In a day marked by mixed movements across major indices, artificial intelligence stocks stood out with significant gains. C3.ai (AI, Financial) saw its shares climb over 8%, ahead of its fiscal third-quarter results announcement. Analysts predict a loss of $0.28 per share on revenues of $76.14M. SoundHound AI (SOUN, Financial) shares soared by 25%, continuing its upward trajectory with a 168% market cap increase over the past month. Micron (MU, Financial) also enjoyed a 6% increase after commencing volume production of its HBM3E semiconductors, which are to be used in Nvidia's (NVDA, Financial) latest AI chip, with Nvidia's shares rising 1.8%. Microsoft (MSFT, Financial) made headlines by investing in and partnering with AI startup Mistral, signaling a broadening of its AI horizons beyond OpenAI.
Google (GOOG, Financial) (GOOGL, Financial) faced a setback with a 3.5% dip in share price following the temporary halt of its AI-powered face generator, which is expected to be offline for a couple of weeks. The pause comes as the company addresses criticisms related to the handling of race in image generation.
Shares of Palo Alto Networks (PANW, Financial) surged 9% after Congresswoman Nancy Pelosi disclosed significant call option purchases in the cybersecurity firm. The news also positively impacted other cybersecurity stocks like CrowdStrike (CRWD, Financial), Zscaler (ZS, Financial), and Fortinet (FTNT, Financial), despite Palo Alto's recent guidance reduction.
The market's performance was relatively flat, with the major averages treading water after reaching new records on Friday. The AI sector continued to buoy investor sentiment, with the AI index now 42% above its 200 DMA, a near two-decade high. Treasury yields edged higher, with the U.S. 2 Year and 10 Year Treasury yields advancing.
Larry McDonald, a New York Times bestselling author, shared his long-term high conviction position list, suggesting hedging long positions with shorts in Apple (AAPL, Financial), the Nasdaq, and the S&P, while adding Antero Resources (AR, Financial), Rio Tinto (RIO, Financial), Newmont (NEM, Financial), and Chevron (CVX, Financial) to the high conviction list.
The Wendy's Company (WEN, Financial) announced plans to test a new dynamic pricing system in 2025, investing $20M into digital menu board technology. This move could lead to higher sales and profits, although there are concerns about potential consumer backlash.
Newmont (NEM, Financial) and Barrick Gold (GOLD) saw their shares downgraded to Hold from Buy by Argus Research, citing bearish patterns and lack of earnings visibility, despite the potential demand for gold amid global economic uncertainty.
Arm Holdings (ARM, Financial) received a price target increase from Rosenblatt Securities, with shares jumping 10.8%. The firm cited improving royalty trends and indispensable technology for AI, likening Arm's situation to Nvidia's (NVDA, Financial).
American Tower (AMT, Financial) is expected to continue benefiting from its global portfolio when it reports Q4 earnings, with analysts anticipating positive impacts from foreign currency exchange rate fluctuations.
Berkshire Hathaway (BRK.B) (BRK.A) reported solid Q4 results, but shares dipped as investors processed the earnings and Warren Buffett (Trades, Portfolio)'s annual letter. The company saw a nearly 21% increase in operating revenue, driven by insurance and reinsurance operations.
The FTC filed a lawsuit to block Kroger's (KR, Financial) purchase of Albertsons (ACI, Financial), citing concerns over higher prices for consumers. Albertson shares gained 1.3% following the news, while Kroger shares fell 1%.
Altice USA (ATUS, Financial) surged 54% amid reports that Charter Communications (CHTR, Financial) is exploring a takeover. Charter's shares fell 2.1% as it evaluates a potential deal with Altice.
UnitedHealth's (UNH, Financial) Change Healthcare unit was reportedly attacked by a ransomware group called Blackcat, causing delays in prescription and insurance claim processing at pharmacies like CVS (CVS, Financial) and Walgreens (WBA, Financial).
Energy Fuels (UUUU, Financial) announced preparations for production at two more mines, potentially increasing uranium production to over 2M lbs/year by 2025 if market conditions remain favorable.
Devon Energy (DVN, Financial) is set to announce Q4 earnings, with consensus estimates predicting a decrease in EPS and revenue year-over-year. The company has a history of beating estimates in recent quarters.
Bitcoin (BTC-USD) resumed its bull run, pulling up cryptocurrency-related stocks like Marathon Digital (MARA, Financial), Riot Platforms (RIOT, Financial), and Coinbase (COIN, Financial), following another purchase by MicroStrategy (MSTR, Financial).
The materials sector saw mixed movements, with 5E Advanced Materials (FEAM, Financial) and Alpha Metallurgical Resources (AMR, Financial) among the gainers, while Orla Mining (ORLA, Financial) and New Pacific Metals (NEWP, Financial) faced declines.
VICI Properties (VICI, Financial) ended its six-day winning streak, closing 1.65% lower and hitting a three-month low, despite strong ratings from analysts and a positive outlook from Seeking Alpha's Quant Rating.
Microsoft (MSFT, Financial) had reportedly offered to sell Bing to Apple (AAPL, Financial) in 2018, or form a joint venture, as revealed in a recently unsealed brief from the U.S. Justice Department's antitrust case against Google (GOOG, Financial) (GOOGL, Financial).
Aprinoia Therapeutics (APRI) set terms for a proposed $24M US initial public offering, aiming to list on Nasdaq under the symbol APRL, with US Tiger Securities as the lead bookrunner.
