The U.S. services sector continued to grow in January 2025, though at a slower pace than expected, highlighting uncertainty as businesses brace <a href="https://www.benzinga.com/news/econ-s">for potential tariff impacts.</a>



The latest survey from the Institute for Supply Management revealed that the Services PMI fell to 52.8% in January, down from 54% in December, and below the 54.3% forecast by economists, as per TradingEconomics. While expansion persists, the slowdown suggests businesses are feeling pressure from rising costs and trade policy uncertainties.



Despite the overall softness, January marked the second consecutive month in which all four key subindexes—Business Activity, New Orders, Employment, and Supplier Deliveries—remained in expansion territory. 



Yet, concerns over tariffs weighed on sentiment.



"Many panelists also mentioned preparations or concerns related to potential U.S. government tariff actions," said Steve Miller, chair of ISM's survey committee. 



Industry respondents echoed these worries, with contacts in professional, scientific and technical Services indicating that the threat of tariffs is leading to higher price pressures. Respondents in real estate, rental, and leasing flagged concerns about the cost of materials and project work going forward.



Weather-related disruptions also emerged as a possible factor affecting business activity and production levels, according to the survey.



<h3 class="wp-block-heading">Key ISM Services PMI Data – January 2025</h3>



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><thead><tr><th>Index Series</th><th>Jan 2025</th><th>Dec 2024</th><th>Change</th><th>Direction</th><th>Rate of Change</th></tr></thead><tbody><tr><td>Services PMI</td><td>52.8</td><td>54.0</td><td>-1.2</td><td>Growing</td><td>Slower</td></tr><tr><td>Business Activity/Production</td><td>54.5</td><td>58.0</td><td>-3.5</td><td>Growing</td><td>Slower</td></tr><tr><td>New Orders</td><td>51.3</td><td>54.4</td><td>-3.1</td><td>Growing</td><td>Slower</td></tr><tr><td>Employment</td><td>52.3</td><td>51.3</td><td>+1.0</td><td>Growing</td><td>Faster</td></tr><tr><td>Supplier Deliveries</td><td>53.0</td><td>52.5</td><td>+0.5</td><td>Slowing</td><td>Faster</td></tr><tr><td>Inventories</td><td>47.5</td><td>49.4</td><td>-1.9</td><td>Contracting</td><td>Faster</td></tr><tr><td>Prices</td><td>60.4</td><td>64.4</td><td>-4.0</td><td>Increasing</td><td>Slower</td></tr><tr><td>Backlog of Orders</td><td>44.8</td><td>44.3</td><td>+0.5</td><td>Contracting</td><td>Slower</td></tr><tr><td>New Export Orders</td><td>52.0</td><td>50.1</td><td>+1.9</td><td>Growing</td><td>Faster</td></tr></tbody></table></figure>



<h3 class="wp-block-heading">Labor Market Remains Strong In Services Sector</h3>



The job market in service-related industries remained resilient, with private employers adding 190,000 jobs in January, according to <a href="https://www.benzinga.com/25/02/43494246/private-employment-rises-by-183000-beats-estimates-in-january-consumer-facing-industries-drove-hiring">the ADP National Employment Report.</a> 



In contrast, goods-producing industries shed 6,000 jobs, signaling a stark divide between the two sectors.



Within services, trade, transportation, and utilities led hiring with 56,000 new jobs, while leisure and hospitality closely followed, adding 54,000 positions. 



This data underscores the continued strength of consumer-driven industries, even amid broader economic uncertainty.



&#8220;Consumer-facing industries drove hiring, while job growth was weaker in business services and production,&#8221; said ADP chief economist Nela Richardson. 



<h3 class="wp-block-heading">Market Reactions: Stocks Fall, Gold Shatters Records</h3>



Stocks negatively reacted following the publications of the ISM Services PMI report, with the S&amp;P 500 index – tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) – further sliding into negative territory, down 0.5% by 10:20 a.m. ET. 



Tech stocks – tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) – were 0.6% lower, as Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) fell 8.4%, and Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) was down 10%, weighing on tech-heavy indices.



Outside of Wall Street, gold continued to shine, further extending its all-time highs to $2,875 per ounce. The SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) has now rallied 8.7% year-to-date, with the bullion marking the strongest start to the year since 1980. 



Treasury yields fell, particularly on longer-dated maturities, with yields on the 30-year Treasury down 8 basis points to 4.72%. The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) rallied 1.4%, eyeing its third straight session of gains. 



Other than weaker investor sentiment on risky assets, Treasuries benefited from safe-haven demand after President Donald Trump escalated tariff disputes with China and proposed a U.S.-led redevelopment plan for Gaza.



Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) was flat at $98,400. 



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<li><a href="https://www.benzinga.com/news/earnings/earnings-beats/25/02/43496870/janus-henderson-is-a-turnaround-story-with-growing-suite-of-fixed-income-etfs-analyst">Janus Henderson Is A &#8216;Turnaround Story&#8217; With Growing Suite Of Fixed Income ETFs: Analyst</a></li>
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GOOGL

US Services Growth Slows In January As Tariff Concerns Mount

A 25-year-old engineer with ties to <a href="https://www.benzinga.com/topic/elon-musk">Elon Musk's companies </a>has been granted extensive access to critical U.S. Treasury Department payment systems, raising alarm among government officials and cybersecurity experts.



Marko Elez, a former <a href="https://www.benzinga.com/topic/spacex">SpaceX</a> &nbsp;and X employee, has administrator-level privileges on two of the government's most sensitive financial systems, the <a href="https://fiscal.treasury.gov/pam/">Payment Automation Manager</a> and the <a href="http://Secure Payment System">Secure Payment System</a>, which pay government bills and keeps personal data and credit card details confidential, respectively. Between the two of them, they control over a fifth of the U.S. economy.



Elez's permissions, according to three sources cited by <a href="https://www.wired.com/story/elon-musk-associate-bfs-federal-payment-system/">WIRED</a>, which first reported this story, extend beyond read-only access, allowing him to write code on these systems that are housed within the Bureau of the Fiscal Service (BFS).



"You could do anything with these privileges," a source familiar with the system told WIRED. A federal IT worker also told the outlet that, "A week ago, I'd have told you this could never happen. But now, who the f &#x2A;&#x2A;k knows."



<h2 class="wp-block-heading">Concerns Over Data Transfers And Political Manipulation</h2>



Sources say they fear that Elez and others tied to Musk's <a href="https://www.benzinga.com/topic/department-of-government-efficiency">Department of Government Efficiency</a> (DOGE) may funnel sensitive data to operatives within the General Services Administration (GSA). Investigations by WIRED suggest that Musk's associates, including several former Tesla and X engineers, have already gained access to the GSA using White House security credentials to access its systems in what experts call a severe security risk.



<h2 class="wp-block-heading">Why It Matters Quite A Bit</h2>



The BFS processes payments for crucial government programs, including Social Security, veteran benefits and federal tax returns, which amounted to $5.45 trillion in fiscal year 2024. Lawmakers also worry that DOGE's access could allow political interference with these payments. 



On Monday, Senate Minority Leader Chuck Schumer (D-NY) <a href="https://www.youtube.com/live/n9D7WkbdUjw" target="_blank" rel="noreferrer noopener">said</a> &#8220;before our very eyes, an unelected shadow government is conducting a hostile takeover of the federal government.&#8221;



In a <a href="https://democrats-intelligence.house.gov/uploadedfiles/rm_letter_to_potus_signed.pdf">letter</a> to President Donald Trump on Tuesday, seven ranking members of House committees demanded explanations as to whether members of DOGE have security clearances, whether they have accessed classified or sensitive information and which government agencies they are working with, <a href="https://www.news5cleveland.com/politics/president-trumps-first-100-days/congress-asks-trump-to-explain-what-elon-musk-and-doge-are-doing-at-federal-agencies">reported</a> News 5 Cleveland.



<h2 class="wp-block-heading">Political Fallout Is Just Beginning: Dems Where Are You?</h2>



The growing dispute over DOGE's access to Treasury systems has already led to high-level resignations. Acting Treasury Secretary David Lebryk, a career Treasury official who clashed with DOGE <a href="https://in.benzinga.com/25/02/43442302/elon-musk-says-elizabeth-warren-is-meddling-with-trillions-in-us-treasury-via-his-unqualified-flunkies">resigned last week</a>.



Meanwhile, <a href="https://www.benzinga.com/topic/alexandria-ocasio-cortez">Alexandria Ocasio-Cortez </a>said, &#8220;No Democrat should be voting to advance [President Donald] Trump&#8217;s nominees while all of this stuff is going on,&#8221; in a 90-minute Instagram Live <a href="https://www.instagram.com/aoc/reel/DForuR_R7AA/">video</a>. &#8220;There has to be a political price to pay and we have a responsibility as a party to block everything that is happening while they&#8217;re setting a literal match to the federal government.&#8221;



Now Read:



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<li><a href="https://www.benzinga.com/25/02/43484737/chatgpt-maker-openais-future-hangs-in-the-balance-as-judge-says-musks-lawsuit-will-partially-proceed-to-trial">ChatGPT-Maker OpenAI&#8217;s Future Hangs In The Balance As Judge Says Elon Musk&#8217;s Lawsuit Will Partially Go To Trial</a></li>
</ul>



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Ex-SpaceX Engineer With Musk Ties Granted High-Level Treasury Access — Lawmakers Raise Red Flags

Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) shares are trading lower Wednesday. New reports indicate Chinese antitrust officials are preparing a potential probe into Apple&#8217;s policies and <a href="https://www.benzinga.com/25/02/43474095/apples-app-store-booms-as-chatgpt-productivity-apps-drive-revenue-growth-analyst-says">App Store fees</a>.



What To Know: The State Administration for Market Regulation is looking into Apple&#8217;s App Store policies including the fees it charges on in-app spending and the payment services the company makes available to App Store users, according to <a href="https://www.bloomberg.com/news/articles/2025-02-05/china-weighs-investigating-apple-over-app-store-policies-fees-including-30-cut?srnd=homepage-americas">Bloomberg</a>. 



People familiar with the matter reportedly said Chinese regulators have held talks with Apple executives and App Store developers since last year. The talks are reportedly focused on disputes between Apple and Chinese developers of popular apps. 



Although the talks reportedly began before U.S. President Donald Trump took office, the news comes amid rising trade tensions between the U.S. and China after Trump announced sweeping 10% tariffs on all Chinese imports. China responded with tariffs of its own. The country also launched a formal probe into Google on Tuesday within seconds of the U.S. tariffs going into effect. 



People familiar with the matter said China could launch a formal probe against Apple if the company pushes back against changes. Chinese regulators reportedly believe Apple may be charging &#8220;unreasonably high&#8221; fees and hurting competition through the barring of third-party app stores and payment methods. 



See Also: <a href="https://www.benzinga.com/markets/25/02/43495161/more-than-half-of-bill-gates-portfolio-is-tied-up-in-just-two-stocks#google_vignette">More Than Half Of Bill Gates Portfolio Is Tied Up In Just Two Stocks</a>



Last year, Apple overhauled its App Store practices in the European Union to comply with <a href="https://www.benzinga.com/news/24/03/37461571/apple-stock-is-falling-monday-whats-going-on">new requirements</a> under the Digital Markets Act. The European Commission fined Apple more than 1.8 billion euros ($1.95 billion) for preventing companies from sharing payment options outside of Apple's App Store. Apple has said it plans to challenge the ruling.



Apple has heavy exposure to China as it manufactures most of its iPhones in the country. China is also the second-biggest market for smartphones, computing and AI products after the U.S. 



Apple <a href="https://www.benzinga.com/news/earnings/25/01/43355688/apple-q1-earnings-revenue-beat-eps-beat-iphone-sales-slip-installed-base-climbs-to-all-time-high-our-best-quarter-ever">reported</a> $18.51 billion in fourth-quarter Greater China sales last week, down from $20.82 billion in the prior year&#8217;s quarter. 



AAPL Price Action: <a href="http://benzinga.com/quote/aapl">Apple shares</a> were down 1.54% at $229.35 at the time of publication Wednesday, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.



Photo: Shutterstock.

Global

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AAPL

Apple Stock Is Sliding Wednesday: What's Driving The Action?

Private employers created 183,000 new jobs in January 2025, marking a slight acceleration from December&#8217;s upwardly revised 176,000 and beating market <a href="https://www.benzinga.com/news/econ-s">expectations of 150,000. </a>



The ADP National Employment Report, released Wednesday by Automatic Data Processing Inc., highlighted continued resilience in the private labor market ahead of Friday's highly anticipated non-farm payrolls report from the Bureau of Labor Statistics. Economists expect the government report to show a slowdown in hiring, with forecasts predicting a decline from December's 256,000 to 170,000 new jobs.



Nela Richardson, ADP&#8217;s chief economist, said: &#8220;We had a strong start to 2025 but it masked a dichotomy in the labor market. Consumer-facing industries drove hiring, while job growth was weaker in business services and production.&#8221;



<h3 class="wp-block-heading">Where Did Jobs Grow in January?</h3>



The latest data revealed a divergence in job creation, with gains concentrated in service-providing industries, while goods-producing sectors continued to lag.



Goods-producing industries shed 6,000 jobs in January, driven by a 13,000 payroll reduction in manufacturing. This marked the fourth consecutive month of job losses in the sector.



Service-providing industries, on the other hand, added 190,000 positions. Trade, transportation, and utilities led the way with 56,000 new jobs, while leisure and hospitality followed closely, adding 54,000 positions.



December&#8217;s private employment growth was also revised upward to 184,000, exceeding the consensus estimate of 150,000 tracked by TradingEconomics.



The ADP report signaled ongoing moderation in wage growth. Pay increases for job stayers in January edged up 4.7% year-over-year, while job changers saw salary gains of 6.8%, down from 7.1% in December.



These figures suggest that while the labor market remains strong, wage pressures are easing—a key factor for the Federal Reserve as it assesses the timing of potential interest rate cuts in 2025.



<h3 class="wp-block-heading">Market Reactions</h3>



The U.S. Dollar Index (DXY) – as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) – inched slightly higher minutes after the release, trimming losses for the day. 



Futures on major U.S. indices edged lower during premarket trading in New York. The SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was 0.4% lower by 8:25 a.m. ET. 



Shares of Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) were 2.4% and 7.2% lower, respectively, weighing on tech-heavy indices. 



Gold – tracked by SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) – continued to extend record highs, with the bullion rising to $2,870 per ounce, approaching double-digit gains year-to-date. 



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<li><a href="https://www.benzinga.com/news/earnings/25/02/43489453/us-stocks-likely-to-open-lower-following-alphabet-amd-earnings-walt-disney-uber-ford-qualcomm-in-focus">US Stocks Likely To Open Lower Following Alphabet, AMD Earnings: Walt Disney, Uber, Ford, Qualcomm In Focus</a></li>
</ul>



Photo: Shutterstock

Specialty ETFs

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Forex

Federal Reserve

Private Employment Rises By 183,000, Beats Estimates In January: 'Consumer-Facing Industries Drove Hiring'

Walt Disney Co&nbsp;(NYSE:&nbsp;DIS)&nbsp;reported fiscal first-quarter&nbsp;2025 revenue growth of 5% year-on-year to $24.70 billion, beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/25/02/b43489835/the-walt-disney-company-reports-first-quarter-earnings-for-fiscal-2025" rel="noreferrer noopener">analyst consensus of $24.62 billion</a>. Adjusted EPS of $1.76 beat the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst consensus of $1.45</a>.



Disney ended the quarter with 178 million Disney+ Core and Hulu subscriptions and 125 million Disney+ Core paid subscribers, a decrease of 0.7 million over the prior quarter.



Also Read: <a target="_blank" href="https://www.benzinga.com/government/regulations/25/02/43458397/sam-altman-in-korea-openai-seeks-ai-deals-with-samsung-sk-hynix-and-softbank-amid-global-ai-boom" rel="noreferrer noopener">Sam Altman in Korea: OpenAI Seeks AI Deals With Samsung, SK Hynix, and SoftBank Amid Global AI Boom</a>



Segments: Entertainment revenue (which encompasses traditional TV networks,&nbsp;direct-to-consumer streaming, and films) increased by 9% year over year to $10.87 billion.



Sports revenue (mostly comprised of ESPN) remained flat year over year at $4.85 billion. Experiences revenue (including Disney&#8217;s theme parks and consumer products) climbed 3% year over year to $9.42 billion.



In the Entertainment segment, Linear Networks revenue declined by 7% year over year to $2.62 billion, Direct-to-Consumer revenue climbed 9% year over year to $6.07 billion, and Content Sales/Licensing and Other revenue grew by 34% year over year to $2.18 billion.



The combined DTC streaming businesses improved their profitability with an operating income of $293 million on revenue of $6.07 billion (up by 9% year over year).



Moana 2 and Mufasa: The Lion King&nbsp;helped drive $312 million in operating income at Content Sales/Licensing and Other in the quarter.



The average revenue per user for domestic Disney+ customers increased from $7.20 during the September 28 quarter to $7.55 due to a higher mix of customers on its cheaper, ad-supported tier.&nbsp;



The consolidated operating income grew 31% year over year to $5.06 billion, led by the Entertainment segment&#8217;s $1.70 billion, the Sports segment&#8217;s $247 million, and the Experiences segment&#8217;s $3.11 billion.



Disney generated a quarterly operating cash flow of $3.21 billion (up 47% year over year) and a free cash flow of $739 million (down 17% year over year).



CEO Robert A. Iger flagged outstanding box office performance from its studios, which had the top three movies of 2024, profitability boost of its Entertainment DTC streaming businesses, and the addition of ESPN tile on Disney+.



Outlook:&nbsp;For fiscal 2025, Disney reiterated <a target="_blank" href="https://www.benzinga.com/24/11/41971559/disneys-q4-boosted-by-streaming-gains-strong-box-office-and-solid-parks-performance" rel="noreferrer noopener">high-single-digit</a> growth in adjusted earnings per share (EPS) compared to 2024 versus a <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">consensus of $5.41</a>.



The company aims to generate around $15 billion in operating cash flow.



It expects double-digit growth in operating income for the Entertainment segment in fiscal 2025, with an increase in DTC operating income of around $875 million.



Disney expects its Experience segment to see operating income growth of 6%-8% in fiscal 2025.



The company expects its Sports segment to grow 13% in fiscal 2025.



Price Actions: DIS stock is down 0.88% at $112.30 premarket at&nbsp;the last check on Wednesday.



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<li><a href="https://www.benzinga.com/25/02/43444802/comcast-downgraded-as-broadband-struggles-and-price-cuts-raise-investor-concerns" target="_blank" rel="noreferrer noopener">Comcast Faces Broadband Headwinds, Analyst Downgrades Stock And Cuts Price Forecast</a></li>
</ul>



Photo bychingyunsong via Shutterstock

Earnings

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Disney Q1 Earnings: Revenue And EPS Beat, Moana 2 and Mufasa Power Operating Income, 700K Drop In Streaming Subscribers

On Wednesday, Novo Nordisk A/S (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVO#NYSE">NVO</a>) reported sales of roughly $12.25 billion (85.68 billion Danish kroner) for the fourth quarter of 2024, beating the consensus of $11.34 billion (79.73 billion Danish Kroner).



Sales increased by 30% in Danish kroner and at CER compared to 2023.



GLP-1 diabetes sales increased by 12% at CER to 42.17 billion Danish kroner, and Obesity care sales increased by 91% at <a target="_blank" href="https://www.benzinga.com/25/02/43459558/novo-nordisk-faces-investor-concerns-over-hybrid-cagrisema-trial-results-for-weight-loss" rel="noreferrer noopener">CER to 21.41 billion Danish kroner</a>.



Ozempic <a target="_blank" href="https://www.novonordisk.com/content/nncorp/global/en/news-and-media/news-and-ir-materials/news-details.html?id=915255" rel="noreferrer noopener">sales</a> increased 12% to 33.85 billion Danish kroner, and Wegovy sales more than doubled <a target="_blank" href="https://www.benzinga.com/general/biotech/25/02/43475491/novo-nordisk-stock-q4-earnings-analysts-68-upside" rel="noreferrer noopener">to 19.87 billion Danish kroner</a>.



Insulin sales increased 36% to 15.9 billion Danish kroner, and Rare disease sales increased 25% at CER to 5.71 billion Danish kroner.



Also Read: <a target="_blank" href="https://www.benzinga.com/general/health-care/25/01/43321236/rfk-jr-and-big-pharma-stocks-to-watch-as-health-secretary-hopeful-answers-pointed-questions-on-drugs-insurance-trump-exec-orders" rel="noreferrer noopener">RFK Jr. And Big Pharma: Health Secretary Hopeful Answers Pointed Questions On Drugs, Insurance, Trump Exec Orders</a>



The Danish pharmaceutical giant&#8217;s net profit increased by 29% to 28.23 billion kroner, with EPS of 6.34 Danish kroner, up 29%, beating the consensus of 5.82 Danish kroner. In USD terms, EPS of $0.91 beat $0.83 consensus.



In its earnings release, Novo Nordisk outlined its plans to conduct a new phase 3 trial in 2025 to further explore <a target="_blank" href="https://www.benzinga.com/24/12/42613036/novo-nordisks-hybrid-weight-loss-drug-falls-short-on-expectations-stock-plunges" rel="noreferrer noopener">CagriSema&#8217;s weight-loss potential</a>.



The results from the second pivotal phase 3 trial, REDEFINE 2, of CagriSema in adults with type 2 diabetes and either obesity or overweight are expected during the first quarter of 2025



To secure <a target="_blank" href="https://ml-eu.globenewswire.com/Resource/Download/365675dd-10f3-4293-9aec-ede9f63375c6" rel="noreferrer noopener">supply</a> chain readiness, the company now expects to file for the first regulatory approval of CagriSema during the first quarter of 2026.



Guidance: Novo Nordisk expects sales growth of between 16% and 24% in constant exchange rates this year, lower than the 26% achieved in 2024.



&#8220;In 2025, we will continue our focus on commercial execution, on the progression of our early and late-stage R&amp;D pipeline and on the expansion of our production capacity,&#8221; Chief Executive Lars Fruergaard Jorgensen said.



The company expects 2025 operating profit growth of 19% to 27% in constant exchange rates.



Novo Nordisk adds that the outlook reflects expected continued periodic supply constraints and related drug shortage notifications across several products and geographies. Novo Nordisk is investing in internal and external capacity to increase supply in the short and long term.



Price Action: At last check on Wednesday, NVO stock was up 3.09% at $85.17 during the premarket session.



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Photo via Shutterstock

Biotech

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Novo Nordisk Q4 Earnings: Wegovy Sales More Than Double, Seeks Regulatory Approval For Hybrid Weight Loss Drug In 2026

Advanced Micro Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) saw its shares drop nearly 8% in Wednesday&#8217;s pre-market trading following a less-than-stellar growth forecast for its data center revenue. The company announced its results after the market close on Feb.4.



What Happened: The company&#8217;s data center division, its largest revenue contributor, generated $3.9 billion in the fourth quarter, falling short of the projected $4.1 billion. The company attributed the increase to strong sales of both its Instinct GPUs and EPYC CPUs, which rival Intel Corporation&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) processors.



The company also anticipates data center revenue for the first quarter of 2025 in the range of $6.8 billion to $7.4 billion. However, it trailed the analysts&#8217; forecasts of $7.01 billion, leading to a decline in the stock price. 



Additionally, the company&#8217;s gaming and embedded revenues saw significant declines, which may have contributed to the dip in AMD&#8217;s stock.



AMD reported fourth-quarter adjusted earnings per share of $1.09 on revenue of $7.66 billion, slightly beating Wall Street&#8217;s forecasts. Meanwhile, the client segment, which includes PC chips, outperformed expectations with $2.3 billion in revenue.



SEE ALSO: <a href="https://www.benzinga.com/markets/equities/25/01/43376506/intel-will-be-fighting-for-every-socket-in-the-data-center-business-says-co-ceo-michelle-holthaus-as-competition-from-amd-nvidia-heats-up">Intel &#8216;Will Be Fighting For Every Socket&#8217; In The Data Center Business, Says Co-CEO Michelle Holthaus As Competition From AMD, Nvidia Heats Up</a>



Why It Matters: The recent performance of AMD&#8217;s shares can be understood in the context of the company&#8217;s ongoing struggles and restructuring efforts. The company announced <a href="https://www.benzinga.com/markets/equities/25/02/43488193/amd-merges-client-gaming-segments-after-59-drop-in-gaming-revenue-aims-to-align-reporting-with-business-focus">plans to merge</a> its client and gaming segments following a 59% year-on-year decline in gaming revenue. This restructuring is set to begin in the first quarter of 2025. 



AMD is currently battling for AI market share against Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), a leader in high-powered AI chip sales while also facing stiff competition from Qualcomm Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>). Over the last year, AMD shares have fallen over 31%, while rival Nvidia&#8217;s shares have surged 70%, while Qualcomm climbed nearly 20%, according to data from <a href="http://pro.benzinga.com">Benzinga Pro.</a>



CEO Lisa Su forecasted a "strong double-digit percentage revenue and EPS growth" for 2025 for AMD&#8217;s AI and data center. However, she cautioned that AI chip sales in early 2025 will be comparable to late 2024 before accelerating in the second half. 



<ul>
<li>READ MORE: <a href="https://www.benzinga.com/insights/news/25/01/43160460/a-look-into-qualcomm-incs-price-over-earnings">A Look Into Qualcomm Inc&#8217;s Price Over Earnings</a></li>
</ul>

Markets

INTC

NVDA

QCOM

AMD Stock Falls 8% In Wednesday Pre-Market: What's Going On?

U.S. stock futures declined on Wednesday after Tuesday&#8217;s advances amid trade war concerns and major earnings reports. Three benchmark indices were trading lower, whereas the gauge tracking small-cap stocks, Russell 2000 rose marginally.



Walt Disney Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>), Qualcomm Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>), Uber Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>), and TotalEnergies SE (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TTE#NYSE">TTE</a>) are a few major companies expected to report earnings today.



The 10-year Treasury yield stood at 4.47%, while the two-year yield was at 4.19%. According to the CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>, there is an 83.5% chance that the Federal Reserve will keep interest rates unchanged for the March meeting. 



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Nasdaq 100</td><td>-0.92%</td></tr><tr><td>S&amp;P 500</td><td>-0.55%</td></tr><tr><td>Dow Jones</td><td>-0.23%</td></tr><tr><td>Russell 2000</td><td>0.06%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) both experienced negative premarket trading on Wednesday. SPY fell 0.51% to $598.73, and QQQ declined 0.87% to $519.92, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From The Last Session



Tech, Energy, and Communication Services sectors led U.S. stock gains Tuesday, despite geopolitical tensions and trade uncertainties. Utilities and consumer staples declined.



Spotify Technology SA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) shares jumped 13% on strong earnings, while Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) soared 24% on better-than-expected results.



China retaliated against U.S. tariffs with restrictions on mineral exports and tariffs on energy products. Job openings fell to 7.6 million, below estimates, and factory orders declined 0.9%.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>1.35%</td><td>19,654.02</td></tr><tr><td>S&amp;P 500</td><td>0.72%</td><td>6,037.88</td></tr><tr><td>Dow Jones</td><td>0.30%</td><td>44,556.04</td></tr><tr><td>Russell 2000</td><td>1.41%</td><td>2,290.20</td></tr></tbody></table></figure>



Insights From Analysts



According to the analysts at BlackRock, the recent artificial intelligence developments raise questions about AI investment and revenue.



As markets learn about the ongoing transformation, BlackRock is using a framework as key for tracking big structural shifts, given a widening range of market outcomes.



&#8220;We use our three-phase framework – buildout, adoption, transformation – to track AI,&#8221; its note stated. Adding that &#8220;We see a broadening set of AI beneficiaries and stay overweight U.S. stocks.&#8221;



Talking about the tariffs, BlackRock opined, &#8220;This marks an escalation in trade protectionism, and we think that some level of tariffs is likely to remain in place over time. Uncertainty is high on how the trade dispute will play out on supply chains, growth and inflation.&#8221;



Highlighting that 80% of Mexico's exports and 70% of Canadian exports come to the U.S., the VP and global macro strategist at Carson Research, Sonu Varghese said &#8220;This asymmetric dependency is perhaps what Trump is hoping to leverage — to get them both at the table, and extract concessions.&#8221;



According to Varghese, China&#8217;s economy is becoming less reliant on trade, with trade now accounting for less than 40% of its economy, down from 60% two decades ago. Trade with the U.S. has also decreased, especially in areas affected by tariffs in 2018-2019.



However, China has circumvented these tariffs by increasing trade with other countries. China&#8217;s share of global trade has increased since 2016.



&#8220;This means the U.S. has much less leverage over China, relative to Canada and Mexico. But this is why there is a possibility of seeing universal tariffs,&#8221; to prevent China from circumventing them, he added.



Upcoming Economic Data



Here&#8217;s what investors will keep an eye on Wednesday:



<ul>
<li>January&#8217;s ADP employment data will be out at 8:15 a.m., and December&#8217;s U.S. trade deficit data will be released at 8:30 a.m., ET.</li>
</ul>



<ul>
<li>Richmond Fed President Tom Barkin will speak at 9:00 a.m., ET.</li>
</ul>



<ul>
<li>January&#8217;s S&amp;P final U.S. services PMI will be announced at 9:45 a.m. and ISM services data will be out by 10:00 a.m., ET.</li>
</ul>



<ul>
<li>Chicago Fed President Goolsbee will speak at 1:00 p.m., Fed Governor Michelle Bowman will speak at 3:00 p.m., and Fed Vice Chairman Philip Jefferson will speak again at 7:30 p.m., ET.</li>
</ul>



Stocks In Focus:



<ul>
<li>Walt Disney Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) was down 0.05% in the premarket on Wednesday ahead of its earnings before the opening bell. Analysts expect it to report quarterly earnings of $1.45 per share on revenue of $24.62 billion.</li>
</ul>



<ul>
<li>Uber Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>) rose 0.19% as Wall Street expects it to report quarterly earnings of 50 cents per share on revenue of $11.77 billion before the opening bell.</li>
</ul>



<ul>
<li>Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) declined 0.1% as it is expected to report earnings after market closes. According to Benzinga's consensus estimates, the company is expected to report earnings of 33 cents per share on revenue of $43.25 billion.</li>
</ul>



<ul>
<li>Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) was down 6.95% as it reported better-than-expected fourth-quarter earnings, while sales missed estimates. Google Cloud revenue was up 30% year-over-year to $12 billion.</li>
</ul>



<ul>
<li>Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) slipped 8.49% after the underperformance of its highly anticipated data center business. Whereas fourth quarter earnings and sales were upbeat.</li>
</ul>



<ul>
<li>Qualcomm Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) dropped 0.37%, TotalEnergies SE (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TTE#NYSE">TTE</a>) gained 1.49%, MicroStrategy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) fell 1.22% and Cognizant Technology Solutions Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CTSH#NASDAQ">CTSH</a>) was up 0.01% ahead of its earnings today.</li>
</ul>



Commodities, Gold And Global Equity Markets:



Crude oil futures were trading lower in the early New York session by 1.02% to hover around $71.96 per barrel.



The gold spot index was up by 1.04% to $2,871.52 per ounce. The Dollar Index was down 0.38% at 107.545 level.



Asian markets were mixed on Wednesday as China's CSI 300, and Hong Kong's Hang Seng index declined. Whereas, Australia's ASX 200, South Korea's Kospi, and Japan's Nikkei 225 index advanced. European markets were mostly lower in trade.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/general/market-summary/25/02/43487630/trump-media-or-trump-coin-where-have-investors-lost-more-money-since-the-47th-president-entered-the-white-house">Trump Media Or Trump Coin: Where Have Investors Lost More Money Since The 47th President Entered The White House?</a></li>
</ul>



Photo courtesy: Shutterstock

Pre-Market Outlook

Analyst Ratings

CTSH

MSTR

PLTR

SPOT

UBER

US Stocks Likely To Open Lower Following Alphabet, AMD Earnings: Walt Disney, Uber, Ford, Qualcomm In Focus

Piper Sandler&#8217;s research dated Feb. 4 has revealed a less optimistic outlook for Meta Platforms Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) position in the artificial intelligence race. This comes as its CEO Mark Zuckerberg during Meta&#8217;s fourth-quarter <a href="https://www.benzinga.com/markets/25/01/43326499/mark-zuckerberg-says-chinas-deepseek-did-some-novel-things-were-still-digesting-but-meta-may-keep-pouring-billions-into-ai-infrastructure-anyway">earnings call</a> stated that they are &#8220;still digesting&#8221; some of the &#8220;novel things&#8221; Chinese AI startup <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43382103/experts-say-deepseek-proves-high-performance-ai-possible-without-silicon-valleys-spending">DeepSeek</a> has done.



Analyst Takeaways: The note, based on insights from a data center engineering expert, suggests that while DeepSeek is ahead of Meta&#8217;s latest Llama model, it still lags behind leading AI labs like OpenAI and Anthropic by about six months.



&#8220;In terms of the tricks and methodology applied by DeepSeek, the leading labs such as OpenAI and Anthropic are fully aware of such methodologies and also employ these but such is not the case of Meta which is clearly behind,&#8221; the note added.



The expert also downplayed the significance of DeepSeek&#8217;s reported $5.6 million training run for its R1 model, noting that a comparable run at OpenAI would likely cost around $10 million, making DeepSeek&#8217;s &#8220;cost not so impressive relative to the U.S.&#8221; The note also suggested that OpenAI&#8217;s runs are likely more &#8220;comprehensive&#8221; and &#8220;secure&#8221;.



The Piper Sandler note highlights several key trends in the AI landscape:



<ul>
<li>Increasing Compute Requirements: The demand for compute power is escalating rapidly, especially for inference applications, which are crucial for monetization. This trend is expected to drive significant capital expenditure increases.</li>
</ul>



<ul>
<li>Winners In The Capex Race: Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Taiwan Semiconductor Mfg. Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) are identified as the primary beneficiaries of this capex surge, due to their dominance in graphics processing units and chip manufacturing, respectively.</li>
</ul>



<ul>
<li>Shift Towards Inference: Leading AI labs are predicted to allocate an increasing proportion of their compute resources to inference, potentially reaching 90% in the near future.</li>
</ul>



<ul>
<li>DeepSeek&#8217;s Impact On Capex: DeepSeek&#8217;s cheaper training methods could lead to wider adoption of AI models, further fueling the demand for inference and driving capex.</li>
</ul>



<ul>
<li>Talent Drain At Meta: The report suggests that Meta&#8217;s lag in the AI race may be attributed to &#8220;largely HR related&#8221; issues, including compensation and equity attractiveness compared to competitors like OpenAI.</li>
</ul>



The Analyst: Piper Sandler analysts Harsh V Kumar and Robert Aguanno, who cover the semiconductor sector, have given &#8220;overweight&#8221; ratings to three companies: Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) with a price target of $180, Micron Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) with a price target of $120, and Nvidia with a price target of $175.



See Also: <a href="https://www.benzinga.com/general/market-summary/25/02/43488205/trump-media-technology-trading-volume-falls-amid-expensive-valuations-and-bearish-charts-heres-what-technical-analysis-for-djt-stock-shows">Trump Media &amp; Technology Trading Volume Falls Amid Expensive Valuations And Bearish Charts: Here&#8217;s What Technical Analysis For DJT Stock Shows</a>



Why It Matters: The Piper Sandler report is bullish on Nvidia with respect to AI sector tailwinds, &#8220;a 50/50 split between training and inference applications&#8221; and custom application-specific integrated circuits (ASICs) for increased efficiency. However, it expresses less optimism about AMD, citing their lag in software development and continuous loss of talent to competitors.



While Zuckerberg&#8217;s comments on DeepSeek suggest a cautious approach to evaluating DeepSeek&#8217;s advancements, the Piper Sandler analysis paints a more concerning picture for Meta, indicating that the company has significant ground to make up in the rapidly evolving AI landscape.



See Also: <a href="https://www.benzinga.com/25/02/43488561/pepsico-responds-to-health-driven-demand-with-lays-cheetos-and-doritos-brand-owner-frito-lay-overhaul">PepsiCo Revamps Lays, Cheetos, And Doritos Maker Frito Lay As North American Sales Take A Hit, Shifts Focus To Health-Conscious Customers</a>



Price Action: Shares of Meta were down 0.36% in premarket, whereas the exchange-traded fund tracking the Nasdaq 100 index, Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) declined 0.80%. Meta is up 17.51% on a year-to-date basis and 53.28% over the last year.



The average price target among 43 analysts <a href="https://www.benzinga.com/quote/META/analyst-ratings">tracked by Benzinga</a> is $724.86 with a ‘buy' rating. The estimates range from $575 to $875 apiece. Recent ratings from RBC UBS, Citigroup, and Oppenheimer suggest a $788.67 target, implying a potential upside of 12.40%.



<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/quote/META/analyst-ratings"><img loading="lazy" decoding="async" width="1024" height="377" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05063632/Meta-Anr-1024x377.png" alt="" class="wp-image-766882" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05063632/Meta-Anr-1024x377.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05063632/Meta-Anr-300x110.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05063632/Meta-Anr-768x283.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05063632/Meta-Anr.png 1059w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>



Read Next:



<ul>
<li><a href="https://www.benzinga.com/general/market-summary/25/02/43487630/trump-media-or-trump-coin-where-have-investors-lost-more-money-since-the-47th-president-entered-the-white-house" target="_blank" rel="noreferrer noopener">Trump Media or Trump Coin: Where Have Investors Lost More Money Since the 47th President Entered the White House?</a></li>
</ul>



Photo courtesy: Shutterstock

Market Summary

Meta AI Models 'Clearly Behind' DeepSeek, Says Analyst After Mark Zuckerberg Admits DeepSeek Did Some Novel Things 'We're Still Digesting'

President Donald Trump has declared that the US will assume control of the Gaza Strip and economically develop it post the resettlement of Palestinians.



What Happened: As per a Reuters report on Tuesday, Trump made this unexpected declaration at a joint press conference with Israeli Prime Minister Benjamin Netanyahu. This came on the heels of Trump&#8217;s earlier proposition on the same day for the permanent resettlement of Palestinians from Gaza to neighboring countries, referring to the region as a &#8220;demolition site.&#8221;



Trump said, &#8220;The U.S. will take over the Gaza Strip, and we will do a job with it too. We&#8217;ll own it and be responsible for dismantling all of the dangerous unexploded bombs and other weapons on the site.&#8221; He further added that the U.S. would develop the region, creating thousands of jobs, and it could become a home to &#8220;the world&#8217;s people.&#8221;



Netanyahu commended Trump for &#8220;thinking outside the box with fresh ideas&#8221; and showing a readiness to challenge conventional thinking. However, Trump did not provide specifics on how the U.S. would take over the land of Gaza and occupy it long-term.



Trump also repeated his call for Jordan, Egypt, and other Arab states to permanently resettle Gazans, a suggestion that Arab leaders had previously rejected.



See Also: <a href="https://www.benzinga.com/25/02/43480859/trump-confirms-maximum-economic-pressure-on-iran-calls-chinas-tariff-retaliation-fine">Trump Confirms Maximum Economic Pressure On Iran, Calls China&#8217;s Tariff Retaliation &#8216;Fine&#8217;</a>



Why It Matters: Trump&#8217;s announcement comes after a series of events that have shaped his stance on the Israeli-Palestinian conflict. In August, Trump had urged Netanyahu to <a href="https://www.benzinga.com/news/24/08/40417063/trump-says-he-encouraged-netanyahu-to-end-gaza-war-while-critizing-kamala-harris-for-demanding-cease">swiftly end the ongoing war in Gaza</a> during a press conference. He had criticized President Joe Biden and Vice President Kamala Harris for their repeated ceasefire calls, arguing that it would only give Hamas a chance to regroup.



By January, Trump&#8217;s Middle East envoy was in Israel <a href="https://www.benzinga.com/25/01/42933339/trumps-envoy-urges-netanyahu-for-gaza-deal-can-ceasefire-efforts-succeed-before-inauguration">pushing for a ceasefire</a> in the ongoing Israel-Hamas war before Trump's inauguration. Trump had set a firm deadline, demanding all hostages be released before his inauguration on January 20, with severe consequences if not met.



Image via Shutterstock



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/25/02/43468887/robert-f-kennedy-nomination-advances-to-full-senate-vaccine-stocks-drop">Robert F. Kennedy&#8217;s Health Secretary Nomination Advances To Full Senate: Vaccine Stocks Drop</a></li>
</ul>



This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

Trump Says US Will Take Over Gaza Strip: 'We're Going To Develop It, Create Thousands Of Jobs'

On Tuesday, Cathie Wood-led Ark Invest made notable trades, including the sale of shares in Palantir Technologies Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>). This move came as Palantir&#8217;s stock surged following its impressive fourth-quarter results and optimistic future guidance. The company reported a 36% increase in total revenue year-over-year, with significant growth in U.S. commercial and government sectors.



The PLTR Trade



Ark Invest, through its ARK Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKK#NYSE">ARKK</a>), sold 71,069 shares of Palantir. The sale occurred on a day when Palantir&#8217;s stock closed at $103.83, marking a substantial increase of 23.99% from the previous day. This trade was valued at approximately $7.38 million. The decision to sell comes amid <a href="https://www.benzinga.com/25/01/43373954/cathie-woods-ark-invest-dumps-over-10-million-worth-of-palantir-stock-as-ai-competition-heats-up">heightened competition</a> in the AI industry.



Palantir&#8217;s recent <a href="https://in.benzinga.com/analyst-ratings/price-target/25/02/43463909/palantir-stock-is-surging-tuesday-whats-going-on">financial performance</a> has been strong, with U.S. commercial revenue rising by 64% year-over-year to $214 million and U.S. government revenue increasing by 45% to $343 million. This growth has led to several analysts raising their price targets for the company.



Other Key Trades:



<ul>
<li>Accolade Inc (ACCD): Sold 198,395 shares by ARKG.</li>



<li>Illumina Inc (ILMN): Bought 54,082 shares by ARKK and 9,325 shares by ARKG.</li>



<li>10X Genomics Inc (TXG): Bought 101,912 shares by ARKK and 17,587 shares by ARKG.</li>



<li>Twist Bioscience Corp (TWST): Bought 18,460 shares by ARKK and 3,188 shares by ARKG.</li>
</ul>



Image via Shutterstock



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/25/02/43480859/trump-confirms-maximum-economic-pressure-on-iran-calls-chinas-tariff-retaliation-fine">Trump Confirms Maximum Economic Pressure On Iran, Calls China&#8217;s Tariff Retaliation &#8216;Fine&#8217;</a></li>
</ul>



This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

ARKK

Cathie Wood-Led Ark Invest Dumps $7M Worth Of Palantir Stock Amid Searing Rally

Major cryptocurrencies declined sharply on Tuesday following the announcement of a new regulatory oversight committee, with total market liquidations reaching nearly $485 million in the past 24 hours.



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 8.15 p.m. ET)</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>-2.96%</td><td>$98,240.17</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>)</td><td>-4.15%</td><td>$2,735.57</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)</td><td>-7.19%</td><td>$0.2649</td></tr></tbody></table></figure>



What Happened: The leading cryptocurrency dropped to $97,924.27, its lowest level in the last 24 hours of trading, while the broader crypto market capitalization fell 2.92% to $3.23 trillion. 



The decline coincided with newly appointed &#8220;Crypto Czar&#8221; David Sacks announcing the formation of a bipartisan, bicameral committee to establish a <a href="https://in.benzinga.com/markets/cryptocurrency/25/02/43477333/crypto-czar-sacks-says-potential-bitcoin-reserve-to-be-one-of-crypto-committees-first-priorities">regulatory framework for digital assets</a>.



Ethereum also experienced downward pressure despite social media attention from Eric Trump, who suggested on X that &#8220;it&#8217;s a great time to add $ETH.&#8221; 



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">In my opinion, it's a great time to add <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a>.&mdash; Eric Trump (@EricTrump) <a href="https://twitter.com/EricTrump/status/1886541132903133230?ref_src=twsrc%5Etfw">February 3, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



The second-largest cryptocurrency&#8217;s decline followed Dogecoin&#8217;s retreat after its 15% rally on Monday.



The market turbulence triggered significant trading activity, with over 161,000 traders facing liquidations. The total cryptocurrency open interest decreased by 5.61% to $113.45 billion, while trading volume dropped 43.19% to $194.42 billion, according to CoinGlass.



Market sentiment remains cautious, with the Crypto Fear and Greed Index reading 54 on Tuesday, indicating a neutral stance. 



Top Gainers (24-Hours)



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 8.15 p.m. ET)</td></tr><tr><td>Official Melania Meme (MELANIA)</td><td>+11.56%</td><td>$1.65</td></tr><tr><td>Pudgy Penguins (PENGU)</td><td>+3.96%</td><td>$0.01374</td></tr><tr><td>Hyperliquid (HYPE)</td><td>+2.04</td><td>$25.55</td></tr></tbody></table></figure>



The cryptocurrency market&#8217;s decline occurred against a backdrop of mixed traditional market performance. The Dow Jones Industrial Average gained 134.13 points, or 0.30%, closing at 44,556.04, while the S&amp;P 500 rose 0.72% to 6,037.88. 



The tech-heavy Nasdaq Composite, however, fell 1.35% to 19,654.02. Dow futures showed minimal movement in after-hours trading, down just 7 points as of 8:15 p.m. EDT.



See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/25/02/43476777/shiba-inu-eyes-393-rally-dogecoin-targets-333-gains-whats-happening">Shiba Inu Eyes 393% Rally, Dogecoin Targets 333% Gains: What&#8217;s Happening?</a>



Analyst Notes:&nbsp; Leading cryptocurrency analyst Rekt Capital expects Bitcoin to consolidate between $98,300 and $101,000 in the near term. &#8220;Bitcoin revisited the $101k level&#8230; but failed the subsequent post-breakout retest of it into new support,&#8221; they noted. 



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> Bitcoin revisited the $101k level (black) In fact, Bitcoin even Daily Closed above it, but failed the subsequent post-breakout retest of it into new support BTC is probably going to consolidate between $98300 and $101000 for the time being<a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> <a href="https://twitter.com/hashtag/Crypto?src=hash&amp;ref_src=twsrc%5Etfw">#Crypto</a> <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> <a href="https://t.co/X9EPlU6XtO">https://t.co/X9EPlU6XtO</a> <a href="https://t.co/UOysUdhAlr">pic.twitter.com/UOysUdhAlr</a>&mdash; Rekt Capital (@rektcapital) <a href="https://twitter.com/rektcapital/status/1886773952980087156?ref_src=twsrc%5Etfw">February 4, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Similarly, analyst Ali Martinez suggested Bitcoin is trading within a broader range between $90,900 and $108,500, with no clear directional trend.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> is consolidating between $90,900 and $108,500. Until we see a clear breakout beyond this range, the trend direction remains uncertain. <a href="https://t.co/JRyk9dLjlw">pic.twitter.com/JRyk9dLjlw</a>&mdash; Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1886875374463963312?ref_src=twsrc%5Etfw">February 4, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Cryptocurrency analyst Michaël van de Poppe offered a contrarian view regarding Ethereum&#8217;s prospects following Eric Trump&#8217;s comments, stating, &#8220;The most hated trade is usually the best trade to take. If Trump bets massively on $ETH, it&#8217;s almost foolish to not follow that route at these valuations.&#8221;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The most hated trade is usually the best trade to take. If Trump bets massively on <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a>, it&#39;s almost foolish to not follow that route at these valuations.&mdash; Michaël van de Poppe (@CryptoMichNL) <a href="https://twitter.com/CryptoMichNL/status/1886854990238458120?ref_src=twsrc%5Etfw">February 4, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



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Image Via Shutterstock 



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

$DOGE

$ETH

Bitcoin, Ethereum, Dogecoin Drops As Trump's 'Crypto Czar' Announces Oversight Committee: Eric Trump Says 'Great Time' To Add ETH

The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the &#8220;Fear&#8221; zone on Tuesday.



U.S. stocks settled higher on Tuesday, with the Dow Jones index gaining more than 100 points during the session despite escalating geopolitical tensions and trade uncertainties between the world's two largest economies.



China responded to President Donald Trump‘s 10% import tariff with targeted countermeasures, including restrictions on key mineral exports to the U.S. and tariffs on American energy products.



Spotify Technology S.A. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) shares gained more than 13% on Tuesday after the company reported better-than-expected fiscal fourth-quarter 2024 financial results. Shares of Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) jumped 24% after the company reported better-than-expected financial results for the fourth quarter.



On the economic data front, U.S. job openings declined by 556,000 to 7.6 million in December, compared to market estimates of 8.0 million. U.S. factory orders fell by 0.9% from the previous month to $578.5 billion in December, compared to a revised 0.8% decline in the previous month.



Most sectors on the S&amp;P 500 closed on a positive note, with energy, information technology, and communication services stocks recording gains on Tuesday. However, utilities and consumer staples stocks bucked the overall market trend, closing the session lower.



The Dow Jones closed higher by around 134 points to 44,556.04 on Tuesday. The S&amp;P 500 rose 0.72% to 6,037.88, while the Nasdaq Composite climbed 1.35% at 19,654.02 during Tuesday's session.



Investors are awaiting earnings results from The Walt Disney Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>), Uber Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>), and Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) today.



What is CNN Business Fear &amp; Greed Index?



At a current reading of 39, the index remained in the &#8220;Fear&#8221; zone on Tuesday, versus a prior reading of 36.7.



The Fear &amp; Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.



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Nasdaq Jumps Over 1% Despite China's Trade Concerns As Palantir, Spotify Surge: Greed Index Remains In 'Fear' Zone

Tech giant Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) reported fourth-quarter financial results after the <a href="https://www.benzinga.com/earnings">market close Tuesday.</a>



Here are the key highlights.



What Happened: Alphabet announced fourth-quarter total revenue of $96.5 billion, up 12% year-over-year. The revenue total missed a Street consensus estimate of $96.6 billion, according to data<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent020425&amp;t=be2bearmibe3na1"> from Benzinga Pro.</a>



The company reported fourth-quarter earnings per share of $2.15, beating a Street consensus estimate of $2.12.



Alphabet said it saw "robust momentum across the business." Google Services revenues were up 10% year-over-year to $84.1 billion, with strong momentum for Google Search and YouTube ads, the company said.



Google Cloud revenue was up 30% year-over-year to $12 billion.



Revenue was broken down as follows in the fourth quarter, with the prior year&#8217;s total in parentheses:



<ul>
<li>Google Search: $54 billion ($48 billion)</li>



<li>YouTube ads: $10.5 billion ($9.2 billion)</li>



<li>Google Network: $8 billion ($8.3 billion)</li>



<li>Total Google Advertising: $72.5 billion ($65.5 billion)</li>
</ul>



The company's Google subscriptions, platforms and devices revenue was $11.6 billion compared to $10.8 billion in last year's fourth quarter.



Adding those items together makes up Google Services, which had revenue of $84.1 billion, up from $76.3 billion in last year's fourth quarter.



Google Cloud revenue was $12 billion compared to $9.2 billion in last year's fourth quarter.



Full fiscal year revenue was $350 billion, up 14% year-over-year.



Read Also: <a href="https://www.benzinga.com/trading-ideas/previews/25/02/43451550/alphabet-q4-earnings-preview-ai-youtube-doj-case-key-items-to-watch-as-company-goes-for-eight-consecutive-revenue-eps-beat">Alphabet Q4 Earnings Preview: AI, YouTube, DOJ Case Key Items To Watch</a>



What's Next: Alphabet CEO Sundar Pichai said the fourth quarter was driven by leadership in AI and momentum across the business.



"We are building, testing, and launching products and models faster than ever, and making significant progress in compute and driving efficiencies," Pichai said.



Pichai said the company is seeing stronger customer demand for AI-powered Google Cloud and YouTube continues to be a leader in streaming watchtime.



"Together, Cloud and YouTube exited 2024 at an annual run rate of $110 billion. Our results show the power of our differentiated full-stack approach to AI innovation and the continued strength of our core business."



The company said it expects to have capital expenditures of $75 billion in 2025.



GOOGL Price Action: Alphabet stock is down 7% to $191.90 in after-hours trading versus a 52-week trading range of $130.66 to $207.05. Alphabet shares hit new all-time highs earlier in Tuesday's intraday trading session. Shares closed 2.6% higher at $206.38 on Tuesday.



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</ul>



Photo via Shutterstock.

Alphabet Q4 Earnings Highlights: AI, Cloud, YouTube Momentum Continues, $75 Billion CapEx Guidance Spooks Investors

Advanced Micro Devices Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) reported financial results for the fourth quarter after the market close on Tuesday. Here&#8217;s a look at the key metrics <a href="https://www.benzinga.com/pressreleases/25/01/g42989539/amd-to-report-fiscal-fourth-quarter-and-full-year-2024-financial-results">from the quarter</a>.



Q4 Earnings: AMD reported fourth-quarter revenue of $7.66 billion, beating&nbsp;<a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">analyst estimates</a>&nbsp;of $7.53 billion. The chipmaker reported fourth-quarter adjusted earnings of $1.09 per share, beating analyst estimates of $1.08 per share, according to&nbsp;<a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Total revenue was up 12% year-over-year, led by Data Center revenue of $3.9 billion, which was up 69% year-over-year. Client segment revenue totaled $2.3 billion, up 58% year-over-year. Gaming revenue fell 59% year-over-year to $563 million and Embedded revenue declined 13% year-over-year to $923 million. 



&#8220;2024 was a transformative year for AMD as we delivered record annual revenue and strong earnings growth,&#8221; said&nbsp;Lisa Su, chair and CEO of AMD. &#8220;Data Center segment annual revenue nearly doubled as EPYC processor adoption accelerated and we delivered more than&nbsp;$5 billion&nbsp;of AMD Instinct accelerator revenue.&#8221; 



See Also: <a href="https://www.benzinga.com/25/02/43469715/amd-vs-qualcomm-a-semiconductor-showdown-ahead-of-earnings">AMD Vs. Qualcomm: Semiconductor Showdown Ahead Of Earnings</a>



Guidance: AMD expects first-quarter revenue of approximately $7.1 billion, plus or minus $300 million. The company's revenue guidance represents year-over-year growth of approximately 30% at the midpoint.



&#8220;Looking into 2025, we see clear opportunities for continued growth based on the strength of our product portfolio and growing demand for high-performance and adaptive computing,&#8221; Su said.



AMD executives will further discuss the company's quarterly results on a call with analysts and investors at 5 p.m. ET.



AMD Price Action: <a href="http://benzinga.com/quote/amd">AMD shares</a> were down 4.73% after hours, trading at $119.50 at the time of publication Tuesday, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



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<iframe loading="lazy" title="&#x1f534; WATCH LIVE: Advanced Micro Devices Q4 2024 Earnings Call &#x7C; $AMD" width="500" height="281" src="https://www.youtube.com/embed/NLT2VCLFg1s?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
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After-Hours Center

AMD Q4 Earnings: Revenue Beat, EPS Beat, Data Center Up 69%, 'Clear Opportunities' For Continued Growth And More

The Kansas City Chiefs will attempt to be the first NFL team to win three straight Super Bowls when they take on the Philadelphia Eagles in <a href="https://www.benzinga.com/general/sports/25/01/43317260/kansas-city-chiefs-help-cbs-break-afc-championship-record-will-super-bowl-viewership-hit-new-highs">Super Bowl LIX on Sunday.</a>



While the Chiefs players, owners and sports bettors could profit from a Chiefs three-peat, an NBA legend could be one of the biggest winners.



What Happened: For the majority of the 2024 NFL season, the Kansas City Chiefs have been the favorite to win a <a href="https://www.benzinga.com/general/entertainment/24/02/37080383/three-peat-super-bowl-lix-odds-kansas-city-chiefs-back-to-back-to-back-payout">third straight Super Bowl.</a>



The team finished with a 15-2 record and earned the number one seed in the AFC. While the team's regular season games were often close in score, the team found ways to win.



A third straight Super Bowl win would make the Chiefs the first in NFL history to accomplish the feat, something that could help legendary NBA coach/player and team executive Pat Riley profit nicely.



As reported by <a href="https://www.cllct.com/sports-collectibles/memorabilia/nfl-strikes-deal-with-pat-riley-to-use-three-peat-if-chiefs-win">cllct</a>, the Chiefs have agreed to a deal with Riley to utilize the trademark "Three-Peat" if the team wins. Riley trademarked the phrase back in 1988.



Riley now has rights to use the phrase on apparel, beverages, backpacks and jewelry. Riley's trademark attorney John Aldrich told cllct the royalties from the trademark would go to the Pat Riley Family Foundation.



An NFL spokesperson told cllct that the deal would be between the Chiefs and Riley and not with the NFL.



Potential companies that have NFL deals and would use "Three-Peat" could include Fanatics, New Era, Riddell and Wilson, which is owned by Amer Sports (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AS#NYSE">AS</a>).



A licensing industry source told cllct that Riley will likely make a 10% to 15% royalty on the wholesale price of items, which would likely mean $1.50 to $2.25 per item.



Read Also:<a href="https://www.benzinga.com/general/sports/25/01/43324031/super-bowl-lix-commercials-hit-record-8-million-how-fox-corporation-can-win-from-nfl-championship"> Super Bowl LIX Commercials Hit Record $8 Million: How Fox Corporation Can Win From NFL Championship</a>



Why It's Important: Riley filed for the "Three Peat" trademark at the start of the 1988-89 season as the Los Angeles Lakers were hoping to win a third straight NBA title. Riley was the coach of the Lakers at the time.



The Lakers made it to the NBA Finals that season, but lost to the Detroit Pistons and missed out on Riley using his own trademark.



Several years later, the Chicago Bulls won three straight titles with Michael Jordan, the first NBA team to accomplish the feat since the Boston Celtics in 1966. Riley profited from the Bulls accomplishment. The Bull also won three straight from 1996 to 1998.



In Major League Baseball, the New York Yankees won three straight titles from 1998 through 2000 and used Riley's trademarked phrase. The Lakers were able to use the phrase after they accomplished the feat from 2000 to 2022, although Riley was no longer with the team.



Riley has been the president of the Miami Heat since 1995, where he was also the head coach of the team from 1995 to 2003 and 2005 to 2008. Riley has one NBA championship as a player and eight more as a coach or team executive. 



The Chiefs agreeing to terms with Riley ahead of time could turn out to be bad luck. USC college football fans tried to trademark "Three-Pete," a tribute to coach Pete Carroll. The trademark office rejected the filing on account of Riley's existing trademark and USC lost to Texas in the championship game.



Sportsbook DraftKings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DKNG#NASDAQ">DKNG</a>) currently lists the Chiefs as the favorite in Super Bowl LIX at -1.5 and moneyline odds of -120.



The Chiefs have won three Super Bowls in five years prior to the 2024 NFL season and are in the conversation of top NFL dynasties. Becoming the first three-peat winners could cement their legendary status even further.



Win or lose, the team is already the first to win two Super Bowls and make it to a Super Bowl the following season.



If the Chiefs win on Sunday, they may want to start hitting up the trademark owner of "Four Peat," as they are the current betting favorite to win next year's Super Bowl as well.



DraftKings lists the Chiefs at +600, followed by the Baltimore Ravens at +650, Eagles at +700, Buffalo Bills at +700 and Detroit Lions at +950.



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Photo: Shutterstock

Sports Betting

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DKNG

Chiefs Chase Historic Super Bowl Three-Peat — And NBA Legend Stands To Gain

The Feb. 1 White House Fact Sheet lists <a href="https://www.benzinga.com/topic/fentanyl">fentanyl as the top reason</a> for President Donald Trump's tariffs on Mexico, Canada, and China, citing the &#8216;extraordinary threat posed by illegal aliens and drugs&#8217; as a &#8216;national emergency.'&#8221;



The fact <a href="https://www.whitehouse.gov/fact-sheets/2025/02/fact-sheet-president-donald-j-trump-imposes-tariffs-on-imports-from-canada-mexico-and-china/">sheet </a>refers to "Canada's heightened domestic production of fentanyl, and its growing footprint within international narcotics distribution." What?



<h2 class="wp-block-heading">Canadian Prime Minister Begs To Differ</h2>



Canada&#8217;s PM Justin Trudeau <a href="https://www.facebook.com/watch/?v=1270144720731464">pointed out</a> in a press conference shortly after <a href="https://www.benzinga.com/25/02/43418661/trump-announces-new-tariffs-on-goods-from-canada-mexico-and-china-will-go-into-effect-from-feb-1">Trump's 25% tariffs were announced</a> that less than 1% of the deadly opioid fentanyl comes through the Canadian-US border.



The U.S. Customs and Border Patrol also <a href="https://www.cbp.gov/border-security/frontline-against-fentanyl">confirms</a> that only about 0.2% of all seizures of fentanyl entering the U.S. are made at the Canadian border. Nearly all the rest confiscated comes from Mexico.



"But hearing concerns from both Canadians and Americans, including the American President himself, we&#8217;re taking action," Trudeau said. "We launched a $1.3 billion dollar border plan that is already showing results, because we too are devastated by the scourge that is fentanyl."



On Monday, the U.S. and Canada <a href="https://www.benzinga.com/25/02/43450261/trump-trudeau-strike-border-security-deal-tariffs-on-canada-paused-for-at-least-30-days">reached an agreement</a> to pause the tariffs&nbsp;<a href="https://www.benzinga.com/topic/tariffs" target="_blank" rel="noreferrer noopener">"for at least 30 days,"</a> Trudeau&nbsp;announced following a phone call with Trump.



<h2 class="wp-block-heading">BFFs For Decades: What Went Wrong?</h2>



Trump's tariffs on Canada, <a href="https://www.wsj.com/opinion/donald-trump-tariffs-25-percent-mexico-canada-trade-economy-84476fb2">called</a> "the dumbest trade war in history" by The Wall Street Journal, appear to be a pressure tactic. If Canada refuses Trump's demands, Trump could escalate with more tariffs, sanctions and even a travel ban, not unlike what he threatened to do when Colombian President Gustavo Petro initially balked at Trump's recent demand to allow U.S. military flights to land there with illegal immigrants. Trump had threatened Colombia with 50% tariffs before a <a href="https://www.benzinga.com/news/25/01/43220754/trump-withdraws-50-tariff-threat-on-colombian-imports-after-reaching-deportation-agreement">deal was reached</a>.



<h2 class="wp-block-heading">World's Friendliest Trading Partners</h2>



The U.S. and Canada have one of the largest bilateral commercial relationships in the world, including highly integrated energy and automotive markets, <a href="https://crsreports.congress.gov/product/pdf/IF/IF12595">according</a> to the Congressional Research Service



Five days before Trump was even sworn in, Canada's former Prime Minister Stephen Harper <a href="https://energynow.ca/2025/01/watch-former-prime-minister-stephen-harper-argues-that-when-it-comes-to-oil-and-gas-canada-actually-subsidizes-the-united-states/">told</a> EnergyNow Media that Trump's claim the U.S. subsidizes Canada's trade was not the case. He also noted that half of the U.S.'s oil comes from Canada which has a trade surplus because the U.S. buys "so much of our oil and gas."



<h2 class="wp-block-heading">Why The Breakup? It's Not You, It's Me</h2>



So, if fentanyl at the border isn't really causing the breakup, could it be Canada <a href="https://www.benzinga.com/news/events/25/01/42860583/trump-floats-canada-as-51st-us-state-says-hes-ready-to-use-economic-force-to-achieve-it">rejecting Trump's proposal </a>to become the 51st state, promising they could do great things together?



Whatever it is, citizens on both sides of the&nbsp;longest international border in the world are hoping they make up soon.



Now Read:



<ul>
<li><a href="https://www.benzinga.com/markets/25/02/43423087/canada-retaliates-against-trumps-tariffs-with-countermeasures-25-tariffs-on-107-billion-of-us-made-goods">Canada Retaliates Against Trump&#8217;s Tariffs With Countermeasures: 25% Tariffs On $107 Billion of US-Made Goods</a></li>
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Photo: Shutterstock

Cannabis

Trump's Canada Tariffs: BFFs For Decades, What Went Wrong? Can It Really Be About Fentanyl?

Automotive giant Ford Motor Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) could highlight how the new White House administration is changing focus on business lines when the company reports fourth-quarter financial results <a href="https://www.benzinga.com/earnings">after market close Wednesday.</a>



Earnings Estimates: Analysts expect Ford to report fourth-quarter revenue of $43.25 billion, up from $43.21 billion in last year's fourth quarter according to data<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent020425&amp;t=be2bearmibe3na1"> from Benzinga Pro.</a>



The company has beaten analyst estimates for revenue in two straight quarters and eight of the past 10 quarters.



Analysts expect Ford to report earnings per share of 33 cents, up from 29 cents per share in last year's fourth quarter. The company has beaten analyst estimates for earnings per share in one straight quarter and five of the past 10 quarters overall.



Read Also: <a href="https://www.benzinga.com/news/earnings/24/10/41587260/ford-q3-earnings-revenue-beat-eps-beat-ev-sales-down-33-updated-fy-outlook-shares-slide">Ford Q3 Earnings: Revenue Beat, EPS Beat, EV Sales Down 33%, Updated Outlook, Shares Slide</a>



Key Items to Watch: With Ford's earnings report and commentary, most eyes will be on how President Donald Trump is impacting the company's decisions.



The<a href="https://www.benzinga.com/trading-ideas/25/01/43116755/trumps-plan-to-end-7500-ev-tax-credits-could-be-devastating-for-telsa-rivals-poll-says-could-be-bullish-for-elon-musks-company"> proposed removal of </a>a $7,500 federal tax credit for electric vehicles could be bad news for companies like Ford that have transitioned to making more EVs.



Ford currently loses money on its electric vehicle segment and the removal of the tax credits could see fewer people buying EVs or Ford needing to offer additional incentives.



In the third quarter, Ford Model e sales were down 33% year-over-year, while the segment had an EBIT loss of $1.2 billion.



Ford said at the time that it anticipated the Model e segment to have a full-year EBIT loss of $5 billion, compared to EBIT profits of $9 billion for Ford Pro and $5 billion for Ford Blue.



The automaker had strong EV sales in the <a href="https://www.benzinga.com/trading-ideas/25/01/42978236/us-electric-vehicle-sales-hit-record-1-3-million-units-in-2024-despite-tesla-declines-top-10-bestselling-models-list">U.S. in 2024</a> with a report saying the Mach-E ranked third with 51,745 units sold, up 26.9% year-over-year. The F-150 Lightning ranked sixth in the U.S. for EVs with 33,510 unit sales, up 38.7%. Both vehicles moved up the top 10 list with the Mach-E going from fourth to third and the F-150 Lightning going from eighth to sixth.



Ford had the second-highest market share in the U.S. for EVs at 7.5% in 2024, trailing only Tesla (48.7%) and ranking ahead of third place Chevrolet (5.2%).



Along with the potential end of the EV federal tax credit proposed by Trump, the company is also at risk of seeing its profit margins hurt if the president goes through with threats of<a href="https://www.benzinga.com/news/global/25/02/43442219/why-beer-tequila-avocados-cars-iphone-prices-could-rise-trumps-tariffs-on-canada-mexico-china-to-hurt-several-sectors"> tariffs on Mexico and Canada.</a>



Ford produces vehicles and vehicle parts in both countries as a way to make its vehicles more affordable. If tariffs are ultimately put on both countries, Ford could be forced to raise its vehicle prices for consumers on some models or take a hit on its profit margins.



F Price Action: Ford stock is up 2.58% to $10.15 on Tuesday versus a 52-week trading range of $9.49 to $14.85. Ford stock is down 13% over the last year.



Read Next: 



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<li><a href="https://www.benzinga.com/government/regulations/24/12/42688941/are-us-vehicles-under-30000-a-thing-of-the-past-trumps-mexico-tariff-plans-could-change-auto-market">Are Sub-$30,000 Cars Disappearing? Trump&#8217;s Tariff Plans Could Reshape US Auto Market</a></li>
</ul>



Photo: Shutterstock

Previews

Ford Q4 Earnings Preview: EV Tax Credit, Tariffs Could Reshape Auto Giant's Future

Americans' coffee addiction is about to get a lot more expensive. With 66% of the population drinking coffee daily and an average intake of 2-3 cups per person, the U.S. is the <a href="https://www.benzinga.com/topic/coffee">world&#8217;s largest coffee market. </a>



Yet, a fresh jolt of bad news is hitting consumers: coffee prices have surged to fresh records, surpassing levels last seen in 1977, and the rally isn&#8217;t slowing down.



Coffee has become the best-performing asset of 2025 so far, soaring 20% in just over a month—outpacing every major stock market index and even Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>).



Arabica coffee futures have now climbed for 10 consecutive sessions through Feb. 4, nearing what could be the longest winning streak ever recorded. 



On Tuesday, Arabica coffee traded at $3.90 per pound, marking a staggering 100% increase from a year ago. This surge threatens to percolate through the entire supply chain, raising concerns that consumers could soon face skyrocketing inflation on their daily coffee cups. 



With demand unwavering and supply chains under pressure, is a $10 cup of coffee on the horizon? And which companies can benefit from it?



<h3 class="wp-block-heading">Chart: Coffee Price Skyrockets To Record Highs </h3>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="503" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/04122554/image-26-1024x503.png" alt="" class="wp-image-765306" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/04122554/image-26-1024x503.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/04122554/image-26-300x147.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/04122554/image-26-768x377.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/04122554/image-26-1536x754.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/04122554/image-26.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h3 class="wp-block-heading">Coffee Retail Prices Set To Surge Amid Market Disruption</h3>



&#8220;I have a prediction about coffee, and I wish I weren&#8217;t so confident about that,&#8221; said Bloomberg&#8217;s Javier Blas in a video published on X Monday. 



His outlook? Double-digit price hikes for a cup of coffee in the coming months. The main culprit behind the surge is a severe production shortfall in Brazil and Vietnam, the world's top two coffee producers, where bad weather and climate change have damaged crops. 



In its first estimate for the 2025/26 season, Brazil's government crop forecasting agency projected a 4.4% year-over-year decline in coffee output, hitting a three-year low of 51.81 million bags. 



Meanwhile, Blas warns that global stockpiles could fall to their second-lowest level in 65 years as supply struggles to keep pace with demand.



&#8220;Global stockpiles [of coffee] could fall at the second-lowest level in 65 years,&#8221; Blas said. 



According to Blas, the coffee supply chain has been in deficit for four consecutive years, with demand exceeding supply by 15 to 20 million bags annually, leading to a sharp drain in reserves. 



Adding to the crisis are geopolitical tensions tied to Donald Trump's trade tariffs, which have rattled markets. 



Colombia, the world's third-largest coffee producer, faces potential U.S. tariffs amid disputes over illegal migration, further tightening an already stretched coffee market. "Just the threat of tariffs is enough to scare the market," Blas stated. 



Bottom line, the expert forecasts a 20-25% increase in retail coffee prices within the next few months—making that morning cup significantly more expensive.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Coffee prices are surging and your daily cup is about to get much more expensive. <a href="https://twitter.com/JavierBlas?ref_src=twsrc%5Etfw">@JavierBlas</a> explains why &#x1f3a5; <a href="https://t.co/OyBF01OsYB">pic.twitter.com/OyBF01OsYB</a>&mdash; Bloomberg Opinion (@opinion) <a href="https://twitter.com/opinion/status/1886388355878768941?ref_src=twsrc%5Etfw">February 3, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h3 class="wp-block-heading">Higher Coffee Prices: Are You a Price Taker or a Price Setter?</h3>



The skyrocketing cost of coffee is set to reshape the industry, testing which companies can pass rising costs onto consumers and which will see their margins squeezed. 



As coffee futures surge to record highs, businesses from coffee chains to fast food giants are under pressure to adjust pricing strategies—or risk profitability declines.



Starbucks Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NASDAQ">SBUX</a>) has recently been a standout performer, with shares rallying 27% since the December 2024 lows, reaching levels last seen in May 2023.



&#8220;[Starbucks] has introduced a new pricing architecture,&#8221; Goldman Sachs analyst Christine Cho said after the world&#8217;s largest coffee chain published quarterly results last week.



This might potentially indicate investor confidence in Starbucks&#8217; ability to raise prices without losing customers. With a loyal customer base and a premium brand, Starbucks might be positioned as a price setter in the coffee market.



McDonald's Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCD#NYSE">MCD</a>) could struggle to pass on higher coffee costs. 



While not exclusively a coffee chain, McCafé is a significant revenue driver. Yet, McDonald&#8217;s core customer base is highly price-sensitive. Unlike Starbucks, McDonald&#8217;s might have less flexibility to raise coffee prices without impacting sales. Investors seem to agree—MCD shares have fallen nearly 10% since October 2024.



Restaurant Brands International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QSR#NYSE">QSR</a>), the owner of Tim Hortons, one of the largest coffee chains in Canada, is another company feeling the heat. With shares down 25% since March 2024, the stock&#8217;s performance suggests concerns over its ability to manage higher input costs. Investors will be watching closely when QSR reports fourth-quarter earnings on Feb. 12, 2025.



Read now: 



<ul>
<li><a href="https://www.benzinga.com/money/best-coffee-stocks">Top Performing Coffee Stocks</a></li>
</ul>



Photo: il21/Shutterstock.com

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