>>> What to look at today - 12th of February 2025

Asian equities and US stock index futures fell while the dollar and gold rallied in a sign of investor caution after President Donald Trump outlined tariffs on US imports of steel and aluminum.  A gauge of Asian equities dropped, weighed down by selling pressure for shares in Hong Kong and mainland China. Japanese markets are closed. Contracts for the S&P 500 and Nasdaq 100 both declined as did those for the region-wide Euro Stoxx 50. Demand for haven assets pushed an index of the dollar higher for a third consecutive session. Gold rose above $2,940 briefly to set a new high.  The moves are the latest sign investors are struggling to distinguish threat from action within Trump’s tariffs, while also gauging the potential flow-on effects for global trade, corporate earnings and inflation. While tariffs on China have gone into effect, uncertainty over more levies have sparked fresh concerns retaliatory measures will intensify a global trade war. Trump set tariffs on steel and aluminum shipments from all countries, including major suppliers Mexico and Canada, from March 12, but said he would consider an exemption for Australia. The president earlier said he would announce reciprocal tariffs this week on countries that tax US imports. Aside from the global trade picture, investors will also be focused on this week’s key inflation data and Fed Chair Jerome Powell’s testimony before Congress. Expected inflation rates over the next year and three years ahead were both unchanged in January at 3%, according to results of the New York Fed’s Survey of Consumer Expectations published Monday. Elsewhere, the Indian rupee strengthened as much as 1% against the US dollar. The yen was little changed, while the pound weakened. The whipsawing trade in Chinese equities follows a rally this year helped along by fresh demand for technology stocks that has lifted a gauge of Hong Kong tech companies around 17% this year. Treasuries weren’t trading during Asian hours due to a holiday in Japan. Oil advanced from near its lowest levels this year as shrinking Russian production eased concerns over a glut.  The resilience of stocks in the face of tariffs may invite further trade escalations, making equity pullbacks likely, according to Deutsche Bank AG strategists including Binky Chadha. They noted these pullbacks require the same playbook as for geopolitical shocks, which have historically seen sharp but short-lived selloffs, with equities typically bottoming even as the event continues and recouping losses before any de-escalation.  In such scenarios, equities would typically weaken 6%-8%, moving lower for three weeks before gaining strength for three weeks. US After Hours LSCC +10.8% up on earnings, SLQT +34.2% soaring on strategic investment; FLNC -37.7% and HLIT -32.6% plunge following quarterly results.

Nikkei Closed Hang Seng -0.61% CSI -0.57% Shanghai -0.23% Shenzen -0.56%

Eur$ 1.0304 CNH 7.3100 CNY 7.3077 JPY 151.95 GBP 1.2363 CHF 0.9916 RUB 96.3751 TRY 36.0307 WTI$ 72.65 +0.46% Gold 2,924 +0.54% BTC 98;452 +1.08% ETH 2,720 +2.11%

S&P -0.26% Nasdaq -0.33%% EuroStoxx -0.09%% FTSE -0.13% Dax -0.13% SMI +0.05%

Macro :
- BC Partners Said to Seek Up to €6 Billion for New Flagship Fund
- Trump Says Tariffs on Metals Could Go Higher
- Trump’s 10% Tariff Makes Chinese Batteries Less Attractive: BNEF
- US-EU Talks Can Soften Blow of Tariffs, ECB’s Kazaks Says

Keep an eye on :
- AKSO NO : Aker Solutions 4Q Adjusted EPS Matches Estimates
- BABA US : Billionaire Investor Tepper Boosted China Bet Before Rally
- AMS SW : *Ams-Osram Sees 1Q Adjusted Ebitda Margin of 16%, Plus or Minus 1.5 Percentage Points
- AAD GY : Amadeus Fire Prelim FY Operating Ebita EU55.5M
- ANIM IM : Poste Italiane to Accept BPM Bid for Anima If Offer Price Rises
- BAR BB : Barco FY Ebitda Margin Beats Estimates
- BFF IM : BFF Bank Sees 2026 Adj Net EU240M, Saw EU255M to EU265M
- BEN FP : Beneteau FY Revenue Beats Estimates
- BP/ LN : BP 4Q Adjusted Ebit Beats Estimates
- BRAV SS ; Bravida FY Dividend per Share Beats Estimates
- BP/ LN : Kosmos Rises as Partner BP Produces First LNG at Project
- BP/ LN : Elliott’s Activism Success Gives Hope for BP’s Depressed Shares
- CTM SS : Catena Media 4Q Total Revenue EU10.2M Vs. EU14.5M Y/y
- CEC GY : Ceconomy 1Q Adjusted Ebit Meets Estimates
- COTY US : Coty Shares Slide on Tempered Annual Profit Outlook
- CYTK US : Novartis to Buy Anthos Therapeutics for $925m Upfront
- DOKA SW : Dormakaba Says CFO Johansson Has Died After Long Illness
- DSFIR NA : Novonesis Buys DSM-Firmenich’s FEA Stake for €1.5b: M&A Snapshot
- DNLM SS : Dunelm 1H Pretax Profit Misses Estimates
- DD US : DuPont Climbs Before Results With Spinoff in Focus: Preview
- EDF FP : EDF to Tender Six Sites for Data-Center Construction in France
- EMSN SW : EMS-Chemie Gains as Baader Sees Outperformance, Demand Recovery
- ENDUR NO : Endur Offering of 4.86m Shares Prices at NOK72/Share
- ENGI FP : Engie Halves Stake in Moroccan Coal-Fired Power Plant to 15.7%
- ENX FP : Euronext Jan. Total Cash Market Transaction Value M/M +24%
- FTK GY :
- FORTUM FH : Fortum 4Q Adjusted Operating Profit Misses Estimates
- G IM : Mediobanca Will Likely Present List for Generali Board, CEO Says
- HESM US : Hess Midstream Holder Blackrock Offers 10m Shares
- ILTY IM : Illimity Bank 4Q Operating Income EU112.8M Vs. EU77.0M Y/y
- INCY US : Incyte Shares Slump After Baker Bros. Files to Sell Stock
- IPCO SS : IPC Sees 2025 Net Average Production 43,000 to 45,000 BOE/D
- KEMIRA FH : Kemira FY Dividend per Share Beats Estimates
- KER FP : Kering 4Q Gucci Revenue on a Comparable Basis Misses Estimates, *KERING 4Q GUCCI COMP REV. -24%, EST. -22%
- LAND SW : Landis+Gyr to Discontinue EV Charging Business, Cuts Guidance
- LHA GY : Brussels Airport Cancels All Departing Passenger Flights Thurs.
- MAERSKB DC : Maersk Briefly Suspends Hutchinson Port Operations Due to Strike
- NOVN SW : Novartis to Buy Anthos Therapeutics for $925m Upfront
- MB IM : Mediobanca 2Q Net Income Beats Estimates, Raises ‘26 Guidance
- MB IM : Mediobanca Will Likely Present List for Generali Board, CEO Says
- MBG GY : Mercedes-Benz to Sell Argentina Plant to Local Investors: LN
- MRK GY : Merck KGaA Confirms Talks With Springworks Therapeutics
- ML FP : Michelin Mulls Accelerating US Investments on Tariff Threat: FT
- MC US : Moelis Approves Retention Grant Equal to $25m for CEO Ken Moelis
- MUSTI FH : Musti Group 1Q Net Sales EU122.2M Vs. EU115.7M Y/y
- NSISB DC : Novonesis to Buy DSM-Firmenich’s Stake in FEA for €1.5b
- PEAN SW : Peach Property Preliminary 2024 Rental Income Around EU124m
- PSX US : Elliott Builds More Than $2.5 Billion Stake in Phillips 66 (2)
- Plaid IPO : Fintech Startup Plaid Said to Tap Goldman Sachs for Share Sale
- RNO FP : Nikkei Asia: Nissan is expected to report net loss for current term, analysts say https://t.co/BDxkBc7TUV
- SPM IM : Saipem Signs New Three-Year €600M Revolving Credit Line
- SANOMA FH : Sanoma Sees 2025 Rev. EU1.28B to EU1.33B, Est. EU1.33B
- SGSN SW : SGS FY Adjusted Operating Income Beats Estimates
- 9984 JP : SoftBank’s Stargate Plans in Focus While Losses Persist: Preview
- STERV FH : Stora Enso 4Q Adjusted Ebitda Beats Estimates
- SWTX US : Merck KGaA Confirms Talks With Springworks Therapeutics
- TLGO SM : Spanish Government May Support PFR’s Entry in Talgo: Cinco Dias
- TSLA US : Tesla’s Shanghai Battery Megafactory Starts Production Tuesday
- Trackunit : Goldman’s Takeover of Trackunit Valued at DKK10b, Borsen Says
- UCG IM : UniCredit 4Q Net Income Beats, to Distribute €9b for FY24
- UCG IM : Del Vecchio’s Delfin Mulls Sale of UniCredit Stake: Corriere
- UCG IM : UniCredit Says Potential BPM, Commerzbank M&A Won’t Overlap
- UNI IM : Unipol to Sell Package of Una Hotels Assets for About €1B: Sole
- VAR NO : Var Energi Sees 2025 Production 330,000 to 360,000 BOE/D
- VBX GY : Martin Hartmann Appointed as New CEO and Florian Seitz as CFO of Voltabox - Patrick Zabel to Leave the Management, Voltabox Sets Course for Long-Term Stability with New Management Board and Fresh Capital, Laying the Foundation for
- WHA GY : Wereldhave 2025 EPS Forecast Misses Estimates
- WIHL SS : Wihlborgs FY Dividend per Share Beats Estimates, Wihlborgs FY Rental Income Meets Estimates

>>> Stoxx 600 Pre-Market Indications

  • Frontline PLC (HF6 TH) +2.5%
  • Mediobanca (ME9 TH) +2.1%
  • EssilorLuxottica (ESL TH) +1.4%
    • EssilorLuxottica Raised to Buy at Jefferies
  • UniCredit (CRIN TH) +1.2%
    • UniCredit Says Confident on Profit Despite Headwinds: TOPLive
  • Galp (GZ5 TH) +1.2%
  • Repsol (REP TH) +1%
  • Delivery Hero (DHER TH) +1%
  • Diageo (GUI TH) +1%
  • OMV (OMV TH) +0.8%
  • Fortum (FOT TH) -0.7%
    • Fortum 4Q Comparable Ebitda Misses Estimates
  • Carnival Plc (POH1 TH) -1%
  • Vodafone (VODI TH) -1%
    • Elisa, Vodafone Bond Spreads vs Communications Peers Tighten
  • Philips (PHI1 TH) -1.3%
  • TUI (TUI1 TH) -1.6%
    • TUI 1Q Underlying Ebit Beats Estimates
  • SocGen (SGE TH) -1.9%
  • Kongsberg (KOZ TH) -1.9%
    • Kongsberg Cut to Reduce at Kepler Cheuvreux
  • Demant (WDH1 TH) -2.2%
  • Prosus (1TY TH) -2.6%

WSJ : Activist Elliott Ratchets Up Pressure on Phillips 66 With Over $2.5 Billio

Activist Elliott Ratchets Up Pressure on Phillips 66 With Over $2.5 Billion Stake
Firm to push oil refiner to consider selling or spinning off its midstream business

Activist Elliott Investment Management has built a more than $2.5 billion stake in Phillips 66 PSX 2.83%increase; green up pointing triangle and plans to push the oil refiner to consider operational changes to boost its stagnant stock, according to people familiar with the matter.

Elliott plans to seek a number of changes to simplify Phillips 66, most notably pushing the company to sell or spin off its big midstream business, the people said. The Houston-based company’s midstream business makes money transporting energy, and is usually more immune to commodity-price fluctuations than the refining or production sides of the oil business.

Elliott had first pushed Phillips 66 for strategic improvements in late 2023 after disclosing a roughly $1 billion investment in the company.

A few months later, Phillips 66 and Elliott came to an agreement on a new board member and said they would work together to name a second director in the coming months. That second director with Elliott’s blessing has yet to be named.

Elliott still believes Phillips 66 hasn’t fulfilled its commitment to further board changes, the people familiar with the matter said. Other details around the activist’s plans couldn’t be learned. (Its latest position makes Elliott one of Phillips 66’s top five investors.)

Elliott has had a busy run in recent months of shaking up companies and ousting chief executives in some cases. Some of its targets have included Starbucks, Southwest Airlines, Tinder parent Match Group and industrial conglomerate Honeywell. The latter just announced a breakup following Elliott’s arrival.

Elliott has a record of successful investments across the energy sector, including at Marathon, NRG Energy, Suncor Energy and Hess. It also recently built a stake in struggling British oil major BP.

Shares of Phillips 66 had run up through the spring of last year, trading above $170 apiece, but have since fallen back down. The oil refiner, which also operates a chain of gas stations, has a market value of around $50 billion. Its stock closed Monday at $123.71.

Back in 2023, Elliott argued Phillips 66 was underperforming peers including Valero Energy, and that the company could follow a similar path to Marathon Petroleum, which sold its Speedway gas-station chain in 2019. Elliott also wanted the company to focus more on its main refining business and cut operating costs.

Phillips 66 was born in a spinoff from ConocoPhillips in 2012. The company runs refineries in California, Louisiana, Texas and has chemical plants elsewhere. It also has a fast-growing pipeline and terminals business.

In the shale boom of the past decade, Phillips 66 and others spent billions to build and acquire thousands of miles of pipelines, ferrying oil, natural gas and fuel across the country.

A number of Wall Street analysts have noted that Phillips 66 trades at a discount relative to the sum of its parts, and have questioned whether the business can get credit for its higher-value midstream business.

Phillips 66 in late January reported a sharp drop in its fourth-quarter profit. It said its earnings were hit by weaker refining margins and accelerated depreciation of its Los Angeles refinery, which it plans to close.

CEO Mark Lashier said at the time the company had set fresh financial and operating targets focused on cutting debt to $17 billion.

Phillips 66 has struck a number of deals under Lashier. Last month, the company said it would buy EPIC NGL for $2.2 billion to help grow its Permian midstream business.

FT : FCA to delete most emails after 12 months

FCA to delete most emails after 12 months
Campaigners say the policy risks hampering probes into the regulator that rely on historic email exchanges

The UK financial watchdog has decided to start deleting many emails a year after it receives them, raising concerns among staff and campaigners that it could frustrate efforts to hold the regulator to account.

The Financial Conduct Authority told staff last week it would start automatically deleting emails that remained in their inbox for more than 12 months unless they were considered important enough to be saved in its data repositories.

A notice on the regulator’s intranet page said the new policy “reduces the legal and reputational risk we face” and would start on April 1, according to an employee.

They added that concerns had been raised internally about how the change would affect responses to Freedom of Information Act requests and potential future investigations of the FCA’s conduct.

The FCA said in an emailed statement that the change was “about deleting unnecessary emails, which means we will be able to retrieve information more efficiently”. 

“Any emails that should be retained to comply with regulatory and legal requirements, including the Freedom of Information Act, will be saved,” it said.

The policy would only apply to emails sent or received after April 1, so older emails should not be automatically deleted, the regulator added.

Campaigners said the automatic deletion of emails that are not considered important risked hampering probes into the FCA that often rely on historic email exchanges with the regulator.

“If it transpires that the FCA is attempting to delete emails over 12 months old, then those who believe the FCA to be dishonest will wonder if their motivation for doing so is to cover up dishonesty; and if so there could be one or more scandals that it is trying to hide its handling of,” said Andy Agathangelou, head of campaign group Transparency Task Force.

FCA staff are being trained on the policy to make them aware of which emails need to be stored under the Financial Services and Markets Act. Any information created or received in the course of discharging its regulatory duties must be stored for 25 years.

The regulator requires the companies it regulates to keep their records for a minimum period of time — at least five years for investment companies subject to market rules, indefinitely for pension transfer specialists and three years for other companies.

However, the FCA’s policy on disclosing information is already under scrutiny after the Financial Times reported last month that an internal review had found that it failed to follow FOI rules in 2020 by “inappropriately” delaying responses to requests for months.

Ashley Alder, FCA chair, was also criticised last year after he was found to have broken its rules on disclosing the identity of two internal whistleblowers by sharing emails from them with colleagues.

FT : UK to change ‘unintended’ non-dom hit to overseas bank accounts

UK to change ‘unintended’ non-dom hit to overseas bank accounts
The effect of the provision would be reversed pending ministerial sign-off, a Treasury official said

UK ministers are expected to reverse a technical element of Labour’s non-dom tax changes relating to money held in overseas bank accounts as they steer legislation to enact the October Budget through parliament.

A provision in the Finance Bill would have meant non-doms who stayed in the UK past April incurred tax on money moved through overseas bank accounts which they had earned in prior years when they had been exempt from UK taxes, according to lawyers.

A Treasury official on Monday said changes to reverse the effect of the provision were pending ministerial sign-off.

The Treasury said: “We are committed to engaging with stakeholders to ensure the non-doms reforms work as well as possible. As is usual we are considering any technical comments on the legislation as part of this process.”

The expected change would be the latest tweak to chancellor Rachel Reeves’ move to abolish non-dom status, which also introduced tax on offshore trusts and made non-doms’ worldwide assets liable to inheritance tax.

Last month Reeves announced a minor change to the controversial policy, which tax advisers say has spurred an exodus of the wealthy, to make it easier for non-doms to bring back foreign income and gains at a favourable tax rate.

For years, the UK offered non-doms — wealthy foreigners resident in the UK — the opportunity to avoid British taxes on their overseas income and gains by claiming the “remittance basis”, which meant they only paid UK taxes on monies brought onshore.

As part of her Budget, Reeves abolished the remittance basis so non-doms who remain in the country have to pay tax on new foreign income and gains, like ordinary UK-domiciled taxpayers.

But foreign income and gains previously earned by non-doms under the remittance basis are meant under Labour’s plans to remain untaxed unless brought into the UK.

As part of the non-dom changes in the Finance Bill, the UK would have applied statutory, rather than common-law, rules about capital gains tax to debts. This change would mean debts were considered as situated wherever the creditor is resident.

Money in bank accounts is considered debt owed to the account holder, so making a deposit in a foreign bank account would create a new debt, which the provisions would have classed as bringing the money back into the UK and therefore incurring tax.

The Treasury official said the planned amendments to the Finance Bill would avoid this outcome. They did not specify what change would be made.

Christopher Groves, a partner at law firm Withers, said it was “obviously wrong” if the change meant money put into a bank account anywhere in the world by a non-dom would be treated as having been brought into the UK.

Groves added he thought the change was most likely to be an “unintended consequence” rather than a strategy: “I think that the first draft of the legislation is not perfect, which, given how complicated it is, is not hugely surprising.”

Dominic Lawrance, a partner at law firm Charles Russell Speechlys, told HMRC in a letter earlier this month that it was “astounding” if a non-dom who had used the remittance basis became liable for tax “by transferring cash to a non-UK bank account in his or her name”.

Professional bodies Step, which represents lawyers and accountants, and the Chartered Institute of Taxation have both made representations to HMRC to warn about the change.

The CIOT wrote that “there should not be such different and complicated rules introduced at this late stage to determine what is a taxable remittance”.

FT : Let the OpenAI takeover games begin

Let the OpenAI takeover games begin

Elon Musk, weeks into launching what the FT has dubbed a “hostile takeover” of the US government, has set his eyes on another target: OpenAI, the artificial intelligence start-up that has spurred billions in investment and calls for a new technological age.

Musk, the richest person in the world, and a group of co-investors submitted a near-$100bn bid for the non-profit that controls OpenAI on Monday, throwing a wrench in Sam Altman’s plan to convert the start-up into a for-profit entity.

This isn’t Musk’s first foray with the ChatGPT maker, and in fact, it’s just the latest salvo in a lengthy, bitter rivalry between the Tesla boss and Altman.

Their history goes back to when Musk co-founded OpenAI and invested tens of millions of dollars into the fledgling company before leaving its board in 2018.

Since then, he’s been a vocal critic of Altman’s attempt to convert it into a for-profit business, with Musk saying the plan betrays the company’s founding mission.

On top of all that, the former collaborators are competing to dominate AI — with Musk running his own company xAI — as they each race to raise tens of billions of dollars and build vast data centres.

Shortly after the news broke on Monday, the feud between Musk and Altman spilled further into the open. Or rather, the sparring of words made its way to where so many things are duked out nowadays: social media platform X, formerly called Twitter.

Altman soon posted on the site: “no thank you, but we will buy Twitter for $9.74 billion if you want.”

There are a few big caveats here. “OpenAI doesn’t have to sell,” said Ann Lipton, a law professor at Tulane University. “The non-profit controls [OpenAI], and until that structure changes, it has obligations as a non-profit to pursue its mission.”

There was “nothing Musk can do but use soft persuasive power”, she added.

But with Musk’s plum post at the centre of Donald Trump’s White House — as the leader of the Department of Government Efficiency — that soft power could be significant.

WSJ : China’s Cabinet Pledges to Boost Spending, Attract Foreign Investment

China’s Cabinet Pledges to Boost Spending, Attract Foreign Investment
It will intensify support for trade-in programs while boosting spending in the cultural, sports and inbound-tourism sectors

China’s cabinet pledged to boost domestic consumption this year while vowing to stabilize foreign capital crucial for job creation.

In a weekly meeting chaired by Premier Li Qiang, the State Council said Monday that it will work to increase residents’ incomes, promote sustainable income growth and expand property-related income channels, all of which are aimed at stimulating domestic consumption.

The government didn’t provide specific details on how it plans to raise incomes, but analysts expect that the central government will likely propose enhanced pension and healthcare coverage at the coming annual legislative meeting in March. Next month’s meeting is also expected to unveil China’s economic growth target along with other supporting policies.

As the trade dispute with the U.S. intensifies, Beijing faces mounting pressure to reduce its heavy reliance on exports while bolstering domestic spending, a challenge compounded by weak consumer demand since the end of the Covid-19 pandemic.

In Monday’s meeting, the State Council said the government will intensify support for trade-in programs this year while boosting spending in the cultural, sports and inbound-tourism sectors.

According to data released Monday by the National Development and Reform Commission, the trade-in initiatives launched so far have spurred sales of automobiles, home appliances, furniture and various digital products.

During the eight-day Lunar New Year holiday, these programs generated more than 31 billion yuan in revenue, equivalent to $4.24 billion, with home-appliance and mobile-phone sales surging 166% and 182%, respectively, compared with the previous year.

While these trade-in programs have temporarily lifted spending, economists warn that their impact may gradually fade as the year progresses.

Meanwhile, China’s cabinet reaffirmed its commitment to attracting more foreign investment, a key element in creating jobs, stabilizing exports and upgrading industries.

The government plans to bolster the reinvestment of foreign capital in China, encourage foreign investors to undertake equity investments and broaden the range of industries in which foreign investment is welcomed.

Amid slowing economic growth and rising geopolitical tensions, China’s foreign direct investment fell by 27.1% in 2024, following an 8.0% decline in 2023.

>>> US After Hours Summary: LSCC +10.8% up on earnings, SLQT +34.2% soaring on s

After Hours Summary: LSCC +10.8% up on earnings, SLQT +34.2% soaring on strategic investment; FLNC -37.7% and HLIT -32.6% plunge following quarterly results

After Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: LSCC +10.8%, NTB +7.6%, CMP +6.6%, CINF +4.3%, WTS +1%

Companies trading higher in after hours in reaction to news: SLQT +34.2% (signs $350 mln strategic investment), GOLF +7.3% (replacing ROIC in the S&P SmallCap 600), AGEN +5.6% (enters into license agreement with Incyte), NVNI +2.6% (stock offering), IONQ +2.4% (partners with General Dynamics), BKSY +1.3% (establishes launch window with Rocket Lab), INMD +0.9% (enters into license agreement with Great Ormond Street Hospital NHS Foundation Trust), ALSN +0.6% (awarded new contract), LUV +0.4% (appoints new CFO), YEXT +0.2% (acquires Places Scout), MARA +0.2% (postpones special meeting of stockholders)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: FLNC -37.7%, HLIT -32.6% (also announces $200 mln buyback plan), AMKR -9.7%, ACLS -9.6%, MITK -8.3%, MEDP -6.3%, ALAB -5.1%, CXW -4.4%, INSP -4.3% (also receives civil investigate demand), SPSC -2.4%, VNO -1.7%, ARWR -1.6%, SSD -1.5%, CMCO -1.4% (also to acquire Kito Crosby Limited from KKR for $2.7 bln), BRX -1.3%, COTY -1%, VRTX -0.6% (also, COO to retire)

Companies trading lower in after hours in reaction to news: SERA -6.7% (stock offering), POWW -4.5% (to delay 10-Q filing), HLNE -2.7% (stock offering), HESM -2.5% (stock offering), UVV -0.2% (to delay 10-Q filing; provides DecQ guidance), MSFT -0.1% (Sam Altman rejects Elon Musk's buyout offer in X post)

>>> US Close Dow +0.38% S&P +0.67% Nasdaq +0.98% Russell +0.36%

Closing Stock Market Summary
The stock market kicked off the week with an upbeat start, bouncing back from Friday's declines in a buy-the-dip trade. The Nasdaq Composite jumped 1.0%, the S&P 500 rose 0.7%, and the Dow Jones Industrial Average closed 0.4% higher. The major indices closed their highs of the day with many stocks participating in index gains.

Mega-cap stocks played a crucial role, leading the upside charge. NVIDIA (NVDA 133.57, +3.73, +2.9%), Microsoft (MSFT 412.22, +2.47, +0.6%), and Amazon.com (AMZN 233.14, +3.99, +1.7%) were standouts from the space. The Vanguard Mega Cap Growth ETF (MGK) closed 1.0% higher.

Earnings reports also fueled buying interest. McDonald's (MCD 308.42, +14.12, +4.8%) posted strong results, along with Rockwell Automation (ROK 302.34, +33.94, +12.7%) and Monday.com (MNDY 326.58, +68.34, +26.5%).

Sentiment wasn't impacted by President Trump's announcement of new 25% tariffs on steel and aluminum. Stocks directly linked to these metals saw noticeable gains. Nucor (NUE 137.53, +7.27, +5.6%) and Alcoa (AA 36.92, +0.80, +2.2%) were among the winners.

The New York Fed's Survey of Consumer Expectations also had little impact on the equity market. Inflation expectations remained stable, with one-year and three-year projections unchanged at 3.0%, while five-year expectations edged up by 0.3% to 3.0%.

On the bond side, yields were steady. The 10-year Treasury yield settled one basis point higher at 4.49%.
There was no US economic data of note today and tomorrow's calendar is limited to the January NFIB Small Business Optimism survey at 6:00 ET.
  • Dow Jones Industrial Average: +4.5% YTD
  • S&P Midcap 400: +2.8% YTD
  • Russell 2000: +2.6% YTD
  • S&P 500: +3.1% YTD
  • Nasdaq Composite: +2.1% YTD