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 were trading lower after Trump's Fed pick.
• Prospect of new Fed leadership boosted the dollar and weighed heavily on gold.
• Oil prices moved lower, pressured by signs of potential U.S.-Iran nuclear dialogue.
• European equities showed resilience, lifted by strong corporate earnings.
• Emerging markets struggled, with most EM currencies and equities ending in the red.
• Japan’s Nikkei closed lower, extending its weekly losing streak due to tech profit-taking.
• Equities in China and Hong Kong slid 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: Urged Congress to pay air traffic controllers during shutdowns to prevent disruptions.
• Apple Inc: Forecasted higher-than-expected revenue growth for March quarter due to strong iPhone demand in Asia; rising chip prices pressure profitability.
• Arthur J. Gallagher & Co: Posted 24.5% rise in Q4 adjusted profit from stronger commissions and fees.
• Autoliv Inc: Reported a drop in Q4 adjusted operating profit and forecast lower profitability for the current quarter.
• Bank of America Corp: U.S. judge ruled the bank must face part of a lawsuit alleging it knowingly aided Jeffrey Epstein's sex trafficking.
• Chevron Corp: Q4 profits fell but beat estimates, focused on cost-cutting and efficiency; sees Venezuela as long-term potential.
• Deckers Outdoor Corp: Raised annual sales and profit forecast on strong demand for Hoka sneakers and UGG boots.
• Exxon Mobil Corp: Beat Q4 earnings targets driven by lower-cost oil production in Permian and Guyana.
• Johnson & Johnson: U.S. judge dismissed a lawsuit alleging fraud via bankruptcy attempts to resolve talc cancer lawsuits.
• Marathon Petroleum Corp: United Steelworkers union rejected a 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 approved its top AI startup DeepSeek to buy H200 chips, though Nvidia CEO has not received official confirmation.
• ResMed Inc: Beat Q2 profit estimates on strong demand for sleep apnea devices.
• Visa Inc: Exceeded Q1 profit and revenue estimates, boosted by increased card usage and resilient consumer spending.
• Wells Fargo & Co: Awarded CEO Charlie Scharf $40 million in compensation for 2025, up 28%, citing leadership in compliance and rising earnings.
• Western Digital Corp: Forecasted Q3 revenue above Wall Street estimates, signaling continued growth from AI server demand.
• Weyerhaeuser Co: Swung to an adjusted quarterly loss due to lower wood product prices and sluggish demand.

ANALYSIS

• Global allies are discovering they can hedge U.S. trade risk, adapting relatively quickly to trade in goods.

ANALYSTS' RECOMMENDATION

• Apple Inc: Melius Research raises target price to $350, bullish on potential foldable product cycle.
• Caterpillar Inc: Daiwa Capital Markets raises target price to $640, citing higher EPS/free cash flow and strong fundamentals.
• SanDisk Corp: Jefferies raises target price to $700, due to widening NAND supply/demand gap from strong data center demand.
• United Rentals Inc: JPMorgan cuts target price to $970, citing need for greater investor confidence in revenue and margin expansion.

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

• PPI Machine Manufacturing for Dec: Prior 193.4
• PPI final demand YY for Dec: Expected 2.7%; Prior 3.0%
• PPI final demand MM for Dec: Expected 0.2%; Prior 0.2%
• PPI ex-food/energy YY for Dec: Expected 2.9%; Prior 3.0%
• PPI ex-food/energy MM for Dec: Expected 0.2%; Prior 0.0%
• PPI ex-food/energy/transport YY for Dec: Prior 3.5%
• PPI ex-food/energy/transport MM for Dec: Prior 0.2%
• Chicago PMI for Jan: Expected 44.0; Prior 43.5

COMPANIES REPORTING RESULTS

• American Express Co: Expected Q4 earnings of $3.54 per share.
• Charter Communications Inc: Expected Q4 earnings of $9.78 per share.
• Church & Dwight Co Inc: Expected Q4 earnings of 84 cents per share.
• Colgate-Palmolive Co: Expected Q4 earnings of 91 cents per share.
• Franklin Resources Inc: Expected Q1 earnings of 55 cents per share.
• LyondellBasell Industries NV: Expected Q4 earnings of 13 cents per share.
• Regeneron Pharmaceuticals Inc: Expected Q4 earnings of $10.62 per share.

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

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

EX-DIVIDENDS

• AES Corp: Amount $0.17
• Prudential Financial Inc: Amount $0.35
• Lamb Weston Holdings Inc: Amount $0.38
• Alliant Energy Corp: Amount $0.5
• Realty Income Corp: Amount $0.27
• Targa Resources Corp: Amount $1
• A O Smith Corp: Amount $0.36
• Texas Instruments Inc: Amount $1.4
• Costco Wholesale Corp: Amount $1.3
• Morgan Stanley: Amount $1