US weekly initial unemployment claims fell -1,000 to 209,000, showing a slightly weaker labor market than expectations of 205,000. However, continuing claims fell -38,000 to a 6-month low of 1.827 million, showing a stronger labor market than expectations of 1.850 million.WTI crude oil (CLH26) prices jumped more than +3% to a 4.25-month high on Thursday to lift energy producers after President Trump on Wednesday said that he wants Iran to come to the table and negotiate a nuclear deal that is “a fair and eq ...

Company Performance - Microsoft shares dropped by 10.0 percent, reaching their lowest closing level in nine months due to slowing cloud computing growth and disappointing third quarter operating margin guidance [2][3] - Meta Platforms saw a significant increase of 10.4 percent after reporting better than expected fourth quarter results and forecasting first quarter revenues above analyst estimates [5] - IBM Corp. shares surged after exceeding expectations on both top and bottom lines in its fourth quarter results [5] Sector Performance - The Dow Jones U.S. Software Index fell by 7.7 percent, marking a nine-month closing low, largely influenced by Microsoft’s decline and a 9.9 percent drop in ServiceNow shares despite its better than expected fourth quarter earnings [5][6] - Airline stocks increased significantly, with the NYSE Arca Airline Index rising by 2.3 percent, contributing to the overall market recovery [7] - Gold stocks experienced continued weakness, as indicated by a 3.8 percent slump in the NYSE Arca Gold Bugs Index, despite a recovery in gold prices [6] Market Overview - The major averages showed a recovery attempt after an early nosedive, with the Dow ending up 55.96 points or 0.1 percent at 49,071.56, while the S&P 500 closed down just 9.02 points or 0.1 percent at 6,969.01 [1] - The tech-heavy Nasdaq ended the day down 172.33 points or 0.7 percent at 23,685.12, having previously tumbled by as much as 2.6 percent [2] - Stock markets in the Asia-Pacific region mostly moved higher, with Japan's Nikkei 225 Index closing marginally higher and China's Shanghai Composite Index edging up by 0.2 percent [8] Economic Indicators - The yield on the benchmark ten-year note fell by 2.4 basis points to 4.227 percent, indicating a recovery in the bond market following previous pullbacks [9] - Upcoming earnings news from Apple may influence trading, with the tech giant set to report its fiscal first quarter results [10]

>> BLOOMBERG TAG'S LIVE FROM COAST-TO-COAST WITH CAROLINE HYDE IN NEW YORK AND ED LUDLOW IN NEW YORK. -- SAN FRANCISCO. ED: COMING UP, AI CAPEX INFO.DACHSHUND FOCUS AFTER META, MICROSOFT AND TESLA REPORT EARNINGS. CAROLINE: APPLE IS SET TO REPORT EARNINGS WITH THE IMPACT OF MEMORY PRICES TOP OF MIND. ED: AMAZON REPORTED HUNDREDS OF THOUSANDS OF PIECES OF CONTENT IT BELIEVED IT INCLUDED A CHILD SEXUAL ABUSE MATERIAL THAT IT FOUNDED DATA GATHERED TO IMPROVE ITS AI MODELS.WE HAVE THE BLOOMBERG REPORTING. CAROL ...

ToplineMark Zuckerberg’s fortune added more than $22 billion Thursday, ranking him as the world’s fourth-richest person, surpassing Amazon’s Jeff Bezos as Meta’s stock rallied after once again exceeding Wall Street’s expectations for quarterly revenue. The company reported quarterly revenue that exceeded Wall Street’s expectations. Copyright 2024 The Associated Press. All rights reserved.Key FactsShares of Meta surged 10.2% to above $737 as of 3:20 p.m. EST, the largest intraday jump for the stock since ris ...

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company operates with a team of experienced and qualified news journalists, ensuring independent content production [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The news team delivers insights across various sectors, including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans [5]

Core Insights - The earnings reports from major tech companies indicate that investors are willing to overlook high spending on artificial intelligence (AI) if it leads to strong growth, but they are quick to react negatively if companies do not meet expectations [1][2] Group 1: Company Performance - Meta's shares increased by over 9% due to strong sales, while Microsoft's shares fell by 10% after disappointing results from its cloud business [2] - Microsoft reported revenue growth in its Azure cloud-computing business that was only slightly above expectations, with a forecast of stable growth between 37% to 38% for the upcoming quarter [3][6] - Meta's revenue grew by 24% in the December quarter, with a forecast of accelerating growth up to 33% in the current quarter, indicating that its AI investments are yielding positive results [3][7] Group 2: Investment and Spending Trends - Meta's capital spending is expected to increase by as much as 87% to $135 billion this year, reflecting confidence in its AI strategy [3] - Microsoft is under pressure to justify its significant capital expenditures, which have raised concerns among investors about the potential returns [2][4] - Meta's CEO, Mark Zuckerberg, stated that AI will enhance both the quality of organic experiences and advertising, predicting a 43% increase in total expenses to $169 billion this year [8] Group 3: Market Sentiment and Risks - There is a growing divide between tech companies' AI ambitions and Wall Street's patience for long-term investment cycles, as seen in the contrasting stock market reactions to Microsoft and Meta [2][4] - Microsoft faces concentration risk due to its deep ties with OpenAI, which accounts for 45% of its cloud backlog, raising concerns about the sustainability of its growth [4][5] - Analysts noted a mismatch between corporate AI goals and investors' expectations for immediate payoffs, as evidenced by mixed results across the sector [9]

Core Viewpoint - Meta Platforms, Inc. is experiencing significant stock price appreciation following a strong fourth-quarter report, with analysts highlighting the positive impact of AI investments on growth potential [1] Meta Analysts - BofA Securities emphasizes that Meta's results demonstrate the advantages of AI in its advertising business, noting the company's ability to self-fund substantial investments while maintaining positive free cash flow [2] - Rosenblatt's analysis indicates that Meta's $100 billion increase in capital and operational expenditures is yielding approximately a 50% pretax return due to new high-margin revenue streams [2] - The firm reports a 30% increase in output per software engineer since early 2025, attributed to advancements in agentic coding [3] - Wedbush points out that Meta's Q1 revenue guidance counters the narrative of a slowdown, with significant upside potential from the Meta AI assistant and automated advertising tools [3] - JPMorgan highlights strong Q1 revenue growth, suggesting that Meta's aggressive investment strategy is justified, and notes increased spending on third-party cloud services [4] - KeyBanc describes Meta's results as a best-case scenario where substantial revenue growth offsets rising expenses [4] - Goldman Sachs observes that Meta's business is beginning to reflect the scaling effects of AI on content recommendation, creating a positive engagement feedback loop [5] - Cantor Fitzgerald notes that Meta has one of the highest monetization rates for compute in the AI sector [5] Meta Market Reaction - Following the positive results, Meta's stock rose by 9.8% on high trading volume, reaching $734.39 [7]

Meta Platforms (META) shares soared roughly 10% this morning after the Facebook parent posted a market-beating Q4 and issued upbeat guidance for the current quarter. On the earnings call, Susan Li — the company’s chief of finance — said capital expenditures could more than double on a year-over-year basis to about $135 billion in 2026. The post-release surge pushed META stock’s standard relative strength index (14-day) up to 73, indicating overbought conditions. But none of it is cause for concern, accor ...

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Meta (META) reported a blowout fourth quarter after the bell on Wednesday, posting better-than-anticipated earnings per share and revenue. But the big news came during the company’s earnings call. CEO Mark Zuckerberg used his opening remarks to deliver what felt more like a state of the union address, laying out his plans for the company’s AI moves in 2026 after a tough 2025. Meta spent a large chunk of the last year reforming its AI arm after the disappointing release of its Llama 4 models in April. ...