Happy New Year, OP!
The moment you’ve been waiting for is almost here—get ready for the release of the most anticipated OP correspondence of the year: The State of OptionsPlayers Letter! This year promises to be amazing for all OP members.
Now, let’s dive into today’s market highlights and updates:
1. Apple Offers Rare Discounts in China
Apple (NASDAQ: AAPL) is making headlines with rare discounts on its latest iPhone models in China. The promotion, running from January 4–7, highlights the company’s efforts to combat rising competition in the world’s largest smartphone market.
- Market Challenges: Apple’s share in the Chinese market has been under pressure, with domestic rival Huawei surging in popularity. Huawei’s smartphone sales in China jumped 42% year-over-year in Q3 2024, while Apple’s sales dipped 0.3%.
- Strategic Move: By cutting prices, Apple aims to regain momentum against Huawei, which recently slashed prices on high-end devices.
Apple’s performance in China is critical, and this promotional push will be closely monitored by investors.
2. Futures Edge Higher; Jobless Claims and PMI Data Ahead
US stock futures started Thursday on a positive note as markets carry forward momentum from a strong 2024.
- Market Movement:
- Dow futures: +140 points (+0.3%)
- S&P 500 futures: +30 points (+0.5%)
- Nasdaq 100 futures: +140 points (+0.7%)
Despite a slight pullback in the final days of 2024, the year ended with impressive returns:
- S&P 500:Â +23%
- Dow:Â +13%
- Nasdaq:Â +29%
The week’s light economic calendar picks up today with key reports, including weekly jobless claims and manufacturing PMI. These will set the tone as we approach next week’s highly anticipated jobs report.
3. Chinese Manufacturing Activity Slows
China’s manufacturing activity expanded in December but fell short of expectations, signaling challenges despite recent stimulus efforts.
- December PMI:
- Caixin Manufacturing PMI: 50.5 (vs. 51.6 expected)
- November reading: 51.5
The discrepancy between the Caixin PMI, which focuses on smaller private firms in southern China, and the official PMI, which measures larger state-run enterprises, offers a nuanced view of China’s economy.
- 2025 Outlook: With Donald Trump set to impose new trade tariffs, Beijing is expected to roll out further stimulus measures to counteract these economic headwinds.
4. UK Housing Market Stays Strong
UK house prices showed resilience in December, defying expectations of a slowdown in the broader economy.
- Nationwide Data:
- Monthly growth:Â +0.7%Â in December (following a 1.2% rise in November)
- Annual growth:Â +4.7%Â (highest since late 2022)
Despite affordability challenges, the UK housing market closed 2024 on a high note, bolstered by stable mortgage activity.
5. Oil Gains on Chinese Growth Optimism
Crude oil prices edged higher Thursday, driven by optimism around China’s economic recovery and declining US oil inventories.
- Market Data:
- WTI crude:Â +0.4%Â to $71.98 per barrel
- Brent crude:Â +0.3%Â to $74.87 per barrel
China’s President Xi Jinping reaffirmed a commitment to proactive growth policies in 2025, while US inventory data from the American Petroleum Institute showed a 1.4-million-barrel drop, signaling increased demand.
The official EIA inventory report, due later today, could further impact oil prices.
See You in the Chat!
Join us later today for the latest market upgrades/downgrades, news insights, and chat play ideas to kick off 2025 strong.
Let’s make this an incredible year—stay ready, stay focused, and stack those gains!
– The OptionsPlayers Team
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