Daily Brief United States: NVIDIA Corp, Crude Oil, Smithfield Foods, EURO/US DOLLAR, Aptiv PLC, Karman Holdings, Fastenal Co, Csx Corp, American International Group and more

• News that DeepSeek’s latest AI release appears to be superior to latest OpenAI’s ChatGPT in  most (if not all) of the benchmark tasks have apparently shaken markets today.
• DeepSeek may be able to beat its competitors (including other AI developed by other US companies like Meta Platforms (META US) ), using lower cost chips and less data.
• Tech companies like NVIDIA Corp (NVDA US) are falling hard (like -12%) in pre-market, and so are the US Indices. Let’s see where support for reversal rallies can be found.

• Strong gains in oil prices attributed to tightening sanctions against Russia and Iran by outgoing Biden administration
• Market anticipating decline in Russian and Iranian oil exports, with potential disruptions and price increases
• Russian oil exports showing resilience despite sanctions, with logistics and companies excluded from restrictions providing room for maneuvering

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Sources have stated that the deal is experiencing “pushback” from the buy-side on the price. 
• Fresh on the mind of IPO investors is the underperforming energy deal, Venture Global (VG)
• Price sensitivity in the deal is a stark signal to exercise caution on this IPO at this time

• Basis reflects the US dollar scarcity premium, with a more negative basis indicating greater scarcity
• Positive Euro US dollar basis is primarily driven by short-term tactical cross-border flows, not direct funding dynamics
• Evolution of relative balance sheet dynamics between the Fed and ECB will be a dominant driver of the Euro US dollar basis going forward

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Aptiv PLC (APTV), an automotive technology supplier, announced on January 22, 2025, that it plans to split into two distinct companies.
• Aptiv will spin-off its electrical systems business.
• The RemainCo will concentrate on technological components, including sensor-to-cloud solutions and autonomous driving software.

• Private Equity backed Karman Holdings filed a S-1 with the SEC for a potential February debut. 
• For the nine months ended September 30, 2024, they generated $254.0 million in revenue, representing a 24.7% growth rate from the same period in 2023.
• Their integrated payload protection, propulsion, and interstage system solutions are deployed across a wide variety of existing and emerging programs supporting important Department of Defense and space sector initiatives.

• The U.S. oil and gas rig count dropped for the third consecutive week, falling by 4 to 576 for the week ending 24/Jan.
• For the week ending 17/Jan, U.S. oil production moderately fell to 13.477m bpd from 13.481m bpd the week prior.
• The number of active U.S. oil rigs fell by 6 to 472, while gas rigs grew by 1 to 99. U.S. producers cut four rigs in Texas.

• Fastenal Company recently held its 2024 annual and fourth-quarter earnings call, providing insights into its financial and operational performance.
• The company reported a modest fourth-quarter sales growth of 3.7% (2.1% on a daily sales rate), indicating a stabilization in sales amidst a challenging industrial economy.
• Although sales grew slightly, the company did not meet its own expectations, with earnings per share (EPS) decreasing by 2% to $0.46.

• The CSX Corporation’s earnings reveal a complex landscape influenced by numerous external factors, while also showcasing internal resilience and growth initiatives.
• For the fiscal year 2024, CSX faced a multitude of challenges, including adverse weather events like hurricanes, weaker commodity prices, and infrastructure disruptions, notably the collapse of the Francis Scott Bridge.
• These external pressures led to fluctuations in financial performance, especially in specific segments like coal and intermodal transportation.

• American Airlines has showcased strong performance metrics in recent quarters but is currently grappling with investor concerns over its first-quarter guidance.
• For Q4 2024, the airline delivered record-breaking revenue of $13.7 billion, contributing to an annual revenue milestone of $54.2 billion.
• Earnings per share (EPS) for the quarter stood at $0.84, exceeding expectations of $0.66.