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Taiwan Semiconductor Earnings Fuel AI Party
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Taiwan Semiconductor Earnings Fuel AI Party

TSM crushed analyst estimates and the stock is moving higher in the pre-market, taking AI names with it…
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Good morning contrarians! Welcome to the Daily Contrarian, our morning look at events likely to move markets. It is Thursday, Jan. 16.

State of Play

Stocks advanced yesterday, putting in a broad-based rally after the CPI came in a little below forecasts. As we eye our board of indicators for signs of direction at 0700, things are tilted to risk-on:

  • Stock index futures are mixed. Tech is moving higher after Taiwan Semiconductor Manufacturing (TSM 0.00%↑) earnings, with the Nasdaq up 0.5% but other US indexes aren’t budging from the break-even point;

  • Cryptos are joining the tech party, with Bitcoin up 2.5% to trade north of $99,000 again;

  • Commodities are mixed, with WTI crude oil down 1% to trade below $78/barrel but copper up 0.7%. Gold and silver continue to move higher;

  • Bonds aren’t doing anything. The 10-year yields 4.67%.

Today’s Known Events

Some earnings to kick things off:

  • Taiwan Semiconductor crushed estimates overnight and the stock is up 5% in the pre-market, taking Nvidia (NVDA 0.00%↑) and other AI stocks with it.

(TSM Earnings bolster bull case for AI, by author via Grok AI)

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