Public Markets 8-Hour Briefing
×Market Movers
Nvidia shares faced downward pressure despite record earnings as investors questioned whether AI-driven growth can sustain current valuations. Shake Shack reported higher fourth-quarter profit, with sales growth and operational improvements helping maintain margins amid industry headwinds. Papa John's saw profit and revenue decline in the fourth quarter, hurt by a weak consumer backdrop and higher promotions across its North American business.
Corporate Developments
Victory Capital submitted a bid to acquire Janus Henderson, topping the total value of the deal Trian Fund Management and General Catalyst agreed to with Janus Henderson in December. HSBC cut U.S. exposure while boosting emerging market equities in its latest portfolio reallocation. Toronto-Dominion Bank earnings jumped in the first three months of its fiscal year as the big Canadian lender saw revenue growth across its operations.
Earnings & Performance
Hertz shares fell 5% after reporting a wider fourth-quarter loss attributed to the government shutdown and flight cancellations. Krispy Kreme reported fourth-quarter revenue declines after exiting lower-traffic distribution points, though margins improved amid the chain's ongoing turnaround. Gildan Activewear set full-year guidance that fell short of Wall Street expectations after a soft fourth quarter, tempering the lift it expects from its recently closed Hanes Brands acquisition.
European Markets
Indra Sistemas shares rose close to 22% to reach an all-time high after reporting an almost seven-fold uptick in defense orders. WPP announced plans to cut £500 million annually in costs as part of a sweeping overhaul, reporting the worst annual fall in its key top-line metric since the Covid-19 pandemic. Puma recorded a record €645 million loss as sales slid, warning that major investor Anta Sports may have a negative impact on its Greater China business.
Financial Services
Barclays downgraded Sandoz amid "little room for further re-rating near term." Citi opened a positive catalyst watch on KLA Corp ahead of its investor day. Allianz CFO Claire-Marie Coste-Lepoutre said the company will strive for outperformance while announcing a new share buyback program.
Tech & Innovation
Ocado plans to cut 1,000 jobs and restructure its technology unit, warning that earnings from its licensing business will be below expectations after clients scale back online grocery plans. Nutanix shares soared 23% following an AMD partnership announcement and solid quarterly report. Baidu reported sharply lower profit with revenue declining for a third straight quarter as it struggles to transform its businesses in the AI era.
Commodities & Energy
Clariant expects customers to demand payback for tariff costs after the US Supreme Court declared Donald Trump's global tariffs under economic emergency powers law to be invalid. Schneider Electric posted record revenue with data center demand driving growth, though its CFO announced plans to step down. Eni beat fourth-quarter profit expectations on strong production.
Market Outlook
Capital Economics identified reasons to be positive on the S&P 500, citing improving economic indicators. Raymond James noted a developing tradeable bounce in software stocks. BlackRock highlighted that Japan's sovereign bonds can offer yields of around 6% for dollar-based investors willing to take a bet on long-dated debt.