Before the bell: it can turn around

From green to red. We’re being tossed back and forth. Is the inflation monster creeping back out of its box?

In the US, markets opened positively yesterday, but later gave up all their gains. Technology companies, which had been Monday’s big winners, lost ground again. The Nasdaq fell by 1.9%, with Palantir (-7.8%) and Nvidia (-6.2%) leading the pack in retreat. The S&P 500 slipped by 1.1%. Meanwhile, US long-term yields rose by 5 basis points to 4.69%. The ISM index for the US services sector came in at 54.1 for December, higher than expected. A reading above 50 indicates rising prices in the sector, signaling potential inflation. Policymakers may think twice before cutting rates again. One standout in the US was Moderna (+11.65%) after Americans were advised to vaccinate against rising flu cases. In Europe, markets managed to close in the green. The Euro Stoxx 50 and Bel 20 climbed by 0.5% and 0.4%, respectively. Jefferies remains optimistic about Brussels-listed real estate, issuing buy recommendations for Montea (+1.6%) and Aedifica (+0.7%), while also removing WDP (+1.75%) from its sell list.

This morning in Asia, Japan’s markets fell by an average of 0.6%, while Hong Kong lost 1.2%. At 3:00 PM, Sequana Medical will hold a webinar on the rollout of its alfapump in the United States. US-based retailer Albertsons and investment bank Jefferies will release their earnings reports. On the macroeconomic front, the eurozone will publish consumer and business confidence survey results, and Germany will release factory order figures for November. This evening, the US Federal Reserve will publish the minutes from its December 18 meeting.

Good memory is worth money

Samsung Electronics released its preliminary Q4 results this morning, which fell short of expectations. Operating profit is expected to land between $4.4 and $4.5 billion, significantly lower than the $6.11 billion analysts had forecast. Revenue is estimated at $50 to $52 billion. Samsung, one of the world’s largest memory chip producers, is struggling after missing the AI wave. Competitors like SK Hynix and Micron Technology are reaping the benefits of the AI boom. Nevertheless, Samsung’s shares rose by 3.3% this morning, buoyed by Nvidia’s CEO expressing confidence that the company will soon resolve its memory chip challenges for AI applications.

Picture-perfect, or not?

Once upon a time, images were scarce. Now, everyone has a decent camera in their pocket, and AI can generate visuals on demand. This abundance is unsettling image database operators like Getty Images (+24%) and Shutterstock (+14%). So much so that they’re getting cozy: the two companies have announced a merger to save up to $200 million in costs. Together, they’ll be valued at $3.7 billion. Getty Images will remain listed, and its CEO will stay at the helm. Shutterstock shareholders can choose between $28.84 in cash or 13.67 Getty Images shares per Shutterstock share. Both companies have underperformed in recent years, but their stocks saw a boost yesterday.

Did you know…

a merger was also the origin of Getty Images? In 1997, London-based Getty Communications merged with US-based PhotoDisc, which had been operating as a mail-order business since 1991, sending photo collections on CD-ROM until 1995.

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