Morning News Call

TOP NEWS

• US 'transitory' inflation turns five: Worst U.S. inflation outbreak in a generation continues, driving policy debates and frustrating Federal Reserve.
• Nvidia bets on AI inference: Revenue opportunity for AI chips could reach $1 trillion by 2027, as Nvidia targets real-time AI systems.
• Amazon launches 1-hour shipping: Rolling out speedy delivery in US cities to compete with Walmart, offering 1-hour and 3-hour options.
• Uber, Nvidia plan robotaxi rollout: Deploying robotaxis with Nvidia's autonomous driving software in 28 cities globally by 2028, starting 2027.
• Google in talks with China's Envicool: Exploring purchases of liquid cooling systems for data centers from Chinese firms amid tight supply.

BEFORE THE BELL

• U.S. stock futures: Slid as oil neared $100/barrel, heightening inflation concerns before Federal Reserve meeting.
• Oil: Hovered near $100 per barrel amid Middle East tensions.
• European shares: Slightly up, limited by Middle East conflict concerns.
• Japan's Nikkei: Reversed early gains, ended lower due to chip stock declines.
• Chinese stocks: Closed lower due to renewed geopolitical uncertainty.
• U.S. dollar: Struggled for clear direction.
• Australian dollar: Little changed after central bank rate hike.
• Gold: Prices edged higher.

STOCKS TO WATCH

• Alphabet Inc (Google): In talks with Chinese firms for data center liquid cooling equipment, reflecting tight supply for AI infrastructure.
• Amazon Inc: Expanding 1-hour and 3-hour shipping in U.S. cities for over 90,000 products to boost sales and compete with Walmart.
• Beyond Meat Inc: Reported preliminary Q4 revenue below estimates, delaying annual report to review inventory balances; shares fell.
• Boeing Co: Asked suppliers to identify production impacts from the Middle East conflict, as industry concerns rise.
• Dell Technologies Inc: Workforce declined by ~10% (11,000 employees) in fiscal 2026, limiting external hiring to cut costs.
• Honeywell International Inc: Middle East conflict could impact Q1 revenue by high-single-digit percentages, but 2026 forecast remains confident.
• Johnson & Johnson: California judge threw out a $950 million punitive damages award in a talc mesothelioma case, citing insufficient proof of malice.
• JPMorgan Chase & Co: Hired Yi Zhang as co-head of China investment banking, part of strengthening Asia banking business.
• Nvidia Corp: Forecasts $1 trillion revenue opportunity for AI chips by 2027, introducing new processor and AI system to compete in inference computing.
• Rio Tinto PLC: Gained control of Arizona land for Resolution Copper mine, enabling $500 million drilling campaign for one of the largest U.S. copper sources.
• Tesla Inc: Signed supply agreement with LG Energy Solution for a $4.3 billion LFP battery cell manufacturing facility in Michigan, launching 2027.
• Uber Technologies Inc: Partnering with Nvidia to deploy robotaxis using DRIVE Hyperion and Alpamayo AI, starting in 2027 in 28 cities globally.
• Walt Disney Co: Named Debra OConnell chairman of Disney Entertainment Television, overseeing various brands; consolidated games business under entertainment.

REUTERS OPEN INTEREST

• How the Fed and other central banks can bark without biting: Central banks aim to use credible threats of rate hikes to counter inflation from oil shocks, potentially avoiding actual hikes.

ANALYSTS' RECOMMENDATION

• Constellation Brands Inc: Jefferies raises target to $162 from $157 on expectations of strong performance, improved demand, and higher margins.
• Dollar Tree Inc: Jefferies raises target to $80 from $75 after Q4 sales met estimates, profit beat, and favorable tariffs are anticipated.
• Edgewise Therapeutics Inc: JPMorgan raises target to $45 from $34, citing catalysts in pipeline, especially renewed interest in EDG-7500 and increased drug success chances.