It's 5 AM in New York City. Good morning. I'm Matt Miller, in for Vonnie Quinn with your Bloomberg Brief.Let's get you set up for the day. President trump set to announce his fed chair pick stocks and bonds drop on bets that kevin warsh will get the job. And a partial government shutdown looms even as the president and senate democrats reach a tentative deal.Plus, a record quarter for Apple shares now stabilizing after a jump as it warns of rising costs that we've all been wary of. Take a look at what's goi ...

Core Insights - Apple Inc. is shifting its focus to the production and shipment of premium iPhone models for 2026, delaying the standard iPhone 18 release to the first half of 2027 due to supply chain constraints [1][2]. Group 1: Product Strategy - The company plans to prioritize the launch of its first foldable iPhone alongside two non-folding models with advanced cameras and larger displays in the latter half of 2026 [2]. - This strategy aims to streamline resources and enhance revenue amidst rising costs for memory chips and other components [3]. - Apple is reportedly developing at least five new iPhone models, including a redesigned ultra-thin iPhone Air and three premium versions [4]. Group 2: Financial Performance - Apple's Q1 earnings report showed a revenue of $143.76 billion, surpassing analyst expectations, largely driven by strong iPhone sales [5]. - The active installed base of iPhones has exceeded 2.5 billion, indicating robust market demand [5]. Group 3: Supply Chain Challenges - The global memory chip shortage has been exacerbated by increased AI data center spending, diverting supply away from consumer electronics like smartphones [6]. - This shortage has influenced Apple's decision to focus on premium models and stabilize its supply chain [4]. Group 4: Stock Performance - Over the past year, Apple stock has increased by 8.71%, closing at $258.28 after a 0.72% rise on Thursday [7].

Group 1: Federal Reserve Chair Nomination - The Trump administration is preparing to nominate Kevin Warsh as the new chair of the Federal Reserve, succeeding Jerome Powell whose term ends in May [3][4] - Warsh is considered a relatively hawkish choice for the position, which may influence future monetary policy [4] Group 2: GrubHub's Competitive Strategy - GrubHub is removing service and delivery fees on restaurant orders over $50, aiming to attract customers from competitors like DoorDash and Uber Eats [5][6] - The new policy is set to launch more broadly on February 2, with the goal of reducing "checkout abandonment" for large orders [5] Group 3: Apple Financial Performance - Apple reported a 15.7% increase in revenue for Q1 fiscal 2026, totaling $143.76 billion, surpassing the estimate of $138.52 billion [7] - Earnings per share were $2.84, exceeding the consensus estimate of $2.67, driven by a 23% surge in iPhone revenue [7][8] - CEO Tim Cook highlighted unprecedented demand for iPhones, with all-time records across geographic segments, and a 14% increase in Services revenue [8]

Market Overview - U.S. stock markets are expected to open lower due to a tech-led sell-off and ongoing corporate earnings digestion [1] - Nasdaq 100 futures declined 1.06%, S&P 500 futures fell 0.86%, and Dow futures slipped 0.81% [2] - Precious metals, including gold, saw significant declines, with gold's price dropping 2.8% to $5,205 per ounce [2] - Oil prices have also retreated amid easing geopolitical tensions in the Middle East [2] Major Market Indexes - On January 29, 2026, the S&P 500 closed down 0.1% at 6,969.01 after nearing its all-time high [3] - The Dow Jones Industrial Average gained 55.96 points, or 0.1%, finishing at 49,071.56 [3] - The Nasdaq Composite fell 0.7% (172.33 points) to 23,685.12, indicating a shift towards defensive sectors [3] Economic Data and Events - Key economic data releases today include the January jobs report, focusing on payroll growth, unemployment rates, and average hourly earnings [4] - Upcoming data includes the January ISM manufacturing index, December job openings, and housing starts [4] - Japan's Tokyo CPI is also being monitored as a leading indicator for national inflation trends [4] Federal Reserve Appointment - Anticipation surrounds President Trump's nomination of Kevin Warsh as the next Federal Reserve chair, which could lead to rising U.S. Treasury yields [5] - Warsh is known for his inflation hawk stance and criticism of the Fed, potentially signaling a shift in monetary policy [5] Corporate Earnings and Stock Movements - Major companies reporting earnings include Exxon Mobil, Chevron, American Express, Verizon, and Regeneron Pharmaceuticals [6] - Microsoft experienced a 10% drop despite strong quarterly results, as investors focused on future growth and investments [7] - Tesla's stock fell 3.5% despite exceeding profit expectations, with CEO Elon Musk redirecting focus to future ventures [11] - Sandisk Corporation surged over 19% in premarket trading after reporting exceptional earnings driven by AI demand [11] - Apple reported a 16% year-over-year revenue increase but saw flat premarket trading [11] - Southwest Airlines stock rose 18.7% despite missing profit forecasts, buoyed by an optimistic earnings outlook [11] - IBM's stock climbed 5.1% after surpassing profit and revenue expectations [11] - ServiceNow dropped 9.9% despite reporting stronger-than-expected profits [11] - Texas Instruments saw a market surge of over 7% following a favorable capital return strategy [11] - Other notable premarket movers include Deckers Outdoor Corporation up 12.71% and ResMed Inc. up 3.95% [11]

Financial Performance - Total net sales for the first quarter of 2026 reached $143.8 billion, a 16% increase from $124.3 billion in the same quarter of 2025[65] - iPhone sales increased by 23% to $85.3 billion, up from $69.1 billion year-over-year, primarily driven by higher sales of Pro models[71][72] - Services revenue grew by 14% to $30.0 billion, compared to $26.3 billion in the prior year, mainly due to higher sales from advertising, the App Store, and cloud services[71][75] - Gross margin for the first quarter of 2026 was $69.2 billion, representing a gross margin percentage of 48.2%, up from 46.9% in the same quarter of 2025[76] Expenses and Investments - Research and development expenses increased by 32% to $10.9 billion, accounting for 8% of total net sales, compared to 7% in the previous year[80] - The company repurchased $25.0 billion of its common stock and paid $3.9 billion in dividends during the first quarter of 2026[89] Obligations and Liabilities - Manufacturing purchase obligations totaled $44.4 billion, with $43.7 billion payable within 12 months as of December 27, 2025[86] - Other purchase obligations amounted to $35.1 billion, with $9.3 billion payable within 12 months[87] Taxation and Accounting - The effective tax rate for the first quarter of 2026 was 17.5%, lower than the statutory federal income tax rate of 21%[83] - The Company will adopt ASU 2025-06 regarding internal-use software in Q1 2029, allowing for capitalization of software costs when management commits to the project[91] - ASU 2024-03 will require the Company to disclose inventory purchases, employee compensation, depreciation, and intangible asset amortization in its income statement starting Q4 2028[92] - The Company will implement ASU 2023-09 in Q4 2026, requiring disaggregation of income taxes paid by federal, state, and foreign taxes[93] - There have been no material changes to the Company's critical accounting estimates since the 2025 Form 10-K[94] Market Risk and Outlook - The Company's market risk exposure has not materially changed during the first three months of 2026[95] - The company anticipates continued volatility and downward pressure on gross margins due to various factors, including tariffs and product mix[79]

Core Insights - The iPhone 17 lineup is generating a surprisingly strong sales cycle, indicating robust consumer demand and potential for revenue growth in the smartphone market [1] Group 1: Sales Performance - The iPhone 17 series has sparked a strong sales cycle, suggesting that consumer interest remains high despite market challenges [1] - The performance of the iPhone 17 could positively impact Apple's overall revenue and market share in the smartphone industry [1] Group 2: Cost and Technology Concerns - There are ongoing concerns regarding memory costs, which could affect profit margins for the iPhone 17 lineup [1] - The potential of artificial intelligence integration in the iPhone 17 remains uncertain, which could influence future product development and competitive positioning [1]

Core Insights - The article provides a market analysis focusing on several real estate investment trusts (REITs) and financial companies, highlighting their performance and potential investment opportunities [1] Group 1: Company Analysis - SL Green Realty Corp is noted for its strong position in the New York City real estate market, with a focus on office properties [1] - Realty Income Corp is recognized for its monthly dividend payments and a diversified portfolio of commercial properties, appealing to income-focused investors [1] - Ellington Financial LLC is highlighted for its investment strategy in mortgage-related assets, which may offer unique opportunities in the current interest rate environment [1] - Apple Hospitality REIT Inc. is discussed in the context of its hotel properties, with emphasis on recovery trends in the hospitality sector post-pandemic [1] Group 2: Industry Trends - The real estate sector is experiencing shifts due to changing economic conditions, including interest rate fluctuations and evolving consumer preferences [1] - There is a growing interest in REITs as a hedge against inflation, with many investors seeking stable income streams amid market volatility [1] - The hospitality industry is showing signs of recovery, driven by increased travel demand and occupancy rates, which may benefit companies like Apple Hospitality REIT Inc. [1]

Apple delivered a powerful start to the fiscal year with first-quarter earnings that exceeded expectations and an outlook pointing to growth of up to 16% in the current quarter. Yet alongside the upbe... ...

Core Insights - Apple Inc. reported a 38% year-over-year increase in revenue from Greater China for Q1 of fiscal 2026, driven by record iPhone sales and strong customer engagement [1] - The December quarter was noted as the best iPhone quarter in history in Greater China, with significant consumer enthusiasm for the iPhone 17 lineup [2] - Apple achieved fiscal Q1 revenue of $143.76 billion, exceeding Wall Street expectations of $138.42 billion, with earnings per share at $2.84, surpassing the forecast of $2.66 [6][7] Group 1: iPhone Performance - The iPhone revenue reached $85.27 billion for the quarter, a substantial increase from $69.14 billion in the same period last year [7] - There was a record level of customers upgrading their devices and strong double-digit growth in users switching from competing platforms [3] Group 2: Other Product Performance - Demand for Macs and iPads also showed healthy trends, with most Mac and Apple Watch buyers being new to those product categories [4] - The MacBook Air was the top-selling laptop model in China in December, while the Mac mini led desktop sales [4] - The iPad was identified as the top tablet model in urban China [5] Group 3: Market Sentiment - Tim Cook expressed a positive outlook on Apple's performance in China, stating it was a "great quarter" [6] - Apple shares closed at $258.28, reflecting a 0.72% increase, and continued to rise in after-hours trading to $259.68 [7]

With U.S. stock futures trading lower this morning on Friday, some of the stocks that may grab investor focus today are as follows:Check out our premarket coverage hereApple Inc. (NASDAQ:AAPL) reported stronger-than-expected financial results for the first quarter of fiscal 2026 after the market closed on Thursday. Apple reported fiscal first-quarter revenue of $143.76 billion, beating analyst estimates of $138.42 billion. The iPhone maker reported earnings of $2.84 per share for the first quarter, beating ...