Market Overview - The U.S. stock market is experiencing volatility due to President Trump's tariff threats, the Federal Reserve's interest rate decision, and earnings reports from major tech companies [1][2][11] - The S&P 500 index had a 2% increase before a drop of over 2% following tariff announcements [1] Federal Reserve Interest Rate Decision - The Federal Open Market Committee (FOMC) is expected to maintain the federal funds rate at 3.5% to 3.75% during its meeting on January 28 [3] - The likelihood of a 25-basis-point cut is only 4% according to CME Group's FedWatch tool [3] - Recent economic data suggests a resilient jobs market, with the unemployment rate improving to 4.4% in December from 4.5% in November [4][5] Earnings Reports from "Magnificent Seven" - Four companies from the "Magnificent Seven" will report earnings this week: Tesla, Microsoft, Meta Platforms, and Apple [6][11] Tesla - Expected revenue for Tesla in Q4 is $24.9 billion, a 3% decrease, with non-GAAP earnings projected to drop 45% to $0.40 per diluted share [6] - Focus will be on CEO Elon Musk's comments regarding physical AI initiatives [7] Microsoft - Anticipated revenue increase of 15% to $80.3 billion, with non-GAAP earnings expected to rise 20% to $3.86 per diluted share [8] - Investors will pay attention to Azure's revenue growth and generative AI adoption [8] Meta Platforms - Expected revenue growth of 21% to $58 billion, with non-GAAP earnings projected to increase 3% to $8.23 per diluted share [9] - Investors are looking for continued trends in engagement and advertising conversion rates due to AI investments [9] Apple - Expected revenue increase of 11% to $138 billion, with GAAP earnings also projected to rise 11% to $2.67 per diluted share [10] - Market focus will be on iPhone sales and updates regarding AI innovation [10]

Apple Inc. (NASDAQ:AAPL) is reportedly set to re-engage with Intel Corp. (NASDAQ:INTC) for the supply of iPhone chips, marking a significant shift in its supply chain strategy.Intel To Fabricate Apple Chips From 2028As per a research note from GF Securities analyst Jeff Pu, Intel is expected to commence supplying Apple with chips produced using its 14A process, which is slated for mass production in 2028, reported MacRumors on Friday.Pu previously forecast that starting in 2028, Intel could supply chips for ...

Core Viewpoint - Google and Apple are facing legal repercussions for secretly recording users' conversations without consent, leading to a combined settlement of $163 million to resolve the lawsuits [1]. Group 1: Apple - Apple has agreed to a $95 million settlement for a class-action lawsuit that accused the company of eavesdropping on users who did not activate Siri with the prompt "Hey, Siri" [1][4]. - Users who purchased Apple devices between September 17, 2014, and December 31, 2024, and experienced unintended Siri activations are eligible for compensation, capped at $20 per device, with a maximum of five devices per person [7][8]. - Apple reported a net income of $93.74 billion in the last fiscal year, indicating that the settlement amount represents approximately nine hours of profit for the company [8]. Group 2: Google - Google has reached a tentative $68 million settlement related to a lawsuit claiming that Google Assistant recorded users without the activation phrase "OK Google" [4][15]. - The settlement is part of a lawsuit filed in 2019 and is pending approval from a federal judge [4][15]. - The class-action suit against Google includes all users in the U.S. who purchased a Google device and had Gmail accounts linked to Google Assistant-enabled devices between May 18, 2016, and December 16, 2022 [15]. Group 3: User Experience and Advertising - Users reported receiving targeted advertisements for brands they discussed in conversations that were recorded, such as Olive Garden and Air Jordan [3][9]. - The lawsuits allege that recorded discussions were shared with third-party businesses, leading to these targeted ads [9]. Group 4: Company Responses - Both Apple and Google have denied any wrongdoing regarding the allegations made in the lawsuits [5]. - Apple has since implemented a policy requiring users to opt in before their recorded audio can be used to improve Siri's functionality [5].

Core Viewpoint - Apple has shown resilience despite challenges over the past year, although it has underperformed compared to the S&P 500. The company is expected to face ongoing issues but also has potential growth opportunities ahead [1]. Group 1: Growth Drivers - The recent launch of the iPhone 17 has initiated a strong renewal cycle, with management guidance suggesting a return to double-digit year-over-year revenue growth. The popularity of the iPhone 17 is partly attributed to its new AI features [2]. - By 2031, Apple is expected to have introduced newer versions of its flagship iPhone, which may continue to drive growth [2]. - The services segment, which accounted for 39% of revenue in the latest period (up from 29% five years ago), is projected to grow significantly, potentially reaching close to 50% of total sales by 2031 [3][4]. Group 2: Challenges - Apple faces challenges from tariffs, particularly due to its reliance on manufacturing in the Asia-Pacific region, especially China. The company has attempted to mitigate this by increasing local manufacturing capacity [7]. - Ongoing antitrust lawsuits pose a risk, as regulators in the U.S. have accused Apple of monopolizing the smartphone market. The outcomes of these lawsuits could impact the company's strategic position and financial results [7][8]. Group 3: Investment Outlook - Apple remains a highly valuable brand with over 2 billion active devices in circulation. The success of the iPhone 17 indicates that the flagship product can still drive growth, while the services segment is expected to contribute significantly to revenue [9]. - The stock is currently priced at approximately $249, with projections suggesting it could exceed $410 by 2031, indicating a compound annual growth rate of at least 10.5% during this period [10].

Core Insights - The Vanguard S&P 500 Growth ETF (VOOG) and the iShares Russell 2000 Growth ETF (IWO) target U.S. growth stocks but differ significantly in their focus, with VOOG emphasizing large-cap established companies and IWO focusing on smaller, fast-growing firms [2] Cost & Size Comparison - VOOG has a lower expense ratio of 0.07% compared to IWO's 0.24% - As of January 25, 2026, VOOG's one-year return is 16.16%, while IWO's is 15.31% - VOOG has a dividend yield of 0.49% and IWO has a yield of 0.56% - VOOG has a five-year beta of 1.08, indicating lower volatility compared to IWO's beta of 1.45 - VOOG's assets under management (AUM) stand at $22 billion, while IWO's AUM is $13 billion [3][4] Performance & Risk Comparison - Over the past five years, VOOG experienced a maximum drawdown of -32.74%, while IWO faced a more severe drawdown of -42.02% - An investment of $1,000 in VOOG would have grown to $1,880, whereas the same investment in IWO would have grown to $1,097 [5][8] Portfolio Composition - IWO tracks 1,098 small-cap growth stocks, with significant allocations in healthcare (26%), technology (23%), and industrials (20%) - The largest positions in IWO include Bloom Energy, Credo Technology Group, and Kratos Defense & Security Solutions, each under 2% of total assets - VOOG is concentrated in large-cap U.S. growth stocks, with technology making up nearly 50% of its assets, followed by communication services and financial services - Top holdings in VOOG include Nvidia, Microsoft, and Apple, which collectively account for over 30% of its assets [6][7] Investor Implications - Growth ETFs cater to various investor preferences, with VOOG focusing on larger, more stable companies that may better withstand market volatility compared to smaller firms in IWO [10]

Earnings Reports - Apple, Microsoft, and Meta Platforms are set to report earnings, with significant attention on their performance amid the AI-driven market [3] - Microsoft is expected to show growth in AI-driven Azure services, while Apple's report will focus on iPhone demand and its AI strategy [4] - Apple is projected to achieve its largest year-over-year revenue increase in four years, driven by the iPhone 17 series and strong performance in emerging markets [5] Federal Reserve and Economic Policy - The Federal Open Market Committee (FOMC) is anticipated to hold rates steady, with a 99% market expectation for no changes [5] - Chairman Jerome Powell faces scrutiny due to a White House investigation regarding the Federal Reserve's headquarters renovation [6] - The investigation is noted as an unprecedented escalation in the Fed's history, with Powell receiving some backing from the Supreme Court regarding his position [7] Weather Impact - A severe winter storm has disrupted air travel across the U.S., leading to thousands of flight cancellations and affecting nearly 180 million people [8] Trade and Tariffs - Former President Trump has threatened to impose 100% tariffs on Canadian goods if Canada proceeds with a trade agreement with China [9] AI Adoption in the Workforce - A Gallup poll indicates that 12% of U.S. workers now use AI daily in their jobs, a significant increase from previous years [10]

Core Viewpoint - The stock market experienced significant volatility last week, with the S&P 500 index facing its largest daily decline since October due to geopolitical tensions, but managed to recover most of the losses later in the week as threats were retracted [1] Market Performance - The S&P 500 index fell by 2.1% on Tuesday, marking its largest daily decline since October [1] - Stocks recovered most of the losses throughout the week following President Trump's speech at the World Economic Forum, where he eased his earlier threats [1]

Core Insights - The article discusses the upcoming AI partnership results between Apple and Google, specifically focusing on a new version of Siri set to be announced in February 2024 [1] - This update will utilize Google's Gemini AI models and aims to fulfill Apple's promises made in June 2024 regarding task completion using personal data and on-screen content [1] - A more significant upgrade is expected to be revealed in June 2024 during Apple's Worldwide Developers Conference, featuring a more conversational Siri akin to chatbots like ChatGPT, potentially running on Google's cloud infrastructure [2] Company Developments - Apple has faced challenges in aligning its AI strategy, with reports indicating internal disagreements, including a dismissal of earlier reports by Mike Rockwell [3] - The partnership with Google and the recent departure of Apple's AI chief John Giannandrea suggest a potential new direction for the company's AI initiatives [3]

Core Insights - Apple is experiencing significant capital outflows, making it the only stock among the Magnificent 7 to see net selling from retail investors since July 2025, totaling $4 billion [2][5] - In contrast, Nvidia has attracted over $15 billion in retail inflows during the same period, indicating a shift in investor preference towards AI-related stocks [4][5] - Concerns over Apple's slower revenue growth, product maturity, and limited near-term AI monetization have contributed to its decline in popularity among retail investors [5] Retail Investor Behavior - Retail selling of Apple shares has been on a steady decline from mid-2025 to January 2026, intensifying with increased market volatility [2][5] - Other Magnificent 7 stocks have seen accumulation, with Tesla, Meta, and Amazon each recording around $3 billion in net purchases, while Microsoft and Alphabet saw about $2 billion each [5] Stock Performance and Outlook - Apple's share price has been hovering around $248, with a narrow trading range of $244–$249 as investors await the fiscal Q1 2026 earnings report [7] - There is optimism regarding strong demand for the iPhone 17 lineup and continued growth in high-margin Services revenue, with forecasts suggesting around 82 million iPhones sold in the quarter [9] - Analysts have noted rising memory chip costs as a potential margin headwind, alongside trade tensions in China and India that could impact growth [10]

Core Viewpoint - Berkshire Hathaway's investment strategy remains stable under new CEO Greg Abel, with a focus on long-term holdings, despite significant reductions in its Apple stake [1][2]. Group 1: Berkshire Hathaway's Investment Strategy - Warren Buffett's legacy includes a portfolio that may not see immediate changes, with some stocks potentially held indefinitely [1]. - Buffett has sold a substantial amount of equities, including a nearly three-quarters reduction in Berkshire's stake in Apple [2][5]. - The sale of Apple shares, combined with the rise of other holdings, could lead to a new top equity position for Berkshire for the first time since 2017 [3]. Group 2: Apple Investment Insights - Buffett's investment in Apple, exceeding $30 billion from 2016 to 2018, is considered one of his best, with the stake valued at approximately $174 billion by the end of 2023 [4]. - Despite the significant value of the Apple stake, Buffett has trimmed it due to concerns that the stock price has surpassed its intrinsic value [5]. - Apple shares currently trade at a P/E ratio of 33, with expected earnings growth slowing to about 11% per year, leading to perceptions of overvaluation [8]. Group 3: American Express as a Key Holding - American Express, despite its strong performance, remains a stable investment for Berkshire, with a current stake valued at about $54 billion, maintaining a consistent percentage of Berkshire's overall market cap [14]. - The forward P/E ratio for American Express is around 20, which is not considered excessive, and the company is successfully targeting high-end consumers [16]. - Strong product offerings and spending growth are expected to drive significant revenue and earnings growth for American Express, justifying its valuation and solidifying its position in Berkshire's portfolio [18].