There's plenty of red to be found on traders' screens today, with the S&P 500 recently off 1.7% and the more tech-focused Nasdaq Composite dropping about twice as much. The Dow, on the other hand, is holding up. The blue-chip index was up about 0.6% in afternoon action. That's despite a big pullback in shares of chip maker Nvidia (NVDA), which joined the index late last year. So what's sustaining the Dow? At recent count, 20 of its 30 components were in the green, with even the smallest gainer—Sherwin-Will ...

Earnings Expectations - Analysts expect UPS to report net income of $2.14 billion, or $2.51 per share, on revenue of $25.35 billion for Q4 [2] - This would mark a second straight quarter of year-over-year revenue and profit growth for UPS [3] - A year ago, UPS posted profit of $1.61 billion, or $1.87 per share, on revenue of $24.92 billion [2] Analyst Sentiment - Among 15 analysts covering UPS tracked by Visible Alpha, 12 have "buy" ratings, 2 have "hold" ratings, and 1 has a "sell" rating [1] - The consensus price target of $153.73 is more than 15% above the stock's closing level on Friday [1] Recent Performance - UPS shares were up 2.5% intraday Monday but are down about 15% over the last 12 months [4] - The company lowered its 2024 revenue outlook to $91.1 billion from about $93 billion previously in its Q3 report [3] Management Commentary - CEO Carol Tomé called Q3 the end of a "challenging 18-month period" for UPS [3][4] - The company saw several quarters of declines following record demand during the pandemic, similar to rival FedEx [3]

Group 1 - Stocks began the week lower due to investor concerns regarding the health of the AI trade, although four of the S&P 500's 11 sectors were rising, particularly healthcare and consumer staples, which were up more than 1% [1] - Over 50 stocks increased by more than 2%, including telecommunications shares boosted by AT&T's positive earnings report and staples companies like Kraft Heinz, JM Smucker, and General Mills [2] - The S&P's information technology sector was the largest decliner, down 5%, with significant drops in stocks such as Constellation Energy and Nvidia, both experiencing double-digit percentage declines [3] Group 2 - Major tech companies, including Apple, Microsoft, and Meta Platforms, are scheduled to report quarterly results soon, and the current market volatility may impact the questions their executives will face [4] - The CNBC's Magnificent 7 index, which includes Meta and Nvidia, was recently down about 3%, reflecting the broader market concerns [4]

Group 1 - A significant decline in artificial intelligence stocks, including Nvidia, occurred after Chinese startup DeepSeek launched an AI model that operates on less-advanced chips and at a lower cost than U.S. competitors like OpenAI [1][7] - DeepSeek's performance has been reported to be "on par with ChatGPT," despite U.S. export controls on advanced chips affecting Chinese AI companies [2] - Nvidia's shares fell by 11% in premarket trading, with other chipmakers like Taiwan Semiconductor Manufacturing Co. and Broadcom also experiencing declines of over 11% and around 12% respectively [3][7] Group 2 - Nasdaq futures dropped approximately 4%, with Meta Platforms down nearly 4% ahead of its earnings report [4] - Citi analysts maintained a buy rating on Nvidia, anticipating continued demand for advanced chips from AI companies [5] - Analysts expressed skepticism about DeepSeek's achievements being accomplished without advanced GPUs, suggesting that U.S. companies still hold an advantage in access to cutting-edge chips [6]

AT&T (T) shares rose in premarket trading Monday after the telecommunications giant reported better-than-expected fourth-quarter results. The company reported net income that jumped 70% year-over-year to $4.41 billion, or 56 cents per share, on revenue of $32.3 billion. Analysts polled by Visible Alpha expected profit of $3.38 billion, or 46 cents per share, on roughly flat revenue of $32.07 billion. "The strong results this quarter are the result of a four-plus-year period of hard work and consistent exec ...

Meta Platforms Q4 Earnings Preview - Meta Platforms is set to report its fourth-quarter results after the closing bell Wednesday, with analysts largely bullish on the company's ability to build on a strong 2024 as its AI investments show signs of paying off [2] - The company's stock price rose by nearly two-thirds last year, driven by revenue upside, strong cost discipline, and optimism on AI capabilities [3] - Bank of America analysts remain positive on the stock in 2025, citing rising AI contributions to ad revenue, growing messaging revenue, and recent workforce reductions [3] Analyst Ratings and Price Targets - Bank of America reiterated a "buy" rating and raised its price target for Meta's stock to $710 from $660 [4] - Overall, 26 of the 28 analysts covering Meta tracked by Visible Alpha have a "buy" or equivalent rating, with the remaining two issuing "hold" ratings [4] - The consensus price target is about $686, a roughly 6% premium over the stock's record closing price Friday [4] Revenue and Earnings Expectations - Wall Street expects Meta to report fourth-quarter revenue of $47.02 billion, up 17% year-over-year [5] - Earnings are projected to rise to $17.52 billion, or $6.75 per share, up from $14.02 billion, or $5.33 per share, a year earlier [5] - Meta is boosting spending on AI, with CEO Mark Zuckerberg unveiling plans to invest $60 billion to $65 billion in capital expenditures this year, up from an estimated $38 billion to $40 billion in 2024 [6] Stock Performance and Market Impact - Shares of Meta climbed 1.7% in Friday's session to close at an all-time high of $647.49 [7] - The stock has added close to 65% over the past 12 months [7] - The short-lived TikTok ban in the U.S. earlier this month could be a "potential added tailwind" in the current quarter, as some TikTok users migrated to Instagram Reels [6]

Earnings and Analyst Sentiment - Microsoft is set to report fiscal second-quarter earnings after the market closes Wednesday, with analysts largely bullish ahead of the results [1] - Investor sentiment has shifted negative due to concerns around gross margins, capex, GenAI monetization, and the OpenAI relationship, causing Microsoft to underperform other large-cap software companies over the past three months [1] - Morgan Stanley analysts noted that the "wall of worry" has created a potentially attractive entry point for the stock [4] Analyst Ratings and Price Targets - Morgan Stanley lowered its price target to $540 from $548 but highlighted Microsoft's strong position in generative AI and recent market trends as an attractive entry point [2] - 18 out of 19 analysts tracked by Visible Alpha have a "buy" or equivalent rating, with 1 "hold" rating [2] - The consensus price target is just over $517, representing a 16% premium to the stock's Friday close around $444 [2] - Jefferies holds a "buy" rating and a price target of $550, expressing confidence in Azure's reacceleration in the second half of the fiscal year [4] Revenue and Earnings Expectations - Wall Street expects Microsoft to report revenue of $68.92 billion, up 11% year-over-year, and earnings of $23.36 billion, or $3.13 per share, up from $21.87 billion, or $2.93 per share a year earlier [3] - Revenue from Microsoft's Intelligent Cloud segment, including Azure, is expected to climb 20% to $25.76 billion [3] - Jefferies analysts pointed to a recent Microsoft blog post announcing a "new, large Azure commitment" from OpenAI as a positive indicator for Azure's growth [4] Stock Performance - Microsoft shares are up about 11% over the past 12 months [4]

AI stocks soared last week after OpenAI announced a partnership with Oracle (ORCL) and SoftBank that could result in up to half a trillion dollars of investment in AI infrastructure over the next four years. The investment announced Tuesday adds to the enormous sums that tech giants have already said they’ll spend on data centers and other AI infrastructure in the coming years. Microsoft (MSFT) President Brad Smith said earlier this month that the company was “on track to invest approximately $80 billion t ...

Earnings and Revenue Expectations - Starbucks is expected to report fiscal first-quarter net sales of $9.33 billion, down 1% year-over-year [2] - Earnings are projected to be $776.77 million, or 68 cents per share, down from $1.02 billion, or 90 cents per share, a year ago [2] Analyst Ratings and Price Target - 10 out of 16 analysts covering Starbucks have issued "buy" or equivalent ratings, with four giving a "hold" rating and two opting for "sell" [1] - The consensus price target is near $106, suggesting about 7% upside from Friday's closing price near $99 [1] Same-Store Sales Performance - Same-store sales are expected to fall 4.8% year-over-year, according to Street estimates [3] - Jefferies analysts predict a 6% decline in U.S. same-store sales, citing foot-traffic data from Placer.ai [4] Challenges and Strategic Decisions - Starbucks is facing "lingering challenges around product innovation" [4][5] - New CEO Brian Niccol's decision to "pull back on discounting/promos" in favor of broad, brand-focused national advertising has been questioned by analysts [4] Future Outlook and Market Performance - Analysts will be watching for possible 2025 forecast updates after Starbucks did not release a full-year outlook last quarter [5] - Shares of Starbucks are up about 7% over the past 12 months [5]

Earnings and Financial Performance - Boeing is set to report a Q4 net loss of $5 46 per share on revenue of $15 2 billion, significantly wider than the consensus estimate of a $2 80 per share loss on revenue of $16 3 billion [1][4] - The company's preliminary results indicate a far wider loss than analysts had expected [1][4] Operational Challenges - Boeing faced a nearly two-month strike by its union machinists, which ended in November and halted production at several facilities [2][4] - The company implemented cost-cutting measures, including substantial layoffs, during the strike [2] Market and Analyst Sentiment - Boeing's stock price tumbled from around $250 to as low as $137 in November following a midair incident involving an Alaska Airlines flight in early January last year [3] - Analysts remain generally bullish on Boeing's stock, with seven "buy" and two "hold" ratings, and an average price target of $192 50, representing a 9% premium to the Friday closing price of about $176 [3] Industry Impact - The midair incident involving the 737 MAX plane has significantly impacted Boeing's operational and financial performance [3]