Core Insights - Meta Platforms Inc. is set to report its fourth-quarter earnings, with a focus on the impact of its revamped artificial intelligence strategy for 2026 [1] - The company invested $14.3 billion in Scale AI to enhance its AI capabilities, particularly under the leadership of founder Alexandr Wang [1][2] AI Strategy and Investments - Meta's AI unit, TBD, was established following a lukewarm reception of its Llama 4 model, and it is currently developing a new model code-named Avocado, expected to launch in the first half of the year [2] - The company is also investing heavily in data center infrastructure, committing up to $6 billion to Corning for fiber-optic cables through 2030 [3] - CEO Mark Zuckerberg emphasized the necessity of these investments in AI, despite concerns from investors regarding costs [3][4] Financial Projections - Meta's capital expenditures related to data centers are projected at $21.97 billion for the quarter, with expected online advertising sales of $56.98 billion [4] - Analysts predict that the number of daily active users will reach 3.58 billion in the fourth quarter [5] Reality Labs Unit - The Reality Labs unit, which focuses on virtual and augmented reality, is expected to report an operating loss of $5.67 billion on sales of $940.8 million for the fourth quarter [6][7] - This unit has accumulated over $70 billion in total operating losses since late 2020, raising concerns about its future viability [7] Earnings Estimates - Analysts estimate earnings per share at $8.21 and revenue at $58.35 billion for the upcoming report [8]

Core Viewpoint - The U.S. dollar index experienced a significant decline, falling 1.3% on Tuesday, marking its largest one-day drop since April and reaching its lowest level since 2022, although it saw a slight recovery in midday trading on Wednesday [1]. Group 1: U.S. Dollar and Currency Market - The U.S. Treasury Secretary Scott Bessent dismissed reports of potential U.S. intervention in the currency market regarding the Japanese yen, emphasizing that the U.S. maintains a strong dollar policy [2][3]. - Bessent stated that a strong dollar policy involves establishing the right economic fundamentals, which should naturally lead to increased dollar strength over time as trade deficits decrease [3]. - The dollar index has decreased by more than 10% compared to the same period last year, indicating a significant depreciation of the currency [3]. Group 2: International Currency Dynamics - President Donald Trump expressed concerns over currency devaluation by countries like China and Japan, labeling it as unfair competition [4]. - Investors are closely watching for any signs of intervention in the Japanese yen, as the U.S. dollar's decline raises questions about currency stability [4].

Group 1 - Apple CEO Tim Cook expressed his heartbreak over the situation in Minneapolis and called for deescalation in a memo to employees [1][2] - Cook emphasized the importance of treating everyone with dignity and respect, highlighting America's strength in embracing shared humanity [2] - Cook had a constructive conversation with President Donald Trump regarding his concerns, appreciating Trump's willingness to engage on important issues [2] Group 2 - A number of leaders and billionaires, including OpenAI's Sam Altman and LinkedIn cofounder Reid Hoffman, have voiced their concerns about the actions of federal agents in Minneapolis [3] - The response from tech executives contrasts sharply with the vocal support for racial justice seen in 2020 following the death of George Floyd [4] - Cook, along with other tech leaders, attended a White House event on the same day as the fatal shooting, which drew criticism from Apple employees [5]

Group 1 - Crude oil prices increased following President Trump's warning to Iran about a "massive Armada" heading towards it, indicating rising geopolitical tensions [1][2] - Global benchmark Brent crude rose by 55 cents (0.81%) to $68.12 per barrel, while U.S. crude increased by 63 cents (1.01%) to $63.02 [1] - The deployment of the USS Abraham Lincoln Carrier Strike Group to the Middle East aims to promote regional security and stability [2][3] Group 2 - Trump emphasized that the fleet in the Middle East is larger than previous deployments, indicating a significant military presence [3] - The President warned Iran that failure to negotiate on its nuclear program could lead to severe consequences, suggesting a potential escalation in military action [4] - Trump stated that time is running out for Iran to make a deal, highlighting the urgency of the situation [4]

Core Viewpoint - Allbirds is shifting its focus from physical retail to online sales to enhance profitability, closing its remaining full-price stores in the U.S. by the end of February [1][2]. Group 1: Company Strategy - The CEO of Allbirds stated that the closure of unprofitable stores is a crucial step towards achieving profitable growth under a turnaround strategy [2]. - The company has been reducing its brick-and-mortar presence over the past two years to cut costs and support long-term business health [2]. - Allbirds will maintain two outlet stores in the U.S. and two full-price stores in London, indicating a strategic pivot rather than a complete exit from physical retail [2]. Group 2: Market Context - Allbirds originated in Silicon Valley and gained traction during the direct-to-consumer boom, going public in 2021 [3]. - The rise in rents and the declining appeal of physical retail have prompted Allbirds and other direct-to-consumer companies to prioritize digital sales [4]. Group 3: Financial Performance - In its third-quarter earnings report, Allbirds reported a 23.3% decline in net revenue compared to the same period the previous year, largely due to changes in international distribution and store closures [5]. - Net revenue from U.S. stores decreased by approximately 20% year-over-year [5]. - The company has a market cap of $32 million but has experienced a stock decline of over 80% in the past two years [5].

Core Viewpoint - JPMorgan Chase will match the U.S. government's one-time $1,000 contribution to new children's retirement savings accounts for eligible U.S. employees, reflecting a commitment to employee financial well-being [1][4]. Group 1: Program Details - The "Trump accounts" are part of a pilot program that deposits $1,000 from the U.S. Treasury into tax-advantaged accounts for eligible children born in the U.S. between January 1, 2025, and December 31, 2028 [2]. - The initiative aims to encourage long-term saving and investing from birth, with contributions from notable U.S. billionaires and celebrities [3]. Group 2: Company Commitment - CEO Jamie Dimon emphasized JPMorgan Chase's long-term commitment to the financial health and well-being of its employees and their families, particularly the 190,000 employees in the U.S. [4]. - By matching the government contribution, the company aims to facilitate early saving, wise investing, and financial planning for families [4].

Core Viewpoint - The U.S. dollar is currently in a bear market, with a significant decline impacting the economy, described as a "double-edged sword" by analysts [1][5]. Dollar Performance - The U.S. dollar index has decreased by 2.2% this year and experienced a more than 9% drop in 2025, marking its worst one-day decline since April [1]. - The dollar's recent performance has led to discussions about its implications for the U.S. economy, particularly in relation to exports and imports [4][5]. Economic Implications - A weaker dollar can enhance the competitiveness of U.S. exports and increase the value of foreign earnings when converted back to USD, potentially boosting the domestic economy [4]. - However, a declining dollar can also lead to higher import costs and reduced investor confidence, complicating the economic landscape [5][4]. Consumer Confidence and Spending Patterns - Consumer confidence has fallen to its lowest level in over a decade, reflecting a K-shaped recovery where higher-income earners are driving spending while lower-income groups struggle with inflation [9][10]. - The labor market shows disparities, with growth in sectors like healthcare and leisure benefiting wealthier consumers, while others face challenges [10]. Market Predictions - Analysts predict that the dollar's decline may continue, drawing parallels to historical market trends where significant capital flows out of the U.S. could further weaken the dollar [11][13]. - The current economic environment, characterized by strong growth and high commodity prices, suggests that the dollar may remain under pressure despite its recent resilience [14][15].

Core Viewpoint - Snap has established a wholly owned subsidiary named Specs Inc. to focus on the development of augmented reality glasses, aiming for a more operationally aligned approach as it prepares to launch Specs AR glasses this year [1][2]. Group 1: Company Developments - The new subsidiary, Specs Inc., is intended to provide "greater operational focus and alignment" for Snap's augmented reality initiatives [2]. - Specs Inc. is currently hiring for nearly 100 roles, although the exact number of employees has not been disclosed [2]. - Snap plans to release the sixth generation of its AR glasses in 2026, which will be smaller and lighter than previous models, targeting consumers [3]. Group 2: Industry Context - Other companies, such as Meta and Alphabet, are also investing in augmented reality glasses with AI capabilities, indicating a competitive landscape [3]. - Meta and EssilorLuxottica recently launched a new version of their glasses priced at $799, featuring a small display [4]. - Meta has laid off over 1,000 employees in its Reality Labs unit, shifting focus towards AI and wearables, which has raised concerns about a potential downturn in virtual reality development [4].

Core Insights - Outtake, a cybersecurity startup founded in 2023, has raised $40 million in a funding round led by Iconiq Capital, with notable investors including Microsoft CEO Satya Nadella and Palantir's tech chief Shyam Sankar [1][2] Company Overview - Outtake utilizes autonomous artificial intelligence agents to detect and eliminate cyberthreats, such as phishing, through various applications including email verification [2] - The company aims to create a "trust layer for the Internet" in response to the increasing sophistication and speed of cyberthreats driven by AI [3] Financial Performance - Outtake's annual recurring revenue has increased approximately sixfold year over year, indicating strong growth [3] - The company has scanned 20 million potential cyberattacks in the previous year and has expanded its enterprise customer base more than tenfold year over year [3]

This is CNBC's Morning Squawk newsletter. Subscribe here to receive future editions in your inbox.Happy Wednesday. When you work in journalism, there's a new surprising story each day. Yesterday, it was about what gold investors can learn from King Henry VIII's reign.S&P 500 futures are rising this morning after a winning day.Here are five key things investors need to know to start the trading day:1. Decisions, decisionsFederal Reserve Chair Jerome Powell speaks after a Federal Open Market Committee meeting ...