Public Markets 8-Hour Briefing
×Market Performance
The S&P 500 posted lower fourth-quarter revenue as Boston Beer cited shifting tariff policies impacting its annual guidance. Cava saw revenue rise 21% driven by higher prices and new restaurant openings, while Lucid Group posted higher fourth-quarter revenue as electric vehicle production and deliveries ramped up. First Solar reported higher fourth-quarter profit on increased revenue, though its annual guidance missed analyst expectations.
Tech Sector Volatility
PayPal extended its rally after reports emerged that Stripe was considering acquiring all or parts of the company. HP dialed down fiscal-year expectations as memory chip costs rose, sending shares down after hours. Workday forecast up to 13% subscription revenue growth but saw shares fall 6%. San Disk stock dropped 5% following a short call from Citron Research.
AI Market Disruption
AI-induced tech selloff spoiled the IPO parade as investors dumped software stocks despite earnings reports. Software stocks rebounded as Anthropic partnerships eased AI disruption fears. Core Weave sought an $8.5 billion loan from banks including Morgan Stanley to finance cloud computing capacity for Meta Platforms.
Federal Reserve Policy
Fed officials said they don't see major upheaval from artificial intelligence. Fed's Collins stated rates are likely on hold "for some time" as labor market improvements continue. Goolsbee called Powell a "first ballot Hall of Fame Fed Chair" during an interview.
Banking Sector
US banks showed broad gains in key metrics during the fourth quarter despite modest profit declines. Morgan Stanley took a cautious stance on US LNG as supply waves threatened prices. Blue Owl faced warnings from activist investor Boaz Weinstein about "wheels coming off" private credit funds.
Energy Markets
Oil held near seven-month highs as investors awaited US-Iran talks. US solar imports faced preliminary duties as high as 146% on shipments from India, Indonesia, and Laos. French power prices dropped to lowest levels since June as solar generation surged.
Corporate Developments
Spirit Airlines reached a deal with creditors to emerge from bankruptcy by early summer as a smaller company. Telecom Italia proposed a €400 million stock buyback and 1-for-10 reverse split. LVMH saw Bernard Arnault's stake cross the 50% mark as he tightened control of the luxury group.
International Markets
Japan stocks gained outlook as a new corporate governance code revision may free up $840 billion in cash held by listed companies. Mexican officials considered legal action after Elon Musk linked the president to drug cartels. European AI chip startup Axelera raised an additional $250 million in funding.
Regulatory Environment
Binance faced a Senate probe into alleged Iran and Russia violations following reports of funneling nearly $2 billion to designated Iranian groups. Wisdom Tree received SEC approval for a 24/7 tokenized money market fund. US banks faced potential requirements to collect citizenship information under a proposed executive order.
Market Sentiment
Dan Loeb said the "lost art of short selling" is making a comeback as opportunities emerge against crowded trades. Citrini founder expressed shock that his AI prediction spurred a stock market selloff. Cheap stocks became harder to find as investors rotated out of US equities, according to Soc Gen.