Five things to know ahead of today's opening bell. The Fed will announce its latest interest rate decision. That's coming at 2 PM Eastern time.Investors expecting no change in the federal funds rate, but we will be paying close attention to Fed Chair J Pal's news conference for any clues about the future of rate paths. Elephants Health, formerly known as Anthem, out with its fourth quarter results. Those earnings beat expectations.revenue was a little bit light. Eleance shares though were down 14% yesterday ...

VONNIE: IT IS 5:00 A. M. IN NEW YORK CITY, I'M VONNIE QUINN WITH YOUR BLOOMBERG BRIEF.RECORD HIGHS I HAD A BIG TECH EARNINGS. AN EARLY BOOST TO THE MARKET ON A HIGH DEMAND. THE DOLLAR DESTABILIZING A BIT AFTER ITS WORST PERFORMANCE IN FOUR YEARS.PRESIDENT TRUMP BRUSHING OFF WOES, SPECULATION OF A LONGER-TERM DECLINE. CHAIR POWELL IS SURE TO GET QUESTIONS ABOUT THE FUTURE OF THE FED TRADERS PRICE IN A MORE DOVISH POLICY SHIFT UNDER NEW LEADERSHIP. LET'S LOOK AT THESE MARKETS BECAUSE WE ARE IN THE GREEN.TWO S ...

THE EQUITY RALLY EXTENDS BUT CONFIDENCE IN IT NARROWS. LIVE FROM STUDIO 2 HERE AT BLOOMBERG HEADQUARTERS IN NEW YORK, I’M ROMAINE BOSTICK. KATIE: I’M KATIE GREIFELD.LOOK AT WHAT’S GOING ON IN THE NASDAQ 500. WHERE A LOT OF YOUR BIG TECH NAMES LIVE. THE NASDAQ 100 HIGHER BY ABOUT 1%. THE BLOOMBERG DOLLAR ABOUT .7%.WE’LL KEEP AN EYE ON THAT AND THEN THE SMALL CAPS, THEY MANAGED TO STEM SOME OF THE BLEEDING THAT WE’VE SEEN. RUING 2,000 HIGHER BY ABOUT .1%. ROMAINE: A FIFTH STRAIGHT DAY OF GAINS ON THE NASDAQ.A ...

Market Overview - The S&P 500 closed at a record high, up about 28 points or 0.4%, while the Nasdaq increased by approximately 0.9%. The Dow Jones Industrial Average saw a decline of about 0.8% [7] - Nine sectors in the S&P 500 were in the green, with big tech stocks performing well, up by about 1.4%. The healthcare sector, however, faced a decline of about 1.7% [8] Texas Instruments Earnings - Texas Instruments reported a fourth-quarter EPS of $1.27, missing the Street's estimate of $1.30, and showing a year-over-year decline [10] - Revenue grew by about 10% to $4.42 billion, in line with estimates, with 14% growth in the analog business and 8% growth in embedded processing [11] - The company invested $3.9 billion in R&D and $4.6 billion in CapEx over the past 12 months, returning $6.5 billion to owners [13] Seagate Earnings - Seagate's second-quarter revenue was reported at $3 billion, slightly above estimates of $2.75 billion, with adjusted EPS of $3.11, beating the estimate of $2.83 [20] - Despite positive revenue and EPS results, the stock declined by 3.2% in after-hours trading, likely due to forecast concerns [21] Healthcare Sector Impact - Medicare Advantage payment rates are set to rise by only 0.09% next year, surprising the market and negatively impacting healthcare stocks [9] - UnitedHealthcare, CVS, and Humana saw significant declines, with UnitedHealth down 19.6%, CVS down 14%, and Humana down over 21% [22] Other Notable Stocks - Corning's stock rose by about 16% after announcing a multiyear agreement worth up to $6 billion with Meta for optical fiber and connectivity solutions [17] - HCA Healthcare shares increased by about 7% after better-than-expected guidance eased investor concerns regarding expiring Affordable Care Act subsidies [19] - JetBlue reported a wider loss than expected, leading to a 6.9% decline in its shares [23] - Pinterest announced layoffs of less than 15% of its workforce, resulting in a 9.6% drop in its stock [24]

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]

Core Viewpoint - The semiconductor equipment sector is experiencing significant growth, with stocks in the S&P 500 Semiconductor Equipment & Materials index rising sharply due to increased capital expenditures from chipmakers [2][9]. Group 1: Semiconductor Equipment Performance - The S&P 500 Semiconductor Equipment & Materials index has seen every stock rise by double digits, with four out of five stocks increasing more than 25% since January 1, 2026 [2]. - Key companies in this index include Applied Materials (up 26.6%), Lam Research (up 33.4%), KLA (up 25.1%), Teradyne (up 19.8%), and Qnity Electronics (up 25.8%) [2][3]. Group 2: Market Dynamics - Unlike chipmakers like Nvidia and AMD, these equipment manufacturers do not produce AI chips but provide the systems necessary for chip production, positioning them as essential players in the AI supply chain [3]. - Major semiconductor manufacturers such as Nvidia, Intel, and Samsung are customers of Applied Materials, indicating a strong demand for their products [4]. Group 3: Industry Growth Projections - The semiconductor industry is projected to grow from a valuation of $630 billion to $680 billion in 2024, potentially reaching $1.1 trillion by 2030, primarily driven by AI and data center expansion [5]. - A report by McKinsey suggests that the industry's value could be underestimated, predicting a range of $1.5 trillion to $1.8 trillion by 2030 [6]. Group 4: Capital Expenditure Trends - Chipmakers are significantly increasing their capital expenditures, with Taiwan Semiconductor Manufacturing Company (TSMC) planning to spend between $52 billion and $56 billion on equipment in 2026, up from $41 billion in 2025 [7]. - TSMC's announcement has positively impacted the stock prices of major semiconductor equipment companies, with Applied Materials rising 8%, Lam Research 7%, KLA 6%, and Teradyne 3% following the news [9]. - Nvidia's capital expenditures are also expected to rise from $3.2 billion last year to approximately $6.2 billion this year and $7.6 billion in 2027, indicating a broader trend of increased investment in semiconductor manufacturing [9].

Group 1 - High-growth tech stocks are increasingly paying dividends, contrary to traditional beliefs, driven by the AI spending boom [1] - Companies like Vertiv and Micron Technology have raised dividends significantly but face low yields due to stock price appreciation from AI [2] - There are still AI growth companies that offer decent dividend yields alongside potential share price gains [3] Group 2 - Broadcom has a current dividend yield of 0.7% and has seen its stock price increase over 680% in the last five years, impacting its dividend yield [5][6] - Microsoft has a dividend yield of 0.71% and has consistently increased its dividend for 20 consecutive years since 2006 [8]

Core Insights - The article provides a comprehensive comparison of Intel against its competitors in the Semiconductors & Semiconductor Equipment industry, focusing on financial metrics, market position, and growth prospects to offer insights for investors [1] Company Overview - Intel is a leading digital chipmaker specializing in microprocessors for personal computers and data centers, holding a significant market share in both PC and server markets [2] - The company aims to revitalize its chip manufacturing business and develop advanced products within its Intel Products segment [2] Financial Metrics Comparison - Intel's Price to Earnings (P/E) ratio is 615, significantly higher than the industry average, indicating potential overvaluation [3] - The Price to Book (P/B) ratio is 1.65, slightly below the industry average, suggesting possible undervaluation [3] - Intel's Price to Sales (P/S) ratio is 3.04, which is lower than the industry average, indicating potential undervaluation based on sales performance [3] - The Return on Equity (ROE) for Intel is 3.98%, which is below the industry average, indicating inefficiency in generating profits from equity [3] - Intel's EBITDA stands at $7.85 billion, which is below the industry average, suggesting lower profitability [3] Profitability and Growth - Intel's gross profit is $5.22 billion, indicating lower revenue after production costs compared to the industry average [7] - The revenue growth for Intel is 2.78%, significantly lower than the industry average of 34.59%, indicating a slowdown in sales expansion [7] Debt to Equity Ratio - Intel has a debt-to-equity ratio of 0.44, which is lower than its top four peers, suggesting a more favorable balance between debt and equity [9]

Core Insights - Weebit Nano Limited has licensed its resistive random access memory (ReRAM) technology to Texas Instruments (TI), marking a significant collaboration in the semiconductor industry [1][2][3] Group 1: Agreement Details - The agreement includes the integration of Weebit's ReRAM technology into TI's advanced process nodes for embedded processing semiconductors, covering IP licensing, technology transfer, design, and qualification [2] - Weebit ReRAM is characterized as a low-power, cost-effective non-volatile memory (NVM) with excellent retention at high temperatures, qualified for AEC-Q100 150°C operation [2] Group 2: Industry Implications - TI's Senior Vice President expressed excitement about the collaboration, highlighting that it will provide customers with access to industry-leading NVM technology, enhancing TI's position in the embedded processors market [3] - The CEO of Weebit Nano noted that TI produces tens of billions of chips annually, indicating a strong market presence and signaling a shift towards ReRAM as a successor to flash memory in system-on-chip (SoC) designs [3] Group 3: Company Overview - Weebit Nano is a leading developer of advanced semiconductor memory technology, focusing on ReRAM to meet the demand for higher performance and lower power memory solutions across various electronic products, including IoT devices, smartphones, and autonomous vehicles [4] - The ReRAM technology is designed to be faster, less expensive, more reliable, and more energy-efficient compared to existing flash memory solutions, and it can be integrated with existing manufacturing processes without significant investment [4]

Core Viewpoint - STMicroelectronics (STM) is a prominent player in the semiconductor industry, with a strong focus on various sectors including automotive, industrial, and consumer electronics, and has established a significant partnership with SpaceX for satellite communication [1][2]. Company Overview - STM has shipped over five billion radio-frequency antenna chips to SpaceX for the Starlink satellite network over the past decade, indicating a robust demand in the satellite communication sector [2][5]. - Mizuho Securities has set a price target of $26 for STM, with the stock currently trading at $26.47, slightly above the target [1][5]. Stock Performance - The current stock price of STM is $26.47, reflecting an increase of 1.81% or $0.47, with fluctuations between a low of $26.29 and a high of $26.96 during the trading day [3]. - Over the past year, STM's stock has experienced a high of $33.47 and a low of $17.25, showcasing both growth potential and inherent risks in the semiconductor market [4][5]. - The company's market capitalization is approximately $23.62 billion, indicating its significant presence in the semiconductor market [4].