Morning News Call

TOP NEWS

• Trump picks former Fed official Kevin Warsh to run the Federal Reserve.
• Exxon Mobil beats Q4 profit targets with help from lower-cost oil production.
• Apple forecasts strong sales growth as iPhone demand in Asia rebounds.
• Chevron beats Q4 profit estimate, eyes Venezuela investment opportunities.
• Trump threatens Canada with aircraft tariffs, decertification over Gulfstream approvals.

BEFORE THE BELL

• U.S. stock index futures trading lower after Trump's Fed pick; dollar boosted, gold tumbles below $5,000.
• Oil prices move lower, pressured by potential U.S.-Iran dialogue over nuclear program.
• European equities show resilience, strong corporate earnings lift stocks.
• Emerging markets struggle, most EM currencies and equities end in the red.
• Japan’s Nikkei closed lower, extending weekly losing streak.
• Equities in China and Hong Kong slide sharply after gold price fall and speculative trading warnings.

STOCKS TO WATCH

• American Airlines Group Inc, Delta Air Lines Inc, Southwest Airlines Co & United Airlines Holdings Inc: Urge Congress to pay air traffic controllers during shutdowns; cited $7 billion economic impact from last year's shutdown.
• Apple Inc: Forecasts up to 16% revenue growth for March quarter; Q4 results beat estimates; rising memory chip prices pressure profitability; prioritizing high-end iPhone models.
• Arthur J. Gallagher & Co: Q4 adjusted profit rose 24.5% due to stronger commissions and fees.
• Autoliv Inc: Q4 adjusted operating profit fell; forecasts lower Q1 profitability, shares down.
• Bank of America Corp: U.S. judge says BofA must face part of lawsuit accusing it of aiding Jeffrey Epstein's sex trafficking.
• Chevron Corp: Q4 profits fell but beat estimates due to cost-cutting; sees significant long-term potential in Venezuela.
• Deckers Outdoor Corp: Raised annual sales and profit forecast on strong demand for Hoka and UGG, sending shares up.
• Exxon Mobil Corp: Q4 earnings beat targets, driven by Permian Basin and Guyana production; plans $20 billion in share buybacks through 2026.
• Johnson & Johnson: Lawsuit alleging fraud in using bankruptcy to resolve talc lawsuits dismissed.
• Marathon Petroleum Corp: United Steelworkers union rejected comprehensive contract offer for refinery workers.
• Meta Platforms Inc: Set to face trial in New Mexico lawsuit accusing it of exposing children to sexual exploitation.
• Nvidia Corp: China's DeepSeek reportedly approved to buy H200 AI chips, with regulatory conditions still finalizing.
• ResMed Inc: Q2 profit beats estimates on strong demand for sleep apnea devices.
• Visa Inc: Q1 profit and revenue exceeded estimates, boosted by increased card usage and resilient U.S. consumer spending.
• Wells Fargo & Co: CEO Charlie Scharf awarded $40 million in 2025 compensation, up 28%, for compliance leadership and rising earnings.
• Western Digital Corp: Forecasts Q3 revenue above estimates, expecting growth from AI server hard drives and flash storage.
• Weyerhaeuser Co: Swung to adjusted quarterly loss due to lower wood product prices and sluggish demand.

ANALYSIS

• World discovering it can hedge US trade risk, adapting relatively quickly in the trade of goods.

ANALYSTS' RECOMMENDATION

• Apple Inc: Melius Research raises target price to $350 from $345.
• Caterpillar Inc: Daiwa Capital Markets raises target price to $640 from $595.
• SanDisk Corp: Jefferies raises target price to $700 from $600.
• United Rentals Inc: JPMorgan cuts target price to $970 from $1,150.

ECONOMIC EVENTS (All timings in U.S. Eastern Time)

• 0830 PPI Machine Manufacturing for Dec
• 0830 PPI final demand YY for Dec
• 0830 PPI final demand MM for Dec
• 0830 PPI ex-food/energy YY for Dec
• 0830 PPI ex-food/energy MM for Dec
• 0830 PPI ex-food/energy/transport YY for Dec
• 0830 PPI ex-food/energy/transport MM for Dec
• 0945 Chicago PMI for Jan

COMPANIES REPORTING RESULTS

• American Express Co
• Charter Communications Inc
• Church & Dwight Co Inc
• Colgate-Palmolive Co
• Franklin Resources Inc
• LyondellBasell Industries NV
• Regeneron Pharmaceuticals Inc

CORPORATE EVENTS (All timings in U.S. Eastern Time)

• 0800 Air Products and Chemicals Inc: Q1 earnings conference call
• 0800 Verizon Communications Inc: Q4 earnings conference call
• 0800 Aon PLC: Q4 earnings conference call
• 0830 Regeneron Pharmaceuticals Inc: Q4 earnings conference call
• 0830 Charter Communications Inc: Q4 earnings conference call
• 0830 Colgate-Palmolive Co: Q4 earnings conference call
• 0830 American Express Co: Q4 earnings conference call
• 0900 Hartford Insurance Group Inc: Q4 earnings conference call
• 0930 Exxon Mobil Corp: Q4 earnings conference call
• 1000 Weyerhaeuser Co: Q4 earnings conference call
• 1100 Franklin Resources Inc: Q1 earnings conference call
• 1100 LyondellBasell Industries NV: Q4 earnings conference call
• 1100 Chevron Corp: Q4 earnings conference call

EX-DIVIDENDS

• AES Corp
• Prudential Financial Inc
• Lamb Weston Holdings Inc
• Alliant Energy Corp
• Realty Income Corp
• Targa Resources Corp
• A O Smith Corp
• Texas Instruments Inc
• Costco Wholesale Corp
• Morgan Stanley