يَـٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا۟ لَا تَأْكُلُوٓا۟ أَمْوَٰلَكُم بَيْنَكُم بِٱلْبَـٰطِلِ إِلَّآ أَن تَكُونَ تِجَـٰرَةً عَن تَرَاضٍۢ مِّنكُمْ ۚ
O believers! Do not devour one another’s wealth illegally, but rather trade by mutual consent. (Qur’an, 4:29)
Market Snapshot
▲ S&P 500 +1.74%
▲ SPUS +1.81%
▼ MSCI World Islamic -0.56%
*Market data for last week ending Friday
Last Week’s Review
Industry Bellwethers: Manufacturing, Healthcare, and Retail Earnings
Earnings from 3M, Johnson & Johnson, and Procter & Gamble provided mixed signals on the economy. 3M beat expectations, reflecting a modest industrial demand recovery, though supply chain concerns persist. Johnson & Johnson saw a 5.3% sales increase, driven by strong pharmaceutical demand, but currency pressures weighed on international sales. Procter & Gamble’s 2% revenue growth highlighted steady consumer demand, though the beauty segment weakness remains a challenge.
Industries Facing Uncertainty: Homebuilding and Travel
D.R. Horton reported a slight revenue decline with profitability remaining a concern due to rising incentives and mortgage rates. United Airlines exceeded expectations, driven by strong travel demand and higher premium ticket sales, though fuel costs are weighing on margins.
This Week’s Outlook
Federal Reserve Interest Rate Decision (January 29):
The Federal Reserve will announce its latest policy decision, with expectations that interest rates will remain unchanged. Investors will closely watch Fed Chair Jerome Powell’s remarks for insights into future policy direction, particularly regarding inflation and economic growth. Any signals about potential rate cuts later in the year could have significant market implications.
Major Technology Earnings Reports (Week of January 27):
Tech giants including Microsoft, Apple, Tesla, and Meta are set to report their quarterly earnings this week. These results will provide critical insights into demand trends, artificial intelligence investments, and consumer spending in the tech sector. This is particularly impactful after recent developments in Chinese open-source AI models and reports that companies like Meta are panicking.
Curated Reads
Medicare Drug Price Negotiations Could Shift
Pharma companies have so far been unable to prevent Medicare’s push to negotiate drug prices, but upcoming policy changes could alter the landscape. Scaling back these negotiations may boost industry profits and encourage more investment in new treatments. However, it could also result in higher costs for patients and slower progress in making medications more affordable. [Read]
Meta’s $60 Billion AI Investment Push
Meta plans to invest up to $65 billion this year to expand its AI infrastructure, including a massive new data center and over 1.3 million GPUs. CEO Mark Zuckerberg calls 2025 a “defining year for AI,” with ambitions to scale Meta’s AI assistant to over 1 billion users. While the company remains confident in its long-term vision, the heavy spending underscores the intense competition in the AI space and the challenge of turning these investments into profitable services. [Read]
Financial Risks Mount as Crypto Moves into Banking
As crypto edges into mainstream finance, concerns are rising over its potential risks. Loosening regulations are giving digital assets greater access to traditional banking, but critics warn of increased volatility and financial instability. Past failures and fraud cases highlight the dangers, with skeptics arguing that deeper integration could undermine consumer protection and market stability. [Read]
Chart of the Week
This week, there is no “Chart of the Week” as we don’t see any new opportunities that align with our investment philosophy. Our focus is on delivering the best research, and when there’s nothing worth highlighting, we’re comfortable stepping back.
All our previous picks remain on track, with no significant changes to report. We’ll provide updates if and when conditions shift, maintaining our commitment to high-quality analysis.
Your Questions
How to do purification and calculate Zakat for day trading?
For short-term trading, purification is not required. Zakat is 2.5% for the entire value. The Zakat calculation we have is only for long-term investments.(Answered by Faraz Omar, AAOIFI Certified Shariah Advisor and Auditor)
You may ask your questions in our Community or email them to support@muslimxchange.com
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