Traders have plenty of the usual suspects to watch today. On Thursday, Tesla (TSLA), AMD, American Airlines (AAL), Intel (INTC), and Nio are among the most actively traded stocks. Intel stock will top the most active by trading volume today after posting weak guidance.
The market incorrectly bet on the PC desktop and laptop market recovering. Corporations spent heavily on upgrading staff computers for a work-at-home environment. The hybrid work environment does not need IT departments to buy more hardware.
The EV market is growing increasingly bearish. The gains that Tesla (TSLA) made in the last year are at risk of erasing within the next few weeks. The EV hype lost momentum after Tesla cut prices. Demand for vehicles that cost more than gas-powered types is absent. Consumers may buy second-hand vehicles are a steep discount to save money instead. Nio (NIO), Li Auto (LI), BYD, and XPeng (XPEV) have the highest risks in the EV market. Tesla competes effectively against Chinese domestic suppliers.
In the financial sector, the Financial Select (XLF) may trend higher on strong volume. Banks gain from the Fed cutting interest rates. The Fed meets next week on Jan. 30-31, 2024. Even if rates stay high, banks like JP Morgan (JPM) and Bank of America (BAC) earn net interest income.