Good Morning!
On Friday, the S&P 500 closed at 6,025.99, down 0.95%, while the NASDAQ fell 1.36% to 19,523.40. The Dow Jones Industrial Average declined 0.99%, ending the session at 44,303.40.
For the week, the S&P 500 gained 0.94%, the NASDAQ rose 1.6%, and the Dow remained relatively flat, edging up 0.08%. Meanwhile, small caps, represented by the Russell 2000, advanced 1.55%, finishing at 2,279.71.
Crypto Highlights
Bitcoin (BTC): Currently trading at $97,005, up 0.38% over the past 24 hours.
Ethereum (ETH): Down 0.15%, now trading at $2,652 per coin.
Solana (SOL): Up 0.86%, currently trading at $202.42.
Ripple (XRP): Down 0.56% in the last 24 hours, now trading at $2.41 per coin.
Earnings Today
McDonald’s (MCD): Actual EPS: $2.83 (Miss by 2.41%), Expected EPS: $2.90, Actual Revenue: $6.39B (Miss by 1.84%), Expected Revenue: $6.51B, Market Cap: $220.82B
Vertex (VRTX): Expected EPS: $4.02, Expected Revenue: $2.79B, Market Cap: $120.45B
Arch Capital (ACGL): Expected EPS: $1.84, Expected Revenue: $4.03B, Market Cap: $34.79B
Rockwell Automation (ROK): Actual EPS: $1.83 (Beat by 16.56%), Expected EPS: $1.57, Actual Revenue: $1.88B (Miss by 0.53%), Expected Revenue: $1.89B, Market Cap: $33.57B
FirstEnergy (FE): Expected EPS: $0.7133, Expected Revenue: $4.36B, Market Cap: $23.05B
Cincinnati Financial (CINF): Expected EPS: $1.88, Expected Revenue: $2.32B, Market Cap: $21.38B
ON Semiconductor (ON): Actual EPS: $0.95 (Miss by 2.06%), Expected EPS: $0.97, Actual Revenue: $1.72B (Miss by 2.27%), Expected Revenue: $1.76B, Market Cap: $20.44B
Loews (L): Actual EPS: $0.86, Revenue: $4.55B, Market Cap: $19.09B
Incyte (INCY): Actual EPS: $1.43 (Miss by 5.30%), Expected EPS: $1.51, Actual Revenue: $1.18B (Beat by 3.51%), Expected Revenue: $1.14B, Market Cap: $13.10B
Headlines
Trump to Impose 25% Tariffs on Steel and Aluminum Imports in Trade Escalation
U.S. President Donald Trump announced plans to implement a 25% tariff on all steel and aluminum imports, marking another significant move in his trade policy. Speaking aboard Air Force One en route to the Super Bowl, Trump stated that the tariffs would be formally announced on Monday, with additional reciprocal tariffs to follow within days. The new measures aim to match tariff rates imposed by other nations, with Trump emphasizing a tit-for-tat approach: “If they charge us, we charge them.” Canada, Brazil, and Mexico, the largest suppliers of U.S. steel, could face economic consequences, particularly Canada, which accounts for 79% of U.S. aluminum imports. Canadian officials have expressed concern over the impact on industries such as defense, shipbuilding, and automotive manufacturing.
In addition to the tariffs, Trump suggested that Japan’s Nippon Steel would be allowed to invest in U.S. Steel but not hold a majority stake. The announcement leaves uncertainty regarding duty-free exemptions and quota agreements negotiated under former President Joe Biden. Quebec Premier François Legault stressed the urgency of renegotiating free trade agreements, warning that Quebec’s aluminum exports—essential to the U.S. market—could be disrupted. Trump also reiterated his dissatisfaction with Canada and Mexico’s border security efforts, threatening a 25% tariff on all imports from both countries unless stronger actions are taken before the March 1 deadline.
Trump Says He Is Serious About Canada Becoming the 51st State
In a Super Bowl pregame interview, President Donald Trump reaffirmed his stance on annexing Canada, stating it would be "much better off" as the 51st U.S. state. Citing a supposed $200 billion annual loss in trade with Canada, Trump argued that the U.S. is effectively subsidizing its northern neighbor and should no longer provide military protection without reciprocity. His comments follow Canadian Prime Minister Justin Trudeau’s recent warning that Trump’s push for annexation is "a real thing," tied to U.S. interest in Canada’s natural resources. The idea remains widely unpopular in Canada, where leaders have dismissed the notion as unrealistic and unwelcome.
Trump Targets Defense Spending in Government Efficiency Drive
President Donald Trump announced that his administration's government efficiency initiative, led by Elon Musk, will focus on cutting waste within the Department of Defense's $850 billion budget. Speaking in a pre-Super Bowl interview, Trump stated that he expects to find "hundreds of billions" in fraud and abuse, following similar efforts in other federal agencies. Defense Secretary Pete Hegseth supported the initiative, emphasizing the need for better accountability in military spending. He acknowledged that the Pentagon has yet to pass a full audit and committed to addressing long-standing financial inefficiencies.
Trump Orders Halt to Penny Production, Citing Cost Concerns
President Donald Trump announced on Sunday that he has directed Treasury Secretary Scott Bessent to cease production of new pennies, arguing that the coin is an unnecessary drain on government resources. Posting on Truth Social, Trump stated, “Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time,” highlighting that each penny costs more than two cents to produce. While the move aligns with long-standing expert recommendations, it remains unclear whether Trump has the legal authority to unilaterally halt penny minting, as Congress controls U.S. coin production.
The U.S. Mint reported that producing a single penny cost 3.69 cents in 2024, leading to an $85.3 million annual loss. Other nations, including Canada and Australia, have already phased out their lowest-denomination coins without economic disruption. However, opposition remains, with groups like Americans for Common Cents arguing that eliminating pennies could increase costs for other coins and function as a hidden tax due to price rounding.
Trump Suggests U.S. Debt May Be Lower Due to Fraud in Treasury Payments
President Donald Trump claimed on Sunday that the U.S. national debt, currently estimated at $36.2 trillion, may be overstated due to fraudulent Treasury payments. Speaking aboard Air Force One, Trump suggested that ongoing investigations into government waste have uncovered potential irregularities in debt servicing. “It could be that a lot of those things don’t count,” he stated, without specifying whether he was referring to debt interest payments or other Treasury obligations. The claim, which lacks clear evidence, comes as Congress faces an impending decision on raising the debt ceiling to prevent a default.
Macron Unveils $112B AI Investment Plan to Compete with U.S. Stargate
French President Emmanuel Macron announced a massive €109 billion ($112 billion) AI investment package, positioning France as a key global player in artificial intelligence. Speaking ahead of the Artificial Intelligence Action Summit in Paris, Macron compared the initiative to the U.S.’s $500 billion Stargate project, emphasizing that France’s investment is proportional to its population. The funds will largely support AI-focused data centers, with major contributions from the United Arab Emirates, Canadian firm Brookfield, Bpifrance, and telecom company Iliad. Additional commitments from Orange and Thales are expected.
Macron also addressed concerns about top French AI startups relocating to the U.S., stressing that Europe remains competitive. Paris-based Mistral, one of the few European companies developing foundation AI models, revealed plans to invest billions in a new AI cluster in Essonne. France aims to leverage its nuclear-powered energy surplus, pledging one gigawatt of nuclear power to AI training by 2026.
McDonald's International Markets Drive Sales Growth Amid U.S. Weakness
McDonald's reported an unexpected increase in global comparable sales for the fourth quarter, driven by strong demand in international markets such as the Middle East, Japan, and China. Despite a nearly 5% rise in share value, the fast-food giant faced a 1.4% drop in U.S. sales, its largest decline since the COVID-19 pandemic, due to cautious consumer spending and an E. coli outbreak in late October. While informal boycotts of Western fast-food chains in the Middle East had impacted sales, demand in the region has begun to recover, mirroring a similar trend seen by Yum Brands, the parent company of KFC.
Nvidia’s RTX 5090 Power Connectors Are Melting, Reviving Old Concerns
Reports of melting power connectors have resurfaced with Nvidia’s RTX 5090 Founders Edition GPUs, echoing the infamous issues from the RTX 4090. Multiple users have shared images of burnt 12VHPWR cables, with damage observed at both the GPU and PSU ends. Despite Nvidia's past claims that improper cable connections were to blame for the 4090 issues, affected users insist their connectors were fully seated. Spanish YouTuber Toro Tocho and a Reddit user both reported failures, even when using cables from reputable manufacturers like MODDIY and FSP.
Nvidia had adopted the updated 12V-2x6 connector for the RTX 50-series, designed to improve safety with shorter sensing pins and longer conductor terminals. However, backward compatibility with older 12VHPWR cables means the issue may persist. Competing manufacturers like AMD have avoided the 12VHPWR standard, previously warning that it posed a fire risk.
