Trading results for 11 February 2025
Tuesday, as many analysts had predicted, was calm and even somewhat dull. The main event of the day was U.S. Federal Reserve Chairman Jerome Powell’s semi-annual report to Congress. Many had hoped for revelations regarding the Fed’s future monetary policy, but Powell skillfully sidestepped the topic, dedicating most of his speech to mortgage lending issues and, more specifically, to the insurance challenges within that sector. Market participants were disappointed and expressed their discontent with a brief sell-off. However, it was indeed small and short-lived.
Within an hour, the market stabilised, and prices returned to their initial positions. It is worth noting that Monday’s starting point was effectively zero, which became the battleground for bulls and bears until the final bell. Therefore, there was little to boast about on Tuesday. The Dow Jones Industrial Average (DJIA-30) closed with a modest gain of +0.28%, the NASDAQ Composite slipped slightly by –0.36%, and the broad-market S&P 500 ended almost flat at +0.03%. In short, a sideways market is what it is.
However, the true star of the day was the global market index ITS World (ITSW). Although its rise was modest at +0.18%, it still managed to reach new all-time highs – both absolute and closing highs. A notable aspect of the day was the index’s stock distribution: out of all components, 26 stocks closed in positive territory, while 23 ended in the red, making for an almost equal split.
Interestingly, the biggest winners and losers of the day were automotive stocks. The standout performer was Ferrari (RACE, +3.07%) – living up to its reputation for speed and dominance. On the losing side were two other well-known automakers: China’s Li Auto (LI, -4.93%) and Tesla (TSLA, -6.34%). Neither company needs an introduction, but Tesla’s decline is particularly concerning. Since mid-December, Tesla shares have lost a third of their value.
Experts attribute Tesla’s sharp drop to Elon Musk himself. Recently, he has been devoting less attention to his brainchild, spreading himself thin across various projects – from social media platform X to space exploration. Additionally, Musk is now reportedly assisting Donald Trump in restructuring government agencies under the newly created Department of DOGE. Against this backdrop, Tesla has started to lose ground, especially in China, where sales are falling and the company’s autonomous driving project is stalling.
Tesla’s stock was not only the worst performer in the ITSW global index but also in the ITS Shariah Index (ITSS). Although more stocks in ITSS closed higher (18 gainers versus 12 losers), the index still ended the day slightly in the red, down a symbolic 0.1%. On the brighter side, the best performer was Coca-Cola (KO, +4.73%), which saw strong investor demand after publishing its quarterly earnings report before the market opened.
Coca-Cola's stock surged following better-than-expected financial results across all key metrics. The company’s Q4 revenue grew by 6.5% year-on-year, while adjusted earnings per share rose 12% compared to the same period in 2024. Additionally, currency-adjusted operating profit increased by 22% from the previous year’s fourth quarter. The strong quarterly performance was primarily driven by price increases and solid results across key geographic regions. Coca-Cola also reported significant market share gains in major product categories and further margin expansion. Overall, it was an undeniably successful quarter for the global beverage leader, and the company’s management presented optimistic forecasts for 2025.
Looking ahead, most market participants are likely to remain on the sidelines, waiting for the release of consumer inflation data on Wednesday before the opening bell.