Microsoft Cloud Revenue Misses Expectations, Markets Broadly Lower

The major averages were broadly lower near noon as investors continue to digest earnings results from major technology companies and a Federal Reserve decision to keep interest rates unchanged. Concerns about parts of the tech sector are underscored by a notable decline in Microsoft shares after it reported weaker-than-hoped-for cloud revenue growth, signaling that sentiment around AI spending and returns remains a key focus for traders.Looking to commodities, gold was largely unchanged while oil was sharply higher near noon.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:Microsoftreportedearnings and revenue, though cloud revenue came in weaker-than-expectedMeta Platformsreportedand provided an upbeat outlook for Q1 revenueTeslareported upbeat Q4 results and said it would invest $2B toCaterpillarreportedand provided its outlook for Q1 and FY26Nvidiaand Microsoft are in talks for an up to $60B investment in OpenAI,2. WALL STREET CALLS:BMOFirst Solaron overhang from Teslasolar plansRosenblattFortineton "compelling setup" into earningsZillow Groupto Equal Weight at BarclaysMorgan StanleyCencorato Overweight on specialty positionCraig-Hallumof StubHubwith a Hold rating and $12 price target3. AROUND THE WEB:Googlehas sent a "cease and desist" letters to Kantar Media, halting Kantar and Barb's UK TV measurement tools comparing YouTube with linear TV and streamers, FT saysHugging Face declined Nvidia's$500M investment offer at a $7B valuation in late 2025, FT reportsMerckis anticipated to purchase roughly 10% of the shares in Eikon Therapeutics'upcoming IPO, Bloomberg saysAlibaba'sCainiao unit will be taking a stake in Zelos Technology, creating a business valued around $2B, WSJ reportsSonyand Singapore's GIC are establishing a joint venture to buy music copyrights, with plans to invest $2B-$3B in the endeavor, Bloomberg reports4. MOVERS:1-800-Flowers.comgains afterModineincreases afterto spin-off and combine its Performance Technologies business with Genthermin a Reverse Morris Trust transactionRoyal Caribbeanrises after, providing guidance for FY26, and announcing 10 new ships for its European river cruise fleet andJoby Aviationfalls after pricing a $600MSAPlower in New York after5. EARNINGS/GUIDANCELockheed Martin, with EPS and revenue beating consensusMarineMaxand backed its guidance for FY26Altria Groupand provided guidance for FY26Dover, with CEO Richard Tobin commenting, "Our fourth quarter results reflect broad-based top line strength"Tractor Supply, with EPS and revenue missing consensusINDEXES:Near midday, the Dow was down 0.18%, or 87.29, to 48,928.31, the Nasdaq was down 1.85%, or 440.61, to 23,416.83, and the S&P 500 was down 0.89%, or 62.39, to 6,915.64.