Microsoft, Meta and Tesla logos on blue tech backdrop, signaling mega-cap earnings impact on tech ETFs. Key Points Despite strength in pockets like memory chips, heavy weighting in underperforming Magnificent Seven names has kept XLK and QQQ stuck in consolidation. Microsoft, Tesla, and Meta's Jan. 28 earnings reports carry outsized influence as both ETFs sit just below key breakout levels. Guidance on AI spending, monetization, and profitability from these three leaders may determine whether tech brea ...

Core Viewpoint - Meta is introducing a subscription model for Facebook and Instagram, allowing users to pay £3.99 per month to remove personalized ads, or continue using the platforms for free with ads [1][6][13] Pricing Structure - The subscription fee for the app version is £3.99 per month, while the web version costs £2.99 per month. Additional accounts incur a charge of £2 per month for web and £3 for app [6] - The higher app fee is attributed to fees imposed by Apple and Google [6] Target Audience - Notifications regarding the subscription are being sent to UK users over the age of 18, prompting them to consider the ad-free option upon logging into their accounts [9] User Options - Users who opt not to subscribe will continue to see personalized ads but can adjust their ad preferences in the settings [12] - Meta emphasizes that it does not sell personal data to advertisers [12] Reason for Subscription Introduction - The subscription model follows guidance from the UK's Information Commissioner's Office regarding ad-free options, aiming to provide users with a choice about data usage for personalized advertising [13] - This model, referred to as "consent or pay," allows digital platforms to generate revenue from users who choose not to be tracked [14]

Key Takeaways Mag 7 earnings are likely to rise 16.9% on 16.6% higher revenues, with four members reporting this week.AI positioning is under focus, as MSFT and META ramp up spending, while AAPL faces limited AI visibility.The Mag-7 group trades at a 26% valuation premium to the S&P 500.The Q4 earnings reporting season has accelerated this week, with more than 300 companies scheduled to release results. Among them are 102 S&P 500 constituents, including four members of the “Magnificent 7.” As a group, the M ...

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Market Overview - The market is starting slow but is expected to pick up pace throughout the day, particularly with large-cap tech earnings after the bell [1] - Mortgage applications data has come in soft, with a notable decline of 8.5% in overall applications, driven by rising mortgage rates [2][3] Mortgage Applications - The 10-year yield has fluctuated from 6.13% to 6.3% and back to 6.25% over the last 10 days, impacting 30-year mortgage rates which rose from 6.16% to 6.24% [2] - Refinances have seen a significant drop of 15.7%, indicating sensitivity to rising mortgage rates [2] Technology Sector - Positive news from Nvidia and China is expected to boost stocks like Nvidia, AMD, and Broadcom [3] - Memory stocks are also showing upward movement, contributing to a generally positive sentiment in the tech sector [4] Currency Impact - The US dollar is at four-year lows, which may benefit multinational companies by making US goods and services cheaper for foreign buyers [4][5] - Historical context shows that the dollar has traded lower in previous years, suggesting that a weaker dollar can have positive implications for exports [6][7] Earnings Reports - Major earnings reports from companies such as Microsoft, Meta Platforms, Tesla, and IBM are anticipated, with Microsoft showing a rally leading into its report [9][10] - There are questions surrounding Meta Platforms' spending and Tesla's future beyond electric vehicles, including potential developments in full self-driving and other technologies [11][12]

Core Insights - Meta Platforms (META) has experienced an 11% gain over a 5-day winning streak, increasing its market capitalization by approximately $173 billion to $1.7 trillion [2] - The stock has a year-to-date return of 2.0%, closely aligning with the S&P 500's return of 1.9%, prompting a reassessment of its valuation [3] Group 1: Stock Performance - The recent rally was prompted by an upgrade from Rothschild & Co, along with an increase in the price target [4] - Despite the stock's strong operational performance and financial health, it is considered fairly priced due to its high valuation [5] - The market has already factored in the recent gains, indicating the need for predictive signals to identify future investment opportunities [6] Group 2: Market Context - There are currently 55 S&P constituents with 3 or more days of consecutive gains, while 62 constituents have experienced 3 or more days of consecutive losses [8] - The Trefis High Quality Portfolio, which includes 30 stocks, has a history of outperforming benchmarks, suggesting a smoother investment experience with reduced risk [8] Group 3: Analyst Ratings - The stock rating has been elevated to 'Buy' from 'Neutral', with the price target raised from $740 to $900, reflecting increased bullish sentiment and enhanced investor confidence [9]

Core Insights - Snap is establishing an independent subsidiary focused on augmented reality smart glasses to attract external investment and compete with larger rival Meta in the growing wearables market [1] Company Strategy - The creation of a subsidiary indicates Snap's commitment to expanding its presence in the augmented reality sector [1] - The move aims to enhance Snap's competitive edge against Meta, which is a significant player in the wearables market [1] Market Context - The wearables market is experiencing rapid growth, prompting companies like Snap to innovate and seek investment opportunities [1] - By focusing on augmented reality, Snap is positioning itself to capitalize on emerging trends within the technology landscape [1]

Group 1 - Corning reported a 26% increase in earnings to 72 cents per share for Q4, exceeding estimates [1] - The company struck a significant $6 billion deal with Meta, which contributed to the positive earnings report [1] - Following the announcement, Corning's stock experienced a rally, breaking out on Tuesday before paring some gains on Wednesday morning [1] Group 2 - Corning specializes in optical communications, including fiber optic cables, display technologies, and consumer electronics components [1] - The deal with Meta is expected to enhance Corning's position in the fiber-optic market, aligning with industry trends towards increased demand for high-speed internet and connectivity solutions [1]

The major U.S. index futures are currently pointing to a higher open on Wednesday, with stocks likely to extend the upward move seen over the two previous sessions.Semiconductor stocks may continue to lead the higher after turning in some of the best performances during Tuesday's session.U.S.-listed shares of ASML (ASML) are surging 5 percent in pre-market trading after the Dutch semiconductor equipment giant reported strong fourth quarter results and provided upbeat 2026 guidance.South Korea's SK Hynix al ...

Company News - ASML's ADRs rose 5% after reporting orders significantly exceeding investor expectations, driven by increased demand for AI computing workloads [3][5][17] - Seagate's stock increased by 8% following a strong second-quarter earnings report that surpassed expectations, along with a positive outlook [3] - Texas Instruments gained 7% after providing a favorable outlook, indicating improved demand in industrial and data center markets [3] - AT&T's shares rose 3% after reporting fourth-quarter profit and revenue that exceeded analysts' estimates, attributed to strong broadband subscriber growth [3] - C3.ai's stock surged 15% amid reports of merger talks with Automation Anywhere [3] - F5 Inc. jumped 8% after raising its revenue forecast for the fiscal year [3] - New Oriental Education's ADRs rose 6% after beating second-quarter estimates and increasing its annual net revenue forecast [3] - Corning's shares fell 3% after reporting fourth-quarter results and providing a disappointing outlook [3] - Elevance Health dropped 6% after giving an adjusted profit forecast for 2026 that fell short of Wall Street expectations [3] - Qorvo's stock fell 10% after issuing a weaker-than-expected outlook [3] Industry Trends - The tech sector is experiencing a rally, driven by strong earnings from semiconductor and memory companies, which is boosting the AI trade [1][4][6] - The Magnificent Seven stocks are mostly higher, with Nvidia, Alphabet, and Amazon showing gains, while Meta and Apple experienced slight declines [3] - The semiconductor, memory, and storage sectors are seeing significant gains due to positive earnings reports, particularly from ASML, Seagate, and Texas Instruments [3][4] - Asian equities are also benefiting from the tech rally, with notable gains in TSMC and SK Hynix [5][13] - The demand for AI memory is driving earnings growth for companies like SK Hynix, indicating a strong market for AI-related technologies [5][14]