Daily US Equity Opening News - US govt to propose flat Medicare insurer rates; MU plans USD 24bln Singapore plant

TODAY’S AGENDA:

US INDEX FUTURES: ES +0.3%, NQ +0.6%, YM -0.6%, RUT +0.1%
DAY AHEAD: The Conference Board’s consumer confidence reading for January is seen nudging up to 90.9 from 89.1. Elsewhere, new home sales for December, Richmond Fed’s monthly business surveys, and the Dallas Fed’s services readings are out today. After hours, the API will report its weekly energy inventory data. President Trump will return to Iowa today and deliver a speech focused on energy and the economy. ECB President Lagarde and policymaker Nagel are due to give remarks today. On the supply slate, the US Treasury will auction USD 70bln of 5yr notes. Today’s US corporate earnings slate includes TXN, FFIV, STX, PPG, BXP, and PKG; European heavyweight LVMH (MC FP) is due to report after the European close.
BROKER MOVES: CRWV upgraded at Deutsche Bank; AA downgraded at Morgan Stanley. For the full list, click here.
MAJOR MORNING MOVES RECAP: HUM/UNH/CVS, GLW, CRWV, MU, CRM, GM, HCA, AAL, UPS, RTX, BA, NUE, JBLU, SANM. For the full list, click here.

NEWS:

TECH

US Data Centres - The largest US grid operator, PJM Interconnection, was authorised to divert electricity from data centres to households, hospitals and other users to avoid blackouts during an extreme cold snap. An order signed by Energy Secretary Wright allows PJM to require large facilities to use backup generators, easing grid strain.
SK Hynix (HXSCL), Microsoft (MSFT) - SK Hynix has become the exclusive supplier of fifth-generation HBM3E memory for Microsoft’s Maia 200 AI accelerator used in its data centres.
Micron Technology (MU) - Plans to build a USD 24bln memory chip plant in Singapore over the next decade to boost NAND output amid a global shortage, Reuters reports. Wafer production is set for H2 2028. Micron already makes 98% of its flash chips in Singapore, and is building a USD 7bln HBM packaging plant.
Salesforce (CRM) - Salesforce subsidiary Computable Insights was awarded a USD 5.64bln Army contract to establish a decentralised enterprise agreement for Salesforce products and outcome-based services for the Department of War.
Sanmina (SANM) - Shares fell in extended trading after its Q2 sales outlook disappointed. Q1 2026 (USD): Adj. EPS 2.38 (exp. 2.34), Revenue 3.19bln (vs 2bln Y/Y). Adj. operating margin was at the high end of the outlook range, with solid operating cash flow; Communications Networks and Cloud & AI Infrastructure end-markets remained strong on AI-driven hardware demand, with ZT Systems integration tracking expectations. The CEO said fiscal 2026 is “off to a great start,” citing execution, cash generation and disciplined growth. Sees Q2 adj. EPS at 2.25–2.55 (exp. 2.34) and Q1 revenue between 3.1–3.4bln (exp. 3.52bln).
CoreWeave (CRWV) - Upgraded at Deutsche Bank to 'Buy' from 'Hold' with a USD 140 PT. The company's medium-term outlook is "solid" heading into the Q4 report. The firm believes consensus revenue estimates for CoreWeave can move "materially higher" throughout 2026 if the company delivers capacity on plan to its contracted customers. Deutsche sees an opportunity for CoreWeave to "differentiate versus peers" in 2026.
Corning (GLW) - Meta (META) has reportedly agreed a deal to pay Corning as much as USD 6bln for fibre optic cables in data centres, CNBC reports citing the Corning CEO. The CEO thinks that “next year the hyperscalers will be our biggest customers.”
Agilsys (AGYS) Q3 2026 (USD): EPS 0.42 (exp. 0.46), Revenue 80.4mln (exp. 79.1mln); raised FY26 revenue view to 318mln (exp. 316.7mln, prev. 315-318mln).
Richtech Robotics (RR) - Collaborating with Microsoft (MSFT) through its AI Co-Innovation Labs to advance agentic AI for real-world robotics, enhancing Richtech’s ADAM robot and expanding intelligent automation across physical environments.

COMMUNICATIONS

Warner Bros. Discovery (WBD), Netflix (NFLX), Paramount Skydance (PSKY) - Senate antitrust subcommittee chair Mike Lee raised concerns about Netflix’s proposed acquisition of the Warner Bros. movie-and-television studios and HBO Max from Warner Discovery, warning it could substantially lessen competition in streaming, WSJ reports. Separately, more than a dozen UK lawmakers urged the CMA to conduct a full review of Netflix’s USD 82.7bln bid for Warner Bros Discovery, warning it could entrench dominance in streaming, FT reports. The call comes as the watchdog faces pressure to be more business-friendly while Paramount pursues a rival bid.
Google (GOOGL) - The European Commission has launched two proceedings to clarify how Google must comply with the Digital Markets Act, focusing on Android interoperability and access to Google Search data. The cases address equal access for third-party AI services to Android features and fair access to anonymised search data for rival search engines. The Commission expects to conclude the process within six months and issue preliminary measures within three months.
Meta Platforms (META) - Will test premium subscriptions on Instagram, Facebook and WhatsApp, keeping core services free, TechCrunch reports. Plans include exclusive features, expanded AI and freemium Vibes video tools. Meta will scale Manus, acquired for USD 2bln, and sell business subscriptions.
Pinterest (PINS) - Announced restructuring plan affecting less than 15% workforce; anticipates restructuring charges of USD 35-45mln; reallocating resources to AI-focused roles.
TikTok - California Governor Gavin Newsom accused TikTok of suppressing content critical of President Trump and launched a review into possible state law violations. TikTok blamed a systems failure.
Tencent (TCEHY) - Plans to expand cloud data centres in the Middle East, as regional IT spending surges, CNBC reports. The move will increase competition with Amazon (AMZN), Microsoft (MSFT) and Google (GOOG). Gartner forecasts Middle East and North Africa IT spending at USD 155bln in 2025.
Social Media in France - French lawmakers passed a bill banning children under 15 from accessing social media. The national assembly approved the measure 130-21; the bill will now go to the senate and could take effect before the Autumn school year.

CONSUMER DISCRETIONARY

General Motors (GM) Q4 2025 (USD): Adj. EPS 2.51 (exp. 2.25), Revenue 45.3bln (exp. 46.21bln); to buy back USD 6bln of shares. Expects the US new vehicle market will continue to be resilient. Increased quarterly dividend to 0.18/shr (prev. 0.15). Guidance: FY adj EBIT 12.7bln (exp. 12.7bln), FY26 EPS 11.00-13.00 (exp. 11.94), FY26 revenue (exp. 187.07bln). Announces that second-generation software-defined vehicle architecture for ICE vehicles and EV's will debut in 2028.
Amazon (AMZN) - Amazon Web Service was awarded a USD 581.32mln Air Force contract for the Cloud One Programme, providing cloud services to the Air Force and customers.
Alibaba (BABA), PDD (PDD), CATL (300750 CH) - Texas will bar state employees from using Alibaba, Temu and TP-Link hardware and software, Governor Greg Abbott said, citing protection of Texans’ privacy from the Chinese government. The ban also includes Shein and CATL. Separately, Alibaba-backed Moonshot AI released an upgraded version of its flagship Kimi model, intensifying China’s domestic AI competition ahead of an expected DeepSeek rollout; the new model can process text, images and videos in a single prompt.
First Brands Group, Ford (F), General Motors (GM) - Ford and General Motors are negotiating advance payments to provide rescue financing for bankrupt car-parts supplier First Brands during Chapter 11 proceedings, FT reports. First Brands, which filed for bankruptcy in September with USD 12bn in debt, needs cash to continue operations while seeking a sale, as supply chain risks intensify for US carmakers.
European Car Sales - European car sales rose for a third consecutive year in 2025 as buyers favoured more affordable electric and hybrid models. New-vehicle registrations increased +2.4% to 13.3mln units, the European Automobile Manufacturers’ Association said, though volumes remained about 15% below pre-pandemic levels.
Nike (NKE) - Nike is cutting 775 employees, mainly at US distribution centres in Tennessee and Mississippi, as it accelerates automation to improve margins, CNBC reports. The layoffs add to 1,000 corporate cuts announced last summer, and come as the CEO restructures operations after years of slowing sales and shrinking margins.
Puma (PUMSY) - France’s Pinault family agreed to sell its entire 29.06% Puma stake to China’s Anta Sports for EUR 1.5bln. Anta will pay EUR 35/shr, becoming Puma’s largest shareholder. The deal follows Puma restructuring, including 900 job cuts by end-2026.

FINANCIALS

W. R. Berkley (WRB) Q4 2025 (USD): EPS 1.13 (exp. 1.12), Revenue 3.72bln (exp. 3.18bln). Return on beginning-of-year equity 21.4% in Q4 and 21.2% for FY; net premiums written rose to a record 12.7bln for FY; book value per share +5.2% Q/Q and +26.7% Y/Y. The group returned 608mln to shareholders in Q4 and 971mln for FY via dividends and share repurchases. Management said margins remain attractive with select opportunities into 2026, investment income should continue to grow on higher new-money rates and strong cash flows, and reiterated confidence in exceeding its 15% after-tax return on beginning equity over the cycle.
Brown & Brown (BRO) Q4 2025 (USD): EPS 0.93 (exp. 0.90), Revenue 1.61bln (exp. 1.65bln); results reflected continued organic growth and contributions from acquisitions, notably the purchase of Accession during the year. Exec highlighted the Accession acquisition, strong revenue growth, double-digit adj. diluted net income per share growth and good adj. margin expansion.
Synchrony (SYF) Q4 2025 (USD): EPS 2.04 (exp. 2.02), Revenue 3.79bln (exp. 3.83bln).
Western Alliance (WAL) Q4 2025 (USD): EPS 2.59 (exp. 2.37), Revenue 980.9mln (exp. 913.9mln).
Invesco (IVZ) Q4 2025 (USD): Adj. EPS 0.62 (exp. 0.58), Revenue 1.26bln (exp. 1.25bln).
Bitcoin Mining - Bitcoin miners in the US have powered down parts of their operations as a winter storm pushed up electricity costs, Bloomberg reports. The network hash rate dropped sharply, driven by output cuts at mining pools FoundryUSA and Luxor, with declines of more than 50% over the weekend.
Affirm Holdings (AFRM) - Upgraded at Needham to 'Buy' from 'Hold'. The company submitted an application to establish Affirm Bank, a proposed Nevada-chartered industrial loan company. Needham believes this could be a "game-changer" for Affirm, arguing a bank would give Affirm access to deposit funding for loans, reduce its third-party risk by moving several products in-house, and potentially accelerate its growth and product development.
HSBC Holdings (HSBC) - Will close a retail branch at Raffles Place in Singapore and replace it with a wealth centre, deepening its focus on affluent clients, the bank said.

INDUSTRIALS

RTX (RTX) Q4 2025 (USD): EPS 1.55 (exp. 1.47), Revenue 24.2bln (exp. 22.70bln); sees FY adj. sales at 92-93bln (exp. 92.5bln) and FY EPS at 6.60-6.80 (exp. 6.66).
Northrop Grumman (NOC) Q4 2025 (USD): Adj. EPS 7.23 (exp. 6.98), Revenue 11.7bln (exp. 11.62bln). Guidance: FY EPS 27.40-27.90 (exp. 28.80), FY revenue 43.5-44.0bln (exp. 44bln)
Boeing (BA) Q4 2025 (USD): Adj. EPS 9.92 (exp. -0.43), Revenue 23.9bln (exp. 22.48bln); Q4 results included a USD 9.6bln gain on digital aviation solutions deal and increased EPS by 11.83; Adj. FCF 375mln (exp. 271.9mln). Commentary: During quarter, 737 programme increased production rate to 42/mnth. In the quarter, the 777x programme began type inspection authorisation 3 phase of 777-9 certification flight testing, and anticipates first delivery in 2027. 787 programme began transitioning production to 8/mnth and remains focused on stabilising at that rate.
United Parcel Service (UPS) Q4 2025 (USD): Adj. EPS 2.38 (exp. 2.20), Revenue 25.5bln (exp. 24.01bln). Results include total charges of 238mln (0.28/diluted share), comprised of a non-cash, after-tax charge of 137mln due to a write-off of the company’s MD-11 aircraft fleet and after-tax transformation charges of 101mln. Guidance: FY revenue 89.7bln (exp. 88.19bln), FY CAPEX at 3bln.
Roper Technologies (ROP) Q4 2025 (USD): EPS 5.21 (exp. 5.14), Revenue 2.06bln (exp. 2.08bln); guides Q1 EPS at 4.95-5.00 (exp. 5.21) and FY26 EPS at 21.30-21.55 (exp. 21.45).
American Airlines (AAL) Q4 2025 (USD): EPS 0.15 (exp. 0.37), Revenue 14bln (exp. 14.03bln); FY adj. EPS view 1.70-2.70 (exp. 1.97), FY26 capex view 4-4.5bln, FY26 FCF view at over 2bln; sees Q1 revenue +7-10% Y/Y. CEO commentary: "American Airlines is positioned for significant upside in 2026 and beyond. We have built a strong foundation, and we look forward to taking advantage of the investments we have made in our customer experience, network, fleet, partnerships and loyalty program." CEO, on Storm Fern impacts, says going to get back on track over the next two-to-three days, in comments to CNBC; Corporate booking strength has continued into early Q1.
Union Pacific (UNP) Q4 2025 (USD): EPS 3.11 (exp. 2.86), Revenue 6.09bln (exp. 6.11bln); 2026 outlook sees EPS growing mid-single-digits.
JetBlue Airways (JBLU) Q4 2025 (USD): Adj. EPS -0.49 (exp. -0.46), Revenue 2.24bln (exp. 2.22bln).
PACCAR (PCAR) Q4 2025 (USD): EPS 1.06 (exp. 1.07), Revenue 6.82bln (exp. 6.04bln).
Crane Company (CR) Q4 2025 (USD): Adj. EPS 1.53 (exp. 1.41), Revenue 581.0mln (exp. 572.0mln); core sales +5.4% Y/Y, with adj. EPS +21% Y/Y. Announced a CEO succession; Alex Alcala to become President & CEO effective 27th April, while Max Mitchell transitions to Executive Chairman. Exec said Q4 orders at Process Flow Technologies were sluggish. Quarterly dividend raised to 0.255/shr (prev. 0.23/shr). Execs highlighted strong operational execution and the completion of the Druck, Panametrics and Reuter-Stokes acquisitions from Baker Hughes, alongside the acquisition of Optek-Danulat, strengthening its instrumentation portfolio. Sees FY26 adj. EPS at 6.55-6.75 (exp. 6.67), and total revenue growth in the low- to mid-20% range (exp. 23%), driven by acquisitions, mid-single-digit core sales growth and a slight FX tailwind.
Sandvik (SDVKY) - Reported a larger-than-expected Q4 core profit, while non-adjusted EPS came in at 3.35/shr (exp. 3.37), and it proposed a higher dividend; it reported Q4 revenue of SEK 32.5bln (exp. 32bln), and Q4 orders of SEK 32.7bln (exp. 32.4bln).

HEALTHCARE

Medicare - WSJ reports that the Trump administration proposed roughly flat Medicare insurer rates, below Wall Street expectations, with payments rising an estimated 0.09% on average in 2027, the Centres for Medicare and Medicaid Services said, likely hurting health-insurer stocks tied to Medicare Advantage. Cantor Fitzgerald writes that Healthcare Insurance names should see a materially negative stock reaction after the announcement from CMS that the 2027 Medicare Advantage Advance Notice Rate would be around 0.09% on average, vs. the investor Base Case expectations of 5%. The firm says it is unlikely that stocks in the space will see a quick recovery, as the rates indicate the entrance of a more political influence than seen in past rates. Publicly traded companies in the space include CVS Health (CVS), Centene (CNC), Cigna (CI), Elevance Health (ELV), Humana (HUM), Molina Healthcare (MOH) and UnitedHealth (UNH).
UnitedHealth Group (UNH) Q4 2025 (USD): Adj. EPS 2.11 (exp. 2.12), Revenue 113.2bln (exp. 113.77bln). Medical care ratio of 89.1%, included a 20bps negative impact from loss contracts included in the charge, resulting in an adjusted medical care ratio of 88.9%, or an increase of 340bps Y/Y. Guidance: FY26 EPS >17.75 (exp. 17.74), FY26 revenue >439bln (exp. 458bln). An executive expects an improvement in Medicare margins of approx. 50bps from 2025 - conference call; Medicare agency's proposed 2027 payment rates published yesterday simply doesn’t reflect the reality of Medical utilisation and cost trends.
HCA Healthcare (HCA) Q4 2025 (USD): EPS 8.14 (exp. 7.45), Revenue 19.5bln (exp. 19.67bln); sees FY26 adj. EPS at 29.10-31.50 (exp. 29.45) and FY26 revenue at 76.5- 80bln (exp. 79.02bln); to buy back shares of up to USD 10bln.
Intellia Therapetuics (NTLA) - FDA has lifted the clinical hold on the MAGNITUDE-2 Phase 3 trial of nexiguran ziclumeran in hereditary ATTR polyneuropathy, allowing enrollment to resume with enhanced safety monitoring. The company remains in discussions with the FDA on the related cardiomyopathy study and will provide updates on the path forward.
Roche (RHHBY) - Said Genentech’s Phase II CT388-103 trial showed once-weekly CT-388 delivered 22.5% placebo-adjusted weight loss at 48 weeks, with Phase III Enith1 and Enith2 starting this quarter.

MATERIALS

Nucor (NUE) - Nucor shares fell in extended US trading after the company reported Q4 earnings and sales below expectations, driven by weaker steel mills results due to lower volumes and margin compression. Q4 2025 (USD): Adj. EPS 1.73 (exp. 1.77), Revenue 7.69bln (exp. 7.91bln). Steel mills segment earnings fell Q/Q on lower volumes and margin compression, mainly in sheet; steel products earnings declined on lower volumes and higher average costs per ton, partly offset by higher realised pricing; raw materials earnings decreased due to two scheduled outages at DRI facilities, partially offset by insurance recoveries. The CEO highlighted major projects brought online during the year, and said ramp-ups are beginning to contribute meaningfully to earnings, with demand supported by strong backlogs and favourable US policy. Ahead, it expects Q1 earnings to increase vs Q4 across all three segments, led by steel mills on higher volumes and realised prices; steel products to benefit from increased volumes on stable pricing; and raw materials to post higher earnings.
Alcoa (AA) - Downgraded at Morgan Stanley to 'Equal Weight' from 'Overweight' with a USD 64 PT (prev. 52). While the firm continues to see the company benefitting from elevated LME aluminum pricing, the stock has significantly outperformed peers in recent months and the firm now sees a more balanced risk-reward,
Century Aluminum (CENX) - Emirates Global Aluminum is partnering with Century Aluminum to build the first new US aluminium plant since 1980. Located in Oklahoma, it will produce 750k metric tons annually, with EGA owning 60% and Century Aluminum the remainder.

ENERGY

Exxon Mobil (XOM) - Will begin commercial carbon capture and storage operations with CF Industries (CF) in Louisiana in 2025, transporting and storing up to 2 mtpa of CO₂ from CF’s Donaldsonville complex. The company also plans to advance additional CCS projects across Texas and Louisiana and aims for a final investment decision on its first low-carbon data centre by end-2026. Meanwhile, China's BYD and Exxon Mobil will deepen their partnership in hybrid technology.
ProPetro Holding (PUMP) - Announced 12.5mln share common stock offering, but was later increased to 15mln shares, priced at the high-end of the USD 9.75-10.00. The company intends to use the net proceeds it receives from the offering for general corporate purposes, including to fund growth capital for additional power generation equipment.

REAL ESTATE

Alexandria (ARE) Q4 2025 (USD): FFO 2.16 (exp. 2.15), Revenue 754.1mln (exp. 742.6mln); maintained FY26 adj. FFO view of 6.25-6.55 (exp. 6.42).
CoStar (CSGP) - Hedge Fund Third point targets CoStar in new activist campaign, planning to nominate directors at Costar.

CONSUMER STAPLES

Sysco (SYY) Q2 2026 (USD): EPS 0.99 (exp. 0.98), Revenue 20.80bln (exp. 20.76bln); sees FY26 adj. EPS at "high end" of 4.50-4.60 (exp. 4.58).
Kimberly-Clark (KMB) Q4 2025 (USD): Adj. EPS 1.86 (exp. 1.81), Revenue 4.08bln (exp. 4.09bln); sees FY26 adj. EPS up double digits on CC basis; increased quarterly dividend to 1.28/shr from 1.26. An executive expects 60bps impact to FY growth from partial loss of diapers and training pants distribution in North America Club channel - conference call.

UTILITIES

NextEra Energy (NEE) Q4 2025 (USD): Adj. EPS 0.54 (exp. 0.52); sees FY adj. EPS at 3.92-4.02 (exp. 4.01); Adj. net income 1.13bln (exp. 1.13bln).

TRADE

US-South Korea - President Trump said he would raise US tariffs on South Korea to 25% (from 15%), citing delays in implementing last year’s trade deal. The move will affect multiple goods, unsettle Seoul, weaken the KRW, and hurt local equities like Hyundai Motor and Kia.
US-Japan - Japan’s biggest business lobby warned that US tariffs require close monitoring as wage negotiations begin. Keidanren head Yoshinobu Tsutsui said the macro impact may be limited but stressed potential micro effects, particularly on smaller firms.
India - India PM Modi said it has reached a FTA with the EU, ending nearly two decades of negotiations. Modi said the pact will boost investor confidence, strengthen trade and supply chains, and support India’s manufacturing and services sectors. Tariffs of up to 44% on machinery, 22% on chemicals, 11% on pharmaceuticals will be mostly eliminated; tariffs on over 90% of EU goods exports will be eliminated or reduced; tariffs on EU beer cut to 50%; tariffs on EU wine cut to 20-30%. Elsewhere, Canada and India will expand trade in oil and gas as they reset relations; Canada will ship more crude oil, LNG and LPG to India, while India will send more refined petroleum products to Canada. Separately, Bloomberg reports that discounted Russian oil has remained a major part of India’s imports despite US threats, tariffs and sanctions; wider discounts and the absence of a US trade deal have kept flows resilient, making significant purchases a likely feature of the market well into 2026.

GEOPOLITICS

North Korea - North Korea launched an unidentified projectile towards the sea off its east coast, South Korea’s military said. Japan’s coast guard separately reported detecting what could be a ballistic missile launched by North Korea.
US-China - The top US diplomat in China said President Xi Jinping’s purge of senior generals aims to secure total military control and tackle corruption. Ambassador Perdue called the investigation into Zhang Youxia a major development, noting his close family ties to Xi.
Iran - Iranian Government Spokesperson said it is still looking to settle matters diplomatically, despite being treated with a hostile approach. Added that all options remain on the table.
Cuba-Mexico - Mexico’s state oil company shelved plans to ship crude oil to Cuba, reversing an earlier decision amid tensions with the US.

MACRO

China Industrial Profits - China’s industrial enterprises recorded their first annual profit increase since 2021 as producer deflation eased. Profits rose 5.3% Y/Y (prev. -13% in November), while FY profits edged up 0.6%.
Japan Bonds - PIMCO remains positive on Japan’s 30yr government bonds after its recent rout, stating that higher yields now offer attractive opportunities, potential capital gains if rates fall, and protection against economic shocks, equity volatility or a stronger JPY.