[Market Summary]
On January 21 (local time), the New York stock market closed higher as geopolitical tensions eased and the "TACO" (Trump Always Cops Out) trade returned. This followed President Trump’s remarks on Greenland and his decision to revoke planned tariffs on eight European countries.
Dow Jones: 49,077.23 (+588.64 pts, +1.21%)
S&P 500: 6,875.62 (+78.76 pts, +1.16%)
Nasdaq: 23,224.82 (+270.50 pts, +1.18%)
The Trump Cliché: President Trump announced on Truth Social that following a productive meeting with NATO Secretary General Mark Rutte, a framework for the future of Greenland and the Arctic has been established. Consequently, he announced that the tariffs on eight European countries, scheduled for February 1, would be cancelled. He further eased tensions by stating at the Davos Forum that he would not use force regarding the Greenland issue.
Market Reaction: The $S&P 500$ surged 50 points in less than 10 minutes following the announcement. Treasury yields fell, and the dollar index rose as the "Sell USA" trend reversed. According to CME FedWatch, the market reflects a 95.0% probability of a rate freeze in January. The VIX fell 15.88% to 16.90.
[Featured Stocks & Analyst Reports]
■ Alphabet (GOOGL)
Target Hike: UBS raised its target to $345 (Hold), citing a late-quarter recovery in advertising demand for Search and YouTube.
Quantum Lead: UBS highlighted progress on the "Willow" quantum chip, noting its ability to handle benchmarks in significantly shorter timeframes.
■ Micron Technology (MU)
Taiwan Expansion: Announced a $1.8 billion all-cash deal to acquire a Taiwan semiconductor fab from PSMC. The deal is set to close in H2 2026, boosting DRAM wafer production starting in H2 2027.
Target Hike: Target raised to $360 (Buy) due to expected synergies with its nearby Taichung facility.
■ FedEx (FDX)
Top Pick: BofA named FedEx a Top Pick for 2026 ($365 PT), expecting profitability gains from network integration and the potential spin-off of the FedEx Freight segment.
■ Chevron (CVX)
Energy Powerhouse: JP Morgan maintained an Overweight rating ($176 PT). Synergy from the Hess (HES) acquisition hit $1 billion, and 2026 cost-cutting goals were raised to $4 billion. FCF from Guyana and Kazakhstan is projected to hit $11B through 2027.
■ Caterpillar (CAT)
Infra Boom: Oppenheimer raised its target to $700 (Outperform), noting that data center and infrastructure construction cycles are accelerating ahead of the midterm elections.
■ Banking Sector: Mixed Earnings
Bank of America (BAC): Target cuts (MS, Evercore, Truist, Cowen) due to accounting changes and lack of clarity on mid-term cost-efficiency targets.
Goldman Sachs (GS): Target hikes (up to $1,100) from BofA and Wells Fargo, citing the strongest M&A and IPO pipeline in four years.
Morgan Stanley (MS): Target raised to $210 (KBW) following record pre-tax margins (31.0%) in its wealth management division.
Wells Fargo (WFC): Target cut to $105 (Evercore) on lower NII and higher provisions.
Citigroup (C): Target raised to $144 (Oppenheimer) on cost-ratio improvement.
[Semiconductor & Tech Outlook]
■ TSMC (TSM)
AI TAM Upgrade: BofA raised its target to $470, noting TSMC’s upgraded 5-year CAGR forecast of 25%. Capex for 2026 is guided at $52B–$56B, potentially rising to $58B in 2027.
■ SanDisk (SNDK) & Seagate (STX)
Storage Surge: Citi raised SanDisk to $490 on strong AI inference demand. Seagate received major target hikes (up to $400) as AI increases the value of high-capacity HDDs and HAMR technology.
■ Intel (INTC)
Upgraded: HSBC raised Intel to Neutral ($50 PT), projecting 2026 server shipments to beat consensus by 15-20% due to AI Agent demand for versatile CPUs.
[Other Sector Highlights]
■ Lithium (ALB, LAR): HSBC upgraded both to Buy, predicting a supply deficit as demand growth outpaces supply.
■ Netflix (NFLX): Wolfe Research cut its target to $95 due to an expected 10% increase in content spending.
■ Johnson & Johnson (JNJ): Forecasted 2026 revenue to beat estimates despite drug price-cut deals with the administration.
■ Halliburton (HAL): Reported a surge in net income ($589M) and doubled operating income ($746M) driven by international growth.
■ Intuitive Surgical (ISRG): Faced pressure after setting 2026 procedure growth guidance below expectations at 13–15%.
■ Tesla (TSLA) vs. BYD: Wells Fargo noted that DRAM supply shortages will hit the auto sector, with BYD seen as more defensive against rising memory costs.
■ Lucid (LCID): Shares surged on a partnership with Rockwell Automation for factory software.
■ Abercrombie & Fitch (ANF): Citi upgraded to Buy ($135 PT), viewing the recent 17% drop as a buying opportunity.
[After-Hours & Special Updates]
■ Apple (AAPL)
AI Wearable Leak: Reports suggest Apple is developing a "Pin"-style AI wearable similar in size to an AirTag. It reportedly features dual cameras (Standard/Wide), speakers, and mics for surrounding environment analysis. Launch is possible by 2027, with an initial production goal of 20 million units.
■ AppLovin (APP)
Rebutting Short Sellers: AppLovin issued a strong denial against a short report from Capital Watch alleging involvement in money laundering networks. AppLovin stated it cannot control who buys its shares on the open market and denied claims that its AXON algorithm is used for illicit activities.
■ Kinder Morgan (KMI)
Record Earnings: Beat Q4 EPS and revenue estimates, achieving record annual net income and EBITDA. Shares rose in after-hours trading.
■ Miscellaneous:
■ Knight-Swift (KNX): Fell 2% on an EPS miss ($0.31 vs. $0.36 est).
■ GameStop (GME): Rose 3% after CEO Ryan Cohen increased his stake for the second consecutive day.
