Tesla said on Wednesday that it's agreed to invest $2 billion into Elon Musk's xAI, which he launched almost three years ago as a prospective competitor to OpenAI. The share purchase was related to xAI's $20 billion financing round announced earlier this month. The artificial intelligence startup is best known for developing Grok, an AI chatbot and image generator."Tesla's investment was made on market terms consistent with those previously agreed to by other investors in the financing round," the company s ...

U.S. Federal Reserve Chair Jerome Powell speaks during a press conference following a two-day meeting of the Federal Open Market Committee (FOMC) on interest rate policy, in Washington, D.C., U.S., Jan. 28, 2026.The Federal Reserve wrapped up a two-day policy meeting Wednesday, delivering pretty much what the market expected and no major surprises from Chair Jerome Powell's news conference. Here are five things worth remembering:The decision: To no one's surprise, the rate-setting Federal Open Market Commit ...

Core Viewpoint - DoubleLine Capital CEO Jeffrey Gundlach anticipates that the Federal Reserve will maintain its current interest rates for the remainder of Jerome Powell's term, reflecting a more balanced economic outlook [1][2]. Group 1: Federal Reserve's Current Stance - The Federal Reserve has kept its overnight lending rate steady at a range of 3.5% to 3.75%, indicating that economic activity is expanding at a solid pace [3]. - Powell noted that the unemployment rate is stabilizing and that the current policy is not significantly restrictive [3]. Group 2: Future Expectations - Gundlach predicts that there will not be another rate cut under Powell, emphasizing that inflation is elevated but not as concerning as previously feared [2]. - Fed funds futures trading indicates expectations of two quarter percentage point cuts by the end of 2026, according to the CME FedWatch Tool [4]. Group 3: Investment Strategy - Gundlach recommends that investors consider allocating 30% to 40% of their portfolios to unhedged international equities, which could benefit from local currency gains against the U.S. dollar [4].

Core Insights - Southwest Airlines forecasts a significant increase in 2026 profits, surpassing analysts' expectations due to a revamped business model that includes new revenue streams such as bag and seat assignments [1][4]. Financial Performance - The airline anticipates adjusted earnings of at least $4 per share for the year, exceeding the $3.19 expected by analysts, with a capacity growth of 2% to 3% compared to 2025 [2]. - For the first quarter, Southwest expects revenue per seat mile to increase by 9.5%, higher than the 8.5% forecasted by analysts, and projects adjusted earnings of 45 cents, above the 33 cents anticipated by Wall Street [2]. Business Model Changes - Over the past two years, Southwest has made significant changes to its business model, including the end of its open boarding policy and the introduction of assigned seating, which includes additional charges for certain seat selections [3]. - The airline also began charging customers for checked bags for the first time, aligning its practices more closely with industry competitors amid pressure to enhance profitability [4]. Recent Earnings Report - In the fourth quarter, Southwest reported adjusted earnings per share of 58 cents, matching expectations, while revenue was $7.44 billion, slightly below the $7.51 billion expected [6].

Core Insights - ServiceNow exceeded Wall Street's fourth-quarter estimates, reporting a revenue growth of 20.5% to $2.96 billion, with net income rising to $401 million or 38 cents per share, compared to $384 million or 37 cents per share a year ago [1] - Despite strong performance, shares fell over 3% following the earnings announcement [1] Financial Performance - Adjusted earnings per share were reported at 92 cents, surpassing the expected 88 cents, while revenue reached $3.57 billion, exceeding the forecast of $3.53 billion [4] Future Outlook - The company forecasts subscription revenues between $3.65 billion and $3.66 billion for the first quarter and between $15.53 billion and $15.57 billion for the fiscal year 2026 [2] Strategic Moves - ServiceNow's acquisition of Moveworks is expected to contribute 100 basis points to both full-year and first-quarter subscription revenue growth, as well as to current remaining performance obligations growth [3] Shareholder Returns - The board approved a $5 billion share buyback program, indicating a commitment to returning value to shareholders [2]

Core Insights - IBM reported better-than-expected fourth-quarter results, with revenue rising 12% to $19.69 billion and net income increasing to $5.6 billion, or $5.88 per share [1][4] - The company expects full-year revenue growth to exceed 5%, down from 8% last year, with analysts projecting a 4.6% sales growth for 2026 [2] - IBM's generative artificial intelligence business surpassed $12.5 billion [2] Financial Performance - Fourth-quarter software revenue rose 14% to $9 billion, driven by automation, data, and Red Hat products [3] - Infrastructure sales increased 21% to $5.1 billion, with IBM Z Systems mainframe computers experiencing 67% year-over-year growth [3] - Adjusted earnings per share were $4.52, exceeding the expected $4.32 [4] Future Outlook - Free cash flow is projected to increase by $1 billion after reaching $14.7 billion in 2025 [2] - The board of directors approved a per-share dividend of $1.68, payable on March 10 [3]

Tesla reported better-than-expected fourth-quarter results after the bell on Wednesday, but revenue for the year dropped 3%, the first time on record the company has recorded an annual decline. The stock rose 3% in extended trading. Here's how the company did, compared with estimates from analysts polled by LSEG:Earnings per share: 50 cents, adjusted vs. 45 cents, estimatedRevenue: $24.90 billion vs $24.79 billion, estimatedAuto sales have been sluggish in recent quarters for Tesla, as the company faces an ...

Core Insights - Meta's Reality Labs unit reported a significant operating loss of $6.02 billion on $955 million in sales for the fourth quarter, exceeding analyst expectations of a $5.67 billion loss on $940.8 million in revenue [2] - Since late 2020, Reality Labs has accumulated over $75 billion in total operating losses, indicating the high costs associated with Meta's metaverse initiatives [2] - The company laid off more than 1,000 employees from Reality Labs to reallocate resources towards artificial intelligence and wearable devices, including the new Ray-Ban Meta smart glasses [3] Company Strategy - Meta's tech chief Andrew Bosworth stated that the company is not abandoning its VR efforts, although the market is growing slower than anticipated [4] - The company did not release a new Quest VR headset last fall but introduced the AI-powered Meta Ray-Ban Display glasses priced at $799, featuring a digital screen on one lens [4]

US Federal Reserve Board Chairman Jerome Powell speaks during a news conference following a Federal Open Market Committee (FOMC) meeting in Washington, DC, on Dec. 10, 2025.Federal Reserve Chair Jerome Powell on Wednesday offered his first explanation into his controversial decision to attend Fed Governor Lisa Cook's Supreme Court hearing, sharing a belief that its the most important legal case the central bank has ever seen because of its impact on independence."That case is perhaps the most important lega ...

This is a comparison of Wednesday's Federal Open Market Committee statement with the one issued after the Fed's previous policymaking meeting in December.Text removed from the December statement is in red with a horizontal line through the middle.Text appearing for the first time in the new statement is in red and underlined.Black text appears in both statements. ...