Daily US Equity Opening News - WFC slips after earnings miss, C & BAC beat; NFLX mulls all-cash bid for WBD

TODAY'S AGENDA:

US INDEX FUTURES: ES -0.4%, NQ -0.6%, YM -0.3%, RUT -0.3%
DAY AHEAD: Traders will be looking to potential SCOTUS opinions (10am Eastern/3pm GMT) for any updates on rulings around Trump tariffs; there is no guarantee that it will give an update today, however. Elsewhere, existing home sales data for December and October's business inventories are set for release. After the release of today's US data, the Atlanta Fed will update its GDPnow model, which is currently tracking US growth of +5.1% in Q4. Today's speakers' slate is busy, and includes: Fed's Miran (voter, super dove), Fed's Williams (voter, neutral), Fed's Paulson (voter, neutral), Fed's Kashkari (voter, neutral), Fed's Bostic (2027 voter, hawk); BoE's Taylor (dove) and Ramsden (neutral); ECB's Vice President de Guindos (dovish). In energy, weekly API energy inventory data reportedly showed headline crude stocks posting a larger than expected build of +5.3mln bbls (exp. +0.4mln), Cushing building by +0.95mln, distillate by +4.3mln bbls (exp. +0.1mln), Gasoline by +8.2mln bbls (exp. +0.2mln); the more widely followed DoE inventory data will be published later today. NOTE: WTI Feb 2026 options are due to expire today.
BROKER MOVES: FN upgraded at Barclays; RIVN downgraded at UBS. For the full list, click here.
MAJOR MORNING MOVES RECAP: NVDA, CHKP/PANW, INFY, WFC, BAC, RIVN. For the full list, click here.
US DAILY CONFERENCE CALENDAR: ABBV, ISRG, JPM, MSFT, WMT. For the full list, click here.

NEWS:

TECH

NVIDIA (NVDA) - Under new licensing requirements, the exports of NVIDIA's (NVDA) H200 chips and AMD's (AMD) MI325X chips will be reviewed on a case-by-case basis, Bloomberg reports. The Commerce Department's licensing requirements will include certifying no shortage of processors in the US. Companies seeking export approval must meet certain stipulations, including limiting chip shipments to China to no more than 50% of total products made for the US market and employing "rigorous Know Your Customer" procedures. However, it was later reported that China's customs authorities are said to have told customs agents this week that NVIDIA's H200 chips are not allowed to enter China; unclear on the rulings constitute a formal ban or a temporary measure. Tech companies have been told by government officials not to purchase chips unless necessary.
SanDisk (SNDK) - Bernstein said SanDisk sees NVIDIA (NVDA) comments at CES on KV cache as significant incremental demand for NAND, tightening an already undersupplied market. SanDisk forecasts data centre NAND demand rising 45% versus supply growth in the mid-20s percentage overall. SanDisk is adding no capacity, raising prices rapidly, and remains leveraged to spot pricing, and targets HBF samples from H2 of 2026, Bernstein wrote.
Cerebras - Chipmaker Cerebras is in talks to raise USD 1bln in funding at a valuation of about USD 22bln, according to The Information citing sources. The talks are ongoing, and no final terms have been agreed.
Knowledge Atlas Technology - Chinese AI startup Knowledge Atlas Technology, also known as Zhipu, said it released GLM-Image, an open-source multimodal image generation model fully trained on Huawei’s Ascend chips, marking progress toward China’s goal of reducing reliance on US technology.
Sprout Social (SPT) - CEO Ryan Paul Barretto purchased 93,984 shares at an average price of USD 10.67, for a total USD 1mln.
Cybersecurity - Chinese authorities have told domestic companies to stop using cybersecurity software made by a dozen companies from the US and Israel due to national security concerns, Reuters reports, citing sources. Banned companies include Broadcom's (AVGO) VMware, Palo Alto Networks (PANW), Fortinet (FTNT), and Check Point Software (CHKP). TD Cowen writes that the PANW, FTNT, and CHKP have minimal exposure to China, with the country representing 1%-2% of each company's sales. TD points out that it is unclear whether this is a formal ban.
Infosys (INFY) Q3 2025 (USD): Revenue 5.15bln (exp. 5.23bln), Operating Margin 18.4% (exp. 21.3%). Guidance: FY26 Revenue +3% to +3.5% (prev. guided 2-3%).
Fabrinet (FN) - Upgraded at Barclays to 'Overweight' from 'Equal Weight' with a USD 537 PT (prev. 499). The firm sees Fabrinet with the most upside to revenue numbers in 2026 within the distributor space. Barclays says that while the transition from 800G to 1.6T has been slow, it should accelerate through 2026, even if more suppliers are added.

FINANCIALS

Bank of America Corp (BAC) Q4 2025 (USD): EPS 0.98 (exp. 0.96), Revenue 28.4bln (exp. 27.56bln). Key Metrics: NII 15.75bln (exp. 15.48bln), Revenue net of interest expense 28.37bln (exp. 27.78bln), Provision for credit losses 1.31bln (exp. 1.48bln). Revenue Breakdown: Trading (ex-DVA) 4.53bln (exp. 4.33bln), FICC (ex-DVA) 2.52bln (exp. 2.62bln), Equities (ex-DVA) 2.02bln (exp. 1.89bln), Investment banking 1.67bln (exp. 1.66bln). Other Metrics: Return on average equity 10.5% (exp. 10.2%); Standardised CET1 ratio 11.4% (exp. 11.5%); Compensation expenses 10.60bln (exp. 10.55bln); Loans 1.19tln (exp. 1.18tln)Total deposits 2.02tln (exp. 2.03tln). Commentary: Expect further economic growth in the year ahead; While any number of risks continue, are bullish on the US economy in 2026. Guidance: Expect Q1 NII +7% Y/Y.
Wells Fargo & Company (WFC) Q4 2025 (USD): EPS 1.62 (exp. 1.66), Revenue 21.3bln (exp. 21.64bln). NII 12.33bln (exp. 12.43bln), Net charge-offs 1.05bln (exp. 1.06bln), Non-interest expenses 13.73bln (exp. 13.6bln), Investment banking fees 716mln (exp. 795.2mln), NIM 2.6% (exp. 2.64%), Non-performing assets 8.50bln (exp. 7.91bln).
JPMorgan (JPM) - President Donald Trump rejected criticism from JPMorgan CEO Dimon over a DoJ probe into the Federal Reserve, saying Dimon was wrong to claim Trump was undermining the central bank’s independence.
Prudential PLC (PUK), HSBC Holdings (HSBC) - Prudential appointed former HSBC chairman Douglas Flint as its next chairman, replacing Shriti Vadera. Flint will join the board in March, subject to regulatory approval, and will also sit on the nomination and governance and remuneration committees, the insurer said.
Deutsche Bank (DB) - Several Deutsche Bank India wealth management bankers have left the firm to join Lighthouse Canton, according to sources cited by Bloomberg. The moves highlight continued competition for senior talent in India’s private wealth sector.
Blackstone (BX) - Blackstone-backed mobile advertising company Liftoff Mobile filed for a US IPO, Bloomberg reports.
Fifth Third Bancorp (FITB), Comerica (CMA) - The Federal Reserve approved Fifth Third Bancorp’s acquisition of Comerica, signing off on one of the largest US bank deals in 2025. Fifth Third agreed last year to buy Comerica for about USD 10.9 billion in stock, creating the ninth-largest US bank with about USD 288bln in assets.

CONSUMER DISCRETIONARY

Tesla (TSLA) - CEO Musk announced on X, "Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter." Meanwhile, Tesla has agreed to enter a mediation to potentially resolve the US Equal Employment Opportunity Commission's lawsuit accusing the company of widespread harassment of black employees at its assembly plant in California, Reuters reports. Negotiations could begin in March.
US Homebuilders - Trump administration officials are criticising home-builder share buybacks as part of efforts to lower housing costs, WSJ reports. In an interview with the newspaper, FHFA director Bill Pulte questioned why builders were repurchasing shares instead of taking steps to make homes more affordable.
Amazon (AMZN) - Seeking supplier discounts of between low single digits and up to 30% to reverse tariff-related concessions, ahead of a Supreme Court ruling, as it accelerates negotiations, and shifts duty risks to suppliers, FT reports.
Alibaba (BABA) - Will hold a Qwen app launch event at 15th January. The service is said to have over 100mln monthly active users, growing among students and white-collar workers.
Walmart (WMT) - Goldman Sachs kept a ‘Buy’ rating and USD 121 price target on Walmart, citing constructive comments on AI at its ICR Conference presentation. It said partnerships with Google (GOOG) and OpenAI could lift sales in 2026 by reaching customers beyond traditional commercial searches.
Saks Global Enterprises - Filed for Chapter 11 bankruptcy in Texas, citing mounting losses and a heavy debt burden. The company said the restructuring follows a failed turnaround effort. Former Neiman Marcus chief Geoffroy van Raemdonck is set to lead Saks through expected bankruptcy proceedings, WSJ reports; he previously guided Neiman Marcus through Chapter 11 before selling the retailer to Saks in 2024.
Ford Motor (F) - Ford CEO Farley dismissed criticism from Senator Ted Cruz over postponing congressional testimony, saying his priority was running the company.Xpeng (XPEV) - Aiming to sell 550,000-600,000 vehicles this year, a 28%-40% Y/Y increase from when Xpeng delivered 429,445 cars last year, Reuters reports.Rivian (RIVN) - Downgraded at UBS to 'Sell' from 'Neutral' with a USD 15 PT (prev. 13). The firm cites "elevated expectations" for the downgrade. Rivian shares are "prone to sentiment swings", and the stock is up 15% since the company's autonomy and AI day on December 11. UBS believes that most of Rivian's AI-related news is now out. UBS thinks expectations may be too high for the R2 launch.
Tapestry (TPR) - Downgraded at Jefferies to 'Hold' from 'Buy' with a USD 138 PT (prev. 142). The firm raised Q2 numbers above the Street based on accelerating alternative data through December, but downgraded shares based on a more balanced risk/reward outlook at current levels, given the run in the stock.

ENERGY

Shell (SHEL), Exxon Mobil (XOM) - Companies have halted the intended sale of natural gas assets in Britain's Southern North Sea to Viaro Energy, Reuters reports, citing the Viaro CEO. The two sides had mutually agreed not to proceed despite it being fully funded. Shell will continue to operate the assets.
SLB (SLB) - Poised to reap gains from Trump’s plan to leverage Venezuelan oil, is in position to win some of the first contracts under plan to revive Venezuela’s ailing oil industry, FT reports. SLB is in talks with US officials, its local partner Chevron (CVX) and other potential customers about expanding in Venezuela, FT reports.
Energy Inventories - Weekly API energy inventory data reportedly showed headline crude stocks posting a larger than expected build of +5.3mln bbls (exp. +0.4mln), Cushing building by +0.95mln, distillate by +4.3mln bbls (exp. +0.1mln), Gasoline by +8.2mln bbls (exp. +0.2mln); the more widely followed DoE inventory data will be published later today.
PDVSA - Venezuela’s PDVSA has begun reversing oil output cuts as crude exports resume under US supervision after a December embargo, Reuters reports. Production fell to about 880k BPD from 1.16mln in late November. Talks with US officials continue, while an internal audit follows a cyberattack and exports restart.
Chevron (CVX) - Reportedly plans to run Venezuelan crude at its Pasadena, Texas and Pascagoula, Mississippi refineries. No date has been set for arrivals at the 119k BPD Pasadena plant or the 356k BPD Pascagoula facility.
BP Plc (BP/ LN) - Expects USD 4–5bln of impairments in Q4, mainly linked to its energy transition businesses, and flagged weak oil trading, where Q4 upstream production is expected to be broadly flat Q/Q.

HEALTHCARE

Obamacare - US Obamacare enrolment has fallen by about 1.4mln people from last year as a federal tax credit expired and premiums rose sharply. The decline is smaller than forecast, but experts warned further attrition is likely as average premiums more than double.
Novo Nordisk (NVO) - Seeking new deals to strengthen its obesity portfolio after losing US biotech Metsera to Pfizer (PFE). CEO Doustdar said the company is open to large or small acquisitions, provided they complement existing assets and offer clear advantages. Elsewhere, Doustdar expects some headwinds in international operations in 2026, adding that a loss of exclusivity in several markets this year could result in Novo having a difficult year.
Bristol Myers Squibb (BMY) - Said about 5% of Opdivo patients are using a new, easier-to-administer version of the cancer drug and that uptake is on track to reach at least 30% within two years, citing strong adoption across multiple tumour types, Bloomberg reports.
BioNTech (BNTX) - Open to preferred partnerships as it prepares to commercialise multiple cancer drugs, with CEO Sahin stating that the company would consider deals granting partners access to some medicines. He noted BioNTech’s past success from collaborations, including with Pfizer (PFE) on Covid-19 vaccines.
Acadia Pharmaceuticals (ACAD) - Expects 2025 net sales to exceed USD 1bln, in line with prior guidance (exp. 1.08bln).
Biogen (BIIB) - Expects Q4 results to included a research milestone of USD 222mln; will impact adj. EPS by 1.26/shr.
Glaukos Corporation (GKOS) - Sees Q4 revenue at ~USD 143mln (exp. 129.46mln); raised FY25 revenue view to ~USD 507mln (exp. 493.72mln, prev. 490-495mln) and backed FY26 revenue view of USD 600-620mln (exp. 612.27mln).

MATERIALS

China Steel - China’s steel exports hit a record in December, defying global trade pressure. Shipments rose to 11.3mln tons, the highest on record, lifting full-year exports +7.5% Y/Y to a best-ever 119mln tons, according to Chinese customs data.
Chilean Copper - Chile’s copper industry could end years of stagnant output as the incoming government plans to cut red tape and ease regulation, according to mining group Sonami. President Jorge Riesco said output could rise 10-20% over the next year or two, echoing projections from President-elect Jose Antonio Kast’s team.

INDUSTRIALS

Honeywell International (HON) - Announced that Quantinuum, which is majority owned by Honeywell, plans to make a confidential submission of a draft registration statement on Form S-1 to the US SEC relating to the proposed IPO of Quantinuum's common stock.
Genco Shipping & Trading (GNK), Diana Shipping (DSX) - Genco Shipping rejected Diana Shipping’s non-binding USD 20.60 per share all-cash offer, without engagement. Diana, which owns 14.8% of Genco, said financing for up to USD 1.102bln was backed by DNB Bank and Nordea Bank, and it is considering the next steps.

CONSUMER STAPLES

Coca-Cola (KO) - Reportedly ended talks to sell Costa Coffee after bids from potential PE suitors fell below expectations, FT reports, citing people familiar with the talks. Coca-Cola had been seeking ~GBP 2.0bln after acquiring Costa Coffee for GBP 3.9bln in 2018.

COMMUNICATIONS

Netflix (NFLX), Warner Bros. Discovery (WBD) - Netflix is considering revising the terms of its bid for Warner Bros. Discovery, including discussions about an all-cash offer for the studios and streaming businesses, according to Bloomberg citing sources. The changes aim to speed up a deal facing political opposition, rival bidder Paramount Skydance (PSKY) and mixed investor support.

MACRO

China Stocks - China’s stock exchanges will raise margin requirements so the margin ratio does not fall below 100% (from a previous 80%), effective 19th January. The change applies only to new margin contracts, while existing positions and extensions remain under prior rules.
China Trade - China’s trade surplus reached a record USD 1.2tln in 2025, despite US tariffs, as exporters shifted toward Southeast Asia and Europe. Overall exports rose +6.6% Y/Y in December (exp. +3.1%), the fastest pace in three months. China’s steel exports hit a record in December, defying global trade pressure. Shipments rose to 11.3mln tons, the highest on record, lifting full-year exports +7.5% Y/Y to a best-ever 119mln tons, according to Chinese customs data. Coal imports fell the most in a decade last year, the biggest drop among major commodities, reflecting cheaper alternatives and a contraction in thermal power generation; the data showed declines in natural gas and copper, while copper ore and soybeans rose.
Japan - PM Takaichi told LDP executives that she intends to dissolve the lower house at the start of the ordinary Diet session convened on 23rd January, Nikkei reports. A general election is expected in early to mid-February, aiming to capitalise on high approval ratings to expand the ruling coalition's seats. Meanwhile, BoJ Governor Ueda said that plans to raise interest rates remain intact when economic and inflation conditions allow, adding that policy would adjust as the outlook improves, despite growing speculation over a possible national election next month.
Fedspeak - Fed's Barkin (2027 voter) said that December inflation data was encouraging; he added that the Fed, after cutting rates by 75bps in 2025, has time to assess policy impacts.
US FTC - President Trump nominated WeatherTech CEO David MacNeil as a US Federal Trade Commissioner. He will replace Melissa Holyoak, who left to become US Attorney for Utah, and join Republicans chair Andrew Ferguson and Commissioner Mark Meador.
APAC FX Intervention - The KRW slid towards its weakest level since March 2009, extending a ten-day losing streak; SK's Finance minister said authorities would focus on fundamentals, short-term measures and flow management. Elsewhere, Japan’s Chief Cabinet Secretary Kihara said authorities would take appropriate action against excessive FX movements, but declined to comment on specific currency levels, and stressed the importance of FX moving in a stable manner.
RBNZ - NZ foreign minister Peters rebuked RBNZ governor Breman after she signed a statement with other global central bankers backing Fed chair Powell. Peters wrote on X that the RBNZ should avoid US domestic politics and focus on domestic monetary policy.

GEOPOLITICS

Iran - President Trump warned the US would take “very strong action” if Iran executes protesters, amid reports more than 2,400 demonstrators have been killed and over 18,434 arrested, BBC reports. Rights groups cited expedited death sentences, while Iran blamed “terrorists” for around 2,000 deaths.
Venezuela - Venezuela’s acting president plans to send an envoy to Washington on Thursday to meet senior US officials, the same day opposition leader Maria Corina Machado holds her own talks following Nicolas Maduro’s ouster, according to Bloomberg. Elsewhere, the US is exploring preliminary options to help fund rebuilding Venezuela’s infrastructure, potentially involving agencies such as the International Development Finance, according to a White House official. No decisions have been made, and restoring systems like the power grid is seen as critical to reviving the economy.

TRADE

US-China - The US ouster of Venezuela’s Nicolas Maduro is forcing China to reassess its Latin America strategy, after years of loans, infrastructure projects, commodity purchases and mining to draw countries away from Taiwan, WSJ reports. WSJ said that incentives under consideration by Chinese officials to woo the US into a strategic retreat from the Taiwan Strait, include Beijing potentially agreeing to buy billions of dollars in long-term Treasuries.
Iran Tariffs - The UAE said that the US plan to impose a 25% tariff on countries doing business with Iran would affect commodity supplies, including food. Trade minister Al Zeyoudi said the UAE, Iran’s second-largest trading partner, is still assessing the potential impact.
EU-China - A Dutch court is weighing whether to open an investigation into chipmaker Nexperia BV, potentially withholding control from Chinese owner Wingtech Technology over alleged improper technology transfers. A probe would extend trustee control, while rejecting it would restore Wingtech’s authority and end the dispute, Bloomberg reports.
US-India - Secretary of State Rubio and India’s foreign minister held a phone call as trade negotiations between the two countries continue to drag on, Bloomberg reports. The discussion took place amid ongoing tensions over tariffs.