Trending Market News

Major automakers, represented by the Alliance for Automotive Innovation, are supporting the Trump administration's proposal to significantly reduce fuel economy standards, citing slowing EV sales and unachievable targets. However, they are requesting modifications to preserve credit trading and reconsider vehicle reclassification rules. The proposal would reduce stringency from Biden-era 8-10% annual increases to just 0.25-0.5% through 2031.

• NHTSA's proposed rollback would reduce average vehicle costs by $930 upfront but increase fuel consumption by 100 billion gallons through 2050, costing Americans up to $185 billion more in fuel and raising CO2 emissions by 5%
• Automakers oppose eliminating credit trading among manufacturers in 2028 and want to maintain credits for fuel-saving technologies like air conditioning efficiency
• The proposal would reclassify many vehicles from trucks to cars, impacting automakers since cars face more stringent fuel economy standards than trucks

The Bureau of Labor Statistics announced that the January jobs report, delayed by a brief government shutdown, will be released on February 11, five days later than originally scheduled. The report is expected to show modest job growth with economists forecasting a gain of 60,000 nonfarm payrolls and the unemployment rate holding steady at 4.4%.

• The January jobs report is now scheduled for February 11, delayed five days from its original release date due to the government shutdown
• Economists surveyed by Dow Jones expect 60,000 jobs added in January, up slightly from 50,000 in December, with unemployment projected to remain at 4.4%
• Other economic releases are also delayed, including the consumer price index for January now set for February 13, two days later than planned

Alphabet reports Q4 earnings Wednesday after the bell, with Wall Street expecting $2.18 EPS and $111.43 billion revenue. The report will test Alphabet's position as a top 2025 performer, with stock up over 70% in six months and market cap reaching $4 trillion. Investors will focus on Google's deal to integrate Gemini AI into Apple's Siri and details on AI infrastructure expansion.

• Analysts expect $16.18 billion in Google Cloud revenue, $11.84 billion in YouTube advertising, and $16.20 billion in traffic acquisition costs
• Google's Gemini AI deal with Apple reaches 2.5 billion active devices, while Waymo recently closed a $16 billion funding round valuing the unit at $126 billion
• Google must double AI serving capacity every six months to meet demand and acquired data center company Intersect for $4.75 billion to support infrastructure expansion

Cigna's Express Scripts settled FTC antitrust claims over insulin pricing practices, agreeing to a 10-year deal that restricts rebate practices and aims to lower drug costs. The settlement, which could save patients up to $7 billion over a decade, allows the FTC to enforce changes while cases against UnitedHealth's Optum and CVS Caremark continue.

• Express Scripts must restrict practices like pocketing rebate payments from drugmakers based on list prices, with compliance monitored for three years
• The FTC estimates the 10-year agreement could save patients as much as $7 billion in drug costs
• The settlement requires Express Scripts to work with local pharmacies, disclose drug costs to employers annually, and move its Swiss rebate aggregator to the U.S.

AI chipmaker Cerebras Systems raised $1 billion in a late-stage funding round that valued the company at $23 billion. The round was led by Tiger Global with participation from Benchmark, AMD, Coatue, and 1789 Capital. The funding reflects continued investor appetite for AI-related companies as the technology sector races to scale AI capabilities.

• The funding round valued Cerebras at $23 billion, representing significant investor confidence in the AI chip sector
• Tiger Global led the investment, with notable participants including chip manufacturer AMD and Donald Trump Jr.-backed 1789 Capital
• The raise demonstrates ongoing strong private financing activity in AI-linked companies amid corporate and government competition to advance the technology

Abbott has recalled certain glucose monitoring sensors after the U.S. health regulator reported the devices were linked to seven deaths and 860 serious injuries. The recall affects specific sensors used for glucose monitoring, raising significant patient safety concerns.

• The recall involves Abbott glucose monitoring sensors that have been associated with faulty readings leading to severe patient harm
• U.S. health regulators documented 860 serious injuries in addition to the seven fatalities connected to the devices
• This recall represents a critical patient safety issue affecting individuals who rely on continuous glucose monitoring for diabetes management

Rivian unveiled its $45,000 R2 SUV, a smaller, more affordable alternative to its $80,000 R1S, with plans to launch in the first half of 2026. The five-seat midsize SUV is critical to Rivian's path to profitability as the company burned through $3 billion in the first three quarters of 2025. CNBC's exclusive test ride highlighted the vehicle's quick acceleration, adventure-ready capabilities, and cost-saving design features.

• Rivian has approximately $7 billion in cash as of January, with analysts expecting $5 billion in cash burn for 2026, partially offset by $2 billion from a Volkswagen software partnership
• The R2 features significant cost reductions through innovative design, including just seven computing units (down from 17 in first-generation R1s) and 2 miles less wiring, while maintaining premium features like dual glove compartments and fully-dropping rear windows
• Analysts project about 15,000 R2 units sold in 2026, though some believe Rivian could exceed this given the R1's top ranking in Consumer Reports' owner satisfaction survey and status as best-selling premium electric SUV in the U.S.

Amazon is launching an AI Studio initiative to accelerate movie and TV production, with a closed beta program starting in March 2026. Led by Albert Cheng at Amazon MGM Studio, the program aims to reduce production costs and streamline creative processes while keeping humans involved at every stage. The move comes amid Hollywood concerns about AI's impact on jobs, following Amazon's recent layoffs of approximately 30,000 corporate positions.

• Amazon will launch a closed beta in March 2026, partnering with industry figures including 'Maleficent' producer Robert Stromberg and 'Big Bang Theory' actor Kunal Nayyar to test AI tools
• The AI Studio operates as a small 'two pizza team' focused on bridging the gap between consumer AI and professional filmmaking needs, including character consistency and integration with industry-standard tools
• Amazon's 'House of David' series second season demonstrates the approach, using AI combined with live-action footage to create battle scenes at lower cost while maintaining creative control

Waymo and Tesla are urging the U.S. Congress to pass legislation accelerating self-driving vehicle deployment, citing competitive threats from China. The Senate Commerce Committee is holding a hearing on Wednesday to address legislation that has been stalled for a decade. Lawmakers and companies warn that failure to act could allow China to dominate what they describe as a trillion-dollar autonomous vehicle industry.

• Self-driving vehicle legislation has been under consideration in Congress for a decade without passage, prompting renewed urgency from industry leaders and lawmakers
• Waymo characterizes the autonomous vehicle sector as 'comparable in strategic importance to flight and space travel' and warns of direct threats from Chinese AV companies
• Democratic Senator Gary Peters warns that if the U.S. does not lead in AV development, China will shape global technology standards and become the dominant manufacturer of 21st century transportation

Private sector payrolls increased by only 22,000 in January 2026, significantly below the expected 45,000 and December's revised 37,000, according to ADP. The weak hiring continues the lackluster labor market trend from 2025, with growth concentrated in education and health services while several sectors reported job losses. The results may heighten Federal Reserve concerns about the need for additional economic support.

• Education and health services added 74,000 jobs, without which the overall payroll change would have been negative. Professional and business services lost 57,000 positions, manufacturing declined by 8,000, and other services dropped 13,000.
• Mid-sized companies (50-499 workers) accounted for all job gains, while large employers cut 18,000 positions and small firms remained flat.
• Wage growth for workers staying in their jobs held steady at 4.5% year-over-year, unchanged from December. The official BLS jobs report release has been delayed due to the partial government shutdown.

Fox Corp exceeded Wall Street's second-quarter revenue expectations, reporting $5.18 billion versus the estimated $5.06 billion. The outperformance was driven by strong advertising demand at its news and sports networks, as well as growth from its ad-supported streaming platform Tubi.

• Quarterly revenue reached $5.18 billion, surpassing analyst estimates of $5.06 billion
• Growth was fueled by advertising demand across Fox's news and sports networks
• Ad-supported streaming service Tubi contributed to the revenue beat with continued expansion

Yum Brands reported mixed fourth-quarter results with earnings missing expectations but revenue beating forecasts at $2.51 billion versus $2.45 billion expected. Taco Bell drove performance with 7% same-store sales growth, while Pizza Hut continued to struggle with a 1% decline, prompting the company to begin a strategic review of the pizza chain.

• Taco Bell's same-store sales surged 7%, exceeding Wall Street's 5.6% growth estimate and solidifying its position as the strongest performer in Yum's portfolio
• KFC showed improvement with 3% global same-store sales growth, including 1% growth in the U.S. where it has been undergoing a turnaround after losing market share to competitors like Raising Cane's
• Pizza Hut's same-store sales fell 1% (3% decline in U.S.), prompting Yum to confirm it has begun exploring strategic options for the struggling chain

Uber reported fourth-quarter revenue of $14.37 billion, up 20% year-over-year, beating analyst estimates of $14.32 billion. The strong performance was driven by its delivery business, which grew 30% to $4.9 billion, while mobility revenue increased 19% to $8.2 billion. CEO Dara Khosrowshahi emphasized autonomous vehicles as a multitrillion-dollar opportunity, with Uber targeting expansion to 15 cities by end of 2026.

• Delivery revenue surged 30% to $4.9 billion, exceeding analyst expectations of $4.72 billion, driven by expansion in groceries, retail, and international partnerships across Europe, Middle East, Africa, and Asia-Pacific markets
• Gross bookings reached $54.1 billion for the quarter, topping estimates of $53.1 billion, with Q1 2026 bookings expected to grow at least 17% to between $52 billion and $53.5 billion
• Uber plans to facilitate autonomous vehicle trips in up to 15 cities globally by end of 2026 and aims to become the world's largest AV trip facilitator by 2029, though AVs will remain a small portion of rides for several years

Cognizant Technology forecast annual revenue between $22.14 billion and $22.66 billion, exceeding Wall Street's average estimate of $22.06 billion. The higher-than-expected projection is driven by strong demand for IT services as businesses increasingly adopt artificial intelligence into their workflows.

• Annual revenue guidance of $22.14-$22.66 billion tops analyst consensus of $22.06 billion
• Growth attributed to robust demand for IT services amid accelerating AI adoption by businesses
• Forecast signals Cognizant's confidence in capitalizing on the corporate AI transformation trend

Nestle expanded its recall of Guigoz infant formula in France after detecting cereulide toxin levels exceeding maximum thresholds. The toxin, which causes nausea and vomiting, originated from ingredients supplied by a Chinese factory serving multiple baby formula manufacturers including Danone and Lactalis, triggering recalls across dozens of countries.

• Cereulide toxin detected in ingredients from a Chinese factory that supplies Nestle, Danone, and Lactalis, affecting baby formula products globally
• Nestle voluntarily recalled additional Guigoz batches as cereulide analysis methods evolved, supplementing earlier recalls conducted in December and January
• The contamination has sparked widespread parental concern and triggered product recalls in dozens of countries beyond France

German consumer goods company Henkel agreed to acquire specialty coatings firm Stahl for €2.1 billion ($2.5 billion) from Stahl Group, majority-owned by French private equity firm Wendel. Combined with Henkel's intended acquisition of ATP Adhesive Systems, these deals add nearly €1 billion in sales and significantly expand the company's Adhesive Technologies business.

• Stahl employs approximately 1,700 people and generated adjusted sales of around €725 million in 2025
• The deal will be formally signed after completion of mandatory works council consultation processes
• The two M&A projects together add close to €1 billion in sales, substantially advancing growth potential for Henkel's Adhesive Technologies division

Zurich Insurance has agreed to acquire UK specialty insurer Beazley at a sweetened price of 1,335 pence per share. The deal represents a strategic expansion for Zurich into the UK specialty insurance market. The acquisition was announced on February 4, 2026, following agreement on improved terms between the two companies.

• The acquisition price of 1,335 pence per share represents a 'sweetened' offer, indicating Zurich raised its bid to secure the deal
• Beazley is a UK-based specialty insurer, suggesting Zurich is strengthening its position in niche insurance markets
• The transaction terms have been formally agreed upon by both parties, moving the deal toward completion

UBS Group reported a fourth-quarter net profit of $1.2 billion, surpassing market expectations. The Swiss bank's results demonstrate stronger-than-anticipated performance in Q4. This marks a significant financial milestone for UBS as it continues operations following major industry developments.

• Q4 net profit reached $1.2 billion, beating analyst forecasts
• Results reflect UBS's financial performance during the fourth quarter reporting period
• The announcement was made on February 4 from the bank's Zurich headquarters

Ford and China's Geely are in discussions about a potential partnership involving manufacturing and technology collaboration, according to eight sources. The talks focus on Geely using Ford's European factory space to produce vehicles and potential technology sharing, with European manufacturing discussions more advanced. The partnership aims to help both companies reduce costs and improve competitiveness, though any U.S. market deal would face scrutiny due to national security concerns over Chinese technology.

• Ford sent a delegation to China this week to intensify months-long discussions, following meetings in Michigan with senior Geely executives last week. Ford's Valencia, Spain plant is likely the European facility under consideration.
• Manufacturing in Europe would help Geely avoid EU tariffs of up to 37.6% on Chinese-made EVs, while technology collaboration could help Ford close competitive gaps in connected-vehicle technology and autonomy where Chinese automakers lead.
• Any deal involving the U.S. market would face significant scrutiny given Biden-era restrictions banning Chinese communication technology in connected vehicles, though Trump recently indicated openness to Chinese manufacturers building cars in the U.S. with proper investment and jobs.

Chinese solar stocks surged after reports that Tesla staff visited several photovoltaic companies in China, including equipment makers and technology firms. The news follows Elon Musk's announcement that Tesla plans to build 100 gigawatts of solar cell capacity in the U.S., suggesting potential supply chain partnerships with Chinese manufacturers.

• The CSI All Share Solar Energy Index jumped following reports of Tesla visits to Chinese solar companies involved in equipment, silicon wafers, battery modules, and perovskite technology
• Elon Musk announced plans to build 100 GW of solar cell capacity in the U.S. during Tesla's recent earnings call, calling the 'solar opportunity underestimated'
• Tesla aims to integrate across the entire solar supply chain from raw materials to finished panels, potentially creating opportunities for Chinese solar suppliers