Wall Street is struggling to find risk-on momentum, with major indexes stuck near the flatline at midday as investors assess the latest earnings reports from mega-cap tech stocks and weaker-than-expected U.S. economic growth in the<a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43336153/us-economy-grows-below-q4-estimates-as-consumer-spending-hits-7-quarter-high"> final quarter of 2024.</a>



After Tuesday's rally — which followed a selloff triggered by DeepSeek&#8217;s impact earlier in the week — caution has taken hold, signaling the wounds from the downturn are still fresh.



Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>) is among the hardest-hit stocks, plunging more than 6%, which could mark its worst daily decline<a href="https://www.benzinga.com/news/earnings/25/01/43333060/msft-stock-declines-over-4-in-premarket-after-q2-results-ceo-satya-nadella-says-deepseek-has-some-r"> since October 2022</a>.



Despite reporting overall stronger-than-expected earnings, Microsoft&#8217;s cloud segment, Azure, fell short of growth expectations, and the company slightly missed its revenue guidance for the ongoing quarter.



In contrast, Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) climbed 1.7% post-earnings, reaching new all-time highs.



Another major laggard was United Parcel Service Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPS#NYSE">UPS</a>), which plummeted 15%, potentially heading for its worst single-day drop <a href="https://www.benzinga.com/news/earnings/25/01/43335015/ups-q4-earnings-major-customer-volume-cut-raises-jitters-stock-tanks">since going public in 2002</a>.



UPS Chief Financial Officer Brian Dykes revealed during the earnings call the company reached an agreement in principle with Amazon.com (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) to significantly cut the volume of packages it handles for the e-commerce giant, aiming for a 50% reduction by the second half of 2026.



The U.S. dollar and bond yields remained stable following the Federal Reserve's decision Wednesday to keep interest rates unchanged at 4.25%-4.5%.



Among commodities, precious metals stood out, with gold rising 1.4% to <a href="https://www.benzinga.com/news/econ-s/25/01/43348204/gold-hits-record-high-as-central-banks-ease-stance-5-mining-stocks-rally">new all-time highs </a>and silver climbing 2.4%.



Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) edged up 1% to around $105,000.



<h3 class="wp-block-heading">Thursday&#8217;s Performance In Major US Indices, ETFs</h3>



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day %chg</td></tr><tr><td>• Russell 2000</td><td>2,306.29</td><td>1.0%</td></tr><tr><td>• Dow Jones</td><td>44,866.30</td><td>0.3%</td></tr><tr><td>• S&amp;P 500</td><td>6,054.43</td><td>0.3%</td></tr><tr><td>• Nasdaq 100</td><td>21,420.81</td><td>0.0%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated at 12:50 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012925&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>&nbsp;data:



<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;inched 0.2% higher to $603.10.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) edged up by 0.2% to $448.22.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)&nbsp;edged 0.1% lower to $521.30.</li>



<li>The&nbsp;iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rose 1.2% to $228.50.</li>



<li>The&nbsp;Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) outperformed, up 1.7%; the&nbsp;Technology Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>), lagged down 0.4%.</li>
</ul>



<h3 class="wp-block-heading">Thursday&#8217;s Stock Movers</h3>



<ul>
<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) rose 4.4% in reaction to quarterly earnings results. </li>



<li>Other stocks reacting to earnings include: 
<ul>
<li>ServiceNow Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>) down 12.6%</li>



<li>International Business Machines Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>) up 12.3%</li>



<li>Lam Research Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRCX#NASDAQ">LRCX</a>) up 7.96%</li>



<li>Raymond James Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RJF#NYSE">RJF</a>) down 1.15%</li>



<li>Ameriprise Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMP#NYSE">AMP</a>) down 3.08%</li>



<li>Waste Management Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WM#NYSE">WM</a>) up 4.53%</li>



<li>Las Vegas Sands Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LVS#NYSE">LVS</a>) up 10.4%</li>



<li>Lazard Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LAZ#NYSE">LAZ</a>) up 3.58%</li>



<li>Kirby Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KEX#NYSE">KEX</a>) up 7.22%</li>



<li>Flagstar Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FLG#NYSE">FLG</a>) up 16.46%</li>



<li>Caterpillar Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAT#NYSE">CAT</a>) down 4.43%</li>



<li>Northrop Grumman Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>) down 2.04%</li>



<li>Dow Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DOW#NYSE">DOW</a>) down 6.09%</li>



<li>Valero Energy Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>) down 2.5%, </li>



<li>Cigna Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>) down 8.46%,</li>
</ul>
</li>



<li>Major companies slated to report earnings after the close are Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Visa Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/V#NYSE">V</a>), Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>), KLA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KLAC#NASDAQ">KLAC</a>), PPG Industries Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPG#NYSE">PPG</a>), ResMed Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RMD#NYSE">RMD</a>), Baker Hughes Co. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BKR#NASDAQ">BKR</a>), Deckers Outdoor Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DECK#NYSE">DECK</a>) and LPL Financial Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LPLA#NASDAQ">LPLA</a>). </li>
</ul>



Read Next:



<ul>
<li><a href="https://www.benzinga.com/general/gaming/25/01/43342224/ryan-cohen-moves-gamestop-shares-to-personal-name-sparking-speculation-on-next-steps">Ryan Cohen Moves 36.8 Million GameStop Shares To Personal Name, Sparking Speculation On Next Steps</a></li>
</ul>



Photo via Shutterstock.

Equities

Commodities

Markets

Movers

$BTC

AAPL

AMZN

DECK

INTC

KLAC

LPLA

LRCX

MSFT

TSLA

Wall Street Remains Flat, Microsoft Eyes Heaviest Drop Since Late 2022, Gold Sets Fresh Records: What's Driving Markets Thursday?

Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) analysts highlighted a confirmation of the low-cost vehicle in 2025, unsupervised FSD and updates on Optimus Bot as the key takeaways from the company's <a href="https://www.benzinga.com/news/earnings/25/01/43321103/tesla-q4-earnings-highlights-revenue-miss-eps-miss-ev-updates-automaker-says-2025-will-be-a-seminal-year">fourth-quarter financial results.</a>



The Tesla Analysts: Bank of America analyst John Murphy reiterated a Neutral rating on Tesla with a $490 price target.



Goldman Sachs analyst Mark Delaney maintained a Neutral rating with a $345 price target.



Needham analyst Chris Pierce reiterated a Hold rating with no price target.



RBC Capital analyst Tom Narayan maintained an Outperform rating with a $440 price target.



Cantor Fitzgerald analyst Andres Sheppard maintained a Neutral rating and raised the price target from $365 to $425.



Piper Sandler analyst Alexander Potter maintained an Overweight rating with a $500 price target.



Stifel analyst Stephen Gengaro reiterated a Buy rating with a $492 price target.



Morgan Stanley analyst Adam Jonas maintained an Overweight rating with a $430 price target.



Read Also: <a href="https://www.benzinga.com/news/global/25/01/43251316/tesla-faces-boycott-call-in-poland-over-musks-wwii-comments">Tesla Faces Boycott Call In Poland Over Musk&#8217;s WWII Comments: &#8216;No Normal Pole Should Buy&#8217;</a>



Bank of America on TSLA: A mark-to-market benefit on the company's Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) investment helped cushion the company's gross margins, Murphy said in a new investment note.



"Excluding this gain, 4Q:24 results were materially weaker than our forecast," Murphy said.



The analyst said the new product launches being on-track and the robotaxi are positives, while concerns about volume, lower pricing, tariffs and the "Optimus distraction" are headwinds for the company.



"1Q:25 results will be adversely impacted by several weeks of lost Model Y production as TSLA shifting all of its factories to the new Model Y. This will weigh on revenues and gross margin. We roughly estimate TSLA will lose 100k vehicles of production from this changeover."



Goldman Sachs on TSLA: After reporting profitability below consensus estimates, Delaney said margins and FSD progress will likely be the key debates.



The analyst said strong energy profits and the non-cash gains on Bitcoin, estimated at 17 cents per share, weren't enough to offset weakness on gross margins.



"The automotive non-GAAP gross margin excluding regulatory credits declined to 13.6% in 4Q24 from 17.1% in 3Q24, below our 15.0% estimate and StreetAccounts consensus at ~16%," Delaney said.



The analyst said the quarterly results had something for bulls and bears. The negatives were profitability, earnings per share weakness, margins and the downtime for the Model Y transition.



"Positively, Tesla continue to expect to introduce a new lower cost model with production planned to start later in 1H25, and Tesla commented that it expects to start a robotaxi operation in Austin this June."



Delaney said FSD v13 is "very good," but Tesla needs to show more progress for it to become an eyes-off product.



"While we continue to see Tesla as a leader in autonomous technology, our base case remains that it will take the company longer to reach its AV goals than it targets."



Needham on TSLA: Telsa could struggle to match supply and demand, Pierce said in a new investor note.



The analyst said Tesla is playing catch-up in autonomous driving until it can unlock the full fleet of vehicles currently on the road.



Pierce said autonomous and robotics are "shouldering an even heavier load" for Tesla's growth story. Tesla's comments on Optimus Bot production levels were likely well received by bulls, Pierce said.



"ASPs are still fuzzy, and production cadence slippage wouldn't be overly surprising, but we expect bulls to welcome any TSLA Robotics disclosures," Pierce said.



The analyst said Tesla's confirmation of a low-priced vehicle could expand the company's total addressable market.



"Between this potential vehicle and the updated Model Y we see the potential for TSLA to refresh their vehicle lineup for the first time in years."



RBC Capital on TSLA: News on a low-cost vehicle, FSD, robotaxi and Optimus show that the "moonshots getting real," Narayan said in a new investor note.



The analyst said confirmation of the low-cost vehicle could be one of the most important items from the earnings report.



"We think some investors thought this would be withdrawn," Narayan said.



The analyst forecasts 2025 delivery growth of 14% helped by the affordable vehicle models set to be introduced.



Cantor Fitzgerald on TSLA: Tesla's announcement on unsupervised FSD, Optimus Bot and the confirmation of the lower-cost model in 2025 see Sheppard updating estimates and raising the price target in a new note.



"We are increasing our PT to $425 as we incorporate revenues from Unsupervised FSD starting in 2H25, and from Optimus starting 2H26, to our model, driven by higher energy generation and storage revenue estimates in FY25 and FY26," Sheppard said.



With the price target increase, Sheppard said there are key risks for Tesla remaining. Risks include Chinese automotive competition, regulatory approval for FSD and robotaxi, the removal of the EV tax credit and a slowdown in EV demand.



Piper Sandler on TSLA: Gross margins and lower average selling prices were misses in Tesla's fourth quarter, Potter said in a new investor note.



"Q4 results weren't great, but who cares? Elon has never sounded so bullish," Potter said of Tesla CEO Elon Musk.



The analyst said Tesla committed to new products and vehicle growth in 2025, along with bullish commentary on FSD software.



"It's true, Elon Musk's predictions re: FSD timing have been historically inaccurate…but to us, this time it feels different; peers (and investors) should not dismiss this."



Potter said solving FSD could be the first step of "commercializing real-world AI," which would open up new valuation scenarios for Tesla.



Stifel on TSLA: Fourth-quarter results are neutral for Tesla stock, Gengaro said in a new note.



The analyst said negatives in the report were revenue, gross margins and profit per vehicle sold. The positives were lower cost of goods per vehicle, strong 2025 expectations for vehicle growth, strong guidance for energy storage and progress on FSD/robotaxi.



"We reiterate our belief that TSLA remains very well positioned, and FSD and Robotaxi will be critical value drivers," Gengaro said.



Gengaro said FSD and robotaxi initiatives are "critical to the story."



The analyst said the removal of the $7,500 tax credit will hurt Tesla margins, but be a "bigger problem" for Tesla's competition.



"We believe that CEO Elon Musk's support for the President and involvement in the administration likely creates and easier path to FSD and Robotaxi."



Morgan Stanley on TSLA: A vague outlook and a miss on weaker prices have Jonas asking if Tesla is a car company with shares trading higher after the earnings report.



"4Q results were mostly disappointing, but not particularly narrative changing," Jonas said.



While Tesla said it expected a "return to growth" for vehicle delivery in 2025, Jonas said there was not a mention of Musk's previous guidance of 20% to 30% volume growth.



"Tesla's 4Q results are emblematic of a company in the transition from an automotive ‘pure play' to a highly diversified play on AI and robotics."



TSLA Price Action: Tesla stock is up 3.56% to $402.91 Thursday at publication versus a 52-week trading range of $138.80 to $488.54.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/tech/25/01/43327268/tesla-expects-50-surge-in-energy-storage-deployments-for-2025-after-segment-revenue-doubles-in-q4">Tesla Expects 50% Surge In Energy Storage Deployments For 2025 After Segment Revenue Doubles In Q4</a></li>
</ul>



Photo: Shutterstock

Analyst Color

Price Target

Reiteration

Analyst Ratings

Trading Ideas

Tesla Analysts Highlight FSD, Robotaxis, New Vehicles For Growth: 'Elon Has Never Sounded So Bullish'

All 64 passengers and crew members aboard an American Airlines regional jet have died after the <a href="https://www.benzinga.com/25/01/43328465/no-survivors-yet-to-plane-crash-near-reagan-national-airport-american-airlines-ceo-heads-to-washington">plane collided midair </a>with a U.S. Army Black Hawk helicopter near Ronald Reagan Washington National Airport on Wednesday night, officials confirmed Thursday. 



The crash, which sent both aircraft into the Potomac River, marks the deadliest air disaster on U.S. soil since 2001, <a href="https://www.cnbc.com/2025/01/30/aircraft-down-in-potomic-river-near-dca-airport.html">according </a>to CNBC.



Washington, D.C. Fire and EMS Chief John Donnelly said at least 28 bodies have been recovered so far—27 from the plane and one from the helicopter. 



"We are now at the point where we are switching from a rescue operation to a recovery operation," said Donnely, as <a href="https://apnews.com/article/ronald-reagan-national-airport-crash-62adba7fb1f546b4cf1716e42b86482b">reported </a>by the Associated Press.  



Read Next: <a href="https://www.benzinga.com/25/01/43306674/trumps-hhs-pick-robert-kennedy-jr-begins-senate-confirmation-hearings">Robert Kennedy Jr. Faces Senate Confirmation Hearings As Bird Flu Concerns Grow: Caroline Kennedy Says Cousin &#8216;Predator&#8217; Unfit For Office&nbsp;</a>



Officials said flight conditions were clear as the American Airlines jet was making a routine landing at Reagan National Airport. The cause of the collision is unclear at this time.&nbsp;



"On final approach into Reagan National it collided with a military aircraft on an otherwise normal approach," American Airlines Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>) CEO Robert Isom said. "At this time we don't know why the military aircraft came into the path of the &#8230; aircraft."



The FAA announced that Reagan National Airport will reopen at 11 a.m. Thursday after flights were grounded <a href="https://www.benzinga.com/tech/25/01/43326442/takeoffs-landings-halted-at-reagan-washington-national-airport-after-jet-falls-in-potomac-river">following the crash</a>.  



Transportation Secretary Sean Duffy said the appropriate agencies, including the Federal Aviation Administration and U.S. Department of Transportation, are investigating the crash. 



"I would just say that everyone who flies in American skies expects that we fly safely," Duffy said, according to the AP. 



"That when you depart an airport, you get to your destination. That didn't happen last night and I know that President Trump, his administration, the FAA, the DOT, we will not rest until we have answers for the families and for the flying public. You should be assured that when you fly, you're safe," Duffy added.&nbsp;



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/news/earnings/25/01/43320124/microsoft-shares-slide-after-q2-results-cloud-revenue-misses-expectations-details">Microsoft Shares Slide After Q2 Results, Cloud Revenue Misses Expectations: Details</a>&nbsp;</li>
</ul>



Image: Shutterstock

News

Travel

General

64 Killed In American Airlines Midair Collision Near D.C., Worst US Air Disaster Since 2001

Intel Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NYSE">INTC</a>) is set to report its fourth-quarter financial results on Thursday after the closing bell. Here's a look at what the Street will be <a href="https://www.benzinga.com/trading-ideas/technicals/25/01/43316248/intel-faces-bearish-pressure-as-q4-earnings-loom-ceo-search-ai-in-focus">looking for in the report. </a>



What To Watch: Investors will be watching for updates on Intel's search for a permanent CEO following Pat Gelsinger's abrupt retirement on Dec. 1, 2024. David Zinsner and Michelle Johnston Holthaus are acting as interim co-CEOs while the board conducts its search.&nbsp;



Eyes will also be on<a href="https://www.benzinga.com/media/25/01/43004444/intel-plans-to-spin-off-5-billion-venture-capital-segment-will-remain-anchor-investor"> any updates</a> to segment spin-offs, including Altera and Intel Capital, and other restructuring efforts.&nbsp;



Updates on PC sales and demand trends are in the spotlight, as Intel&#8217;s PC revenue is expected to drop more than 11% on low AI PC demand. Investors will also be interested in Intel's data center segment which has seen declining revenues for ten consecutive quarters.



See Also:<a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43254018/sofi-stock-falls-on-soft-guidance-despite-strong-quarter-with-record-member-growth-loan-originations-analyst"> SoFi Stock Falls On Soft Guidance Despite &#8216;Strong Quarter&#8217; With Record Member Growth, Loan Originations: Analyst </a>



Expert Ideas: Mizuho Securities recently suggested that Trump's <a href="https://www.benzinga.com/markets/equities/25/01/43258081/trump-proposes-tariffs-on-taiwans-semiconductor-and-pharmaceutical-imports-amid-tsmcs-65-billion-expansion-plans">proposed policies</a> and potential tariffs&nbsp; could benefit American chipmakers like Intel.&nbsp;



However, Rosenblatt analyst Hans Mosesmann maintained Intel stock with a Sell rating and $20 price target on Thursday ahead of the earnings release.&nbsp;



Analysts expect the company to report quarterly earnings of 12 cents per share and revenue of $13.81 billion, a significant drop from EPS of 54 cents and revenue of $15.41 billion from the same period last year.&nbsp;



INTC Price Action: According to data from <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, Intel shares are up % at $ in Thursday's premarket trading.&nbsp;&nbsp;



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/25/01/43287988/microsoft-q2-preview">Microsoft Q2 Earnings Preview: Street &#8216;Too Optimistic&#8217; On Near-Term AI Returns?&nbsp;</a></li>
</ul>



Image: Shutterstock

Earnings

Previews

Tech

Intel Q4 Earnings Preview: CEO Search, PC Demand, Spinoffs On Watch

GameStop Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GME#NYSE">GME</a>) stock could be back in the spotlight with social media spotting a move made by CEO Ryan Cohen, which comes as the company has been quiet about what it's doing with <a href="https://www.benzinga.com/general/gaming/24/12/42425015/gamestop-q3-earnings-revenue-miss-4b-cash-no-more-offerings-planned-in-fiscal-year">its large cash balance.</a>



What Happened: A new 13D filing from GameStop <a href="https://www.benzinga.com/general/gaming/24/09/41069111/if-you-invested-1-000-in-gamestop-stock-when-ryan-cohens-stake-was-disclosed-heres-how-much-youd-h">CEO Ryan Cohen</a> shows that he has transferred ownership of 36,847,842 GME shares from RC Ventures LLC to his own personal name.



The move shows 8.2% ownership of GameStop in the <a href="https://gamestop.gcs-web.com/static-files/1dc83b9c-23fb-424b-9919-bca58a86ed6a">filing</a>. The transfer also takes the ownership from a Delaware place of organization to Canada, moving the shares to a new country.



"Upon the internal transfer of shares from RC Ventures, an entity holding Mr. Cohen's personal investments and of which Mr. Cohen serves as the manager and is the sole party with a pecuniary interest, to Mr. Cohen," the filing reads.



With the transfer, RC Ventures no longer beneficially owns any GameStop stock.



"The shares beneficially owned by Mr. Cohen were purchased with personal funds (which may, at any given time, include margin loans made by brokerage firms in the ordinary course of business). The aggregate purchase price of the 36,847,842 shares beneficially owned by Mr. Cohen is approximately $96,076,057, excluding brokerage commissions."



The reason for the move was not made publicly known, but <a href="https://x.com/Malone_Wealth/status/1884720034590953740/photo/1">speculation </a>has begun on social media.



Possible reasons for the move shared on social media include using the shares as collateral, taking GameStop private, making mergers and acquisitions easier with one less corporate layer or for tax strategy.



While the reason for the move is unknown and could just be a strategic decision for Cohen's personal financials, the move comes as GameStop has over $4 billion in cash and has been quiet on what it will be using the cash for.



One widely discussed theory on social media is that GameStop may be considering a merger or acquisition involving a company tied to RC Ventures, potentially explaining the share movement.



Read Also: <a href="https://www.benzinga.com/general/gaming/25/01/42924593/gamestop-pr-blitz-incoming-heres-what-public-relations-job-opening-says">GameStop PR Blitz Incoming? Here&#8217;s What Public Relations Job Opening Says</a>



Why It's Important: Cohen disclosed a 9% stake in GameStop in August 2020 and later increased his stake in the company to 13% later that year.



Cohen later became the chairman of GameStop in June 2021 and was announced as the CEO in September 2023.



GameStop has been one of the most popular stocks in recent years thanks to strong interest from retail traders and <a href="https://www.benzinga.com/general/gaming/23/01/30412695/gamestop-short-squeeze-anniversary-a-look-back-at-david-vs-goliath-battle-and-whats-next">a short squeeze</a> that was one of the most talked about financial stories of the last 20 years that became a book, the subject of several documentaries and a major motion picture.



As a retailer that counts on sales of physical gaming items, the company has been the victim of declining sales across several business lines as the gaming sector transitions to more digital sales. The company has diversified into items like collectibles and trading cards, but many investors and analysts want to hear more on the company's growth strategy.



Cohen's move could signal a strategic shift for GameStop, or it might just be a routine filing.



GME Price Action: GameStop stock is up 2% to $28.10 Thursday versus a 52-week trading range of $9.95 to $64.83. The stock is up 93% over the last year.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/trading-ideas/25/01/42802731/exclusive-top-20-most-searched-tickers-on-benzinga-pro-in-2024-where-do-tesla-nvidia-gamestop-trump-media-stocks-rank">EXCLUSIVE: Top 20 Most-Searched Tickers On Benzinga Pro In 2024 — Where Do Tesla, Nvidia, GameStop, Trump Media Stocks Rank?</a></li>
</ul>



Photo Courtesy 1take1shot On Shutterstock.com

Gaming

Management

Ryan Cohen Moves 36.8 Million GameStop Shares To Personal Name, Sparking Speculation On Next Steps

It's no surprise that Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) and Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) have been on a capex spree, pouring billions into their cloud infrastructure <a href="https://www.benzinga.com/topic/artificial-intelligence">and AI ambitions</a>. 



Yet, just as the tech giants hit double-digit growth in the December quarter, a potential hiccup looms over their investment strategies—thanks to a little something called DeepSeek.



And as these two tech titans race in 2025, both are looking to strike a delicate balance between growth and optimization.



<h2 class="wp-block-heading">Meta's Power Play: Capex As A Strategic Advantage</h2>



Meta's cloud investments are cruising ahead with strong double-digit growth into 2025, with a hefty capex target of $60-65 billion for next year, representing a solid 60% y/y growth. This hefty investment is fueled by AI, servers, and data centers, which will be vital for Meta's grand ambitions.



Despite a looming focus on efficiency, Meta is playing down any concerns about cutting back on compute power, as the company still views these investments as its competitive edge.



&#8220;Robust capex investments will represent a strategic advantage over time,&#8221; Meta emphasized, according to JPMorgan analyst Doug Anmuth. It's clear that Meta's roadmap involves some serious firepower—both figuratively and literally—especially as it ramps up infrastructure to stay ahead of competitors.



Read Also: <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">Mark Zuckerberg Says China&#8217;s DeepSeek Did Some Novel Things &#8216;We&#8217;re Still Digesting,&#8217; But Meta May Keep Pouring Billions Into AI Infrastructure Anyway</a>



<h2 class="wp-block-heading">Microsoft&#8217;s Cloud Capex: Keep Calm &amp; Optimize</h2>



Meanwhile, Microsoft&#8217;s cloud capex for the December quarter surged by 97% y/y to $22.6 billion, a bit higher than expected. But while Microsoft&#8217;s trajectory remains positive, there&#8217;s a twist: the company is signaling flat sequential growth for the first half of 2025. 



Why? A focus on &#8220;optimization&#8221; after the DeepSeek announcement. Microsoft wants to keep the momentum going but is cautious about scaling up too fast, especially as AI infrastructure and server investments take precedence.



To be fair, Microsoft has been the capex leader for quite some time now, with a quarterly average roughly +$10 billion higher than Meta's since March 2023, as noted by JPMorgan analyst Mark Murphy. But it's clear that the company is now entering a more measured phase of its cloud strategy, focusing on AI-related infrastructure and cost reduction at a software level. 



Microsoft emphasized the importance of &#8220;optimization from a software level in order to reduce the price (cost) of LLMs to generate broader demand,&#8221; according to Murphy.



<h2 class="wp-block-heading">Looking To The Horizon: Can They Both Win In The AI Race?</h2>



As both Meta and Microsoft pour resources into their AI and cloud infrastructure, it's evident that neither is slowing down anytime soon. The battle between the two will be one of scale, innovation, and, most critically, how they balance investment with optimization. 



For investors, the outlook remains "favorable for AI-levered names," according to JPMorgan analysts.



With both tech behemoths playing their cards carefully, it's clear that cloud growth isn't just about size—it's about finding efficiencies, optimizing infrastructure, and betting big on AI. 



And if DeepSeek is any indicator, the real question may not be how much they invest but how smartly they do it.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/tech/25/01/43327016/microsoft-ceo-satya-nadella-accepts-deepseek-ai-has-some-real-innovations-but-wont-say-if-they-mark-a-turning-point-for-ai-cost-reduction">Microsoft CEO Satya Nadella Accepts DeepSeek AI Has Some &#8216;Real Innovations&#8217; — But Won&#8217;t Say If They Mark A Turning Point For AI Cost Reduction</a></li>
</ul>



Image created using artificial intelligence via Midjourney.

Long Ideas

Meta Vs. Microsoft: Can Their AI Infrastructure Plans Hold Up Against DeepSeek?

The European Central Bank lowered its key interest rates by 25 basis points on Thursday, bringing the deposit facility rate to 2.75%, as the disinflation process remains &#8220;well on track&#8221; while the economy showed an unexpected stagnation during the last <a href="https://www.benzinga.com/news/econ-s">quarter of the year. </a>



With the ECB's latest rate cut, the interest rate gap between the U.S. and the eurozone has widened now to 175 basis points, as the Federal Reserve opted to hold its benchmark rate steady at a 4.50% upper bound on Wednesday.



<h3 class="wp-block-heading">Economy Remains Weak, Lagarde Points To Further Easing Ahead</h3>



The eurozone economy stagnated in the fourth quarter 2024, according to Eurostat's preliminary flash estimate, and is expected to remain sluggish in the near term. 



Financing conditions remain tight as the effects of past rate hikes continue to filter through the economy, with some loans still being rolled over at higher rates. 



&#8220;We are currently restrictive. We are not at neutral rate,&#8221; said ECB president Christine Lagarde.



She highlighted a fragile consumer confidence and muted household spending, despite rising real incomes.



"The direction of travel [for interest rates] is clear," Lagarde stated, "We are confident that inflation will reach the 2% in 2025," Lagarde added.



While opening the door to further policy easing ahead, the ECB emphasized a data-dependent, meeting-by-meeting approach, avoiding any pre-commitment to a specific rate path. 



<h3 class="wp-block-heading">Lagarde Slams The Door To Bitcoin Reserves</h3>



Lagarde firmly dismissed the possibility of Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) entering ECB&#8217;s reserve balance, stressing the need for liquid, secure and safe assets free from concerns over money laundering and criminal activities.



&#8220;I am confident that Bitcoin will not enter the reserves of any central bank within the General Council,&#8221; Lagarde said.



&#8220;Reserves should not be plagued by the suspicion of money laundering or other criminal activities,&#8221; she added.



This stance represents a stark departure from Federal Reserve chair Jerome Powell, who just a day earlier displayed a more open attitude toward Bitcoin's potential role in financial markets. Powell acknowledged growing institutional interest in digital assets and did not rule out their evolving role in the global financial system.



&#8220;Banks are perfectly able to serve crypto customers as long as they understand and can manage the risks,&#8221; Powell said on Wednesday, while urging Congress to adopt a comprehensive regulatory clarity around crypto assets.



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



The euro-dollar exchange rate remained broadly steady around 1.0420 following Lagarde's remarks, showing little movement on the day.



In U.S. markets, equities opened higher, with the S&amp;P 500 and Nasdaq 100 gaining 0.4%. Small caps outperformed, as the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) surged 1.3%, signaling increased risk appetite among investors.



Meanwhile, gold prices, tracked by the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), soared to record highs reflecting continued demand for safe-haven assets.



In the crypto space, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) held on to its session gains, trading 1.3% higher at $105,000, largely unaffected by the ECB's decision.



Read now: 



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43336153/us-economy-grows-below-q4-estimates-as-consumer-spending-hits-7-quarter-high">US Economic Growth Falls Short Of Q4 Estimates, Consumer Spending Hits 7-Quarter High</a></li>
</ul>



Photo of Christine Lagarde from Shutterstock

Cryptocurrency

Government

Macro Economic Events

Regulations

Specialty ETFs

Eurozone

Econ #s

Economics

Federal Reserve

ETFs

ECB Cuts Interest Rates By 25 Basis Points As Economy Cools, Lagarde Rejects Bitcoin As Reserve Asset

The U.S. economy continued to grow in the final quarter of 2024, but at a slower-than-expected pace as a decline in investments <a href="https://www.benzinga.com/news/econ-s">offset strong consumer spending.</a>



Gross domestic product grew at an annualized rate of 2.3% in the fourth quarter compared to the previous three months, according to preliminary official data released Thursday. 



This outcome marks a deceleration from the 3.1% growth recorded earlier, missing economist forecasts of a 2.6% expansion, as tracked by TradingEconomics.



The backbone of growth remained strong real consumer spending, which increased at an annualized pace of 4.3% in the fourth quarter, accelerating from the previous quarter's 3.7% gain. This marks the strongest consumer spending expansion since the first quarter of 2023.



&#8220;The increase in real GDP in the fourth quarter primarily reflected increases in consumer spending and government spending that were partly offset by a decrease in investment,&#8221; the Bureau of Economic Analysis wrote in its report.



Personal Consumption Expenditures prices also picked up, rising from 1.5% to an annualized 2.3% in the fourth quarter. Excluding food and energy, core PCE prices increased at an annualized rate of 2.5%, up from the previous 2.2%, but in line with estimates.



Meanwhile, the Department of Labor reported on Thursday that weekly jobless claims fell to 207,000 for the week ending Jan. 25, below the previous week&#8217;s 223,000 and expectations of 220,000.



Continuing claims for the week ending Jan. 18 eased to 1.858 million, down from the previous 1.9 million and below forecasts of 1.89 million. 



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



Futures on major U.S. indices were mixed, with contracts on the S&amp;P 500 rising 0.3% by 8:35 a.m. ET, while Nasdaq 100 futures were down 0.4%. 



Major tech companies witnessed mixed performances following earnings reports. Shares of Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>) were down 4.5% in the premarket, while Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) and Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) rose 1.9% and 4%, respectively. 



On Wednesday, the S&amp;P 500 index, replicated by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), closed 0.5% lower in reaction to the Fed meeting and <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43318325/a-different-powell-emerges-fed-chair-softens-hawkish-tone-on-interest-rates-bitcoin" target="_blank" rel="noopener">Chair Jerome Powell&#8216;s remarks.</a><a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43318325/a-different-powell-emerges-fed-chair-softens-hawkish-tone-on-interest-rates-bitcoin"> </a>



Treasury yields held steady,&nbsp;with the 10-year yield hovering at 4.50% and the two-year yield at 4.20%.&nbsp;The iShares 20+ Year Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NYSE">TLT</a>) was up 0.6%&nbsp;during the premarket.&nbsp;



The U.S. dollar index (DXY), tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), remained flat.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/25/01/43330328/us-stocks-set-for-gains-ahead-of-q1-gdp-apple-earnings">US Stocks Set For Gains Ahead Of Q1 GDP, Apple Earnings: Expert Says &#8216;Higher January&#8217; Bodes Well For The Rest Of The Year</a></li>
</ul>



Photo: janews/Shutterstock.com

Large Cap

Broad U.S. Equity ETFs

Currency ETFs

US Economic Growth Falls Short Of Q4 Estimates, Consumer Spending Hits 7-Quarter High

United Parcel Service Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPS#NYSE">UPS</a>) shares are trading lower after the company reported <a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/b43330139/ups-releases-4q-2024-earnings-and-provides-2025-guidance" rel="noreferrer noopener">mixed fourth-quarter results</a>.



UPS reported consolidated revenue growth of 1.5% year-over-year to $25.301 billion, missing the consensus of $25.419 billion. Adjusted EPS was $2.75, up 11.3% YoY, <a href="https://www.benzinga.com/earnings">above the consensus of $2.53.</a>



GAAP results include a $639 million charge ($0.74 per share), covering a $506 million pension charge, $73 million in transformation costs, $46 million in asset impairments, and $14 million for pension withdrawal.



Consolidated operating profit reached $2.9 billion, increasing 18.1% from the last year quarter and 11.2% on a non-GAAP adjusted basis. Adjusted operating margin stood at 12.3%, up from 11.2% a year ago.



U.S. Domestic Segment revenue increased 2.2% to $17.312 billion, reflecting a 2.4% increase in revenue per piece and increases in air cargo. The adjusted operating margin stood at 10.1%.



International Segment revenue grew 6.9% to $4.923 billion, reflecting an 8.8% increase in average daily volume. The adjusted operating margin was 21.6%.



Supply Chain Solutions Segment revenue declined by 9.1% to $3.066 billion, driven by the Coyote divestiture, partially offset by growth in air and ocean forwarding. The adjusted operating margin was 9.3%.



UPS&#8217; operating cash flow for fiscal 2024 totaled $10.1 billion, and free cash flow was $6.3 billion. The company returned $5.9 billion to shareholders through dividends and share buybacks.



&#8220;We are making business and operational changes that, along with the foundational changes we&#8217;ve already made, will put us further down the path to becoming a more profitable, agile and differentiated UPS that is growing in the best parts of the market,&#8221; commented Carol Tomé, UPS chief executive officer.



Strategic Actions: The company announced reaching an agreement to reduce volume with its largest customer by over 50% by late 2026, insourcing 100% of UPS SurePost from January 1, 2025, and reconfiguring its U.S. network. Additionally, UPS is launching multi-year &#8220;Efficiency Reimagined&#8221; initiatives, aiming to save $1 billion through an end-to-end process redesign.



2025 Outlook: UPS expects revenue of ~ $89 billion, <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">sharply below the $94.877 billion consensus</a>, and sees an adjusted operating margin of 10.8%.



The company plans $3.5 billion in capital spending, $5.5 billion in dividends (pending approval), $1 billion in share buybacks, and an expected 23.5% tax rate.



Price Action: UPS shares are trading lower by 13.5% at $115.66 premarket at the last check Thursday.



Photo via Shutterstock.

Guidance

UPS Q4 Earnings: Major Customer Volume Cut Raises Jitters, Stock Tanks

IBM shares surged over 8% in premarket on Thursday following the release of its Q4 earnings, which surpassed analysts' expectations.International Business Machines Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>) saw its shares surge over 8% in premarket trading Thursday following the release of its fourth-quarter earnings, which surpassed analysts&#8217; expectations. The tech giant also unveiled its ambitious <a href="https://www.benzinga.com/25/01/43327741/ibm-bets-big-on-ai-based-hybrid-cloud-sees-2-billion-in-generative-ai-deals-from-inception-to-date-in-q4">artificial intelligence strategy</a>, further boosting investor confidence.



What Happened: IBM <a href="https://www.benzinga.com/25/01/43321676/ibm-reports-q4">reported earnings</a> per share of $3.92, exceeding the anticipated $3.75. Revenue also edged past forecasts, reaching $17.55 billion compared to the projected $17.54 billion. This represents a slight increase from the $17.38 billion reported during the same period last year.



The fourth-quarter results painted a mixed <a href="https://www.benzinga.com/25/01/43321676/ibm-reports-q4">picture</a> across IBM&#8217;s various segments. The software segment demonstrated robust growth, with revenue up 10%. However, the Consulting segment experienced a 2% decline, while Infrastructure proved to be the weakest performer, with revenue down 8%.



See Also: <a href="https://www.benzinga.com/25/01/43327741/ibm-bets-big-on-ai-based-hybrid-cloud-sees-2-billion-in-generative-ai-deals-from-inception-to-date-in-q4">IBM Beats Q4 Estimates, Bets Big On AI With $2 Billion Generative AI Business</a>



A key highlight of the earnings report was IBM&#8217;s unveiling of its comprehensive AI strategy. The company has integrated AI across its entire portfolio, from tools designed to help clients manage hybrid cloud environments and infrastructure, to consulting services and platform products.



&#8220;Our book of business related to generative AI now stands at greater than $2 billion inception-to-date. The mix is roughly one-quarter software and three-quarters consulting signings,&#8221; CEO and Chairman Arvind Krishna stated during the earnings call.



See Also: <a href="https://www.benzinga.com/25/01/43329174/western-digitals-businesses-position-itself-to-be-a-key-supplier-the-ai-driven-demand-for-storage-solutions-ahead-of-the-split">Western Digital Reports Mixed Q2 Ahead Of Business Split: AI Demand Bolsters Outlook</a>



Why It Matters: Looking ahead, Krishna expressed optimism about the company&#8217;s prospects. &#8220;With our focused strategy, enhanced portfolio, and culture of innovation, we're well-positioned for 2025 and beyond and expect revenue growth of at least five percent and free cash flow of about $13.5 billion this year,&#8221; he said.



Price Action: The positive earnings report and AI strategy announcement sent IBM shares soaring 8.03% to $247 per share in premarket trading, significantly outperforming the 0.40% gain in the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>).



Despite the positive market reaction, analysts remain somewhat cautious. According to 22 analysts <a href="https://www.benzinga.com/quote/IBM/analyst-ratings">tracked by Benzinga</a>, IBM has a consensus price target of $200.19 per share with a ‘hold' rating. Individual price targets range from a high of $260 to a low of $139. The average price target of $233.33 from Morgan Stanley, RBC Capital, and JPMorgan suggests a potential downside of 5.53%.



<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/quote/IBM/analyst-ratings"><img loading="lazy" decoding="async" width="1024" height="385" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/30054559/IBM-ANR-1-1024x385.png" alt="" class="wp-image-757716" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/30054559/IBM-ANR-1-1024x385.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/30054559/IBM-ANR-1-300x113.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/30054559/IBM-ANR-1-768x288.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/30054559/IBM-ANR-1.png 1057w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>



Read Next:



<ul>
<li><a href="https://www.benzinga.com/general/market-summary/25/01/43328377/t-mobile-underscores-spacexs-starlinks-role-in-california-wildfire-relief-closes-record-breaking-growth-year">T-Mobile Underscores SpaceX&#8217;s Starlink&#8217;s Role In California Wildfire Relief, Closes Record-Breaking Growth Year</a></li>
</ul>



Photo courtesy: Shutterstock

Earnings Beats

IBM Stock Soars 8% In Premarket After Beating Q4 Estimates, Unveiling AI Strategy

U.S. stock futures rose on Thursday, rebounding from a decline triggered by the Federal Reserve&#8217;s decision to hold interest rates steady. All four benchmark indices were trading higher. 



Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), the world&#8217;s largest company by market capitalization, will report its first-quarter earnings after the market closes today.



Investors are also awaiting the first-quarter GDP data, which will be released before the market opens.



The 10-year Treasury yield is currently at 4.50%, and the two-year yield is at 4.20%. The CME Group&#8217;s FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a> indicates an 80% probability that the Federal Open Market Committee will maintain current interest rates in March 2025.



<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>0.47%</td></tr><tr><td>S&amp;P 500</td><td>0.35%</td></tr><tr><td>Dow Jones</td><td>0.42%</td></tr><tr><td>Russell 2000</td><td>0.99%</td></tr></tbody></table></figure>



In premarket trading on Thursday, both the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and the Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) were higher. SPY was up 0.33% at $603.80, and QQQ gained 0.44% to reach $523.10, based on <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From The Last Session



U.S. stocks <a href="https://www.benzinga.com/news/earnings/25/01/43328594/nasdaq-declines-as-nvidia-edges-lower-fed-leaves-interest-rates-unchanged-fear-greed-index-in-neutral-zone">fell</a> on Wednesday after the Federal Reserve held interest rates steady.



Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) shares dropped over 4% on the news of potential sales restrictions for China. General Dynamics Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>) and Corning Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLW#NYSE">GLW</a>) beat earnings expectations, with the latter offering strong guidance.



The U.S. trade deficit widened to a record $122.11 billion in December, while wholesale inventories fell 0.5%. Tech, real estate, and healthcare sectors dragged the S&amp;P 500 lower, though consumer staples and communication services gained.



<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>-0.51%</td><td>19,632.32</td></tr><tr><td>S&amp;P 500</td><td>-0.47%</td><td>6,039.31</td></tr><tr><td>Dow Jones</td><td>-0.31%</td><td>44,713.52</td></tr><tr><td>Russell 2000</td><td>-0.25%</td><td>2,283.10</td></tr></tbody></table></figure>



Insights From Analysts



Following the revival from the DeepSeek-led slump, Scott Wren, the senior global market strategist at Wells Fargo Advisors said, &#8220;As we try to look multiple years into the future, we believe development expenditures aimed at artificial intelligence will increase dramatically.&#8221;



However, he also said that sector-led investing could be volatile. &#8220;Sector investing can be more volatile than investments that are broadly diversified over numerous sectors of the economy and will increase a portfolio's vulnerability to any single economic, political, or regulatory development affecting the sector. This can result in greater price volatility.&#8221;



Ryan Detrick, the chief market strategist at Carson Research, drew parallels between the S&amp;P 500 performance based on the Chinese calendar year in his latest note.



According to the Chinese calendar, 2025 is the &#8216;Year of Snake&#8217;.



Mapping the data from 1950, Detrick found that &#8220;The Year of the Snake has been up only three out of six times and up an average of less than 1%.&#8221;



Additionally, stocks have alternated between higher and lower since 1953, suggesting this could be a down year. Next year is the Year of the Horse, which hasn't been &#8220;all that strong either.&#8221;



&#8220;Lastly, we found it amusing that animals with horns saw some of the best returns, with last year's horned Dragon a good one for the bulls,&#8221; he added, however, he also said that Carson Research would never suggest investing based on the zodiac signs.



<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">Welcome to Year of the Snake. More like Year of the Bear. <a href="https://t.co/c23eQDyYUW">https://t.co/c23eQDyYUW</a>&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1884616468446294279?ref_src=twsrc%5Etfw">January 29, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Furthermore, as the S&amp;P 500 is up 2.91% year-to-date, he highlighted that &#8220;higher January tends to suggest better returns the final 11 months of the year.&#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 S&amp;P 500 is up nearly 3% YTD and January is almost over. This is a good sign, as a higher January tends to suggest better returns the final 11 months of the year. Up 12.2% on avg and up 86.7% of the time when Jan is higher, compared with all yrs avg return of 8.1% and 75%. <a href="https://t.co/He6PpOTnLc">pic.twitter.com/He6PpOTnLc</a>&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1884625505862791475?ref_src=twsrc%5Etfw">January 29, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Upcoming Economic Data



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



<ul>
<li>On Thursday, the GDP data for the first quarter and the initial jobless claims data till Jan. 25, will be released at 8:30 a.m. ET.</li>
</ul>



<ul>
<li>December's pending home sales will be out at 10:00 a.m., ET.</li>
</ul>



Stocks In Focus:



<ul>
<li>Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) was down 0.14% in the premarket on Thursday ahead of its earnings, which will be released after the closing bell. Analysts expect it to report quarterly earnings of $2.35 per share on revenue of $124.13 billion</li>
</ul>



<ul>
<li>United Parcel Service Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPS#NYSE">UPS</a>) was up 1.62% as Wall Street expects it to report earnings of $2.53 per share on revenue of $25.42 billion, before the opening bell.</li>
</ul>



<ul>
<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) was up 1.78% despite weaker-than-expected fourth-quarter earnings and sales results. It promised to launch new and &#8220;more affordable&#8221; models in the first half of 2025 and showcased the example of the company&#8217;s full self-driving in a video shared online.</li>
</ul>



<ul>
<li>Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) was up 2.23% after reporting better-than-expected fourth-quarter sales results. However, its sales guidance for the current quarter fell short of expectations.</li>
</ul>



<ul>
<li>Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) was down 3.99% as its cloud revenue missed estimates despite beating overall revenue and EPS estimates.</li>
</ul>



<ul>
<li>IBM Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>) was up 7.60% as it beat its revenue and earnings estimates for the fourth quarter.</li>
</ul>



<ul>
<li>Other companies that are slated to report earnings before the opening bell today include Mastercard Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MA#NYSE">MA</a>) up 0.93%, Blackstone Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BX#NYSE">BX</a>) up 1.24%, Caterpillar Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAT#NYSE">CAT</a>) up 0.70%, and Visa Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/V#NYSE">V</a>) which report after closing bell was up 0.91%.</li>
</ul>



Commodities, Gold And Global Equity Markets:



Crude oil futures were trading lower in the early New York session by 0.67% to hover around $72.13 per barrel.



The gold spot index was up by 0.64% to $2,777.47 per ounce. The Dollar Index was down 0.01% at 107.989 level.



Asian markets were higher on Thursday as Australia's ASX 200, Japan's Nikkei 225, South Korea's Kospi, and Hong Kong's Hang Seng rose. European markets were also higher in trade.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/general/market-summary/25/01/43328377/t-mobile-underscores-spacexs-starlinks-role-in-california-wildfire-relief-closes-record-breaking-growth-year">T-Mobile Underscores SpaceX&#8217;s Starlink&#8217;s Role In California Wildfire Relief, Closes Record-Breaking Growth Year</a></li>
</ul>



Photo courtesy: Shutterstock

Market Summary

Futures

Pre-Market Outlook

NVDA

US Stocks Set For Gains Ahead Of Q1 GDP, Apple Earnings: Expert Says 'Higher January' Bodes Well For The Rest Of The Year

Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) CEO Elon Musk on Wednesday said that the company intends to make several thousand units of its Optimus humanoid robot this year for deployment in its own factory which will inform the next version of the robot slated for launch next year and likely to be sold to rival companies. 



What Happened: Musk said on Wednesday that the company will make a few thousand Optimus robots this year which will do chores at the Tesla factory by the end of the year which employees do not like to do. These robots will inform the production of the next version of the robot which will be launched mid-next year and be likely sold to other companies, the CEO said, while adding that there is a lack of certainty on the exact timing.



&#8220;I think long-term Optimus has the potential to be north of $10 trillion in revenue. Like, it&#8217;s real bananas,&#8221; Musk said. Musk himself said that his revenue predictions sound &#8220;absolutely insane&#8221; but expressed optimism that they will prove to be accurate. &#8220;My prediction long term is that Optimus will be overwhelmingly the value of the company.&#8221;



Talking about the price of the humanoid robot, Musk said that the robot&#8217;s production cost will be below $20,000 once production touches a million units a year. However, the price of Optimus will be set by market demand, Musk said, while also stating that he expects demand will not be a problem even at a high price. 



Why It Matters: In November, Musk said that Optimus is already doing some tasks at the Tesla factory and its ability is increasing rapidly, 



&#8220;The toughest part by far is improving the design of Optimus for ease of manufacturing and tooling up a complex supply chain, so it can be made in significant numbers,&#8221; Musk then said. 



During Tesla's annual shareholder meeting in June, Musk said that there will be at least&nbsp;<a href="https://www.benzinga.com/news/24/06/39246781/elon-musk-thinks-humanoid-robots-will-one-day-exceed-human-population-from-nvidias-project-gr00t-to" target="_blank" rel="noreferrer noopener">one humanoid robot</a>&nbsp;for every person in the world in the future, implying a total humanoid robot population of at least 10 billion or more, of which the EV company will have a significant share.



&#8220;While autonomous vehicle is a $5-$7 trillion market cap situation,&nbsp;<a href="https://www.benzinga.com/news/24/06/39327644/tesla-ceo-elon-musk-eyes-25-trillion-market-cap-with-optimus-bot-admits-to-being-pathologically-opti" target="_blank" rel="noreferrer noopener">Optimus is a $25 trillion market cap situation</a>,&#8221; Musk then said.



In October, the company showcased its Optimus bots at&nbsp;<a href="https://www.benzinga.com/news/24/10/41284847/tesla-reveals-two-seater-cybercab-that-drives-itself" target="_blank" rel="noreferrer noopener">its robotaxi unveiling event</a>&nbsp;in Los Angeles. About 20 active robots walked through the crowd assembled at the event. Optimus poured drinks, handed out snacks, and performed dance moves. However, the robots were&nbsp;<a href="https://www.benzinga.com/news/24/10/41354482/tesla-engineer-admits-optimus-robots-were-human-assisted-to-some-extent-at-robotaxi-unveiling-event" target="_blank" rel="noreferrer noopener">human-assisted to &#8220;some extent"</a>&nbsp;to showcase the company's vision at the event, &nbsp;Head of Engineering For Optimus&nbsp;Milan Kovac&nbsp;said in a post on X.



Tesla reported fourth-quarter earnings and revenue <a href="https://www.benzinga.com/news/earnings/25/01/43321103/tesla-q4-earnings-highlights-revenue-miss-eps-miss-ev-updates-automaker-says-2025-will-be-a-seminal-year">below estimates </a>after market close on Wednesday. However, the company also assured the start of production of new and more affordable models in the first half of 2025, spurring stock growth after hours.



Photo courtesy: Shutterstock



Check out more of Benzinga&#8217;s Future Of Mobility coverage by&nbsp;<a href="https://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link.</a>



Read Next:



<ul>
<li><a href="https://www.benzinga.com/tech/25/01/43259304/trumps-proposed-corporate-tax-cuts-could-boost-teslas-fy25-eps-by-4-says-analyst">Trump&#8217;s Proposed Corporate Tax Cuts Could Boost Tesla&#8217;s FY25 EPS by 4%, Says Analyst</a></li>
</ul>

Tesla Likely To Sell Optimus To Rivals In 2026, Elon Musk Says Revenue Potential Of Bot North Of $10 Trillion: 'It's Real Bananas'

Leading cryptocurrencies lifted on Wednesday, defying the stock market's decline as the Federal Reserve snapped its interest rate-cutting streak.



<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>+2.61%</td><td>$104,300.32</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+1.31%</td><td>$3,146.53</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+1.83%</td><td>$0.3304</td></tr></tbody></table></figure>



What Happened: Bitcoin reclaimed the $104,000 mark, helped by bullish commentary from Fed Chair Jerome Powell.



Ethereum also registered gains, although it waited for a strong upward breach from $3,200.



The second-largest cryptocurrency has trailed Bitcoin thus far in 2025, recording year-to-date losses of 5.80% as opposed to the apex cryptocurrency's 11% gains.



At the press conference, Powell took a positive stance on cryptocurrencies, <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43318325/a-different-powell-emerges-fed-chair-softens-hawkish-tone-on-interest-rates-bitcoin">praising the ongoing efforts</a> to provide a clear regulatory framework for the industry.



The rally resulted in $257.59 million in cryptocurrency liquidations in the last 24 hours, with the majority being downside bets.



Bitcoin's Open Interest rose by 2.58% in the last 24 hours, indicating an influx of fresh money into its futures market.



However, over 50% of Bitcoin traders took short positions on the asset, according to the Long/Short ratio, suggesting that the market could reverse.



The "Greed" sentiment softened from 72 to 76, according to the reading on the Crypto Fear &amp; Greed Index.



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>Onyxcoin (XCN)</td><td>+26.14%</td><td>$0.03458</td></tr><tr><td>Fartcoin (FARTCOIN)</td><td>+20.64%</td><td>$0.9892</td></tr><tr><td>Jito (JTO)</td><td>+12.81%</td><td>$3.30</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $3.52 trillion, growing by 1.99% in the last 24 hours.



Stocks edged lower on Wednesday. The Dow Jones Industrial Average lost 136.83 points, or 0.31%, to close at 44,713.52. The S&amp;P 500 slid 0.47%, ending at 6,039.31, while the tech-heavy Nasdaq Composite dipped 0.51% to close at 19,632.32.



The slide <a href="https://www.benzinga.com/25/01/43316048/fed-holds-interest-rates-steady-halts-streak-of-consecutive-cuts-as-inflation-remains-elevated">came after the Fed kept interest rates unchanged</a>, pausing its monetary easing cycle that began in September.



See More: <a href="https://www.benzinga.com/money/best-crypto-scanners">Best Cryptocurrency Scanners</a>



Analyst Notes: Blockchain analytics firm Santiment weighed in on the cryptocurrency market's rebound and its divergence from stocks.



"They [cryptocurrencies and stocks] have been tightly correlated for much of the past 3 years now, but today is a good sign that cryptocurrencies aren&#8217;t entirely fluctuating as simply &#8216;high leveraged tech stocks&#8217;, as many skeptics have been claiming," the research firm said.



<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">&#x1f4c8; Cryptocurrency has not (yet) been phased by Jerome Powell and the Fed&#39;s decision to halt interest rate cuts for the time being. Interest rates have been a sensitive topic for investors and traders of all sectors, particularly after they were aggressively cut in 2020 (as a… <a href="https://t.co/p49FjhLiKI">pic.twitter.com/p49FjhLiKI</a>&mdash; Santiment (@santimentfeed) <a href="https://twitter.com/santimentfeed/status/1884735462813614175?ref_src=twsrc%5Etfw">January 29, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Influential cryptocurrency analyst and trader Ali Martinez sounded the alarm about the prospect of a major Ethereum downside.



"Ethereum MVRV has dropped below the 160-day MA once again. The last time this happened was on June 23, 2024, which led to a 40% price correction from $3,500 to $2,100," the analyst remarked.



MVRV, which stands for Market Value to Realized Value, is a ratio used to assess the value of a cryptocurrency by comparing its current market value to its realized value.



<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/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw">#Ethereum</a> <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> MVRV has dropped below the 160-day MA once again. The last time this happened was on June 23, 2024, which led to a 40% price correction from $3,500 to $2,100. <a href="https://t.co/zbnqPqzr0D">pic.twitter.com/zbnqPqzr0D</a>&mdash; Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1884730743017918771?ref_src=twsrc%5Etfw">January 29, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Photo by Avi Rozen on Shutterstock



Read Next:    



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43270841/how-donald-trump-could-make-the-strategic-bitcoin-reserve-a-reality">How Donald Trump Could Make The Strategic Bitcoin Reserve A Reality</a></li>
</ul>

$DOGE

$ETH

Bitcoin, Ethereum, Dogecoin Rise, Defy Stocks Decline As Fed Leaves Rates Unchanged: Top Trader Sees Possible 40% Downside For This Large-Cap Crypto

President Donald Trump criticized the Federal Reserve&#8217;s handling of inflation and banking regulation on Wednesday, following the central bank&#8217;s decision to hold interest rates <a href="https://www.benzinga.com/25/01/43316048/fed-holds-interest-rates-steady-halts-streak-of-consecutive-cuts-as-inflation-remains-elevated">steady at 4.25%-4.5%</a>.



What Happened: In a Truth Social post, Trump pledged to combat inflation through expanded energy production and regulatory cuts if elected, while denouncing the Fed&#8217;s focus on climate initiatives and diversity programs. 



His comments came just hours after the Federal Open Market Committee maintained rates and ended its streak of three consecutive cuts that began in September.



&#8220;The Fed has done a terrible job on Bank Regulation,&#8221; Trump wrote, promising that his administration would &#8220;unleash lending for all American people and businesses&#8221; through Treasury-led regulatory reforms.



<figure class="wp-block-image aligncenter size-large is-resized"><img decoding="async" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/29200623/Screenshot-2025-01-30-at-6.35.30%E2%80%AFAM-1024x773.png" alt="" class="wp-image-757028" style="width:472px;height:auto"/></figure>



The Fed&#8217;s latest policy statement noted that while inflation has moved <a href="https://www.benzinga.com/25/01/43316048/fed-holds-interest-rates-steady-halts-streak-of-consecutive-cuts-as-inflation-remains-elevated">closer to its 2% target</a>, it &#8220;remains somewhat elevated.&#8221; This marks a slight shift from December&#8217;s more optimistic tone about inflation progress, according to multiple economists.



See Also: <a href="https://www.benzinga.com/news/earnings/25/01/43321103/tesla-q4-earnings-highlights-revenue-miss-eps-miss-ev-updates-automaker-says-2025-will-be-a-seminal-year">Tesla Q4 Earnings Highlights: Revenue Miss, EPS Miss, EV Updates, Automaker Says &#8216;2025 Will Be A Seminal Year&#8217;</a>



Why It Matters: Bill Adams, chief economist for Comerica Bank, suggested the Fed&#8217;s cautious stance might reflect concerns about potential inflationary pressures from proposed <a href="https://www.benzinga.com/25/01/43319060/first-rate-cut-in-june-if-at-all-in-2025-economist-says-as-federal-reserve-holds-rates-steady">Trump administration policies</a>, including higher tariffs and stricter immigration controls.



Markets showed mixed reactions to the Fed&#8217;s announcement. The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) traded near flat, while the U.S. dollar index strengthened modestly. Treasury yields edged higher, with the policy-sensitive two-year yield rising 3 basis points to 4.24%.



Fed Chair Jerome Powell <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43318325/a-different-powell-emerges-fed-chair-softens-hawkish-tone-on-interest-rates-bitcoin">sidestepped questions about Trump&#8217;s criticism</a> during his press conference, stating &#8220;It&#8217;s not appropriate for me to comment on what the president said.&#8221; Powell emphasized that the Fed isn&#8217;t rushing to adjust rates, noting that recent inflation readings have shown encouraging progress.



Market expectations for <a href="https://www.benzinga.com/25/01/43319060/first-rate-cut-in-june-if-at-all-in-2025-economist-says-as-federal-reserve-holds-rates-steady">future rate cuts have shifted</a>, with investors now pricing in a 30% probability of a March cut, rising to 45% for June. Joseph Brusuelas, RSM&#8216;s chief economist, projects two quarter-point cuts this year, likely in June and December, though he emphasized these moves would depend heavily on incoming economic data.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/news/earnings/25/01/43320124/microsoft-shares-slide-after-q2-results-cloud-revenue-misses-expectations-details">Microsoft Shares Slide After Q2 Results, Cloud Revenue Misses Expectations: Details</a></li>
</ul>



Image Via Shutterstock 



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

Trump Slams Fed's 'Terrible Job' On Bank Regulation After Rate Hold, Vows To 'Unleash Lending For All American People'

The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index remained in the &#8220;Neutral&#8221; zone on Wednesday.



U.S. stocks settled lower on Wednesday after the Federal Reserve left interest rates unchanged at its recent policy meeting.



NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) shares fell over 4% on Wednesday amid reports indicating Trump officials have discussed further curbing China sales.



General Dynamics Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>) reported better-than-expected fourth-quarter fiscal 2024 results. Corning Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLW#NYSE">GLW</a>) posted better-than-expected fourth-quarter financial results and also issued first-quarter core EPS guidance with a midpoint above estimates.



On the economic data front, the U.S. trade deficit in goods increased to a record $122.11 billion in December versus a revised $103.5 billion gap in the prior month. U.S. wholesale inventories declined by 0.5% month-over-month to $898 billion in December following a revised 0.1% fall in the previous month and versus market estimates of a 0.2% gain.



Most sectors on the S&amp;P 500 closed on a negative note, with information technology, real estate, and healthcare stocks recording losses on Wednesday. However, consumer staples and communication services stocks bucked the overall market trend, closing the session higher.



The Dow Jones closed lower by around 137 points to 44,713.52 on Wednesday. The S&amp;P 500 fell 0.47% to 6,039.31, while the Nasdaq Composite fell 0.51% at 19,632.32 during Wednesday's session.



Investors are awaiting earnings results from Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), United Parcel Service Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPS#NYSE">UPS</a>), and Caterpillar Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAT#NYSE">CAT</a>) today.



What is CNN Business Fear &amp; Greed Index?



At a current reading of 45.6, the index remained in the &#8220;Neutral&#8221; zone on Wednesday, versus a prior reading of 47.3.



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.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/25/01/43300989/jim-cramer-this-industrial-stock-is-absolutely-terrific-first-solar-is-very-inexpensive">Jim Cramer: This Industrial Stock Is &#8216;Absolutely Terrific&#8217;, First Solar Is &#8216;Very Inexpensive&#8217;</a></li>
</ul>



Photo courtesy: Shutterstock

Nasdaq Declines As Nvidia Edges Lower, Fed Leaves Interest Rates Unchanged: Fear & Greed Index In 'Neutral' Zone

Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) may have found a new friend in town, as Fed Chair Jerome Powell took a surprisingly open stance on crypto assets during his <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43318325/a-different-powell-emerges-fed-chair-softens-hawkish-tone-on-interest-rates-bitcoin">Wednesday press conference.</a>



Powell indicated that banks can serve crypto customers as long as they understand and manage the risks, marking a notable shift from his <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42571007/bitcoin-etfs-rise-in-pre-market-despite-jerome-powell-says-fed-cannot-hold-btc-whats-going-on">previously anti-crypto approach</a>.



&#8220;We&#8217;re not against innovation, and we certainly don&#8217;t want to take actions that would cause banks to terminate customers.&#8221;



Moreover, he praised Congress for its ongoing efforts to establish a clearer regulatory framework for cryptocurrencies, emphasizing that stronger oversight would be beneficial for the industry and financial stability.



The largest cryptocurrency rallied 3% for the session to over $104,000 levels, on track to snap four straight days of losses. 



<h3 class="wp-block-heading">Stock Market Sentiment Remains Weak</h3>



Wall Street, however, remained underwater, weighed down by persistent concerns over the AI trade.



Shares of Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) dropped nearly 6%. The dip follows reports indicating that President Donald Trump is pushing for stricter restrictions on U.S. chip exports to China.



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>) — closed 0.45% down for the day, broadly unchanged from levels it had before the Fed meeting. The Nasdaq 100 — followed by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) — finished 0.2% lower. The Dow fell 0.3%.



The Fed Chair provided a more balanced stance on interest rates, signaling patience while keeping options open for future adjustments.



&#8220;We are not in a hurry to cut,&#8221; Powell said, while also softening his tone during the presser. He noted that policy remains &#8220;meaningfully restrictive&#8221; and that recent inflation data has shown &#8220;more positive progress.&#8221;



Powell perhaps recognized that hawkish remarks, like those championed in December, would have inflicted unnecessary damage on an already volatile market.



Sector-wise, there were few standout performers. The Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>) closed 0.4% higher, outperforming the others but remaining broadly flat following Powell&#8217;s remarks.



The Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) was the session laggard, down 1.2%. 



In currency markets, the U.S. dollar index remained steady at 108 levels, marginally up by 0.1% for the day. 



Powell's remarks pushed Treasury prices lower, sending yields on the rate-sensitive 2-year note back to 4.21%, roughly where they stood before the Fed's statement.



Expectations for a March rate cut dwindled. Fed futures are now pricing in an 18% chance, down from 30% before the meeting. However, for the full year, markets still see a nearly 90% probability that the Fed will cut rates twice.



Betting market odds, tracked by Kalshi, remained largely unchanged. The most likely scenario points to two rate cuts in 2025.



<iframe loading="lazy" src="https://kalshi.com/external-widgets/events/KXRATECUTCOUNT-25DEC31?color_scheme=light&#038;widget_size=large&#038;utm_campaign=benzingawidget" width="552px" height="400px" style="border:0" > </iframe>



Read now: 



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43313404/big-banks-hit-fresh-record-highs-goldman-sachs-sees-more-upside-in-2025">Big Banks Hit Fresh Record Highs: Goldman Sachs Sees More Upside In 2025</a></li>
</ul>



Image: Shutterstock

Treasuries

XLRE

Bitcoin Flies Above $104,000 After Powell Remarks, Stocks Remain Stunned By AI Concerns

Electric vehicle leader Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) reported fourth-quarter financial results after the <a href="https://www.benzinga.com/earnings">market close Wednesday.</a>



Here are the key highlights.



What Happened: Tesla reported fourth-quarter revenue of $25.71 billion, up 2% year-over-year. The revenue total missed a Street consensus estimate of $27.26 billion, according to data<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012925&amp;t=be2bearmibe3na1"> from Benzinga Pro.</a>



The company reported fourth-quarter earnings pre share of 73 cents, which missed a Street consensus estimate of 76 cents.



Automotive revenue totaled $19.8 billion in the fourth quarter, down 8% year-over-year.



Tesla said its revenue was impacted by growth in energy and services, growth in vehicle deliveries and higher regulatory credit revenue. Reduced selling prices had a negative impact, the company said. 



The company had 11.0 GWh of energy storage deployed in the fourth quarter.



Tesla <a href="https://www.benzinga.com/trading-ideas/movers/25/01/42766117/tesla-stock-tumbles-on-q4-deliveries-whats-going-on" target="_blank" rel="noreferrer noopener">previously announced </a>its fourth-quarter vehicle production and delivery figures. The company produced 459,445 vehicles and delivered 495,570 vehicles in the quarter. While the deliveries set a record in the fourth quarter, the company&#8217;s 1.79 million vehicles delivered in 2024 were down from 1.81 million in 2023. This was the first annual deliveries decline in company history.



Tesla highlighted the fourth quarter as a record one for vehicle deliveries and energy storage deployments.



"We expect Model Y to once again be the best-selling vehicle, of any kind, globally for the full year 2024, and we have made it even better, with the New Model Y now launched in all markets," the automaker said.



Tesla highlighted affordability being "top of mind for customers." The company said its cost of goods sold per vehicle hit its lowest level ever at less than $35,000 in the fourth quarter.



For the full fiscal year, Tesla's automotive revenue was $77.1 billion, down 6% year-over-year. Full-year total revenue was $97.7 billion, up 1% year-over-year.



Tesla ended the quarter with $1.07 billion in digital assets, which includes the company's Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) holdings. The company previously disclosed $184 million in digital assets in recent quarters.



The company said it recognized a mark-to-market gain of $600 million on digital assets in the fourth quarter.



Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43289930/tesla-q4-earnings-preview-2025-delivery-growth-fsd-model-y-refresh-new-vehicles-among-key-topics">Tesla Q4 Earnings Preview: 2025 Delivery Growth, FSD, Model Y Refresh, New Vehicles Among Key Topics</a>



What's Next: Tesla said its AI training compute increased by 400% year-over-year in 2024. The company said it&#8217;s planning to begin FSD launches later this year in parts of the United States.



For an update on vehicles, the company's earning report lists the Cybercab as being in development, the Tesla Semi in pilot production and the Roadster in development.



"2025 will be a seminal year in Tesla's history as FSD (Supervised) continues to rapidly improve with the aim of ultimately exceeding human levels of safety," the company said.



Tesla said it expects its vehicle business to return to growth in 2025.



"The rate of growth will depend on a variety of factors, including the rate of acceleration of our autonomy efforts, production ramp at our factories and the broader macroeconomic environment."



The company said it has sufficient liquidity to fund its product roadmap.



"Product plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025."



Tesla said the new vehicles will be produced on the same manufacturing lines as existing vehicles, which will lead to less cost reduction than previously expected.



The Cybercab robotaxi will pursue an "unboxed" manufacturing strategy and is set for volume production beginning in 2026.



TSLA Price Action: Tesla stock is trading 3.5% higher in the after-hours session at $402.70. Its 52-week trading range is $138.80 to $488.54. Shares lost 2.3% to $389.10 in Wednesday&#8217;s regular session. 



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43246903/tesla-analysts-top-5-items-to-watch-in-q4-earnings-will-refreshed-model-y-new-evs-help-growth">Tesla Analyst&#8217;s Top 5 Items To Watch In Q4 Earnings: Will Refreshed Model Y, New EVs Help Growth?</a></li>
</ul>



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="&#x1f534; WATCH LIVE: Tesla Q4 2024 Earnings Call &#x7C; $TSLA" width="500" height="281" src="https://www.youtube.com/embed/G2UrBRGrLb0?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>
</div></figure>



Tesla Cybercab photo courtesy of the company.

Tesla Q4 Earnings Highlights: Revenue Miss, EPS Miss, EV Updates,  Automaker Says '2025 Will Be A Seminal Year'

Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) reported its second-quarter financial results after Wednesday's closing bell. Here's a look at the key figures<a href="https://www.benzinga.com/25/01/43287988/microsoft-q2-preview"> from the quarter. </a>



The Details: Microsoft reported quarterly GAAP earnings of $3.23 per share, beating the $3.11 consensus estimate. Quarterly revenue clocked in at $69.6 billion, beating the $68.78 billion analyst consensus estimate.



Read Next: <a href="https://www.benzinga.com/25/01/43306674/trumps-hhs-pick-robert-kennedy-jr-begins-senate-confirmation-hearings">Robert Kennedy Jr. Faces Senate Confirmation Hearings As Bird Flu Concerns Grow: Caroline Kennedy Says Cousin &#8216;Predator&#8217; Unfit For Office&nbsp;</a>



<ul>
<li>Revenue in Microsoft&#8217;s Intelligent Cloud segment was $25.5 billion and increased 19%. Within Intelligent Cloud, server products and cloud services revenue increased 21% driven by Azure and other cloud services revenue growth of 31%. </li>



<li>Revenue in the Productivity and Business Processes segment was $29.4 billion, an increase of 14%. </li>



<li>Revenue in More Personal Computing was relatively unchanged at $14.7 billion. </li>



<li>Microsoft&#8217;s capital expenditures were $22.6 billion in the second quarter. </li>
</ul>



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="&#x1f534; WATCH LIVE: Microsoft Q2 2025 Earnings Call &#x7C; $MSFT" width="500" height="281" src="https://www.youtube.com/embed/UfFLSwtn51Q?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>
</div></figure>



"We are innovating across our tech stack and helping customers unlock the full ROI of AI to capture the massive opportunity ahead,&#8221; said Satya Nadella, CEO of Microsoft. "Already, our AI business has surpassed an annual revenue run rate of $13 billion, up 175% year-over-year."



"This quarter Microsoft Cloud revenue was $40.9 billion, up 21% year-over-year," said Amy Hood, executive vice president and CFO of Microsoft. "We remain committed to balancing operational discipline with continued investments in our cloud and AI infrastructure."



Microsoft will host a conference call to discuss the results and provide forward-looking guidance at 5:30 p.m. ET. 



MSFT Price Action: According to data from <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, Microsoft shares are down 1.43% after-hours at $436.32 on Wednesday.  



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/25/01/43196106/rigetti-computing-quantum-stargate">Rigetti Computing, Quantum Stocks Soar On Project Stargate</a></li>
</ul>



Photo: Shutterstock

After-Hours Center

Microsoft Shares Slide After Q2 Results, Cloud Revenue Misses Expectations: Details

It wasn't the same Fed Chair Jerome Powell who shook markets in December with a hawkish stance that unsettled investors. The version that appeared at the Fed's January press conference was far more measured, cautious, and seemingly at ease <a href="https://www.benzinga.com/25/01/43316048/fed-holds-interest-rates-steady-halts-streak-of-consecutive-cuts-as-inflation-remains-elevated">with the path ahead.</a>



Powell sidestepped the brewing clash over interest-rate policy sparked by President Donald Trump, opting to let time and economic data shape the Fed's path ahead.



Notably, he didn't rule out Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) being adopted by commercial banks, marking a sharp U-turn from his previously allergic stance on crypto-related matters.



While the Federal Reserve&#8217;s decision to hold rates at 4.25%-4.50% was widely expected, Powell delivered remarks that helped stabilize investor sentiment in a volatile week shaken by the DeepSeek news. 



Here&#8217;s what happened at the January&#8217;s press conference.



<h3 class="wp-block-heading">Not In A Hurry To Ease, But Let&#8217;s See How Things Evolve&#8230;</h3>



Powell signaled patience but not outright resistance to future cuts.



"If the economy remains strong and inflation does not continue to move sustainably toward 2%, we can maintain policy restraint for longer," he said, while also indicating that weaker labor market conditions or faster-than-expected disinflation could warrant easing.



Notably, he indicated that recent inflation data has been encouraging.



"We don't overreact to two good readings or two bad readings, but nonetheless, the last couple of readings have suggested more positive progress," Powell said. &#8220;The expectation is that we will make continued progress.&#8221;



Powell described monetary policy again as &#8220;meaningfully restrictive,&#8221; a shift from December when he suggested rates were nearing neutral and a new phase of policy had begun.



When asked if a March rate cut was still on the table, Powell kept his response ambiguous: "We don't need to be in a hurry to adjust our policy stance."



Also Read: <a href="https://www.benzinga.com/trading-ideas/movers/25/01/43317129/nvidia-faces-export-risks-as-us-officials-weigh-tougher-ai-chip-limits-for-china">Nvidia Faces Export Risks As US Officials Weigh Tougher AI Chip Limits For China</a>



<h3 class="wp-block-heading">Powell Avoided Political Landmines, Downplays DeepSeek Macro Risk</h3>



When asked about President Donald Trump's demand for immediate rate cuts, Powell refused to engage. "I've had no contact," he said, adding, "It's not appropriate for me to comment on what the president said." 



Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) and SpaceX CEO Elon Musk also took aim at the Fed, calling it "absurdly overstaffed." 



Powell dismissed the criticism, saying, "We run a very careful budget process. We&#8217;re fully aware that we owe that to the public, and we believe we do that." 



When pressed on Trump's pledge to fight inflation by lowering energy costs, Powell again sidestepped. "I&#8217;m not going to react or discuss anything that any elected politician might say," he said.



When questioned on whether the recent AI-related stock volatility triggered by DeepSeek signaled any concerns about financial conditions, Powell downplayed its macroeconomic significance. 



"What really matters for us is macro developments and substantial changes in financial conditions that are persistent for a period of time. So I wouldn't put that label on these events, although of course, we're all watching it with interest."



<h3 class="wp-block-heading">Bitcoin No Longer Off The Table? Powell's Evolving View On Crypto</h3>



One of the more surprising moments of the press conference came when Powell addressed Bitcoin and the broader cryptocurrency market. In stark contrast to his historically crypto-skeptical stance, Powell didn't dismiss the idea of banks integrating digital assets.



"Banks are perfectly able to serve crypto customers as long as they understand and can manage the risks," Powell said, marking a significant shift from his previous concerns over financial stability. 



He indicated that the regulatory threshold for banks engaging in crypto activities has been higher due to the nascent nature of the industry, but he stopped short of opposing its role in the financial system.



Powell also voiced support for greater regulatory clarity. &#8220;I do think it would be helpful if there were a greater regulatory apparatus around crypto, and I think that&#8217;s something Congress was working on quite a lot.&#8221;



<h3 class="wp-block-heading">Final Takeaway: Powell Adapts, But Stays Cautious</h3>



Powell appeared to have learned a key lesson: hawkish surprises can wreak havoc on markets. 



His shift in tone from December was evident—less hawkish, more cautious, but still noncommittal on rate cuts. 



At the same time, Powell stood firm on the Fed's independence, dodging political pressure from both Trump and Musk.



Beyond monetary policy, Powell's measured stance on Bitcoin signaled a departure from his previous skepticism. While he didn't offer an outright endorsement, his willingness to acknowledge crypto's role in the financial system was a notable shift.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/trading-ideas/movers/25/01/43317129/nvidia-faces-export-risks-as-us-officials-weigh-tougher-ai-chip-limits-for-china">Nvidia Faces Export Risks As US Officials Weigh Tougher AI Chip Limits For China</a></li>
</ul>



Image created using artificial intelligence via Midjourney.

A Different Powell Emerges: Fed Chair Softens Hawkish Tone On Interest Rates, Bitcoin

The Symbol BNOX was not found. Here are some similar symbols and popular symbols to consider.

Symbol Similar to: BNOX

Top Gaining Stocks

Noticias

SOCIO/CONTRIBUIDOR

BENZINGA GLOBAL