Before the bell: China on top

Chinese stocks lent support to U.S. indexes yesterday. The earnings season kicks off today, with American banks leading the charge.

Interestingly, the best-performing stocks on the U.S. market yesterday were Chinese. Names like JD.com (+4%) and PDD Holdings (+2.2%) ranked among the top gainers in the tech-heavy Nasdaq. With Trump set to assume office in six days, hopes are rising that the new president will avoid policies that could backfire, such as steep import tariffs. In Europe, the Euro Stoxx 50 gained 0.5%, benefiting from the optimism. Meanwhile, in Asia, all eyes are on chipmaker TSMC (-2.3%), as the U.S. considers stricter regulations for TSMC and Samsung to limit chip exports to China.

On the corporate front, it appears that Exmar CEO Nicolas Saverys is steadily increasing his stake in Exmar through market purchases. He is expected to launch a bid to take the company private. Later today, UCB and Galapagos will present at the J.P. Morgan Healthcare Conference, where they often share updated financial guidance. Additionally, BlackRock, Wells Fargo, JPMorgan Chase, Citigroup, and Goldman Sachs are set to report earnings. Investors are also anticipating European industrial data and U.S. inflation figures, which could influence market sentiment.

Lean revenues fail to impress

“Lean is better” seems to be the mantra at Eli Lilly, particularly given the blockbuster sales of its obesity medications. While these drugs rake in billions effortlessly, investors have a limit to how “slim” revenues should be. The company posted 45.5 billion dollars in revenue for 2024—not exactly chump change but still below analysts’ expectations. Consequently, the stock dropped 6.6% yesterday. However, this might present an interesting buying opportunity. Eli Lilly’s pipeline remains robust; it plans to launch an obesity pill by 2026, offering a more user-friendly alternative to current injections. At the J.P. Morgan Healthcare Conference, the company projected revenues of 58–61 billion dollars for 2025. The growth story isn’t over yet.

Small percentages, big gains

While not a traditional bank, BlackRock is undoubtedly one of the most influential players in the financial world. Last quarter, the asset manager had a record 11.5 trillion dollars in assets under management. Investors will be keen to see how much new capital the firm attracted and whether it can set new records. The more assets it manages, the more it earns in fees. Even seemingly small management fees add up. Take the iShares Core S&P 500 ETF, which has a fee of just 0.03%. With 560 billion dollars in assets, BlackRock earns roughly 168 million dollars annually from this ETF alone. Globally, BlackRock manages over 1,400 ETFs, providing a lucrative revenue stream. For investors seeking low-cost index investing, BlackRock’s iShares products are an excellent option.

Did you know…

the number of ETFs continues to grow rapidly? Over 700 ETFs were launched in the U.S. last year, while approximately 190 were discontinued. With more than 3,900 ETFs available, investors have never had more choices. Unfortunately, many U.S. ETFs don’t meet European regulations, leaving Belgian investors unable to access them.

This article was translated from Dutch and was originally published on Spaarvarkens.be.