The S&P/TSX composite index was up 3.08 points at 33,096.40.Many economists expect no change in the Bank of Canada’s benchmark interest rate on Wednesday and possibly for the rest of the year. Financial market odds for a rate hold this week stood at 93% as of Tuesday afternoon, according to LSEG Data & Analytics.“Especially lately, people are really analyzing every little word that comes out from both central banks. It is expected, probably a hold here in Canada,” Inglis said.“Depending on what economist yo ...

Market Overview - The S&P 500 and Nasdaq experienced early gains driven by strong performance in Big Tech, while the Dow struggled [2][3] - Major tech companies such as Apple and Microsoft saw significant increases, with Apple rising nearly 2% and Microsoft adding 1.3% [3] - Over 90 S&P 500 companies are set to report earnings this week, including Meta, Microsoft, Tesla, and Apple [3] Sector Performance - Health insurers faced substantial declines, with Humana dropping 18% and CVS Health falling 10% due to a minimal proposed increase of 0.09% in Medicare Advantage payments for 2027 [3] - Precious metals saw a surge, with gold reaching a new high above $5,100, while silver recovered to the $110 level [5] Federal Reserve and Economic Indicators - The upcoming Federal Reserve meeting is a focal point, with expectations for interest rates to remain steady in the 3.5%–3.75% range, while markets are looking for hints on future rate cuts [4] - Futures markets are pricing in approximately two quarter-point reductions by the end of 2026 [4] Trend Tracking Indexes - The S&P 500 reached a new all-time high intraday but could not maintain above the 7,000 level [8] - The domestic Trend Tracking Index (TTI) closed at +7.40% above its moving average, while the international TTI closed at +11.45% above its moving average [9]

Core Insights - The fourth quarter earnings season is highlighted by major tech companies such as Microsoft, Meta, Tesla, and Apple [1] - A consensus indicates an optimistic outlook, with analysts estimating an 8.2% increase in earnings per share for the S&P 500 in Q4, marking the 10th consecutive quarter of annual earnings growth if this rate is maintained [2] - Analysts had initially expected an 8.3% increase in earnings per share, a decrease from the previous quarter's 13.6% growth rate, but have recently raised expectations, particularly for tech companies [3] Company Updates - In addition to the major tech earnings, updates will be provided from a diverse range of companies including UnitedHealth, Boeing, General Motors, IBM, Starbucks, Levi Strauss, Visa, American Express, Mastercard, Caterpillar, Exxon Mobil, Chevron, AT&T, and Verizon [4]

Market Overview - The S&P 500 is on track for a record close, currently up 0.5%, while the NASDAQ composite is up 1% and the Dow is down 0.8% or about 400 points, primarily due to declines in healthcare stocks, particularly United Health Group [1][2] - Technology stocks are leading the market, with notable gains in companies like Nvidia, Microsoft, and Amazon, while the semiconductor sector is performing strongly, with Micron up over 6% [1][2] - Bitcoin is hovering above $88,000, and commodity prices are rising due to a slide in the US dollar, with crude oil and gold prices also increasing [1][2] Earnings Season Expectations - Investors are optimistic about the upcoming earnings season, with approximately 90 S&P 500 companies reporting this week, particularly focusing on major tech firms [1][2] - Analysts expect strong top-line and bottom-line numbers from big tech companies, with a significant portion of S&P 500 weight concentrated in 20 names [1][2] - The anticipated capital expenditures for major tech firms are projected to exceed $400 billion this year, indicating a strong focus on AI and cloud investments [22][23] AI and Capital Expenditure Insights - There is a growing emphasis on return on invested capital (ROIC) for AI projects, with expectations that this focus may shift within the next 12 to 18 months [1][2] - The AI boom is expected to continue benefiting productivity and margins for corporations over the long term, despite potential volatility in the market [2][3] - Companies like Microsoft are facing constraints in capacity, which may impact their ability to meet demand for AI-related services [26][32] Trade Developments - A significant trade deal has been announced between India and the EU, aimed at creating a free trade zone and lowering tariffs on over 90% of traded goods [12][13] - This deal is part of a broader trend of trade agreements being formed without US involvement, highlighting a shift in global trade dynamics [12][13] Company-Specific Developments - American Airlines reported a revenue miss due to a government shutdown, estimating a $325 million impact, while JetBlue also reported wider-than-expected losses [42][43] - General Motors (GM) shares reached an all-time high following better-than-expected earnings, with a $6 billion buyback plan announced [45][46] - Nvidia is projected to surpass Apple as Taiwan Semiconductor Manufacturing Company's (TSMC) largest customer by 2026, indicating a shift in the chip sector towards high-performance computing [82][83] Consumer Sentiment and Economic Indicators - US consumer confidence dropped sharply in January, reaching its lowest level since 2014, as inflation remains a significant concern for Americans [68] - The Federal Reserve is expected to maintain interest rates, with market expectations indicating no rate cuts in the near term [10][11]

Market Performance - Major U.S. stock indexes showed mixed results, with the Nasdaq and S&P 500 rising while the Dow experienced a pullback [1][2] - The Nasdaq increased by 215.74 points (0.9%) to close at 23,817.10, and the S&P 500 rose by 28.37 points (0.4%) to a record high of 6,978.60 [1] - The Dow closed down by 408.99 points (0.8%) at 49,003.41, despite recovering from its worst levels during the session [2] Company Earnings - Positive sentiment was bolstered by strong earnings reports from companies like General Motors and UPS [3] - Microsoft shares surged by 2.2%, Apple shares increased by 1.1%, and Meta shares saw slight gains ahead of their earnings announcements [2] - UnitedHealth shares fell sharply by 19.6% after reporting better-than-expected fourth-quarter earnings but disappointing revenue guidance [3] Economic Indicators - The Conference Board reported a significant drop in consumer confidence, with the index falling to 84.5 in January from a revised 94.2 in December, marking the lowest level since May 2014 [4][5] - Economists had anticipated a slight increase in the consumer confidence index to 90.0 [5] Sector Performance - Semiconductor stocks saw a notable increase, with the Philadelphia Semiconductor Index rising by 2.4% to a record closing high [6] - Computer hardware and networking stocks also contributed to the gains in the tech-heavy Nasdaq [6] - Oil service stocks advanced alongside rising crude oil prices, with the Philadelphia Oil Service Index up by 2.0% [6] - Conversely, healthcare, airline, and housing stocks faced significant selling pressure [7] International Markets - Stock markets in the Asia-Pacific region mostly rose, with Japan's Nikkei 225 Index up by 0.9%, Hong Kong's Hang Seng Index up by 1.4%, and South Korea's Kospi surging by 2.7% [8] - Most European stocks also experienced gains, with the U.K.'s FTSE 100 Index climbing by 0.6% and France's CAC 40 Index rising by 0.3%, while Germany's DAX Index dipped by 0.2% [9] Bond Market - U.S. treasuries moved modestly lower, leading to a slight increase in the yield on the benchmark ten-year note, which rose by 1.0 basis points to 4.223% [9]

Core Viewpoint - Tech giants are preparing to report quarterly results, with a significant focus on their capital expenditures related to AI, expected to exceed $400 billion this year [2] Group 1: AI Capital Expenditures - The four major tech companies (Meta, Microsoft, Amazon, Alphabet) are projected to spend over $400 billion in capital expenditures in 2023 [2] - Analysts predict that the MAG five (excluding Tesla and Nvidia) will see a capital expenditure growth of approximately 34% year-over-year by 2026, with some expecting it to be as high as 50% [3] - There is a belief that the AI capital expenditure boom could exceed current forecasts [4] Group 2: Company-Specific Insights - Microsoft is facing constraints on capacity despite strong demand for its Azure and AI services, which may impact revenue generation [6] - Amazon is expected to report stronger cloud revenue growth due to increased capacity and investments, with a forecast of acceleration in cloud revenue across major players [11][12] - Google is anticipated to benefit from its Gemini product, which has shown strong performance since its launch, contributing to cloud revenue growth [13] Group 3: Competitive Landscape - Nvidia is facing increased competition from Google's TPUs and other alternatives, which may affect its market position [8][9] - Broadcom is positioned as a key player benefiting from competition in the chip space, particularly in relation to Google's TPUs [9] - Oracle is under scrutiny due to cash burn and increasing debt for data center investments, with a significant capital requirement of around $300 billion [15] Group 4: Advertising and Revenue Trends - Meta's ad prices have reportedly increased by approximately 8.8% in Q4 2025, aligning with consensus estimates, indicating potential revenue growth [17][18] - The upcoming midterm elections are expected to provide a seasonal boost to Meta's ad revenue, particularly with limited political ad offerings until the election week [19]

There's no denying that Nvidia's (NASDAQ: NVDA) graphics processing units (GPUs) are tops when it comes to artificial intelligence (AI) processing. Unfortunately, being the king of the hill means there's always someone trying to take your crown. Microsoft (NASDAQ: MSFT) just announced the debut of a powerful new AI chip, the latest move in the company's bid to become a greater force in the AI landscape. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stock ...

Core Viewpoint - The market is overly focused on when Big Tech will monetize AI investments, while the real risk lies in the physical constraints of scaling AI infrastructure, particularly in power, cooling, and infrastructure needs [1][2]. Industry Insights - AI data center power demand is projected to surge significantly, with Wells Fargo estimating a 550% increase by 2026 and an astonishing 8,050% growth by 2030 [13][14]. - The International Energy Agency (IEA) projects global data center power demand to more than double from approximately 415 TWh in 2024 to around 945 TWh by 2030 [13]. - The Boston Consulting Group anticipates a growth in global data center power demand from 82 GW in 2025 to 127 GW by 2028, representing a 55% increase [17]. Company Focus: Bloom Energy - Bloom Energy is positioned to address the urgent power needs of AI data centers through onsite power generation using solid oxide fuel cells, reducing dependency on the grid [5][20]. - The company has seen strong revenue growth, reporting $519.05 million in Q3 2025, a 57.1% year-over-year increase, driven by demand for its fuel cell technology [33][36]. - Bloom Energy's product revenue grew by 64% year-over-year, with installation revenue spiking 105% year-over-year, indicating robust demand and favorable pricing [39][41]. Financial Performance - Bloom Energy's GAAP operating margin has improved, moving into positive territory, with adjusted operating profits growing by 470% year-over-year [41][43]. - The company reported positive operating cash flows and free cash flows in Q3 2025, indicating a strong financial position [47][51]. - Analysts expect adjusted EPS to grow by 95.9% year-over-year in 2026, reflecting strong operational efficiency and market demand [44]. Competitive Landscape - Power availability is a critical competitive advantage, as companies that can deploy GPUs faster will have a significant lead over those hindered by power constraints [9][10]. - Major tech companies like Microsoft and Meta are investing heavily in AI, with power availability being a key consideration for their data center expansions [7][12]. - Bloom Energy's ability to provide rapid onsite power solutions positions it favorably against traditional energy providers facing long interconnection timelines [24][26].

Our 72 hours to decide this rally as mega cap earnings, the Fed decision and potential government shutdown hang over this market. We'll discuss and debate with the investment committee and joining me for the hour today, Joe Terteranova, Stephanie Link, Shannet Sosha, and Jason Snipe. We will go to the markets.The Dow is red as you see. Everything else though is green led by the NASDAQ as we get ever closer to those mega cap earnings that will begin tomorrow. The S&P hitting a fresh all-time high today.Gold ...

Microsoft is heading into its earnings report this week facing what one analyst calls a "prove it" moment, with investors looking for signs that its massive AI bet is translating into sustained cloud ... ...