Daily US Equity Opening News - MU gains after insider buy; PNC tops earnings expectations; RF downgraded after guidance miss

TODAY'S AGENDA:

US INDEX FUTURES: ES +0.1%, NQ +0.4%, YM unch, RUT +0.1%
DAY AHEAD: Today's data slate includes US industrial production for December (seen +0.1% M/M following +0.2% prior), manufacturing output (exp. -0.2%, prev. 0.0%), and January's NAHB housing index (exp. 40 vs prev. 39). In the afternoon, Baker Hughes will publish its weekly rig count data. Today's Fed speakers include: Fed's Jefferson (voter, neutral; text and Q&A expected), Fed's Bowman (voter, dove; text and Q&A expected), and Fed's Collins (2028 voter, hawk; text expected). In Europe, French PM Lecornu’s office said opposition from far-left and far-right parties has made it impossible to pass a 2026 budget via a parliamentary vote, requiring the government to use an alternative mechanism; the administration will propose amendments to the original budget draft today.
BROKER MOVES: STX upgraded at Susquehanna; HPQ downgraded at Barclays. For the full list, click here.
MAJOR MORNING MOVES RECAP: INTC, JBHT, RF, PNC, ASTS. For the full list, click here.
US DAILY CONFERENCE CALENDAR: For the full list, click here.

NEWS:

TRADING

China metals - China is adjusting trading limits for silver and nickel futures, the maximum number of intraday positions for silver has been reduced to 3k lots (prev. 7k), as of January 20th.
China HFT - China is removing servers used by high-frequency traders from local exchange data centres. Commodities exchanges in Shanghai and Guangzhou ordered brokers to relocate equipment. High-speed trading clients must remove their servers by the end of next month, while other clients have a later deadline of 30th April.

TECH

Data Centre Power - President Trump and governors of several US Northeastern states agreed to pursue an emergency wholesale electricity auction requiring technology companies to fund new power plants, aiming to supply energy-hungry data centres without raising utility bills for households and businesses, Bloomberg reports.
China AI Companies - Some leading Chinese AI researchers say China is unlikely to catch up with the US in the near term because limited access to advanced chips is widening the gap, WSJ reports. They say competition for NVIDIA’s (NVDA) latest chips leaves better-funded US rivals with an advantage.
Micron (MU) - Director Teyin Liu purchased 23.2K shares between 13-14th January, as part of an option exercise, for a total USD 7.8mln.
TSMC (TSM) - Plans to accelerate the transfer of advanced chipmaking expertise to the US, while keeping its most cutting-edge fabrication technologies in Taiwan. CFO Wendell Huang said leading-edge processes will move overseas only after they are stabilised. Elsewhere, Huang also said that managing FX risk requires simplicity for a company with large overseas earnings. He said gross and operating margins now move about 30bps for each percent change in the exchange rate between the USD and the TWD currency. Meanwhile, Taiwan said a US trade deal is not hollowing out its technology industry as TSMC and other chipmakers invest heavily in the USA; Vice Premier said overseas investment is an extension of the industry, with government support for companies maintaining roots and expanding investment in Taiwan.
Smartphones - China's smartphone makers reportedly slash full year orders, Jiemian News reports; Xiaomi (1810 HK) and Oppo cut by 20% and Viva roughly 15%.
Samsung Electronics (005930 KS) - Samsung’s foundry sees strong demand for 8nm and stable orders for 4nm, with 8nm capacity tight and customers asked to flag extra orders early, according to a report on ZDnet. High demand cut 8nm MPW runs to once each in the first and third quarters.
OpenAI, Microsoft (MSFT), xAI - OpenAI and Microsoft failed to avoid a jury trial over Elon Musk’s claims that the company abandoned its public charity mission. A federal judge in Oakland rejected dismissal requests and set the case for late April.
Seagate (STX) - Upgraded at Susquehanna to 'Neutral' from 'Negative' with a USD 280 PT (prev. 150). The firm said its negative hard disk drive industry thesis has proven incorrect. Seagate has executed "near-flawlessly" on its heat-assisted magnetic recording ramp. Susquehanna expects the hard disk drive industry's surging demand to continue, creating strong growth trends for Seagate in the coming years.
HP (HPQ) - Downgraded at Barclays to 'Underweight' from 'Equal Weight' with a USD 18 PT (prev. 24). The firm acknowledges that shares are "inexpensive," but, secular challenges across both computers and printing, combined with a lack of catalysts, will keep HP pressured in 2026. Additionally, Barclays expects the current memory cycle to pressure the company's PC business with further downside potential in the year.
Fortive (FTV) - Downgraded at JPMorgan to 'Underweight' from 'Neutral' with a USD 57 PT (prev. 55). The firm adjusted ratings in the electrical equipment and multi-industry group as part of its 2026 outlook. The analyst cites Fortive's "lack of pickup" in organic growth and risk of disruption in software for the downgrade. JPM is also more cautious on 3M (MMM), saying its revenue growth could disappoint. JPMorgan cites 3M's below-sector earnings growth potential in the near term after having materially outperformed since new management came in for the downgrade. The firm is more positive on Honeywell (HON), citing the stock's discount to the company's sum-of-the-parts. JPMorgan sees a "disconnect" on Honeywell's asset value, especially for its aerospace unit.
Microsoft (MSFT) - Italy's competition watchdog announced investigations into Microsoft's Activision Blizzard unit over allegedly "misleading and aggressive" sales practices for video games "Diablo Immortal" and "Call of Duty Mobile".
WeRide (WRD) - WeRide said its global Robotaxi fleet reached 1,023 vehicles this week, operating in over 10 core cities worldwide. Fully driverless commercial services run in Guangzhou, Beijing and Abu Dhabi, where the fleet is nearing per-vehicle breakeven. The company aims to deploy tens of thousands of Robotaxis globally by 2030.

FINANCIALS

PNC Financial Services (PNC) Q4 2025 (USD): EPS 4.88 (exp. 4.20), Revenue 6.07bln (exp. 5.96bln); sees Q1 share buybacks at ~600-700mln, NIM 2.84%, NII 3.73bln, Net income 2.03bln. Guidance: Q1 average loans +5% Q/Q, NII +6% Q/Q, Revenue +2-3% Q/Q.
Regions Financial (RF) Q4 2025 (USD): Adj. EPS 0.57 (exp. 0.61), NII 1.28bln (exp. 1.28bln), Net Income 514mln (exp. 541mln); guides Q1 NII -2% to -1% Q/Q. Post earnings, Wells Fargo downgraded Regions Financial to 'Underweight' from 'Equal Weight' with a USD 30 PT. The firm sees a downward bias to estimates following Regions' "weak-than-expected" guidance. Now is not the time to buy the "most plain vanilla regional banks unless they are a takeover target or have extras". Wells believes the guidance by Regions for worse than expected fees and net interest income "reinforces this point." It believes "goliath is winning" in the bank group.
State Street Corporation (STT) Q4 2025 (USD): Adj. 2.97 (exp. 2.79), Revenue 3.667bln (exp. 3.60bln), NII 802mln (exp. 762.9mln).
M&T Bank (MTB) Q4 2025 (USD): EPS 4.72 (exp. 4.47).
Municipal, Corporate Bonds - President Trump’s personal investments through December included municipal and corporate bonds issued by companies affected by his administration’s policies, Bloomberg reports. The bond purchases had a total cost of at least USD 51mln, according to disclosed investment records.
JPMorgan (JPM) - CEO Jamie Dimon told a US Chamber of Commerce event that he wants to stay in his role for at least five more years, though a spokesperson later said he was joking, Reuters reports. Dimon had previously said he intended to step down within five years, with succession plans unchanged. Dimon also said there is absolutely no chance he would take the role of Fed chair, dismissing speculation about his interest.
Goldman Sachs (GS), BlackRock (BLK) - BlackRock's head of macro credit research Amanda Lynam is returning to Goldman Sachs as chief credit strategist in its global investment research group, taking up the role in late March after a three-year stint at the asset manager, Bloomberg reports.
HSBC Holdings (HSBC) - Begun a strategic review of its insurance business in Singapore as part of its global simplification, Bloomberg reports. The review covers HSBC Life Singapore and will consider all options for the insurance manufacturing business. No final decisions have yet been made.
Coinbase (COIN) - Coinbase CEO Armstrong lobbied US lawmakers to ensure the company can keep paying rewards to customers holding stablecoins. A day earlier, he opposed a draft Senate bill on digital-asset market structure, disrupting legislation long sought by the crypto industry.

INDUSTRIALS

J.B. Hunt (JBHT) - Shares fell in extended trading after Q4 results beat estimates, though revenue declined, including Intermodal and Final Mile revenue. Q4 2025 (USD): Adj. EPS 1.90 (exp. 1.81), Revenue 3.10bln (exp. 3.12bln); Intermodal revenue -3% Y/Y to 1.55bln, operating income +16% Y/Y to 135.5mln. The company noted that momentum from its operations is driving customer trust and peak-season volumes. Execs said the freight market “feels fragile” entering 2026 as capacity exits truckload, but service levels remain exceptional, and cost-to-serve continues to fall. JBHT expects only modest operating income growth in its Dedicated segment in 2026 due to later-than-expected new business wins, despite confidence in the pipeline. Q4 truck sales and better contract visibility support expectations that stronger momentum shifts into 2027, rather than fully materialising in 2026.
Boeing (BA) - A labor union covering roughly 1,600 salaried employees at Spirit AeroSystems has reached a preliminary labor agreement with Boeing, according to Reuters. The negotiating committee for the SPEEA non-engineering unit in Wichita voted unanimously to recommend that members ratify the deal.
US Airlines - The rise of weight-loss drugs could help US airlines cut fuel costs by reducing average passenger weight, The Times reports. Fewer obese passengers may lower an aircraft’s weight by about 2%, potentially saving airlines hundreds of millions of dollars annually through reduced fuel consumption.
United Airlines (UAL) - United is reshuffling loyalty leadership by appointing former American Airlines (AAL) executive Vasu Raja as a consultant. Raja, previously AAL’s chief commercial officer, will oversee United’s traveller media network team for six months.
QXO (QXO) - Q4 prelim. revenue seen at ~USD 2.19bln (exp. 2.2bln); preliminary adj. EBITDA at roughly USD 150mln; the company announced an offering to sell USD 750mln worth of common stock, 31.6mln share Spot Secondary priced at USD 23.80.
Joby Aviation (JOBY) - Plans to launch commercial electric air taxi services in Dubai by year-end, according Reuters, citing the city’s Roads and Transport Authority. The company completed its first test flight in the emirate in June 2025.
Rocket Lab (RKLB) - Upgraded to 'Overweight' from 'Equal Weight' at Morgan Stanley with a USD 105 PT (prev. 67). The firm sees the space technology industry as attractive in 2026. Morgan Stanley introduced an "Attractive industry view" on space technology into 2026, driven by higher launch cadences, new products, policy support and market maturation.
Woodward (WWD) - Plans to wind down its on-highway natural gas truck business in China to sharpen the focus of its industrial segment and optimise its product portfolio. After years of evaluating divestment options and failing to secure viable offers amid challenging market dynamics, operations will be wound down by the end of the fiscal year.
Mitsubishi (MTSUY) - Agreed to buy Aethon Energy Management LLC’s US gas and pipeline assets for USD 5.2bln, marking the largest purchase by a Japanese company in the US shale sector. The deal includes Aethon III LLC, Aethon United LP and related entities, Bloomberg reports.

MATERIALS

Endeavour Silver (EXK) 2026 guidance: Silver production from Terronera, Guanaceví, and Kolpa is projected to range between 8.3 and 8.9mln ounces (oz), while gold output from Terronera and Guanaceví is expected to range between 46,000 and 48,000 oz. Kolpa is anticipated to contribute significant base metal production, including 22,000 to 24,000 tonnes of lead, 16,000 to 18,000 tonnes of zinc, and 650 to 750 tonnes of copper. Together, these three mines are forecast to deliver 14.6 to 15.6 million silver equivalent ounces.
Mosaic (MOS) - Announced an update on fertilizer markets and prelim Q4 2025 results that has weighed on the MOS shares, as well as Nutrien (NTR) and CF Industires (CF): North American fertilizer demand weakened sharply in the fourth quarter, well beyond typical seasonal declines, pressured by poor grower economics and an early winter. Phosphate shipments fell about 20% Y/Y, while potash demand declined more modestly. The weak environment hurt Mosaic’s results, with lower sales volumes, higher inventories, and pressured cash flow. In Brazil, fertilizer market conditions worsened further as tight credit and increased competition—particularly from low-cost Chinese phosphate imports—hit demand and margins, leaving Mosaic’s sales volumes below expectations. Despite a very weak Q4, conditions are expected to improve in 2026. Strong prior crop yields and government support payments should drive nutrient replenishment and boost spring demand in North America. Phosphate markets are tightening, supported by lower Chinese exports and rising global demand, while potash markets remain balanced with improved price stability following China’s early contract settlement.
US Coal Plants - Trump administration officials pledged to keep all US coal-fired power plants operating, arguing it is necessary to meet rising electricity demand and support an industrial revival. Interior Secretary Burgum said the objective is to keep 100% of coal plants open.
Chemours (CC) - Signed definitive agreements to sell remaining land at its former titanium dioxide site in Kuan Yin, Taiwan to a group including Century Wind Power, Century Iron & Steel Industrial and Century Huaxin Wind Energy. The sale will generate about USD 360mln in gross cash proceeds and is expected to close by mid-2026, with proceeds used to reduce debt.
Kloeckner & Co. SE (KLCCY), Worthington Steel (WS) - Worthington Steel agreed to acquire Kloeckner & Co, valuing it at USD 2.4bln, offering EUR 11/shr. The transaction is being financed with cash and debt. The deal targets USD 150mln synergies by FY28, triples scale to USD 9.5bln revenue. The deal will require 65% acceptance, and is set to close in the H2 2026.

COMMUNICATIONS

Alphabet (GOOG) - The BBC is set to announce a content deal to make bespoke programmes premiering on YouTube, generating advertising revenue overseas while remaining ad-free in the UK, FT reports. The move targets younger audiences, expands use beyond clips, and comes as the BBC faces a USD 10bln defamation lawsuit from US President Trump, and growing competition from YouTube, Netflix (NFLX) and Disney (DIS).
Verizon (VZ), Frontier Communications (FYBR) - Verizon and Frontier received all regulatory approvals, and expect to close the acquisition on 20th January. The deal combines Frontier’s fibre with Verizon’s 5G network, expanding reach to nearly 30mln fibre passings. Frontier shares are expected to stop trading on 16th January.
Disney (DIS) - Dave Filoni has been promoted to president of Lucasfilm, succeeding Kathleen Kennedy after 14 years in the role. Lynwen Brennan, general manager of business operations, was appointed co-president, Disney said.
Paramount Skydance (PSKY) - British culture minister Lisa Nandy met Chief Executive David Ellison this week to discuss issues affecting the UK's film and television sector, Reuters reports, citing a source.

ENERGY

Venezuela Crude - Venezuela’s acting President Rodriguez presented a reform to the country’s hydrocarbons law and announced the creation of two funds that will receive dollars generated from oil sales.
Valero Energy Corp. (VLO) - Plans to permanently close its Benicia refinery in California, cutting 237 jobs between March-July. The layoffs affect non-union workers and represent most of the site’s 348 employees, according to a letter to state and local officials.
Petrobras (PBR) - Said FY25 oil production reached 2.40mln BPD (+11% vs 2024 levels), exceeding its target. Total oil and gas production +11% to 2.99M BOEPD, while commercial production reached 2.62mln BOEPD. Pre-salt output accounted for 82% of total production.
Chevron (CVX) - Chevron Mediterranean and its partners have approved a final investment decision to expand production at the Leviathan natural gas field offshore Israel. The project, expected to come online late this decade, will increase gas output to about 21 billion cubic meters per year through additional wells, subsea infrastructure, and platform upgrades.

CONSUMER DISCRETIONARY

Hope Depot (HD) - A group of Home Depot investors is urging the company to review its relationship with surveillance vendor Flock Safety and disclose how customer data is shared with law enforcement, Reuters reports, following reports that the data was used in ICE investigations. The shareholder proposal, led by Zevin Asset Management, calls on Home Depot to assess and report potential legal and reputational risks tied to data-sharing with third-party surveillance firms.
Automakers in USA - USTR Greer, Transport Secretary Duffy, and EPA Administrator Zeldin will visit Ford (F) and Stellantis (STLA) facilities in Ohio to promote domestic manufacturing and affordability, before attending the Detroit Auto Show as part of a two-day tour.
Automakers in China - Chinese regulators warned automakers of severe penalties after renewed price cuts defied efforts to curb excessive competition. The Ministry of Industry and Information Technology and other agencies met leaders of 17 carmakers, saying they would intensify investigations into production costs and price monitoring, Bloomberg reports.

CONSUMER STAPLES

Walmart (WMT) - Said Kathryn McLay, president and CEO of Walmart International, will depart. She will remain in role until 31st January, and stay through Q1 to support the transition. A successor will be named shortly, WMT said.

HEALTHCARE

Novo Nordisk (NVO) - UK's MHRA announced on Friday that it approved a maximum dose of up to 7.2mg per week of semaglutide, or Wegovy, on January 6th.

TRADE

US-Taiwan - The US and Taiwan agreed a trade deal cutting tariffs on Taiwanese goods to 15% from 20%, and securing increased investment by Taiwanese semiconductor firms in US operations of USD 500bln. The reduced tariff rate will not be added to existing most-favoured-nation duties. Elsewhere, Taiwan said a US trade deal is not hollowing out its technology industry as TSMC (TSM) and other chipmakers invest heavily in the USA. Vice Premier Cheng Li-chiun said overseas investment is an extension of the industry, with government support for companies maintaining roots and expanding investment in Taiwan.

GEOPOLITICS

US-China - The State Department approved a potential foreign military sale to design and build infrastructure for Peru’s main naval base near a Chinese-owned port. The proposed sale is valued at up to USD 1.5bln, subject to congressional review, with the final contract potentially lower.
UK Defence Stocks - The UK will open a business centre in Kyiv this year to help defence startups export more military hardware to Ukraine, Bloomberg reports. The centre will support SMEs with premises and export challenges linked to security, travel and insurance.

MACRO

US Treasuries - Data released late Thursday showed foreign holdings of US Treasuries rising in November to a record, as increases by Norway, Canada and Saudi Arabia offset another monthly decline in China’s holdings. Total overseas holdings increased by USD 112.8bln to USD 9.36tln.
Fed Chair Job - The White House said President Trump is in the decision-making phase on the Fed chair job, and will make decision in the next couple of weeks, adding that he likes a few of the candidates. NEC director Hassett dismissed concerns he would be unable to persuade fellow policymakers if appointed Fed chair, saying his experience answering tough questions at the White House has made him capable of winning arguments and influencing others in difficult settings. Elsewhere, the WSJ writes that a criminal investigation into Chair Powell is complicating Trump’s search for his successor, intensifying tensions between demands for loyalty and expectations of independence; the DoJ probe is creating resistance in Congress, and raising doubts over whether any nominee can be seen as politically independent.
Fedspeak - Fed's Paulson (voter, neutral) said she is comfortable keeping rates unchanged at the next meeting, judging risks to the labour market to be slightly higher than risks of persistently high inflation; she added that monetary policy should remain restrictive to help return inflation fully to the 2% target. Fed's Schmid (2028 voter, hawk) said interest rates should remain modestly restrictive to keep pressure on the economy and allow inflation to cool further, citing continuing inflation pressures.
Fed Balance Sheet - A commentary in Bloomberg said the Fed is assessing how large its balance sheet should be after halting the rundown of its USD 6.5tln portfolio, with the report citing the Fed's economists. Researchers said optimal size involves trade-offs between balance sheet scale, interest-rate volatility and market intervention.
Japanese Yen - Japan’s finance minister Katayama said all options, including direct currency intervention, remain available to address recent JPY weakness, and reiterated that the government would take bold action if needed.
Chinese Yuan - Chinese banks sold a record amount of foreign currency into the yuan in December, driven by expectations of appreciation and seasonal demand, Bloomberg said. Onshore lenders sold a net USD 99.9bln of FX for clients, more than six times the prior month, official data showed.
French Budget - French PM Lecornu’s office said opposition from far-left and far-right parties has made it impossible to pass a 2026 budget via a parliamentary vote, requiring the government to use an alternative mechanism. Lecornu’s administration will propose amendments to the original budget draft today.
UK Economic Data - The UK statistics agency is considering contingency plans to delay its new labour market survey by six months, Bloomberg reports. While aiming to transition in November, it is now also weighing a launch in May 2027 due to unresolved technical difficulties, sources said.