Morning News Call

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  • TOP NEWS

    • Netflix shares jumped, exited fight for Warner Bros Discovery
    • Paramount rose, won race for Warner Bros assets
    • Pentagon and Anthropic feud over AI military use, deadline looms
    • Jack Dorsey’s Block to cut nearly half its workforce (over 4,000 jobs) in AI overhaul
    • Meta signs multi-billion-dollar deal to rent Google AI chips
    • Dell expects AI server revenue to double in fiscal 2027

  • BEFORE THE BELL

    • U.S. stock index futures dropped, Nasdaq faces steep monthly losses due to AI concerns
    • European shares hit new record, set for eighth straight month of gains
    • Japan's Nikkei closed at record high, biggest monthly gain in four months
    • Chinese stocks fell but set for weekly gain on tech/innovation hopes
    • Hong Kong shares rebounded on tech boost
    • Dollar inched down, but headed for first monthly gain since October
    • Yuan lost momentum after China curbed rally
    • Oil prices rose, on track to finish week flat, U.S. and Iran extended nuclear talks
    • Gold prices fell, but on track for seventh straight month of gains, boosted by U.S. tariff uncertainty

  • STOCKS TO WATCH

    • Alphabet Inc & Meta Platforms Inc: Meta signed multi-billion-dollar deal to rent Google AI chips; also in talks to buy TPUs
    • ASML Holding NV: Next-generation chipmaking machine ready for high-volume production
    • Autodesk Inc: Forecast annual revenue above estimates, betting on design/engineering software demand
    • Barclays PLC: Shares fell on report of potential losses related to UK mortgage provider Market Financial Solutions collapse (600 million pound exposure)
    • Block Inc: To cut over 4,000 jobs (nearly half workforce) in AI overhaul; reported adjusted profit up 65 cents/share
    • Brinks Co & NCR Atleos Corp: Brinks to acquire NCR Atleos in $6.6 billion cash-and-stock deal
    • Cheniere Energy Inc: U.S. Department of Energy approved 12% increase in exports from Corpus Christi LNG terminal
    • CoreWeave Inc: Expects capital expenditure to double this year for AI cloud platform; Q4 adjusted net loss ballooned, Q1 revenue forecast below estimates
    • Coterra Energy Inc: Missed Q4 profit on weaker crude prices; warned of Q1 output hit due to winter storm
    • Coupang Inc: Swung to Q4 loss, reported revenue below estimates, hurt by data breach in South Korea
    • Dell Technologies Inc: Expects AI-optimized server revenue to double in fiscal 2027; hiked cash dividend 20%, additional $10 billion for share repurchase program; forecast annual revenue above estimates
    • Duolingo Inc: Forecast Q1 and 2026 bookings below expectations due to shift toward faster user growth (weighing on bookings/profitability)
    • Electronic Arts Inc: Yet to win enough bondholder support to repurchase bonds and amend lending terms, Bloomberg reports
    • Equinix Inc: Canada Pension Plan Investment Board and Equinix to acquire Nordic data center operator atNorth for ~ $4 billion
    • Flutter Entertainment PLC: Forecast modest profit growth for 2026 far below expectations due to U.S. market challenges and promotion misfires
    • Grindr Inc: Reported Q4 revenue above estimates, expanded share repurchase by $400 million; investing more in 2026 for AI-powered features and health/wellness services
    • Hyatt Hotels Corp: Expects to quintuple India footprint over next five years, betting on domestic travel surge
    • Intuit Inc: Forecast Q3 profit below estimates due to anticipated higher marketing spending for tax season
    • Monster Beverage Corp: Beat Q4 sales and profit estimates, helped by resilient demand for energy drinks
    • MP Materials Corp: Swung to Q4 profit, exceeding expectations, driven by U.S. government price support and magnet sales; to build second magnet facility
    • Netflix Inc, Paramount Skydance Corp & Warner Bros Discovery Inc: Paramount Skydance won battle for Warner Bros Discovery; Netflix declined to match bid
    • SBA Communications Corp: Missed Q4 revenue estimates due to customer churn and cautious carrier spending; full-year revenue forecast below estimates
    • Solventum Corp: Beat Q4 estimates, helped by strong demand for wound care/sterilization; forecast 2026 adjusted profit above estimates; plans $500 million annual savings program
    • Stellantis NV: Antonio Filosa (Jeep-maker head) received 5.4 million euros in total compensation last year
    • Venture Global Inc: Signed 20-year sales and purchase agreement with Korea's Hanwha Aerospace for LNG starting 2030
    • Zscaler Inc: Posted wider net loss in Q2 due to higher spending on sales, marketing, R&D; Q2 revenue and adjusted profit beat estimates; Q3 adjusted EPS and revenue forecast above estimates

  • ANALYSIS

    • Restaurants emerged as a bright spot for U.S. job growth as consumers sought treats

  • ANALYSTS' RECOMMENDATION

    • Cars.Com Inc: JPMorgan cuts to neutral from overweight, citing softer growth visibility, AI competitive risks, lower EBITDA
    • Chemed Corp: Oppenheimer cuts target price to $500 from $580, on weaker Q4 and lower 2026–27 EPS expectations
    • Dell Technologies Inc: JPMorgan raises target price to $165 from $155, noting stronger earnings momentum and upgraded FY27 outlook from AI-server revenue
    • Rhythm Pharmaceuticals Inc: Needham cuts target price to $139 from $148, citing higher 2026 operating expenses
    • Zscaler Inc: Piper Sandler cuts target price to $185 from $260, on organic NNARR growth slowing to single digits and modest outlook

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

    • 0830 PPI Machine Manufacturing for Jan: Prior 194.3
    • 0830 PPI Final Demand YY for Jan: Expected 2.6%; Prior 3.0%
    • 0830 PPI Final Demand MM for Jan: Expected 0.3%; Prior 0.5%
    • 0830 PPI excluding food/energy YY for Jan: Expected 3.0%; Prior 3.3%
    • 0830 PPI excluding food/energy MM for Jan: Expected 0.3%; Prior 0.7%
    • 0830 PPI excluding food/energy/transport YY for Jan: Prior 3.5%
    • 0830 PPI excluding food/energy/transport MM for Jan: Prior 0.4%
    • 0945 Chicago PMI for Feb: Expected 52.8; Prior 54.0
    • 1000 Construction spending MM for Dec: Expected 0.3%; Prior 0.5%

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

    • 1000 AES Corp: Q4 earnings conference call

  • EX-DIVIDENDS

    • Apollo Global Management Inc: Amount $0.4766
    • Baxter International Inc: Amount $0.01
    • Cboe Global Markets Inc: Amount $0.72
    • CMS Energy Corp: Amount $0.3515
    • Corning Inc: Amount $0.28
    • CSX Corp: Amount $0.14
    • Dominion Energy Inc: Amount $0.6675
    • Dover Corp: Amount $0.52
    • Dow Inc: Amount $0.35
    • Estee Lauder Companies Inc: Amount $0.35
    • Factset Research Systems Inc: Amount $1.1
    • Hilton Worldwide Holdings Inc: Amount $0.15
    • Honeywell International Inc: Amount $1.19
    • Hubbell Inc: Amount $1.42
    • Huntington Ingalls Industries Inc: Amount $1.38
    • Interactive Brokers Group Inc: Amount $0.08
    • Labcorp Holdings Inc: Amount $0.72
    • Microchip Technology Inc: Amount $0.9375
    • Nextera Energy Inc: Amount $0.6232
    • Qnity Electronics Inc: Amount $0.08
    • Realty Income Corp: Amount $0.27
    • Southern Co: Amount $0.3281
    • Tyson Foods Inc: Amount $0.51
    • Union Pacific Corp: Amount $1.38

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