Major Averages Close Higher, Gold Hits Record Highs
The major averages closed broadly higher despite an escalation in political pressure on the Federal Reserve. The Trump administration threatening a criminal indictment of Fed Chair Jerome Powell has renewed concerns about the independence of the central bank. Banking stocks and credit card lenders also have taken early hits because of policy proposals such as a one-year cap on credit-card interest rates that could compress financial sector profitability.With key inflation data and the start of earnings season approaching, traders are monitoring how persistent inflation signals might influence the Fed's policy path, even as central bank independence concerns loom large.Looking to commodities, gold surged past the $4,600 threshold to hit record highs, while oil prices were also fractionally higher as traders await more news surrounding Venezuela.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:Alphabetbriefly hit thethreshold as Applepicked Google's Gemini to run an AI-powered SiriMeanwhile, Google and Walmartplan to launch a new experience for shopping thatAdditionally, Walmart will become a component of theParamount Skydanceplans toto Warner Bros. Discovery'sboardAllegiantSun Country Airlinesfor $18.89 per share in cash and stock2. WALL STREET CALLS:CitiPalantirto Buy on potential 80% sales growth in 2026Morgan StanleyAkamaito Overweight from UnderweightNetflixwith a Buy at HSBCCrowdStriketo Sector Weight at KeyBancGitLabto Underweight at Barclays and Equal Weight at Morgan Stanley3. AROUND THE WEB:New York Governor Kathy Hochul is seeking to regulate Robloxamid child safety concerns, Verge reportsPresident Trump may block Exxon Mobilfrom drilling in Venezuela after the company's CEO said the country was "uninvestable" without significant commercial and legal changes, WSJ saysIn 2025, global smartphone shipments increased by 2% year-over-year, with Appleleading the market with a 20% share supported by demand in mid-sized markets and strong iPhone 17 sales, Reuters reportsThe Federal Aviation Administration, FAA, has approved Boeing'sMAX 10, the largest variant of its 737 MAX jet, to move to the second phase of flight testing, Reuters saysLast year, Volkswagenwas overtaken by Geely Autoin sales in China, Reuters reports4. MOVERS:Albemarlehigher after Scotiabankthe stock to Outperform from Sector PerformVistrarises after at least three analystson the sharesShake Shackgains after reportingCapital Onefalls after President Trump called for ainterest for one yearSoleno Therapeuticslower after reporting5. EARNINGS/GUIDANCEUsanaraised itsPetcobacked itsand FY25DexComreportedand provided guidance for FY26Alphatecraised itsand provided its outlook for Q4 and FY26Lululemonsees Q4 revenueof prior guidanceINDEXES:The Dow rose 86.13, or 0.17%, to 49,590.20, the Nasdaq gained 62.56, or 0.26%, to 23,733.90, and the S&P 500 advanced 10.99, or 0.16%, to 6,977.27.
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Alphabet Merges Fiber Business with Astound Broadband
- New Independent Entity: Alphabet is merging its fiber internet business with Astound Broadband to create a new independent fiber provider, with Stonepeak holding the majority stake while Alphabet retains a minority stake, indicating a strategic shift in the company's fiber market approach.
- Capital Infusion for Expansion: This transaction reduces Alphabet's direct ownership of GFiber while bringing in outside capital to help scale the network, aiming to enhance GFiber's operational and financial independence to meet the rising demand for high-speed connectivity.
- Leadership Stability: The merged entity will be led by GFiber CEO Dinni Jain, ensuring business continuity and stability during the integration process, thereby enhancing market competitiveness.
- Market Potential and Strategic Implications: The merger is expected to create a complementary national platform capable of serving millions of customers, aligning with the growing demand for high-speed internet connectivity in the U.S. and pushing GFiber towards achieving the national scale it has not realized since its launch in 2010.
Alphabet's Stock Rebounds, Promising AI Business Outlook
- Stock Rebound: Over the past year, Alphabet's stock has surged approximately 70%, indicating increased investor confidence in its growth prospects, particularly as its competitiveness in the AI sector continues to strengthen.
- Cloud Computing Growth: Google Cloud achieved an impressive 48% year-over-year growth in Q4, with a 30% operating margin demonstrating profitability, indicating Alphabet's ability to capitalize on the surging demand for AI workloads through its cloud platform.
- AI Business Advantage: Unlike other AI companies, Alphabet can self-fund its operations through diverse revenue streams such as Google Search and YouTube, allowing it to lower costs and gain a competitive edge, especially after securing Apple as a key customer for its AI solutions.
- Reasonable Valuation: Although Alphabet's current P/E ratio stands at 26, slightly above the S&P 500's 21.7, this valuation is considered reasonable given its leadership in AI and future growth potential, presenting a solid investment opportunity.
Google Cloud's Rapid Growth and AI Leadership
- AI Platform Emergence: Google's Gemini AI platform has emerged as a market leader, with shares up approximately 70% over the past year, showcasing its strong competitiveness in the generative AI space and attracting key customers like Apple, further solidifying its market position.
- Cloud Business Growth: Google Cloud achieved an impressive 48% year-over-year growth in Q4, with an operating margin of 30%, indicating the success of its cloud computing business model amid surging demand for AI workloads, which is expected to continue driving overall company performance.
- Attractive Valuation for Investors: Although Alphabet's P/E ratio has risen from 16 to 26, it remains within a reasonable range compared to the S&P 500's 21.7, and with its strong performance and bright future, investors may consider entering at current price levels.
- Competitive Market Advantage: By offering TPU hardware, Google Cloud helps businesses reduce costs, enhancing its competitiveness in the cloud computing market, and is expected to attract more AI developers to rent its computing power, thereby driving sustained growth in the future.
Big Tech May Be Less Vocal, But Its Influence Remains Strong. Size Still Counts.
Current State of Big Tech: Despite recent challenges and downturns, Big Tech companies are still considered resilient and capable of recovery.
Market Sentiment: Investor confidence may be wavering, but the long-term potential of these companies remains strong, suggesting they should not be underestimated.
Innovation and Adaptation: Big Tech firms continue to innovate and adapt to changing market conditions, which could lead to future growth opportunities.
Economic Impact: The performance of Big Tech has significant implications for the broader economy, influencing job creation and technological advancement.
Meta Plans to Deploy Four Generations of AI Processors by 2027
- AI Processor Development: Meta plans to deploy four generations of internally developed AI processors, including MTIA 300, 400, 450, and 500 by 2027, indicating the company's strategic focus on AI technology and future growth.
- MTIA 300 in Production: The MTIA 300 chip is currently in production and is primarily used for ranking and suggestion training, marking a significant step in Meta's ongoing investment in AI infrastructure, which is expected to enhance user experience and platform intelligence.
- MTIA 400 Launching Soon: The MTIA 400 chip has completed testing and is set to be implemented in data centers shortly, which will further strengthen Meta's competitive edge in AI processing capabilities, helping the company capture a larger share of the rapidly evolving AI market.
- Future Processor Outlook: MTIA 450 and 500 will optimize generative AI inference and enhance AI processing speed by expanding high-bandwidth memory capacity, as Meta aims to reduce costs and improve productivity through the development of in-house chips, thereby achieving greater control in the AI hardware sector.
Google Reshapes Broadband Strategy by Merging GFiber with Astound
- New Company Merger: Google is merging its fiber internet business, GFiber, with Astound Broadband to create a new independent internet provider, with the deal expected to finalize in Q4, thereby enhancing its competitive position in the U.S. broadband market.
- Investment Structure Shift: In this transaction, Google will retain a small stake in the new company while Stonepeak will become the primary owner, indicating Google's focus on external investments and partnerships.
- Leadership Continuity: The existing GFiber leadership team will continue to manage the new provider, responsible for expanding the network and building high-speed fiber infrastructure, ensuring improved service quality and market coverage.
- Strategic Transformation: This merger signifies Alphabet's efforts to simplify and grow its non-core businesses, with GFiber being one of its 'Other Bets', indicating a future focus on integration and development with external partners.
Alphabet Merges Fiber Business with Astound Broadband
- New Independent Entity: Alphabet is merging its fiber internet business with Astound Broadband to create a new independent fiber provider, with Stonepeak holding the majority stake while Alphabet retains a minority stake, indicating a strategic shift in the company's fiber market approach.
- Capital Infusion for Expansion: This transaction reduces Alphabet's direct ownership of GFiber while bringing in outside capital to help scale the network, aiming to enhance GFiber's operational and financial independence to meet the rising demand for high-speed connectivity.
- Leadership Stability: The merged entity will be led by GFiber CEO Dinni Jain, ensuring business continuity and stability during the integration process, thereby enhancing market competitiveness.
- Market Potential and Strategic Implications: The merger is expected to create a complementary national platform capable of serving millions of customers, aligning with the growing demand for high-speed internet connectivity in the U.S. and pushing GFiber towards achieving the national scale it has not realized since its launch in 2010.
Alphabet's Stock Rebounds, Promising AI Business Outlook
- Stock Rebound: Over the past year, Alphabet's stock has surged approximately 70%, indicating increased investor confidence in its growth prospects, particularly as its competitiveness in the AI sector continues to strengthen.
- Cloud Computing Growth: Google Cloud achieved an impressive 48% year-over-year growth in Q4, with a 30% operating margin demonstrating profitability, indicating Alphabet's ability to capitalize on the surging demand for AI workloads through its cloud platform.
- AI Business Advantage: Unlike other AI companies, Alphabet can self-fund its operations through diverse revenue streams such as Google Search and YouTube, allowing it to lower costs and gain a competitive edge, especially after securing Apple as a key customer for its AI solutions.
- Reasonable Valuation: Although Alphabet's current P/E ratio stands at 26, slightly above the S&P 500's 21.7, this valuation is considered reasonable given its leadership in AI and future growth potential, presenting a solid investment opportunity.
Google Cloud's Rapid Growth and AI Leadership
- AI Platform Emergence: Google's Gemini AI platform has emerged as a market leader, with shares up approximately 70% over the past year, showcasing its strong competitiveness in the generative AI space and attracting key customers like Apple, further solidifying its market position.
- Cloud Business Growth: Google Cloud achieved an impressive 48% year-over-year growth in Q4, with an operating margin of 30%, indicating the success of its cloud computing business model amid surging demand for AI workloads, which is expected to continue driving overall company performance.
- Attractive Valuation for Investors: Although Alphabet's P/E ratio has risen from 16 to 26, it remains within a reasonable range compared to the S&P 500's 21.7, and with its strong performance and bright future, investors may consider entering at current price levels.
- Competitive Market Advantage: By offering TPU hardware, Google Cloud helps businesses reduce costs, enhancing its competitiveness in the cloud computing market, and is expected to attract more AI developers to rent its computing power, thereby driving sustained growth in the future.
Big Tech May Be Less Vocal, But Its Influence Remains Strong. Size Still Counts.
Current State of Big Tech: Despite recent challenges and downturns, Big Tech companies are still considered resilient and capable of recovery.
Market Sentiment: Investor confidence may be wavering, but the long-term potential of these companies remains strong, suggesting they should not be underestimated.
Innovation and Adaptation: Big Tech firms continue to innovate and adapt to changing market conditions, which could lead to future growth opportunities.
Economic Impact: The performance of Big Tech has significant implications for the broader economy, influencing job creation and technological advancement.
Meta Plans to Deploy Four Generations of AI Processors by 2027
- AI Processor Development: Meta plans to deploy four generations of internally developed AI processors, including MTIA 300, 400, 450, and 500 by 2027, indicating the company's strategic focus on AI technology and future growth.
- MTIA 300 in Production: The MTIA 300 chip is currently in production and is primarily used for ranking and suggestion training, marking a significant step in Meta's ongoing investment in AI infrastructure, which is expected to enhance user experience and platform intelligence.
- MTIA 400 Launching Soon: The MTIA 400 chip has completed testing and is set to be implemented in data centers shortly, which will further strengthen Meta's competitive edge in AI processing capabilities, helping the company capture a larger share of the rapidly evolving AI market.
- Future Processor Outlook: MTIA 450 and 500 will optimize generative AI inference and enhance AI processing speed by expanding high-bandwidth memory capacity, as Meta aims to reduce costs and improve productivity through the development of in-house chips, thereby achieving greater control in the AI hardware sector.
Google Reshapes Broadband Strategy by Merging GFiber with Astound
- New Company Merger: Google is merging its fiber internet business, GFiber, with Astound Broadband to create a new independent internet provider, with the deal expected to finalize in Q4, thereby enhancing its competitive position in the U.S. broadband market.
- Investment Structure Shift: In this transaction, Google will retain a small stake in the new company while Stonepeak will become the primary owner, indicating Google's focus on external investments and partnerships.
- Leadership Continuity: The existing GFiber leadership team will continue to manage the new provider, responsible for expanding the network and building high-speed fiber infrastructure, ensuring improved service quality and market coverage.
- Strategic Transformation: This merger signifies Alphabet's efforts to simplify and grow its non-core businesses, with GFiber being one of its 'Other Bets', indicating a future focus on integration and development with external partners.
