Monday’s DeepSeek-R1 news was heard around the world. It fell on par with dramatic wins by massive underdogs or the undefeated champion getting knocked out by an upstart. Notice that I said it felt this way because as more information trickled through, there was something of a smoke and mirrors aspect to DeepSeek-R1.

For instance, that six million price tag seemed dubious from the start.

Growth sectors moved back into the leadership position while other market sectors wavered.

CrowdStrike (CRWD), Nvidia (NVDA), and Palantir Technologies (PLTR) paced Technology (XLK).

Mags Hold

The “Mag Seven” exchange-traded fund (MAGS) held at its 50-day moving average and posted an admirable rebound. The problem has been finding that extra boost after taking off after the election.

The excitement heading into December reached a feverish pitch as the relative strength index (RSI), rate of change (ROC), and money flow (MF) spiked.

Then the air left the balloon, and it was about to hover until the next spark. But a not-too-funny thing happened while waiting for that spark: DeepSeek-R1. Now, the focus shifts back to earnings results.

Earnings Season

Speaking of earnings season, I’m spying on many Blue-Chip names that were once unstoppable. But it's tough when these names lose their way, and many never regain the old magic.

Yesterday, Boeing (BA) posted results that some considered a ‘kitchen sink’ quarter, in which all the bad news possible could be lumped into the filing. In addition, the manager offered encouraging guidance.

The stock opened at $181 after closing at $175 on Monday, then raced to $188 before slumping to $177 at the closing bell.

After yesterday's close, Starbucks (SBUX) popped…and then faded.

The Fed Meets

Today, the Federal Open Market Committee (FOMC) gathering isn’t expected to see any action, but the press conference should be ‘lit,’ especially questions about President Trump’s comments and pressure.

Today’s Session

Yesterday was the biggest one-day of inflows since 2021. Investors still believe.

All eyes on the Fed, but earnings are pouring in and moving the needle. We will have a special preview of Meta Platforms (META), Microsoft (MSFT), and Tesla (TSLA) in the afternoon note.

Comments

Since Boeing has government contracts it must follow government guidelines. Dropping DEI should help Boeing improve performance since they don't have to pick second best workers. Larry Minter on 1/29/2025 1:27:13 PM

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