts Cuts Guidance, Stock Stumbles
Electronic Arts (EA) fell sharply in extended trading after slashing its Q3 net bookings guidance. The company cited underperformance in its flagship EA SPORTS FC franchise and weaker-than-expected engagement in its Dragon Ageseries.
EA now projects Q3 net bookings of $2.215B, down from a previous $2.4–2.55B range. Oppenheimer cut EA’s price target to $140, citing alarming declines in its soccer titles. Investors remain cautious, though some see a favorable 12–18 month risk/reward profile.
4. SK Hynix Posts Record Profits Amid AI Boom
South Korea’s SK Hynix (KS:000660), a major Nvidia (NVDA) supplier, reported record-breaking Q4 profits driven by soaring demand for high-bandwidth memory (HBM) chips. Operating profit rose to 8.08T won ($5.64B), exceeding expectations, with revenue jumping 75% YoY to 19.77T won.
SK Hynix’s advanced AI chip production has outpaced competitors like Samsung (KS:005930) and Micron (MU), positioning it as a dominant supplier in the AI revolution.
5. Bitcoin Slides as Crypto Euphoria Fades
After surging to a record $109,000, Bitcoin fell 2.8% to $102,356 in premarket trading, signaling fading hype around potentially crypto-friendly Trump administration policies. Meanwhile, the $TRUMP token, launched last week, continues to experience wild volatility.
Despite fleeting optimism from the SEC’s new crypto task force, analysts expect continued market turbulence.
6. Key Earnings to Watch Today
- Before Market Open: Union Pacific (UNP), Elevance Health (ELV), GE Aerospace (GE)
- After Market Close: Texas Instruments (TXN), CSX Corporation (CSX)
7. Tesla and Stargate: Elon Musk’s Bold Claims
Elon Musk criticized the funding of the Trump-backed $500B Stargate AI infrastructure project, led by OpenAI, Oracle (ORCL), and SoftBank (SFTBY). Musk claimed SoftBank lacks sufficient liquidity, sparking a rebuttal from OpenAI CEO Sam Altman.
This ongoing dispute highlights the complexities of financing ambitious AI projects, with implications for market players like Microsoft and Meta Platforms.
8. Walmart’s Pay Bump & Tesla’s EV Subsidy Talk
- Walmart will now offer top-performing regional managers annual compensation exceeding $600,000, while scaling back office perks like remote work and health benefits.
- Brussels is considering subsidies to boost EV demand, benefiting automakers like Tesla (TSLA), Ford (F), and Volkswagen (VWAGY).
AAPL Alert Reminder
The AAPL alert continues to perform well. Remember, you can choose to:
- Take off your principal,
- Let the entire position ride, or
- Exit completely.
Having options is a beautiful thing! Make sure to stay engaged in the chat for updates.
Takeaways for the Day
Trading success isn’t just about information—it’s about execution. At OptionsPlayers, we provide you with the tools, education, and alerts to thrive in any market condition. Follow the plan, stick to the rules, and don’t let bad habits hold you back. Your peers are showing daily that it’s possible. Are you ready to take it seriously?
See you in the chat!
— The OptionsPlayers Team
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