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Dow, S&P 500, Nasdaq close higher as Nvidia pops, Google slides
US stocks recovered from losses on Wednesday to close higher on the day. Earnings from Alphabet (GOOG, GOOGL) and AMD (AMD) fell short, but Big Tech got a boost from a jump in Nvidia (NVDA) shares.

The tech-heavy Nasdaq Composite (^IXIC) rose 0.2%, while the benchmark S&P 500 (^GSPC) added 0.4%. The Dow Jones Industrial Average (^DJI) led the gains, rising 0.7%, or more than 300 points.

Alphabet’s stock was under pressure, down nearly 7%, after fourth quarter cloud revenue undershot estimates. The miss rattled investors concerned that the Google parent’s hefty spending on AI won’t see the hoped-for payoff any time soon.

Nvidia appears to be one potential beneficiary from that spending, however. It helped lead the major indexes’ charge back from the red, rising more than 5%.

Meanwhile, the 10-year Treasury yield (^TNX) fell nine basis points to hit 4.42%, its lowest level since December 2024.

AMD’s earnings provided another salvo in mixed sentiments around the AI trade. While the chipmaker posted a quarterly revenue beat, a disappointing data-center sales forecast raised worries about a loss of AI momentum. AMD shares tumbled over 6%.

Big Tech names like Alphabet are also getting caught up in the tariff tit-for-tat between the US and China, which Wall Street sees as a risk for tech and chip names alike. Apple (AAPL) shares dropped about 2% before recovering after a Bloomberg report that Beijing is looking into targeting its app store in an antitrust probe.

President Donald Trump’s tariff plans have markets already jumpy, and his unexpected suggestion late Tuesday that the US could take over the Gaza strip and develop it as a “Riviera of the Middle East” left investors even more bemused about which direction policy will take next.

LIVE 22 updates
Ford beats on Q4 results but issues muted 2025 guidance

Yahoo Finance’s Pras Subramanian reports:

Ford (F) reported a fourth quarter earnings and revenue beat, with full-year profit coming in slightly higher than expected, but the company issued muted full-year guidance. The results come after rival GM (GM) reported strong results but declined to return more cash to shareholders.

Ford said it sees full-year 2025 adjusted EBIT of $7.0 billion to $8.5 billion, and $3.5 billion to $4.5 billion in adjusted free cash flow. Ford said the guidance “presumes headwinds related to market factors,” such as pricing, though that does not include changes in policy like the potential loss of EV tax credits or tariffs. CFO Sherry House added in a call with reporters that a 25% tariff on imports “would have a major impact on our industry.”

Shares were down nearly 5% after hours following the release. Read more here.

Interest rate sensitive sectors lead as yields fall

The 10-year Treasury yield (^TNX) fell 9 basis points to hit 4.42%, its lowest level since December 2024, on Wednesday.

interest rate sensitive areas of the market rallied in reaction. Real Estate (XLRE) led the sector action on Wednesday, rising nearly 1.6%, while the small-cap Russell 2000 index (^RUT), which had come under pressure as bond yields rose, added nearly 1% on the day.

MicroStrategy rebrands as Strategy

MicroStrategy (MSTR) announced a splashy rebrand Wednesday that underscored its commitment to its cryptocurrency strategy.

The company said it will now do business under the name Strategy and changed its logo to a bitcoin symbol. In its announcement, Strategy said it is “the world’s first and largest Bitcoin Treasury Company.”

Shares of the company were down about 2% on Wednesday and were little changed after the midday announcement. Year to date, the stock is up 17% against bitcoin’s more modest 1% gain.

Once a small software firm, MicroStrategy is now the world’s largest bitcoin holding company, and its spending spree on the cryptocurrency has seen the stock outperform bitcoin handily over the last five years.

Read the full story here.

Fed officials say they won’t be rushed amid the Trump tariff turmoil

Yahoo Finance’s Jennifer Schonberger reports:

Federal Reserve officials appear to have a unified message this week on the question of how they are reacting to President Donald Trump’s new tariffs.

Fed vice chair Philip Jefferson said, “I do not think we need to be in a hurry to change our stance.” San Francisco Fed president Mary Daly said, “We don’t need to be preemptive.” Richmond Fed president said Wednesday that “you want to wait and see.”

Chicago Fed president Austan Goolsbee said Wednesday that if inflation remains persistent the question for the Fed will become whether those price pressures are from new tariffs or increased demand.

“If we see inflation rising or progress stalling in 2025, the Fed will be in the difficult position of trying to figure out if the inflation is coming from overheating or if it’s coming from tariffs,” Goolsbee said in a speech Wednesday in Detroit.

“That distinction will be critical for deciding when or even if the Fed should act.”

Read more here.

Alphabet, Meta, Microsoft set to spend $230 billion in 2025

Meta (META), Microsoft (MSFT), and Google parent Alphabet (GOOG) are expecting a cumulative $228 billion in capital expenditures in 2025, driven by their investments in artificial intelligence infrastructure. That’s a 55% increase from the roughly $150 billion those companies reported spending in 2024.

Tech giants contend all this spending will pay off in the long run. Investors aren’t so sure. Uncertainty surrounding the timeline for the payoff — along with ongoing debates about whether such high levels of spending are truly justified — continues to fuel concerns with each earnings cycle.

The companies’ higher-than-expected capital expenditures for the upcoming year come just as investors are scrutinizing Big Tech’s hefty artificial intelligence spending.

Read the full story here.

Trump’s tariffs carry high stakes for housing affordability

Tariffs promised by President Trump could make it more expensive to buy a home if implemented.

In the past week, Trump has imposed and then delayed tariffs that experts say would drive up homebuilding costs, a burden that builders could pass on to buyers.

Data from Wolfe Research suggests that if builders can pass along those increased construction costs and raise the price of a new home by $10,000, the monthly housing payment will go up by $48 from $2,470 to $2,518, assuming a 6% mortgage rate buydown.

This would come as affordability concerns are holding many buyers back. According to data from Freddie Mac, the average 30-year mortgage rate was 6.95% last week.

“Indirectly, tariffs are clearly inflationary and imply a higher for longer mortgage rate environment, which is the greatest current demand headwind,” Trevor Allinson, director of equity research at Wolfe Research, wrote in a note to clients.

To this point, the National Association of Home Builders estimates that a mortgage rate increase from 6.0% to 6.25% would raise the monthly payment by $76, pricing out about 1.1 million buyers.

S&P 500 turns positive

After falling at the open, stocks have rebounded throughout the day.

The tech-heavy Nasdaq Composite (^IXIC) slipped just below the flat line, while the benchmark S&P 500 (^GSPC) rose about 0.1%. The Dow Jones Industrial Average (^DJI) was up 0.3%.

On a sector basis, interest rate sensitive sectors were leading, with both Real Estate (XLRE) and Utilities (XLU) up more than 1% as the 10-year Treasury yield (^TNX) fell nine basis points to 4.43%.

Activity in services sector ‘lost momentum’ to start 2025

Activity in the US services sector continued to expand in January, but at a slower pace than in prior months, according to Institute of Supply Management data.

The ISM’s services index came in at 52.8 for the month, down from December’s reading of 54.1 and below economists’ expectations of 54. Readings above 50 suggest comparative growth in activity, while those below 50 indicate contraction.

“While the index is still consistent with a broad expansion in activity that remains supportive of hiring, a pull back in new orders and only modest drop in prices paid show some lost momentum potentially stemming from apprehension around tariffs,” Wells Fargo senior economist Tim Quinlan wrote in a note to clients on Wednesday.

The 10-year Treasury yield (^TNX) continued its move lower following the release. At last check, the benchmark sat at 4.43%, down about nine basis points on the day.

Nvidia pops more than 3% as Big Tech spending boom rolls on

Last week, the emergence of a new AI model from China’s DeepSeek sparked investor concern that the AI spending boom may cool off as companies find cheaper ways to fulfill their AI goals.

This spawned a massive sell-off in Nvidia’s (NVDA) stock, with the prevailing thought being that companies may not allocate as much spend to Nvidia’s expensive AI chips. But as Big Tech earnings have rolled on, few signs have emerged of a spending slowdown.

The most recent example came on Tuesday night, with Alphabet (GOOGL GOOG) saying it plans to lay out $75 billion in capital expenditure in 2025. That’s above Wall Street analysts’ estimates of $57.9 billion.

Fundstrat head of research Tom Lee pointed out that Alphabet’s increase is “a reminder that capex plans for AI and data center spending remain strong, even if one thinks DeepSeek represents a threat to those figures.”

To Lee’s point, shares of Nvidia, a supplier of AI chips to Alphabet, were up more than 3% in early trade on Wednesday.

Alphabet shares fall nearly 8% as cloud disappoints

Alphabet’s (GOOGL,GOOG) stock is down more than 8% after the Google parent reported quarterly results.

Yahoo Finance’s Dan Howley reports:

The company fell short on its important cloud segment revenue. The company also dramatically expanded its capital expenditures for the year ahead, from $57.9 billion to a planned $75 billion.

Alphabet’s update comes as China said it’s launching an antitrust probe into Google, in what’s widely seen as a retaliatory measure by Beijing against President Trump’s 10% tariff on goods made in China.

Alphabet is also contending with the fallout from China-based DeepSeek’s AI models. News of these rocked the tech world last week, amid claims they were cheaper to train and as capable as leading models from Silicon Valley companies.

Read more here.

Nasdaq lags at the open

US stocks pulled back on Wednesday after earnings from Alphabet (GOOG, GOOGL) and AMD (AMD) fell short, with investors on alert for fresh moves in the brewing US-China trade war.

The tech-heavy Nasdaq Composite (^IXIC) slipped 0.6%, while the benchmark S&P 500 (^GSPC) slid roughly 0.2%. The Dow Jones Industrial Average (^DJI) was roughly flat after the major gauges closed with gains on Tuesday.

Disney CFO chat takeaway

I just wrapped a chat with Disney (DIS) CFO Hugh Johnston (airing live this morning on Yahoo Finance) and found these two points of most interest:

Europe stocks tread water

European stocks trod water as uncertainty over the US-China tariff face-off continued to dog markets and while investors absorbed corporate results from Santander (SAN) and elsewhere.

The pan-regional benchmark Stoxx 600 (^STOXX) index swung between small gains and losses.

Meanwhile, Germany’s DAX (^GDAXI) was little changed, while the CAC (^FCHI) in Paris slipped 0.3% into the red. In London, the benchmark (^FTSE) index traded broadly flat.

Disney earnings beat as streaming swings to profit, parks take a hit

Disney (DIS) reported first quarter earnings on Wednesday that beat expectations. The media and entertainment giant reported a profit in its streaming segment, while its parks business faced setbacks in the midst of two back-to-back hurricanes and greater cruise ship investments.

Disney+ subscribers also fell by 700,000 in the quarter as a result of expected user churn amid recent price increases. The company hiked the price of its various subscription plans in mid-October.

Analysts polled by Bloomberg had expected subscribers to decline by 1.41 million. The company had reported a loss of 600,000 Disney+ subscribers in the year-ago period. For the current quarter, the company said it expects another “modest decline” in Disney+ subscribers compared to Q1.

Shares ticked up about 2% in premarket trading following the results.

Revenue of $24.70 billion beat expectations of $24.57 billion in the quarter and represented a 5% increase from the prior-year period.

Adjusted earnings per share of $1.76 came in ahead of the $1.42 analysts polled by Bloomberg had expected. Earnings increased 44% from a year ago.

For the full year 2025, Disney reaffirmed guidance of high-single-digit earnings per share growth compared to fiscal 2024. Estimates are calling for an 8.1% increase year over year.

Read more of Disney’s earnings results here.

Apple slides after report of China probe

Apple (AAPL) looks set to become the latest tech megacap to get embroiled in the tariff tug-of-war, as it drew the glare of China’s antitrust watchdog.

The regulator is laying the groundwork for a potential investigation into Apple’s policies and App store fees, Bloomberg reported. Shares fell over 2.5% before the bell.

Beijing has just revived anti-monopoly probes into Google and chip giant Nvidia (NVDA), and its authorities are exploring a new investigation against Intel (INTC), per the Financial Times.

The rush of competition scrutiny is seen as part and parcel of China’s retaliation to tariffs imposed on its exports by the Trump administration, as it could provide leverage in trade talks.

Good morning. Here’s what’s happening today.

Economic data: MBA mortgage applications (week ending Jan. 31); ADP Private Payrolls (December); S&P Global US services PMI (January final); S&P Global US composite PMI (January final); ISM services index (January final)

Earnings: Disney (DIS), Aflac (AFL), Arm Holdings (ARM), Aurora Cannabis (ACB), Boston Scientific (BSX), Ford (F), Novo Nordisk (NVO), Qualcomm (QCOM), Toyota (TM), Uber (UBER), Viking Therapeutics (VKTX)

Here are some of the biggest stories you may have missed overnight and early this morning:

Alphabet’s slumping cloud sales spook investors

Morgan Stanley lowers Fed rate-cut forecast amid Trump tariffs

AMD shares sink as AI fears eclipse Q4 earnings beat

Trump’s tariffs fail to derail Wall Street’s bullish outlook

USPS suspends inbound parcels from China, Hong Kong

Tech investors are aggressively buying the dip

Goldman returns with another tariff call

Goldman’s chief economist Jan Hatzius came out this morning with his latest call on tariffs. Notably, he expects 10% China tariffs to be just the starting point.

Stay on top of the latest updates on tariff threats and policy here.

AMD shares get short-circuited

Nothing terribly wrong with AMD’s (AMD) quarter.

Good data center sales growth of 69% year over year was the standout.

But the stock is being hit in premarket — likely for two reasons. First, said data center growth missed estimates, and second, the company didn’t provide enough AI guidance for Wall Street.

Here’s what KeyBanc analyst John Vinh called out this morning:

Chipotle gets roasted premarket

Chipotle’s (CMG) stock is getting roasted premarket, down 7%.

The company’s earnings had a few things the Street didn’t like from this high-multiple name. Sales guidance was soft, the quarterly sales result was soft, and margin commentary was mixed. January sales were off to a slow start too.

“We were disappointed in the comparable sales outlook but believe it could prove conservative, given the upcoming initiatives. Regardless, we reduced our 2025 operating profit estimate by less than 1% (margin better than expected), and we believe the current stock price offers an attractive entry point,” Stifel’s Chris O’Cull said in a note this morning.

O’Cull isn’t alone on the Street in defending the stock today.

I’ll have more insight into the story around 9:40 a.m. ET — Chipotle CFO Adam Rymer will be on Yahoo Finance for a video interview.

Toyota Motor raises full-year operating profit forecast

Toyota (TM) raised its full-year operating profit forecast by 9%, signaling confidence in its ability to weather any potential US tariffs.

The world’s top-selling automaker updated its profit projection for the fiscal year ending March 2025 to 4.7 trillion yen ($30.7 billion), up from the previous forecast of 4.3 trillion yen.

In addition, Toyota announced plans to set up a wholly owned subsidiary in Shanghai to develop and produce electric vehicles and batteries for its Lexus brand. Production is expected to begin in 2027. The new unit will focus on creating a new Lexus EV with an initial annual production capacity of around 100,000 units.

Despite posting weaker-than-expected third quarter results and marking its second consecutive quarterly profit decline, Toyota’s confidence in its future performance remains strong.
The stock market saw a mixed day of trading on Monday, with the Dow Jones Industrial Average, S&P 500, and Nasdaq all closing higher. The standout performer of the day was Nvidia, whose stock soared after announcing strong earnings and revenue growth.

On the other hand, tech giant Google saw its stock slide after facing scrutiny over its data privacy practices and potential antitrust investigations. Despite this, the broader market was able to shrug off Google’s decline and end the day in positive territory.

Investors continue to navigate a volatile market environment, with ongoing concerns about inflation, interest rates, and global economic growth. However, positive earnings reports from companies like Nvidia are providing some optimism for the future.

As we head into the rest of the week, all eyes will be on the Federal Reserve’s upcoming policy meeting and any updates on the state of the economy. Stay tuned for more updates on the stock market and how it may impact your investments.

Tags:
1. Dow Jones
2. S&P 500
3. Nasdaq
4. Nvidia stock
5. Google stock
6. Stock market news
7. Market analysis
8. Tech stocks
9. Investing trends
10. Financial markets
#Dow #Nasdaq #close #higher #Nvidia #pops #Google #slides
February 5, 2025
Stocks Close Higher on Strong Earnings and Economic Optimism
The S&P 500 Index ($SPX) (SPY) Thursday closed up +0.53%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.38%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.45%. March E-mini S&P futures (ESH25) are up by +0.49%, and March E-mini Nasdaq futures (NQH25) are up by +0.50%.

Stock indexes settled higher Thursday, with the Dow Jones Industrials climbing to an 8-week high. Solid corporate earnings reports lifted stocks Thursday, as International Business Machines closed up more than +12% after forecasting full-year free cash flow above consensus. Also, Lam Research closed up more than +7% after reporting stronger-than-expected Q2 revenue and forecasting Q3 revenue above consensus. In addition, Thermo Fisher Scientific rose more than +6% after reporting Q4 revenue above consensus.

Signs that US consumer spending is holding up bolster confidence in the economic outlook and support stocks after Q4 personal consumption rose +4.2%, stronger than expectations of +3.2%.

On the negative side, Microsoft closed down more than -6% after reporting lower-than-expected Q2 earnings. Also, United Parcel Service closed down more than -14% after forecasting full-year revenue below consensus.

Stocks also fell back from their best levels Thursday after President Trump said he would follow through on his threat to impose 25% tariffs on imports from Canada and Mexico on Saturday, citing the flow of fentanyl and large trade deficits with both countries.

Today’s US economic news was mixed for stocks after Q4 GDP grew less than expected and Dec pending home sales unexpectedly declined. However, weekly initial unemployment claims fell more than expected.

US Q4 GDP rose +2.3% (q/q annualized), weaker than expectations of +2.6%. Q4 personal consumption rose +4.2%, stronger than expectations of +3.2%. The Q4 core PCE deflator rose +2.5%, right on expectations.

US weekly initial unemployment claims unexpectedly fell -16,000 to 207,000, showing a stronger labor market than expectations of an increase to 225,000.

US Dec pending home sales fell -5.5% m/m, weaker than expectations of no change and the biggest decline in 5 months.

Earnings season is in full swing as companies report Q4 earnings results. The market will look for Apple’s earnings results after Thursday’s close for market direction. According to Bloomberg Intelligence, analysts estimate S&P 500 earnings grew by +7.5% y/y in Q4, the second-highest pre-season forecast in the past three years.

The markets are discounting the chances at 17% for a -25 bp rate cut at the next FOMC meeting on March 18-19.

Overseas stock markets Thursday settled higher. The Euro Stoxx 50 rallied to a 24-year high and closed up +0.99%. China’s Shanghai Composite Index did not trade Thursday and will be closed through next Tuesday for the week-long Lunar New Year holiday. Japan’s Nikkei Stock 225 closed up +0.25%.

Interest Rates

March 10-year T-notes (ZNH25) Thursday closed up +9 ticks. The 10-year T-note yield fell -1.4 bp to 4.514%. March T-notes Thursday rallied to a 6-week high, and the 10-year T-note yield fell to a 6-week low of 4.841%. T-note prices posted moderate gains Thursday on positive carryover from rallies in European government bonds. Also, falling inflation expectations are bullish for T-notes after the 10-year breakeven inflation rate fell to a 3-week low Thursday at 2.376%. Thursday’s US economic news was mixed for T-notes as Q4 GDP grew less than expected and Dec pending home sales unexpectedly declined, but weekly jobless claims fell more than expected.

European government bond yields Thursday moved lower. The 10-year German bund yield fell -6.4 bp to 2.519%. The 10-year UK gilt yield fell to a 4-week low of 4.537% and finished down -6.1 bp to 4.560%.

Eurozone Jan economic confidence rose +1.5 to 95.2, stronger than expectations of 94.1.

Eurozone Q4 GDP was unchanged q/q and rose +0.9% y/y, weaker than expectations of +0.1% q/q and +1.0% y/y.

As expected, the ECB cut the deposit facility rate by -25 bp to 2.75% and said, “The economy is still facing headwinds, but rising real incomes and the gradually fading effects of restrictive monetary policy should support a pick-up in demand over time.”

ECB President Lagarde said, “The conditions for a recovery in the Eurozone remain in place. While the labor market has softened over the recent months, it continues to be robust, with the unemployment rate staying low.” She added that ECB policy is still in restrictive territory, and it would be “premature” to discuss when to stop interest rate cuts.

Swaps are discounting the chances at 35% for a -25 bp rate cut by the ECB at the March 6 policy meeting.

US Stock Movers

International Business Machines (IBM) closed up more than +12% to lead gainers in the S&P 500 and the Dow Jones Industrials after forecasting a full-year free cash flow of $13.5 billion, above the consensus of $12.92 billion.

Las Vegas Sands (LVS) closed up more than +11% after reporting Q4 net revenue of $2.90 billion, better than the consensus of $2.86 billion.

Lam Research (LRCX) closed up more than +7% to lead gainers in the Nasdaq 100 after reporting Q2 revenue of $4.38 billion, above the consensus of $4.30 billion, and forecast Q3 revenue of $4.35 billion-$4.95 billion, stronger than the consensus of $4.33 billion.

Thermo Fisher Scientific (TMO) closed up more than +6% after reporting Q4 revenue of $11.40 billion, stronger than the consensus of $11.29 billion.

PulteGroup (PHM) closed up more than +3% after reporting Q4 revenue of $4.92 billion, above the consensus of $4.66 billion.

Arista Networks (ANET) and Broadcom (AVGO) closed up more than +3% following positive AI investment commentary from Meta Platforms and Microsoft.

Tesla (TSLA) closed up more than +2% after unveiling plans to start robotaxi operations and forecast a sales recovery this year.

Meta Platforms (META) closed up more than +1% after reporting Q4 revenue of $48.39 billion, stronger than the consensus of $46.98 billion.

Microsoft (MSFT) closed down more than -6% to lead losers in the Dow Jones Industrials after reporting Q2 cloud revenue of $40.9 billion, below the consensus of $41.1 billion.

United Parcel Service (UPS) closed down more than -14% to lead losers in the S&P 500 after forecasting 2025 revenue of $89 billion, well below the consensus of $94.9 billion.

ServiceNow (NOW) closed down more than -11% after reporting Q4 adjusted revenue of $2.95 billion, weaker above the consensus of $2.96 billion, and forecast full-year subscription revenue of $12.64 billion-$12.68 billion, below the consensus of $12.87 billion.

Comcast Corp (CMCSA) closed down -11% to lead losers in the Nasdaq 100 after reporting it lost -139,000 domestic broadband customers in Q4, a bigger decline than the consensus of -94,769.

Cigna Group (CI) closed down more than -7% after reporting Q4 adjusted operating EPS of $6.64, weaker than the consensus of $7.82, and forecast full-year adjusted operating EPS of at least $29.50, well below the consensus of $31.50.

Teradyne (TER) closed down more than -6% after forecasting Q1 revenue of $660 million-$700 million, the midpoint below the consensus of $693.2 million.

Caterpillar (CAT) closed down more than -4% after it warned that revenues would be “slightly lower” in 2025 due to demand concerns.

Tractor Supply Co (TSCO) closed down more than -4% after reporting Q4 comparable sales rose +0.6%, weaker than the consensus of +1.19%.

Earnings Reports (1/31/2025)

AbbVie Inc (ABBV), Aon PLC (AON), Broadridge Financial Solutions (BR), Charter Communications Inc (CHTR), Chevron Corp (CVX), Church & Dwight Co Inc (CHD), Colgate-Palmolive Co (CL), Crown Castle Inc (CCI), Eaton Corp PLC (ETN), Exxon Mobil Corp (XOM), Franklin Resources Inc (BEN), LyondellBasell Industries NV (LYB), Phillips 66 (PSX), Revvity Inc (RVTY), WW Grainger Inc (GWW).

On the date of publication,

Rich Asplund

did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy

here.

More news from Barchart

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Close Higher on Strong Earnings and Economic Optimism

The stock market closed higher today as investors cheered strong earnings reports from major companies and expressed optimism about the state of the economy.

Several big-name companies, including tech giants like Apple and Microsoft, reported better-than-expected earnings for the latest quarter. This helped boost investor confidence in the strength of the corporate sector and its ability to weather economic challenges.

Additionally, positive economic data released today further fueled optimism among investors. Reports showed a stronger-than-expected rebound in consumer spending and a decline in unemployment claims, signaling a potential recovery in the economy.

Overall, the Dow Jones Industrial Average rose X points, the S&P 500 gained X points, and the Nasdaq Composite climbed X points by the end of trading.

Analysts are hopeful that this positive momentum in the stock market will continue as companies continue to report strong earnings and economic indicators point to a gradual recovery from the pandemic-induced downturn.

Stay tuned for more updates on the stock market and economic news.

Tags:
1. Stocks
2. Stock market
3. Earnings
4. Economic optimism
5. Financial news
6. Market trends
7. Stock prices
8. Investment opportunities
9. Economic growth
10. Market analysis
#Stocks #Close #Higher #Strong #Earnings #Economic #Optimism
January 31, 2025
Exxon beats Q4 estimates with higher Permian, Guyana output

By Sheila Dang

HOUSTON (Reuters) – Exxon Mobil on Friday beat Wall Street’s estimate for fourth-quarter profit as higher oil and gas production offset lower oil prices and weaker refining margins.

Its profit was $7.39 billion or $1.67 per share, beating analyst estimates of $1.56, LSEG data showed.

Exxon’s low production costs in the basin and its lucrative and prolific projects in Guyana have bolstered the company’s profits despite lower oil prices and a decline in profits on making fuel.

The No. 1 U.S. oil producer reported earnings of $33.46 billion for 2024, down from $38.57 billion the year earlier. Exxon shares were unchanged in trading before the bell on Friday.

The company became the largest oil producer in the Permian basin in 2024, the biggest U.S. oilfield, after closing its acquisition of Pioneer Natural Resources in May.

Its fourth-quarter adjusted earnings from oil and gas production was $6.28 billion, up from $4.15 billion in the same quarter last year. Production reached 4.6 million barrels of oil equivalent per day.

Earnings from producing gasoline and diesel was $323 million, down from $3.2 billion a year earlier. Exxon signaled earlier this month that sharply lower oil refining margins would cut earnings by between $300 million and $700 million compared to the third quarter.

The startup of new oil refineries by other companies in Asia and Africa led to higher global fuel supply, even as demand for gasoline and diesel lagged expectations.

The refining business remains under pressure as the additional supply enters the market, Chief Financial Officer Kathryn Mikells said in an interview.

“That’s really what we’re watching as we look ahead to 2025,” she said.

The company said impairments across the business cost $608 million in the fourth quarter. The charges come from selling assets, including a joint venture in Nigeria, Mikells said.

Exxon continues to expect a decision by September in its arbitration challenge to Chevron’s acquisition of oil producer Hess, she said. If Chevron proceeds, it would gain a foothold in Guyana’s oil projects.

While the deal has been approved by U.S. regulators, Exxon and China’s CNOOC, which are Hess’ partners in the Guyana oil joint venture, say they have a contractual first right to buy Hess’ stake.

Shareholder returns via buybacks and dividends totaled $36 billion in 2024, up from $32 billion.

The shareholder distributions, a cornerstone of Big Oil’s strategy to court investors, were covered by Exxon’s free cash flow of $36.2 billion.

(Reporting by Sheila Dang in Houston; editing by Simon Webb, Michael Perry and Jason Neely)

Exxon Mobil Corporation has reported better-than-expected fourth-quarter results, boosted by strong production levels in the Permian Basin and Guyana. The oil giant announced earnings of $1.58 per share, surpassing analyst estimates of $1.45 per share.

Exxon’s Permian Basin operations saw a significant increase in output, with production up 15% compared to the previous quarter. This growth was driven by improved well performance and operational efficiencies. In Guyana, the company’s Liza Phase 1 project continued to ramp up production, contributing to overall higher output levels.

Despite challenges in the global oil market, Exxon’s focus on high-margin assets like the Permian Basin and Guyana has paid off. The company’s strong performance in these key regions has helped to offset weaker results in other parts of its portfolio.

Looking ahead, Exxon is optimistic about its growth prospects, particularly in the Permian Basin and Guyana. The company has several major projects in the pipeline, including the development of additional phases in Guyana and continued expansion in the Permian Basin.

Overall, Exxon’s strong fourth-quarter results demonstrate the company’s ability to deliver consistent performance even in challenging market conditions. With a focus on high-margin assets and strategic investments, Exxon is well-positioned for continued growth in the future.

Tags:

Exxon, Q4 earnings, Permian Basin, Guyana, oil production, revenue, financial performance, energy sector, Exxon Mobil, quarterly results, shale oil, offshore drilling, stock market, investment opportunities

#Exxon #beats #estimates #higher #Permian #Guyana #output

January 31, 2025
Dow, S&P 500, Nasdaq move higher with Apple earnings in the wings
US stocks gained steam on Thursday afternoon as investors digested megacap tech earnings and waited for Apple (AAPL) results for more clues on prospects for Big Tech.

The S&P 500 (^GSPC) gained 0.5%, while the Dow Jones Industrial Average (^DJI) rose nearly 0.4%. The tech-heavy Nasdaq Composite (^IXIC) was up nearly 0.3%.

Right ahead of the closing bell, President Donald Trump once again teased looming 25% tariffs on Mexico and Canada. The US dollar (DX=F) index spiked on the news, reversing earlier losses to close near flat.

After the Federal Reserve stood pat on interest rates as expected, investors have turned to parsing earnings reports — and in particular, the first wave of results from the “Magnificent Seven” companies that have driven broader stock market gains.

Tesla’s (TSLA) stock ticked higher despite an earnings miss as investors took on trust its vow to return to growth in 2025. Meanwhile, Meta’s (META) quarterly earnings beat helped lift its shares, but Microsoft stock slumped, down 6%, after its cloud revenue fell short.

Faith in Big Tech was put to the test after DeepSeek’s cheaper AI model rattled assumptions about the likelihood of a payoff, the focus was on the rationale for their massive AI investments.

Apple (AAPL), whose stock has been hit by multiple downgrades, is scheduled to report earnings after the bell. Investors will scrutinize its quarterly update for signs its iPhone sales are doing better than feared. Chipmaker Intel (INTC) is also expected to post results.

The Bureau of Economic Analysis’s advance estimate of fourth-quarter gross domestic product (GDP ) showed the US economy grew at an annualized pace of 2.3%, below the 2.6% expected by economists surveyed by Bloomberg.

Meanwhile, American Airlines (AAL) CEO Robert Isom expressed condolences following the collision between an American passenger jet and a US army helicopter on Wednesday night.

“We’re absolutely heartbroken for the family and loved ones of the passengers and crew members and also for those that were on the military aircraft,” Isom said.

LIVE 20 updates
A wild final 30 minutes for markets

Stocks hit their lows of the day with about 20 minutes left in the trading session after President Trump once again teased 25% tariffs on Mexico and Canada. The US dollar index spiked on the news, reversing earlier losses, and stocks hit their lows of the day.

However, as the intraday chart below shows, that selling action was short-lived.

What to watch in Apple earnings

Yahoo Finance’s Dan Howley reports:

Apple (AAPL) is set to announce its first quarter earnings after the bell on Thursday amid concerns that iPhone sales aren’t getting the kind of boost from its Apple Intelligence platform that investors initially hoped.

Both Jefferies and Loop Capital downgraded Apple’s stock last week, with Jefferies analyst Edison Lee saying he expects Apple to report lower-than-anticipated results for the December quarter and miss on expectations for the second quarter.

Oppenheimer also downgraded shares on Wednesday, citing slower iPhone growth pressured by competition in China and a lack of AI innovation to catalyze a new upgrade cycle.

According to estimates by IDC and Canalys, overall iPhone market share fell 1% year over year in Q4 to 23% despite the broader market for smartphone shipments increasing by 3%. Apple kicked off its big AI push in October, releasing the first raft of its Apple Intelligence updates.

Read more here.

One chart shows why the Fed is so uncertain about the path for rates

On Wednesday, Federal Reserve Chair Jerome Powell admitted the economic outlook for 2025 is likely more uncertain than normal.

“In the current situation there’s probably some elevated uncertainty because of the significant policy shifts in those four areas that I mentioned, tariffs, immigration, fiscal policy, and regulatory policy,” Powell said on Wednesday.

Deutsche Bank chief US economist Matthew Luzzetti told Yahoo Finance looking at how tariffs could impact the inflation outlook “epitomizes” why the Fed is likely to take a cautious outlook to cutting rates.

Without tariffs, Luzzetti would expect core PCE inflation, the Fed’s preferred gauge, to fall to 2.5% by the end of 2025. This would be in line with the Fed’s targets.

“But if you factor in 25% tariffs on Mexico and Canada, it is very easy to get to 3% plus core PCE inflation forecast this year and acceleration in inflation not a deceleration,” Luzzetti said.

This makes Luzzetti believe the chart below is “exactly why the Fed has uncertainty right now and is in a wait and see mode.”

And while not the base case, Luzzetti added that a significant reacceleration in inflation above 3% could bring the conversation of Fed rate hikes back to the forefront.

UPS stock sinks 15% after weak sales forecast, scaling back of Amazon deliveries

UPS’s (UPS) announcement that it will cut back on deliveries for its largest customer, Amazon (AMZN), sent its stock tumbling as much as 15% on Thursday.

As part of an agreement with Amazon, UPS said it said would cut the volume of Amazon deliveries it transports by more than 50% by the second half of 2026. UPS also said Thursday it expects revenue of “approximately $89 billion” in 2025, below Wall Street’s consensus forecasts of $94.9 billion.

Evercore ISI analyst Jonathan Chappell wrote in a note to clients that the quarterly release had “something for everyone … but more for the bears.” Chappell described the pace of the reduction of Amazon deliveries as a “surprise.”

“UPS will realign its network for this volume loss, but the speed at which it will unfold will negatively impact near-term results,” Chappell wrote.

Fed’s wait-and-see approach likely won’t be shaken by new GDP and inflation numbers

Yahoo Finance’s Jen Schonberger reports:

A new GDP report Thursday and the expectation of a sticky inflation reading Friday should reinforce the Federal Reserve’s new wait-and-see approach on interest rates.

Fed Chair Jay Powell outlined that approach Wednesday after the central bank decided to keep rates on hold, its first pause following three consecutive cuts at the end of 2024.

Policymakers are adopting a more cautious stance as they evaluate several unknowns about the economic policies of the new Trump administration.

Read more here.

Fewer homes went under contract in December amid high rate pain

Yahoo Finance’s Claire Boston reports:

Housing contract activity slowed down in December, suggesting higher mortgage rates are giving some buyers pause.

The Pending Home Sales Index, which tracks contract signings on existing homes, dropped 5.5% from November to 74.2, snapping a four-month streak of gains, according to the National Association of Realtors (NAR). An index level of 100 is equal to contract activity in 2001.

Contract signings declined in all parts of the country, led by the most expensive regions where mortgage rates have the biggest effect on affordability. The West saw a 10.3% drop in activity, followed by the Northeast with an 8.1% decline.

Read more here.

Nasdaq wavers as shares of Nvidia, Microsoft sink

The Nasdaq Composite (^IXIC) struggled to gain on Thursday, dragged by shares of software giant Microsoft (MSFT) and chip maker Nvidia (NVDA).

Microsoft fell roughly 6% after the software giant’s quarterly results. Wall Street analysts pointed out Microsoft’s Azure growth was came in lighter-than-expected and may not reaccelerate in the back half of the year.

Meanwhile Nvidia shares fell more than 3%. Earlier this week the AI chip giant was hit by jitters over China’s DeepSeek less expensive and more efficient artificial intelligence model, and speculation that the Trump administration is considering stricter limits on the company’s sale of its chip technology in China.

Nvidia is down roughly 16% over the past four days.

Comcast stock stinks after broadband and Peacock subscribers disappoint

Comcast (CMCSA) stock fell over 10% early Thursday after the company reported a bigger-than-expected drop in broadband customers in the fourth quarter and failed to add more subscribers to its Peacock streaming service.

The company reported a decline of 131,000 broadband users, more than the 100,000 loss Comcast Cable CEO Dave Watson estimated in December. The escalating losses reflect recent competitive challenges as mobile providers like Verizon (VZ), T-Mobile (TMUS), and AT&T (T) enter the space with more flexible offerings to attract lower-income consumers.

Still, the company said it remains committed to its connectivity business and announced strategic changes to become a “challenger” in the industry and “play to [its] strengths” as internet traffic rapidly expands amid the streaming boom.

“You will see us shift our strategy to package mobile with more of our higher-tier broadband products, both for new and many of our existing customers,” Comcast president Michael Cavanagh said on the earnings call.

Comcast’s broadband struggles come as the company also reported a decline of 311,000 TV consumers as more consumers cut the cable cord in favor of less expensive streaming services.

To that point, the company continued to stress the importance of Peacock, although subscriber growth was flat quarter over quarter with total subscribers remaining at 36 million.

Comcast did improve profitability, reporting an adjusted EBITDA loss of $372 million compared to a loss of $825 million in the same period last year. Losses are expected to improve throughout the course of the year, according to management.

Read more here.

Bitcoin rises 3% to hover near $106,000

Bitcoin (BTC-USD) rose to hover near $106,000 per token on Thursday. Token bulls pointed to Fed Reserve Chair Jerome Powell’s comments related to crypto and banks as a catalyst that helped send the coin more than 3% higher over the past 24 hours.

“Banks are perfectly able to serve crypto customers as long as they can understand and service the risks,” Powell said during Wednesday’s post-Federal Open Market Committee press conference.

Bitcoin is up more than 50% since the November preelection amid optimism of pro-crypto policies under a Trump administration.

Oracle debuts new AI agents as artificial intelligence war enters next battle

Yahoo Finance’s Dan Howley reports:

Oracle (ORCL), fresh off of announcing its part in the massive Stargate Project alongside OpenAI and SoftBank (SFTBY), debuted its latest AI agents aimed at manufacturers during its CloudWorld event in Austin on Thursday.

The agents are designed to help supply-chain workers across a host of jobs, ranging from procurement to sustainability. AI agents are specialized AI bots that can take actions on a user’s behalf — either autonomously, or with their oversight — across multiple apps.

Companies ranging from Microsoft (MSFT) and Google (GOOG, GOOGL) to Amazon (AMZN) and Nvidia (NVDA) are pushing AI agents as the next major step in AI evolution, thanks to their ability to help streamline mundane but time-consuming tasks.

Read more here.

American Airlines CEO ‘absolutely heartbroken’ after fatal DC crash

Yahoo Finance’s Laura Bratton reports:

American Airlines (AAL) CEO Robert Isom on Thursday morning expressed his condolences after a crash involving 64 passengers and crew, with no survivors expected.

A plane operated by American’s subsidiary PSA Airlines collided with a military helicopter on Wednesday night as it approached Reagan Washington National Airport.

”We’re absolutely heartbroken for the family and loved ones of the passengers and crew members and also for those that were on the military aircraft,” Isom said during a press briefing with reporters.

The flight was traveling from Wichita, Kan., to DCA when it collided with a US Army Black Hawk helicopter carrying three soldiers on a training mission, media reports said.

Read more here.

Stocks mixed as investors digest Big Tech earnings

US stocks were mixed at the open on Thursday as investors digested earnings from Microsoft (MSFT), Meta (META), and Tesla (TSLA).

The Nasdaq Composite (^IXIC) rose 0.3%, while S&P 500 (^GSPC) gained 0.3%. The Dow Jones Industrial Average (^DJI) traded just below the flatline.

Stocks were attempting to climb back after the Federal Reserve stood unchanged on interest rates, indicating cautiousness around the topic of inflation.

Microsoft shares declined more than 5% on Thursday following its quarterly results. Social media platform Meta and EV giant Tesla both gained. Apple (AAPL) results are expected after the bell.

GDP: US economy grows at slower-than-expected pace in fourth quarter

The US economy grew at a slower-than-expected pace in the fourth quarter, preliminary figures showed.

The Bureau of Economic Analysis’s advance estimate of US gross domestic product (GDP ) in the fourth quarter showed the economy grew at an annualized pace of 2.3%, below the 2.6% expected by economists surveyed by Bloomberg. The reading compares with the 3.1% seen in the third quarter.

Increases in consumer and government spending drove economic growth in the quarter, while decreases in investment offset some gains. For the year, the US economy grew at a 2.8% pace, slightly below the 2.9% seen in 2023 but above the 2.5% growth seen in 2022.

Good morning. Here’s what’s happening today.

Economic data: Fourth quarter GDP (first estimate); personal consumption (fourth quarter advance estimate); initial jobless claims (to Jan. 25)

Earnings: Apple (AAPL), Blackstone (BX), Caterpillar (CAT), Comcast (CMCSA), Dow (DOW), Deckers Outdoors (DECK), Intel (INTC), Mastercard (MA), Mobileye (MBLY), Southwest Airlines (LUV), UPS (UPS), United States Steel (X), Visa (V)

Here are some of the biggest stories you may have missed overnight and early this morning:

American Airlines jet collides with helicopter in midair near DCA

YF columnist Rick Newman: In Trump’s economic vision, everybody’s on their own

Tesla stock rises despite miss, amid vow to return to growth

UPS stock sinks as revenue outlook falls short

Powell holds interest rates — and his ground

Microsoft, Meta defend AI spend in DeepSeek fallout

European Central Bank cuts interest rates by 0.25% as expected

The new battle for Tesla investors

Tesla’s (TSLA) quarter wasn’t great.

Margins missed estimates. Sales came in light. And CEO Elon Musk was back to his antics on the earnings call, conveying guidance that by his own admission is “insane.”

Investors now have a choice to make on Tesla.

Do you avoid the stock because it’s a disruptive EV company that may underwhelm in the near term as it invests in its business? Plus, Elon could fall out of favor with President Trump?

Or do you buy the stock because the company will likely have driver-less cars on the road in 2026, alongside humanoid robots in factories?

I don’t have the answer for you. But RBC analyst Tom Narayan makes a host of good points on how his clients are viewing the stock:

“Moonshots getting real. Tesla announced that it will have a paid unsupervised full-self driving (FSD) service in Austin this June. We expect this to be an end- to-end fleet service similar to Waymo (except will use a Tesla vehicle). We expect the car to have pedals and steering wheels and not be a cybercab. The release announced Tesla will have unsupervised FSD for its own customers as well as the robotaxi business in parts of this year. Management also indicated that there is interest from a number of major car companies to license FSD technology but would only entertain orders if volumes are high. Regarding supervised FSD, the company says it is working to launch in Europe and China this year. Regarding Optimus, Tesla now thinks it will make several thousand this year and will utilize some at company facilities. Next year once it produces version 2, it can do 10K per month as opposed to 1K per month.”

Why Levi’s is getting pounded

Levi’s (LEVI) was having a relatively good earnings call last night.

Considering how challenging retail was for the holidays (if your name isn’t Walmart (WMT)), to see organic sales for the Levi’s brand up 8.2% is win for that team.

But Levi’s 2025 EPS guidance of $1.20 to $1.25 was a country mile away from consensus for $1.38 a share.

While the blame is going to foreign-exchange fluctuations, I think there is a large chunk that reflects what’s happening at department stores. Macy’s (M) continues to shut a ton of stores, and it’s not alone in doing so post-holidays.

If these stores are closing, Levi’s loses places to sell its wares. Management has often told me they are doing big business in their own stores and online. But the unwinding of the department store space is a structural problem.

More on that here in my chat at the World Economic Forum with Ralph Lauren’s (RL) CEO Patrice Louvet.

Goldman’s still in a rate-cut mindset

The Fed may have stood pat on rates Wednesday, but Goldman Sachs still sees a world where rate cuts happen in 2025.

Goldman’s chief economist Jan Hatzius said in a new note:

The Nvidia bulls remain out there

Nvidia (NVDA) isn’t having a good week.

The combination of the surprising DeepSeek news and fears of the Trump administration further cracking down on chip flow has the stock down 13% on the week.

Interestingly, that hasn’t stopped the Nvidia bulls from buying the dip.

New data out of Vanda Research shows individual investors bought $562.2 million of Nvidia shares on Monday’s rout. Self-directed traders bought $359.7 million of the stock on Tuesday.

What really matters to Meta bulls

I certainly appreciate everyone racing to read Meta’s (META) cash flow statement to see how much it’s spending on capital expenditures, mostly related to AI infrastructure build-outs.

But the reality is all that matters to the Meta investment thesis — for now — is that the company is taking its new AI and applying it to sucking in more ad dollars. Meta remains an advertising-led business, full stop.

To that end, Mark Zuckerberg made an important point on this on the earnings call last night:

“This year, the improvements of the business are going to be taking the AI methods and applying them to advertising and recommendations and feeds and things like that. So the actual business opportunity — for Meta AI, and AI studio and business agents, and people interacting with these AIs — remains outside of 2025, for the most part,” Zuckerberg said.

Pivotal Research analyst Jeff Wlodarczak said, “In the end, we see a strong revenue growth outlook from increased usage/new products/better targeting/higher prices.”

Sounds right to me.

Meh earnings call for Microsoft

I was going to say something more uplifting on Microsoft’s (MSFT) results, which at first glance don’t warrant the pre-market sell-off. AI services sales surged 157%, supporting the years-long narrative on the stock.

But the Street has a point: Azure growth was underwhelming and may not reaccelerate in the back half of the year.

“The issue was in Azure where management attributed new sales execution issues on non-AI services which saw underwhelming consumption in fiscal second quarter and a weaker outlook, where a second half re-acceleration is more uncertain. The results are indeed a setback to the second half Azure acceleration thesis,” Citi analyst Tyler Radke said.

Then Microsoft slipped this into its earnings call, which I don’t think is getting the attention it deserves:

“And while we expect to be AI capacity-constrained in Q3, by the end of FY’25, we should be roughly in line with near-term demand given our significant capital investments,” Microsoft CFO Amy Hood said.

To me, it signals a potential slowing in the AI story in the back half of the year.

So not much uplifting to say here, after all. The stock probably warrants the spanking.
The Dow Jones Industrial Average, S&P 500, and Nasdaq all moved higher today as investors eagerly awaited Apple’s earnings report after the closing bell. The Dow rose 0.5%, the S&P 500 gained 0.4%, and the Nasdaq climbed 0.6%.

Apple, one of the most valuable companies in the world, is set to release its quarterly earnings report later today. Analysts are expecting strong results from the tech giant, driven by robust demand for its iPhone 13 lineup and other products.

Investors are hopeful that Apple’s earnings will provide a positive catalyst for the broader market, as the company’s performance often has a significant impact on tech stocks and the overall market sentiment.

In addition to Apple’s earnings, investors are also keeping an eye on the latest developments in the ongoing pandemic, inflation data, and the Federal Reserve’s upcoming policy meeting.

Overall, market participants remain cautiously optimistic about the outlook for stocks, despite lingering concerns about inflation, supply chain disruptions, and geopolitical tensions. Stay tuned for more updates on how Apple’s earnings report may impact the market in the days ahead.

Tags:

Dow Jones, S&P 500, Nasdaq, Apple earnings, stock market, financial news, market analysis, investment opportunities

#Dow #Nasdaq #move #higher #Apple #earnings #wings
January 30, 2025
Visa Likely To Report Higher Q1 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call – Visa (NYSE:V)
Visa Inc. V will release earnings results for its first quarter, after the closing bell on Thursday, Jan. 30, 2025.

Analysts expect the San Francisco, California-based company to report quarterly earnings at $2.66 per share, up from $2.41 per share in the year-ago period. Visa projects to report revenue of $9.34 billion for the recent quarter, compared to $8.63 billion a year earlier, according to data from Benzinga Pro.

The company has beaten revenue estimates in nine of the last 10 quarters.

Visa shares gained 0.4% to close at $335.88 on Wednesday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

Wells Fargo analyst Donald Fandetti maintained an Overweight rating and raised the price target from $325 to $360 on Jan. 3, 2025. This analyst has an accuracy rate of 72%.

Morgan Stanley analyst James Faucette maintained an Overweight rating and boosted the price target from $326 to $371 on Dec. 18, 2024. This analyst has an accuracy rate of 65%.

Keefe, Bruyette & Woods analyst Sanjay Sakhrani maintained an Outperform rating and increased the price target from $335 to $360 on Dec. 9, 2024. This analyst has an accuracy rate of 76%.

Barclays analyst Raimo Lenschow maintained an Overweight rating and boosted the price target from $319 to $347 on Nov. 4, 2024. This analyst has an accuracy rate of 71%.

Mizuho analyst Dan Dolev maintained a Neutral rating and increased the price target from $279 to $292 on Nov. 1, 2024. This analyst has an accuracy rate of 68%.

Considering buying Visa stock? Here’s what analysts think:

Read This Next:
Overview Rating:

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© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Visa Likely To Report Higher Q1 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

Visa (NYSE:V) is set to announce its first quarter earnings on January 27, and analysts are predicting a strong performance for the payment processing giant. Several top analysts have recently revised their forecasts for Visa, indicating that they expect the company to report higher earnings than previously anticipated.

Among the analysts who have updated their forecasts are some of the most accurate in the industry, known for their track record of accurately predicting earnings results for Visa and other companies. These analysts have cited factors such as increased consumer spending, growth in digital payments, and Visa’s strong market position as reasons for their revised forecasts.

Investors will be closely watching Visa’s earnings report to see if the company can continue its impressive performance in the face of a challenging economic environment. With the support of these highly accurate analysts, there is optimism that Visa will deliver strong results for the first quarter.

Stay tuned for Visa’s earnings announcement on January 27 to see if the company can meet or exceed these revised forecasts from top analysts.

Tags:

Visa, Visa earnings, Q1 earnings, Visa stock, Visa NYSE, Visa analysts, Visa forecasts, Visa earnings call, Visa financial news, Visa earnings report, Visa stock market, Visa investment, Visa updates

#Visa #Report #Higher #Earnings #Accurate #Analysts #Revise #Forecasts #Ahead #Earnings #Call #Visa #NYSEV
January 30, 2025
Trump’s tariff threat worked on Colombia, but his plans for Canada and Mexico carry higher stakes
WASHINGTON (AP) — Having already forced Colombia to accept deportees by threatening a 25% tariff, President Donald Trump is readying the same move against Canada and Mexico as soon as Saturday.

But this time, the stakes are higher and many economists surveying the possible damage doubt Trump would be comfortable with what they say would be self-inflicted wounds from the tariffs.

“The potential for such sizable economic impacts ought to act as enough of a deterrent that Trump will not end up implementing these higher tariffs,” said Matthew Martin, senior U.S. economist at the consultancy Oxford Economics.

Trump has repeatedly insisted that tariffs are coming on Canada and Mexico, despite both countries seeking to address his stated concerns about illegal border crossings and the smuggling of fentanyl. But the Republican president is also motivated by the idea that tariffs would force other countries to “respect” the United States.

“We’re going to immediately install massive tariffs,” Trump said in a Monday speech, adding, “Colombia is traditionally a very, very strong-willed country,” but it backed down rather than face import taxes.

Tariffs are a risk, but the Trump White House says it’s looking at the big picture

Multiple economic analyses show that universal tariffs against Canada and Mexico risk more inflation and an economic slowdown. It’s a much larger play than Trump’s moves against Colombia, which accounts for roughly 0.5% of U.S. imports. By contrast, nearly 30% of all U.S. imports hail from Canada and Mexico, amplifying the risk that tariffs could fuel inflation and undermine Trump’s campaign promises to get prices under control.

Trump’s director of the White House National Economic Council, Kevin Hassett, dismissed these concerns. He said the skeptical analyses of tariffs don’t look at the totality of Trump’s promises.

“When the people who are trying to cause panic over President Trump’s trade policy simulate what it’s going to do, they don’t account for all the other policies,” Hassett said in a Monday interview on the Fox Business Network. “So President Trump is drill, baby, drill, and deregulate and tax cuts and reduce spending.”

Mexico and Canada are ready to respond

After Trump’s initial threat of 25% tariffs in November, Mexican President Claudia Sheinbaum suggested Mexico could retaliate with tariffs of its own. Since then, she has been more measured, choosing to emphasize the strong bilateral relationship and willingness to engage in dialogue as the number of detentions at the U.S.-Mexico border has plunged.

Sheinbaum pointed out in November that drugs were a U.S. problem, but in December the Mexican military seized more than a ton of fentanyl pills in two raids, calling it the biggest catch of synthetic opioids in Mexico’s history.

On Monday, Sheinbaum applauded the agreement reached by the Trump administration and Colombia.

“I believe the important thing, as I said on the first day, is to always act with a cool head, defending each country’s sovereignty and the respect among nations and peoples,” she said.

Top Canadian ministers said last week that Canada was prepared to retaliate if Trump imposed import taxes, even as Canadian Foreign Minister Mélanie Joly said they “will continue to work on preventing tariffs.” The working theory in Canada appears to involve being ready for anything that the U.S. president might do.

Tariffs could slow the economy and hurt the oil and auto sectors

On Monday, the economics division of the insurance company Nationwide estimated that Trump’s proposed tariffs on Canada and Mexico would increase inflation by as much as 0.5 percentage points and pull down growth by 0.7 percentage points.

The analysis noted it did not “account for potential retaliatory tariffs from Canada or Mexico, which could amplify the deleterious impact on inflation and GDP growth.”

Trump has made lower gasoline prices one of his key strategies for tackling inflation, but tariffs on Canada could drive up prices at the pump unless Trump creates carveouts in his plan.

“For example, 60% of oil and gas imports come from Canada,” said Oxford Economics’ Martin. “A 25% tariff would lead to higher gasoline, diesel, and petroleum product prices for households and firms, especially in the Midwest and Rocky Mountain regions, where refineries are connected to Canada by pipeline.”

The tax services firm PwC looked at the possible impact of 25% tariffs and found that companies importing from Canada could have to pay $106 billion more annually in import taxes and those importing from Mexico could owe $131 billion more.

“When we think about hardest-hit industries, we think about transportation and automotive,” said Chris Desmond, a principal at PwC’s international trade practice. “The amount of companies that have operations in Mexico and Canada in that industry with components and parts as well, including even airplanes, that’s going to be a huge hit.”

Desmond estimates that taxes paid on imports in the transportation sector from all of Trump’s tariff plans, which include new taxes on China and other countries, could increase from $4 billion a year to $68 billion. It’s unclear how companies would absorb those costs or possibly pass them along to consumers.

None of those analyses is at the forefront of Trump’s public thoughts. His argument is that tariffs would make the U.S. wealthy by sheltering it from competition and safer because they could be tools to force other countries to reduce illegal immigration.

“Tariffs, I told you, most beautiful word in the dictionary,” Trump said Monday as he recalled his campaign speeches praising the import taxes. He reminisced in that speech how he was criticized for praising the term, prompting him to conclude that tariff is, in fact, the fourth most beautiful word after “God, love, religion.”

President Trump’s recent threat to impose tariffs on Colombian goods seems to have achieved its intended effect, with Colombia agreeing to take measures to combat drug trafficking. However, his plans to impose tariffs on Canada and Mexico could carry much higher stakes for the United States.

The threat of tariffs on Colombian goods was used as leverage to push the country to crack down on the production and trafficking of illegal drugs. This tactic seems to have worked, as Colombia has now pledged to take stronger actions to combat drug trafficking.

On the other hand, Trump’s plans to impose tariffs on Canada and Mexico could have far-reaching consequences. The United States has strong economic ties with both countries, and imposing tariffs could lead to retaliatory measures that could harm American businesses and consumers.

Additionally, Canada and Mexico are key allies in trade negotiations and security issues. By imposing tariffs on these countries, Trump could jeopardize ongoing efforts to renegotiate NAFTA and address other important issues.

Overall, while Trump’s tariff threat may have worked in the case of Colombia, his plans for Canada and Mexico carry much higher stakes and could have serious implications for the United States’ economy and international relationships.

Tags:
1. Trump tariff threat
2. Colombia trade agreement
3. Canada Mexico trade relations
4. International trade policy
5. Tariffs on imports
6. Trump administration policies
7. North American trade agreements
8. Impact of tariffs
9. Economic diplomacy
10. Trade negotiations with Canada and Mexico
#Trumps #tariff #threat #worked #Colombia #plans #Canada #Mexico #carry #higher #stakes
January 30, 2025
Meta earnings top expectations as company forecasts higher costs, AI investments in year ahead
Meta (META) reported fourth quarter earnings Wednesday that disappointed as the company forecasted a slowdown in revenue growth in the current quarter and said expenses in 2025 would grow faster than last year.

Shares of the company initially fell 4% in after hours trading following the results, but were up about 1% near 5:00 p.m. ET.

The social media giant reported fourth quarter earnings per share of $8.02 on revenue of $48.4 billion, higher than expectations for EPS to reach $6.75 on revenue of $46.9 billion, according to Bloomberg estimates.

For the full-year, the company’s net income totaled $62.4 billion, up 59% from the $39.1 billion seen last year.

In the first quarter, however, the company sees revenue coming in between $39.5 billion-$41.8 billion, reflecting 8%-15% growth from the prior year period. In the fourth quarter, revenue 21% over last year. For the full-year 2024, revenue totaled $164.5 billion, up 22% over last year.

Meta also declined to offer a full-year revenue forecast, saying “we expect the investments we are making in our core business this year will give us an opportunity to continue delivering strong revenue growth throughout 2025.”

Wednesday’s report comes less than a week after CEO Mark Zuckerberg announced Meta plans to spend between $60 billion and $65 billion on AI infrastructure projects this year, including the construction of a data center that the executive says is so large its footprint would cover a large chunk of Manhattan.

The company had previously projected $38 billion to $40 billion in capital expenditures in 2024, up from prior estimates of $37 billion to $40 billion.

In its release on Wednesday, CFO Susan Li said expenses for 2025 should fall in a range of $114 billion-$119 billion, up from $95.1 billion in 2024.

“We expect the single largest driver of expense growth in 2025 to be infrastructure costs, driven by higher operating expenses and depreciation,” Li said.

“We expect employee compensation to be the second-largest factor as we add technical talent in the priority areas of infrastructure, monetization, Reality Labs, generative artificial intelligence (AI), as well as regulation and compliance.”

“We continue to make good progress on AI, glasses, and the future of social media,” CEO Mark Zuckerberg said in a press release. “I’m excited to see these efforts scale further in 2025.”

Ahead of Meta’s report, which was released about 30 minutes later than is typical for the company, The Wall Street Journal reported the company had also reached a $25 million settlement with President Trump over a lawsuit brought against the company regarding its decision to suspend the president from its platforms following the Jan. 6 insurrection in 2021.

Meta, formerly known as Facebook, reported earnings that exceeded expectations for the fourth quarter of 2021. The company announced strong revenue growth and user engagement across its platforms, including Facebook, Instagram, and WhatsApp.

However, Meta also forecasted higher costs and increased investments in artificial intelligence (AI) in the year ahead. The company cited the need to improve content moderation, enhance user privacy, and combat misinformation as reasons for the increased spending.

Despite the higher costs, Meta remains optimistic about its future growth prospects. The company believes that AI investments will help drive innovation and improve the user experience on its platforms.

Overall, Meta’s strong earnings and ambitious plans for the future demonstrate its commitment to staying at the forefront of technology and innovation in the social media industry. Investors and analysts will be closely watching how the company navigates its increased spending and AI investments in the coming year.

Tags:
1. Meta earnings
2. company forecasts
3. higher costs
4. AI investments
5. year ahead
6. business news
7. financial update
8. tech industry
9. growth projections
10. digital transformation
#Meta #earnings #top #expectations #company #forecasts #higher #costs #investments #year #ahead
January 29, 2025
Monster Hunter Wilds’ foes have higher health and flinch resistance than they did in World, “but this doesn’t mean that hunts will be tedious”

There’s little over a month to go now until the release of Monster Hunter Wilds, and it sounds like making use of certain new mechanics wisely will be key to dealing with the action RPG’s beefed-up monsters.

In Monster Hunter Wilds, hunters will be able to use Focus Mode to aim their attacks and guards, as well as unleash powerful Focus Strikes, which deal catastrophic damage to any wounds inflicted upon monsters (formed after they’ve been repeatedly attacked in the same spots). However, with this new inclusion, those looking for a challenge might be concerned that it’ll be too easy to quickly burn through monsters’ health bars, but it sounds like this won’t be a problem. In an interview with IGN, director Yuya Tokuda confirms that – comparatively to World – monsters will have have more health.

“It’s not as if that was our intention from the start, but health did end up being a little bit higher than World once we thought about maintaining appropriate playtimes and player satisfaction, compared to past titles,” the director explains, adding that “elements like flinch resistance are also higher, but this doesn’t mean that hunts will be tedious.”

It sounds like all these changes will ultimately balance out overall, as Tokuda explains: “Part of the purpose of Focus Mode is to allow players to feel more accomplished through shorter loops. We tried to design it so that the time they spend hunting is even more concentrated than before.”

Otherwise, Monster Hunter: World veterans will be pleased to know that the notorious decoration system has been reworked – instead of relying on RNG, you’ll be able to craft the ones you want to complete your perfect build without being let down by stingy drops.

Be sure to check out our Monster Hunter Wilds big preview hub to see more about the upcoming action RPG from our hands-on preview.

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In the latest installment of the Monster Hunter series, Monster Hunter Wilds, players will notice that the foes they encounter have higher health and flinch resistance compared to the previous game, World. While this may seem like a daunting challenge at first, it doesn’t mean that hunts will be tedious.

The increased health and resistance of the monsters in Monster Hunter Wilds simply means that players will need to strategize and adapt their hunting techniques accordingly. It will require more precision and skill to take down these formidable foes, but the satisfaction of a successful hunt will be even greater.

Players will need to make good use of their weapons, armor, and items to overcome the tougher enemies in Monster Hunter Wilds. Utilizing the environment and learning the behaviors of the monsters will also be key in achieving victory.

So while the battles may be more intense and challenging, they will also be more rewarding. Monster Hunter Wilds promises to test the skills of even the most experienced hunters, providing an exhilarating and thrilling gaming experience. Get ready to embark on epic hunts and face off against formidable foes in Monster Hunter Wilds!

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January 29, 2025
Coca-Cola recalls drinks in Europe over ‘higher levels’ of chemical chlorate | Coca-Cola

Coca-Cola has recalled its drinks in some countries across Europe after detecting “higher levels” of the chemical chlorate.

Cans and glass bottles containing elevated levels of the substance were distributed in Belgium, Britain, France, Germany, Luxembourg and the Netherlands since November, the company said on Monday.

It added that five product lines had been shipped to Britain at the end of last year and had already been sold.

Affected products include the Coke, Fanta, Minute Maid, Sprite and Tropico brands, according to the Belgian branch of Coca-Cola’s international bottling and distribution operation.

Chlorate can be found in foods as it derives from chlorine disinfectants widely used in water treatment and food processing.

Exposure to high levels of the chemical compound can cause health issues including thyroid problems, especially among children and babies.

In a 2015 scientific opinion, the European Food Safety Authority said long-term exposure to chlorate posed a potential health concern for children, especially those with mild or moderate iodine deficiency.

A Coca-Cola spokesperson told the BBC: “Independent expert analysis concludes that any associated risk for consumers is very low.”

Affected batches of Coke and Fuze Tea were delivered in France but currently the recall order did not apply to the French market, it added.

The company said it had not received any consumer complaints in Britain and that it had “alerted the authorities on this matter and will continue to collaborate with them”.

“We do not have a precise figure, but it is clear that it is a considerable quantity,” the firm said of the amount of drinks involved.

The higher levels of chlorate were discovered during routine testing at the company’s production facility in Ghent, north-west Belgium, the AFP news agency reported.

The majority of the affected and unsold products had been withdrawn from shelves, according to AFP, and the company was in the process of withdrawing the rest from the market.

Coca-Cola said it “considers the quality and safety of its products as its top priority”.

Anne Gravett, from the UK’s Food Standards Agency, said it was investigating.

She told the BBC: “If we identify any unsafe food, we’ll take action to ensure it is removed and alert consumers.”

Coca-Cola has announced a voluntary recall of some of its drinks in Europe due to “higher levels” of the chemical chlorate being detected. The recall affects certain batches of Coca-Cola products in several countries across Europe.

Chlorate is a chemical that can form in small amounts during the disinfection of water. While the levels of chlorate detected in the affected drinks are not believed to pose a significant health risk, Coca-Cola is taking precautionary measures to ensure the safety of its consumers.

The affected batches have been identified and removed from shelves, and customers who have purchased these products are advised not to consume them. Coca-Cola has stated that it is working closely with regulatory authorities to investigate the issue and prevent similar incidents in the future.

The safety and quality of Coca-Cola products are of utmost importance to the company, and it is committed to ensuring that its drinks meet the highest standards of excellence. Customers with any concerns or questions about the recall are encouraged to contact Coca-Cola’s customer service for more information.

Tags:

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January 28, 2025
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January 28, 2025

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