[Market Summary]
On January 13 (local time), the New York stock market closed lower. Despite positive news that the December 2025 Consumer Price Index (CPI) has slowed, concerns over financial sector earnings and political friction weighed heavily on investor sentiment.
Dow Jones: 49,191.99 (-398.21 pts, -0.8%)
S&P 500: 6,963.74 (-13.53 pts, -0.19%)
Nasdaq: 23,709.87 (-24.03 pts, -0.1%)
Inflation Data: The U.S. Labor Department reported that December CPI rose 0.3% MoM and 2.7% YoY, consistent with November and matching market expectations. Core CPI (excluding food and energy) rose 0.2% MoM and 2.6% YoY—slightly lower than expected—signaling cooling inflation and increasing the likelihood of rate cuts.
Political & Policy Risks: Financial stocks dragged the market down following President Donald Trump’s move to cap credit card interest rates at 10%. JPMorgan Chase (JPM) fell 4.19% ($310.90) despite beating revenue estimates. Visa (-4.46%) and Mastercard (-3.76%) also plummeted. Furthermore, during a visit to a Ford plant in Detroit, Trump directly called for Fed Chair Jerome Powell’s resignation, stating, "Powell either doesn't know what he's doing or worse," and criticizing him as a "bad Fed Chair." This sparked a global backlash, with central bank heads worldwide issuing statements in support of Powell.
Trade Tensions: Trump’s announcement of a 25% tariff on countries trading with Iran reignited fears of a U.S.-China trade war, as China is Iran’s top trading partner. However, semiconductor stocks provided a buffer: Intel surged 7.33%, Nvidia rose 0.47%, and the Philadelphia Semiconductor Index gained 1.40%. Bitcoin rallied over 3%, reclaiming the $94,100 level.
[Featured Stocks & Analyst Updates]
■ Alphabet (GOOGL)
Gemini-Apple Partnership: BofA raised its target to $370, viewing the multi-year AI partnership with Apple as a major catalyst. Analysts noted that Gemini is currently outpacing its competitors.
■ Apple (AAPL)
AI Strategy: Wedbush maintained an Outperform rating ($350 PT). Apple’s choice of Gemini for its AI features resolves the "Elephant in the Room" regarding its AI strategy and validates Google’s model.
■ Microsoft (MSFT)
Structural Advantage: Goldman Sachs raised its target to $655, citing Microsoft’s superior structural positioning to capture AI benefits across multiple paths.
Utility Pledge: Microsoft pledged to pay full utility rates for its data centers without local incentives to prevent AI expansion costs from being passed to consumers—a proactive response to Trump’s policy stance.
■ Amazon (AMZN)
Autonomous Logistics: Partnered with Aumovio to build software for Aurora Innovation’s self-driving trucks, which are expected to scale to hundreds of units by 2027.
■ Meta Platforms (META)
Meta Compute: Launched an initiative to build tens to hundreds of gigawatts of AI infrastructure.
Efficiency: TD Cowen raised its target to $820 (Buy), noting that Meta’s digital ad market share is expected to reach 34% this year. Meta is also cutting 10% of its Reality Labs workforce.
■ Tesla (TSLA)
Bearish Outlook: Wolfe Research warned of a tough 2026 due to the end of federal tax credits and high AI investment costs, projecting EPS of $1.84—below the $2.00 consensus.
■ Delta Air Lines (DAL)
Mixed Results: Q4 adjusted EPS ($1.55) beat the $1.53 estimate, but revenue ($14.61B) slightly missed the $14.69B forecast.
■ Intel (INTC) & AMD (AMD)
Upgraded: KeyBanc upgraded both to Overweight, citing the memory supercycle and surging data center demand, with 30%+ upside potential.
■ Travere Therapeutics (TVTX)
FDA Hurdle: Shares faced uncertainty after the FDA requested additional clinical data regarding the benefits of Filspari for FSGS indication.
■ JPMorgan Chase (JPM)
Strong Earnings vs. Policy Risk: Reported Q4 EPS of $5.23 (vs. $5.00 est) and revenue of $46.77B. Focus remains on CEO Jamie Dimon’s potential criticism of Trump's 10% rate cap.
■ BlackRock (BLK)
Restructuring: Cutting 1% of its global workforce (250 employees) to reallocate resources toward private credit and infrastructure (GIP, HPS).
■ BNY Mellon (BK)
Record Growth: Reported record AUC of $59.3 trillion. Raised mid-term ROTE goal to 28% and pre-tax margin to 38%.
■ Micron Technology (MU)
Memory Supercycle: BofA raised its target to $400, and Links surged its target to $550. Unprecedented demand for AI inference is expected to drive sustainable earnings and a re-rating.
■ Reddit (RDDT)
Outperform Rating: Evercore initiated coverage at $320, projecting 30-40% revenue growth and 40-50% EBITDA growth over the next three years.
■ Applied Materials (AMAT)
WFE Expansion: Susquehanna initiated a Positive outlook, anticipating annual WFE spending to hit $150B, which will drive 25%+ net income growth for AMAT.
■ PAR Technology (PAR)
Partnership: Papa John's (PZZA) plans to adopt PAR’s food service technology.
■ L3Harris Technologies (LHX)
Missile Spin-off: The DoD plans to invest $1 billion in LHX's missile segment, which the company intends to spin off and list in H2 2026.
■ Lithium Sector (ALB, LAR, LAC)
Supply Deficit: Scotiabank upgraded the sector, forecasting a 14% CAGR in lithium demand through 2030. Albemarle (ALB) and Lithium Argentina (LAR) were raised to Outperform.
■ Vistra (VST)
Target Hike: BMO raised its target to $244 following the 20-year, 2.6GW nuclear power agreement with Meta.
■ Palo Alto Networks (PANW)
Focus List: Citi added PANW to its 'Analyst Focus List' (Buy, $235), citing its unique position in integrating corporate security tools.
■ Eli Lilly (LLY)
Approval Watch: Oral weight-loss drug Orforglipron is nearing approval. Lilly is also reportedly considering a $17.5B acquisition of Abivax (ABVX).
■ TSMC (TSM)
Cautious Guidance: Susquehanna warned that upcoming revenue guidance might fall in the 25-30% range, potentially lower than the 30% consensus.
■ QXO (QXO)
M&A Funding: Secured $1.8 billion from Apollo and Temasek for potential acquisitions of private firms in the U.S. and Europe.
■ Moderna (MRNA)
Growth Outlook: Forecasts 10% revenue growth in 2026 and filed for flu vaccine (mRNA-1010) approval in major markets.
■ Rivian (RIVN)
Downgrade: Wolfe Research downgraded to Sell ($16), citing a lack of near-term catalysts compared to Tesla’s AI-driven momentum.
■ Comcast (CMCSA)
Upgrade to Buy: BofA upgraded to Buy ($37), noting that its assets (Universal, NBC, Peacock) are undervalued following the cable spin-off.
■ Nike (NKE)
Valuation Play: Jefferies set a $110 target (Buy), citing its 15-year low valuation and turnaround progress under CEO Elliott Hill.
■ Amgen (AMGN)
Maritide Data: Clinical data showed 15% weight loss maintenance with monthly or quarterly dosing, though BofA remains cautious (Sell).
■ Spotify (SPOT)
AI & Video: Addressing "algorithm fatigue" by testing prompt-based AI for music discovery and expanding video content for Gen Z.
■ Chevron (CVX)
Lukoil Bid: Potentially bidding for $22 billion in global oil assets from Russia’s Lukoil, pending U.S. Treasury approval.
■ Option Care Health (OPCH)
Buyback: Doubled its share buyback program to $1 billion following strong financial guidance.
■ Palantir (PLTR)
Buy Rating: Citi upgraded to Buy ($235 PT), forecasting 70-80% revenue growth in 2026 driven by government IT modernization.
■ Boeing (BA)
Order Surge: Citi raised its target to $270 following major Dreamliner and 737 Max orders.
■ Synopsys (SNPS)
Downgrade: Piper Sandler downgraded to Neutral ($520), warning of headwinds as semiconductor manufacturing shifts toward AI/data center chips.
■ Adobe (ADBE)
Downgrade: Oppenheimer downgraded to Market Perform, citing a lack of growth catalysts despite new AI features.
■ IBM (IBM)
Quantum Progress: Opened early access to its "Nighthawk" 120-qubit processor, which features a 20% increase in connectivity and 30% more complex circuit execution.
■ US Bancorp (USB)
M&A: Announced the $1 billion acquisition of BTIG to expand into investment banking and trading.
■ Cardinal Health (CAH)
Guidance Hike: Raised FY26 EPS outlook to "at least $10.00," surpassing the $9.86 consensus.
■ MP Materials (MP)
Buy Rating: William Blair initiated coverage at Buy ($79), citing major DoD contracts as a significant risk-reduction factor.
■ Exxon Mobil (XOM)
Trump Warning: Trump threatened to exclude Exxon from Venezuela after CEO Darren Woods expressed caution due to a lack of legal protections.
■ Arm Holdings (ARM)
Downgrade: BofA downgraded to Neutral ($120 PT), citing high dependency on Softbank and potential smartphone royalty slowdowns.
■ Caterpillar (CAT)
Data Center Boom: Citi raised its target to $710, projecting data center-related revenue to hit $15.5B by 2030.
■ Supermicro (SMCI)
Downgrade: Goldman Sachs slashed its target to $26 (Sell), warning of single-digit AI server margins and intensifying competition.
[After-Hours & Specialized Highlights]
■ CoreWeave (CRWV): Noted as a top 6 U.S. hyperscaler. CEO rebutted concerns over GPU lifespan, and the company plans to adopt Nvidia Rubin tech in 2026.
■ Wayfair (W): Partnered with Google on UCP to enable seamless, instant AI-driven shopping within Google platforms.
■ Chipotle (CMG): Appointed Ilene Eskenazi as Chief Legal and HR Officer in a leadership reshuffle.
