💎Markets looking for direction💎

✈️Market rebound with Positive Sentiments🪜

Equity markets were higher, with the value and defensive stocks guarding the rally. It was a relatively quiet Monday, but like the saying, “no news is good news”. On the frontline is the sign that Omicron symptoms might be less severe than other variants. This gives a sense of relief to investors.

Also, China is actively easing its monetary policy to support an economy facing headwinds from a slow down in domestic consumption. In addition, the cut in banks reserve ratio helps boost lending and support the economic expansion.

🍎Apple: New Love Again🔭

The company had received new coverage from KeyBanc Capital Markets, which initiated a positive outlook on the stock with a price target of $191. Apple has been seen as a haven in times of turmoil for investors looking for addition in the discretionary expenditure segment.

Pika World continues to favour Apple exposure.

📺Nvidia x Arm: The Magic Disappears🧰

Nvidia seems to have a tough time with its purchase of Arm, which is the largest deal in the semiconductor industry history. The Federal Trade Commission had decided to sue to block the deal, citing concerns on competition and the possibility that one single company will have almost a significant control of the chip designer field.

It hurts Softbank and adds woes to its list of companies, such as the Didi delisting issue. With the FTC’s action, it is almost certain that the deal has fallen through. Given the relative calm performance of Nvidia, it appears that investors had not baked in any optimism of the deal going through.

A key argument by FTC is that Arm’s long history of neutrality would be compromised should it be assumed under the Arm of Nvidia. After all, Arm licenses many intellectual properties to mega tech companies such as Apple, Amazon and Qualcomm.

🛻Rivian: $130 Target, here we go🏎

Wedbush analysts, Dan Ives, had a price target for the company at $130, which is remarkably high. It was a bullish call on its prospects on markets such as the SUV and Pickup trucks which lack competition and choices. Moreover, these two categories make up more than 60% of the US passenger vehicles sales.

Wedbush had a positive rating on GM, Tesla, and Rivian based on the expectation that future transportation will be of EVs in nature.

We hope you enjoy this quick read. Pika World wishes everyone a safe trading week ahead.

Cheers,

Pika Nat