Top News

1. US Initial Jobless Claims Slightly Lower than Expected at 219,000;
2. Drone Stocks Rise Premarket While Cryptocurrency Stocks Pull Back;
3. NVIDIA to Unveil RTX 50 Series Graphics Cards at CES ;
4. Apple Stock Hits New Highs, Nearing $4 Trillion Market Value;

I. Market Report

As of 08:23 AM, EST (or 04:23 PM in Riyadh ), the blue-chip Dow Jones Futures declined by 143 points or 0.33% to 43,502, the broad-based S&P 500 Futures faded 20 points or 0.33% to 6,078, the tech-heavy Nasdaq Futures decline by 77 points or 0.35% to 21,952. (Data source: Wind Quant)

As of 08:25 AM, EST (or 04:25 PM in Riyadh ), top pre-market movements are as follows:

Read more: Pre-Bell Movers | MGIH Rises 192.8% - Here Are 20 Stocks to Watch Premarket

II. Flash Headlines

US Initial Jobless Claims Slightly Lower than Expected at 219,000

US initial jobless claims for the week ending December 21 were 219,000. The expected number was 224,000, and the previous week's figure was 220,000.

Citigroup's Q1 2025 Stock Strategy: Balanced Approach Amid Uncertain Macroeconomic Conditions

Citigroup analysts revealed their Q1 2025 stock strategy, advocating for a more balanced approach due to uncertain and evolving macroeconomic conditions and policies. They recommend increasing exposure to the healthcare, communication services, and energy sectors, upgrading healthcare to "overweight." They favor semiconductors in IT for growth potential and profit margin expansion. Banks remain a preferred cyclical sector with an "overweight" rating, while the consumer discretionary sector is downgraded to "underweight."

Can US Stocks Continue to Rise? Research Firm Suggests It Depends on US Bonds and Dollar

Tom Essaye, founder of Sevens Report Research, noted in a report this week that recent trading levels indicate the dollar poses only "slight" resistance to US stocks, while the 10-year Treasury yield presents "moderate" resistance. However, further increases in the dollar and Treasury yields could significantly impact stocks. Essaye emphasized that stable currency and bond markets are essential for continued stock market gains.

III. Stocks To Watch

Drone Stocks Rise Premarket While Cryptocurrency Stocks Pull Back

Drone-related stocks rose premarket, with  Archer Aviation Inc. Class A Common Stock(ACHR.US) up 2.31%,  SES AI CORP(SES.US) up 36.62%,  Palladyne AI(PDYN.US) up 19.59%, and  Unusual Machines Inc.(UMAC.US) up 4%. Bitcoin fell below $96,000, leading to a pullback in cryptocurrency stocks.  MicroStrategy Incorporated Class A(MSTR.US) and  Bitdeer Technologies Holding Co Ordinary Shares(BTDR.US) dropped over 3%, while  Coinbase Global, Inc.(COIN.US) and  Marathon Digital(MARA.US) declined by over 2%.

MicroStrategy's US$42 Billion "21/21 Plan" to Expand Bitcoin Holdings

Software services provider  MicroStrategy Incorporated Class A(MSTR.US) has become a significant player in the Bitcoin market, holding approximately US$43 billion worth of Bitcoin, or about 2.2% of the total supply. The company plans to raise an additional US$42 billion to accumulate more Bitcoin, with US$21 billion coming from a stock issuance and US$21 billion from fixed-income securities. This is dubbed the "21/21 plan."

NVIDIA to Unveil RTX 50 Series Graphics Cards at CES 

On January 7, Jensen Huang is set to unveil  NVIDIA Corporation(NVDA.US) 's RTX 50 series graphics cards, based on the BlackWell architecture, during the CES keynote in Las Vegas. The initial release will feature the 5090 and 5080 models, with the 5070 Ti and 5070 potentially debuting later. Despite numerous leaks about the new card's specs, a recent "5090 PCB Board" photo on Chiphell provides new insights. The RTX 5090's GB202 chip is expected to be 744 square millimeters, 22% larger than the 4090's AD102, and will have 16 pads surrounding the GPU, consistent with rumors of 32GB memory.

NVIDIA Sees Strong Retail Investor Interest with Over $30 Billion Net Purchases in 2024

ETF-S&P 500(SPY.US), the world's largest ETF, lost the title of "most popular with US retail investors" again this year. After trailing Tesla Motors, Inc.(TSLA.US) last year, AI leader NVIDIA Corporation(NVDA.US) has now outpaced it. Vanda Research reports retail investors have net bought US$29.8 billion of Nvidia stock this year, nearly double SPY's US$15.3 billion. Tesla is third with US$14.7 billion, followed by the PowerShares QQQ Trust,Series 1(QQQ.US), and  Advanced Micro Devices, Inc.(AMD.US), each at US$9.8 billion.

Apple Stock Hits New Highs, Nearing $4 Trillion Market Value

Apple Inc.(AAPL.US) stock has hit new highs, bringing its market value to US$3.9 trillion, just shy of US$4 trillion. Wedbush analyst Daniel Ives raised Apple's target price from US$300 to US$325, maintaining an "outperform" rating. Analysts believe Apple's "Apple Smart" strategy is maturing, potentially revolutionizing consumer growth and generating billions in annual service revenue.

Tesla Launches New Round of FSD Free Trial Program

Tesla Motors, Inc.(TSLA.US) has reportedly launched a new 30-day free trial of its Full Self-Driving (FSD) system, which requires human supervision, for select customers in North America. The trial runs until February 22. For some owners, this is their third FSD free trial this year. The initiative seems to be Tesla's latest effort to promote its latest FSD version to as many customers as possible.

IV. Calendar

Events: