2026-01-29 12:24
Indexes: Dow up 0.11%, S&P 500 down 0.13%, Nasdaq off 0.72% Gainers include Meta, IBM, SouthWest, Lockheed Microsoft slumps in software industry sell off Tesla drop after quarterly results Caterpillar advances on reporting higher Q4 profit Jan 29 (Reuters) - The S&P 500 and the technology-heavy Nasdaq closed lower on Thursday as investors were rattled by the latest earnings reports and worried about whether hefty spending on artificial intelligence would pay off for mega‑cap tech companies. While the indexes recovered some losses by the end of the session, they were still weighed down by a weak technology sector. Microsoft (MSFT.O) , opens new tab was the biggest drag on the S&P 500. Its shares slumped 10% after the software giant's cloud revenue failed to impress and stoked fears the hefty outlays for its OpenAI alliance were not reaping returns fast enough. Sign up here. Other software stocks also tumbled with SAP's (SAPG.DE) , opens new tab U.S.-listed shares sinking 15% after its cautious cloud outlook and ServiceNow (NOW.N) , opens new tab shares ending down 9.9% after its earnings report added to the gloom. "Microsoft disappointed and there are some genuine concerns that AI investments will eat the software companies' lunches," said John Praveen, managing director & Co-CIO, Paleo Leon in Princeton, New Jersey. Investors are trying to "reduce exposure to stocks and play it safe" against a backdrop of broader uncertainties including who the Federal Reserve's next chair will be and how many interest rate cuts it will make, according to Praveen who also cited political uncertainties around Washington's stance in relation to Iran and Greenland and the potential for a U.S. government shutdown. "There are all sorts of storm clouds in the background," he said. The Dow Jones Industrial Average (.DJI) , opens new tab managed to eke out a tiny gain late in the session, rising 55.96 points, or 0.11%, to 49,071.56. The S&P 500 (.SPX) , opens new tab closed well above its session low but still ended the day down 9.02 points, or 0.13%, at 6,969.01. The Nasdaq Composite (.IXIC) , opens new tab finished down 172.33 points, or 0.72%, at 23,685.12 after paring losses in the last half hour of trading. Software companies caught up in the selloff included Salesforce (CRM.N) , opens new tab, down 6%, Oracle (ORCL.N) , opens new tab, off 2.2% and Adobe (ADBE.O) , opens new tab, down 2.6% while cloud security firm Datadog (DDOG.O) , opens new tab dropped 8.8%. For some software companies, such as ServiceNow and Salesforce, the fear is that "AI is going to disrupt their business a little bit," if AI can be used "to supplant some of their services," said Jay Hatfield, CEO and CIO of Infrastructure Capital Advisors in New York. "It doesn't really matter, what the reality is or isn't. Those stocks are getting hit pretty hard," he said. Following its after-the-bell report, late trading in Apple Inc (AAPL.O) , opens new tab shares was choppy with a gain of less than 1% after it beat quarterly revenue estimates on a sharp rebound in China while CEO Tim Cook told Reuters that demand for its latest iPhone was "staggering." Among other megacap companies, Tesla(TSLA.O) , opens new tab shares lost 3.5% after the electric‑vehicle maker outlined plans to more than double capital expenditures to a record level. Among the S&P 500's 11 major industry sectors, technology (.SPLRCT) , opens new tab was the biggest laggard, falling 1.9%. Communications services (.SPLRCL) , opens new tab, up 2.9%, was the biggest gainer however as Facebook parent Meta(META.O) , opens new tab rallied 10.4%. Bucking the trend among megacaps, the social media giant paired an upbeat revenue forecast with a 73% jump in this year's capex budget. In other positive news, technology bellwether IBM (IBM.N) , opens new tab shares rose 5% after its fourth-quarter earnings beat estimates. The energy index (.SPNY) , opens new tab rose 1% on the back of surging oil prices, with Brent crude futures hitting a near six-month high on rising concerns about a possible U.S. military attack on Iran. After other notable earnings, Caterpillar (CAT.N) , opens new tab shares rose 3.4% after it posted a higher profit while Mastercard (MA.N) , opens new tab climbed 4.3% after it beat Wall Street profit expectations for the fourth-quarter and said it will lay off about 4% of its global workforce to refocus investments in different areas. Defense contractor Lockheed Martin (LMT.N) , opens new tab shares rallied 4% after it forecast 2026 earnings above Wall Street expectations. Southwest Airlines (LUV.N) , opens new tab shares soared 18.7% after the carrier forecast a stronger-than-expected annual profit, making it the leader among S&P 500 percentage gainers. Among other stock moves, rare-earth miners slid following a report that President Donald Trump's administration would step back from critical mineral price floors. USA Rare Earth (USAR.O) , opens new tab fell along with MP Materials (MP.N) , opens new tab, Critical Metals (CRML.O) , opens new tab and United States Antimony (UAMY.A) , opens new tab. Advancing issues outnumbered decliners by a 1.19-to-1 ratio on the NYSE. There were 611 new highs and 176 new lows on the NYSE. On the Nasdaq, 2,067 stocks rose and 2,746 fell as declining issues outnumbered advancers by a 1.33-to-1 ratio. The S&P 500 posted 51 new 52-week highs and 20 new lows. On U.S. exchanges 23.36 billion shares changed hands, well above the 18.83 billion 20-day moving average. https://www.reuters.com/business/us-stock-index-futures-edge-up-markets-digest-big-tech-earnings-2026-01-29/
2026-01-29 12:16
BRASILIA, Jan 29 (Reuters) - Brazil's bank lending increased 10.2% in 2025, official data showed on Tuesday, exceeding the central bank's forecast, driven mainly by stronger-than-expected household borrowing amid government credit-stimulus measures. President Luiz Inacio Lula da Silva's government announced in 2025 sweeping changes aimed at expanding payroll-deductible loans for private sector workers and extending subsidized home purchase programs to middle income families. Sign up here. The measures came as the central bank kept monetary policy extremely tight to bring inflation to its 3% target, holding its benchmark interest rate at 15% - the highest in nearly two decades - since July last year. Citing high borrowing costs, policymakers estimated in December that total outstanding loans in Latin America's largest economy would end last year with a more modest 9.4% expansion, down from 11.5% in 2024. Household lending rose 11.6% in 2025, above the central bank's December forecast of 10.4%, while corporate credit grew 8.1%, broadly in line with the 8.0% estimate. In December alone, total credit in Brazil rose 1.8% from the previous month to 7.1 trillion reais ($1.37 trillion). A broad measure of default ratios for consumer and business loans excluding earmarked credit edged up to 5.4% from 5.3% the prior month, while lending spreads narrowed slightly to 33.6 percentage points from 33.8 points in November. ($1 = 5.1998 reais) https://www.reuters.com/world/americas/brazil-bank-lending-beats-central-bank-forecast-with-102-rise-2025-2026-01-29/
2026-01-29 12:16
Jan 29 (Reuters) - Dow (DOW.N) , opens new tab will slash about 4,500 jobs, or 13% of its total workforce, under a sweeping restructuring aimed at boosting profitability by at least $2 billion, while projecting first-quarter revenue below expectations on stubbornly weak demand. Shares of the company fell 3% in premarket trading on Thursday. Sign up here. Global chemical producers are reassessing their strategies amid stagnant demand, rising production costs in Europe, changing regulatory requirements and persistent global oversupply. Dow, which began a strategic review of some European assets in 2024, has also been re-evaluating its ownership of non-core assets across its global portfolio, including power and steam production and pipelines. Last year, the company closed a 40% stake sale in some U.S. Gulf Coast infrastructure assets to a fund managed by Macquarie Asset Management for $2.4 billion to focus more on its chemicals business. It later sold an additional stake for $540 million in September. "In 2025, we achieved well over half of our more than $6.5 billion in near-term cash and cost support actions, including the accelerated delivery of more than $400 million in cost savings from our $1 billion program," said CEO Jim Fitterling. Dow, which operates manufacturing sites in 29 countries and employs about 34,600 people, expects to incur about $1.1 billion to $1.5 billion in one-time costs tied to the restructuring in 2026 and 2027. DOWNBEAT REVENUE EXPECTATIONS Dow now expects first-quarter net sales of $9.4 billion, below analysts' average estimate of $10.33 billion, according to data compiled by LSEG. Net sales in the fourth-quarter ended December 31 for its packaging and specialty plastics segment, its largest by revenue, fell 10.7% to $4.74 billion from a year earlier, due to lower polymer prices. The Michigan-based company reported a smaller-than-expected adjusted loss of 34 cents per share, compared with analysts' average estimate of a loss of 46 cents. https://www.reuters.com/sustainability/chemicals-maker-dow-eliminate-4500-roles-targets-2-billion-core-profit-boost-2026-01-29/
2026-01-29 11:59
Jan 29 (Reuters) - U.S. refiner Valero Energy (VLO.N) , opens new tab surpassed Wall Street expectations for fourth-quarter profit on Thursday, on the back of a rebound in margins as well as higher throughput volume. Shares of the company, which is the second largest U.S. refiner by capacity, rose 1.6% to $186.97 before the bell. Sign up here. During the fourth quarter, U.S. refining margins, measured by the 3-2-1 crack spread , rebounded from the multi-year lows seen in 2024, when profits eased from post-pandemic highs due to supply disruptions from Russia's invasion of Ukraine. The company's refining margin per barrel of throughput was $13.61 in the quarter, compared with $8.44 a year earlier. The refiner said its average throughput volume rose slightly to 3.1 million barrels per day in the quarter, from 2.9 million bpd a year earlier. Valero kicked off the earnings season for U.S. refiners, as the energy sector prepares to boost output in Venezuela after the Trump administration outlined a long-term plan urging companies to spend $100 billion to revive the country's oil industry. Analysts have said Valero stands to benefit significantly from a recovery in Venezuelan crude imports into the U.S. According to BofA analysts, the refiner can run an incremental 200,000 bpd of output from the South American country in the near term. The refiner added it was progressing with the FCC Unit optimization project at the St. Charles Refinery to enhance its ability to produce high-value products. The project is expected to cost $230 million and be completed in the second half of the year. The Houston, Texas-based company posted an adjusted profit of $3.82 per share for the three months ended December 31, compared with analysts' expectations of $3.27 per share according to data compiled by LSEG. https://www.reuters.com/business/energy/refiner-valero-energy-beats-estimates-fourth-quarter-profit-2026-01-29/
2026-01-29 11:51
Jan 29 - What matters in U.S. and global markets today By Mike Dolan , opens new tab, Editor-At-Large, Finance and Markets Sign up here. Global markets are digesting a torrent of new information on the earnings, currency and political fronts – yet they are holding up reasonably well. The S&P 500 eclipsed 7,000 points briefly on Wednesday and looks like it might do so again. The Federal Reserve meeting yesterday – and the decision to leave rates unchanged – did nothing to disturb the existing market view. Chair Jerome Powell sidestepped most of the edgy questions about Fed independence. But now all eyes look to the oil market as U.S. tensions with Iran heat up. I’ll get into all that and more below. But first, check out my latest column on how a stronger euro could turn from a dream into a nightmare for Europe. And listen to the latest episode of the Morning Bid daily podcast. Subscribe to hear Reuters journalists discuss the biggest news in markets and finance seven days a week. MIXED MEGACAPS AND TEHRAN TENSIONS The varying fortunes of U.S. tech giants amid their AI spending splurge became apparent on Wednesday as the megacap earnings releases got underway. While Meta’s stock surged as much as 10% overnight on plans for a whopping 73% increase in capital spending this year, Microsoft fell back more than 6% on disappointing results from its cloud computing business. Tesla was up 2% as it switched focus from ebbing EV sales to AI spending and robotaxis. Apple reports later on Thursday. As expected, the Federal Reserve left rates unchanged on Wednesday, with Chair Jerome Powell citing a “clearly improving” economic outlook and sounding relaxed about labor market strains and above-target inflation. He indicated that any renewed easing likely wouldn’t come until mid-year, lobbing the ball into his successor’s court as he approaches the end of his term as chair in May. Powell remained tight-lipped with reporters when asked about his future and the criminal probe launched by the Trump administration. Long-term Treasury yields continue to nudge higher, however, with attention turning to rising oil prices. Crude benchmarks rose more than 1% on Thursday on fresh U.S.-Iran military tensions. President Trump on Wednesday threatened Iran with a “far worse” attack if it does not make a deal on nuclear weapons, prompting a firm response from Tehran, which said it would retaliate “like never before” to any U.S. action. Trump is reportedly weighing options for targeted strikes against Iranian leaders and security forces to inspire renewed protests – with the objective, according to two U.S. sources, of creating conditions for “regime change”. One source noted that Trump has not yet made a final decision on military action. Meantime, precious metals continued their stratospheric rise on Thursday, with gold nearing $5,600 per ounce and silver touching $120 per ounce. Gold prices have risen over $1,000 so far in January. Both oil and gold are also supported by this week's plunge in the dollar across the world, with the greenback ebbing again on Thursday despite Treasury Secretary Scott Bessent's restatement of the U.S. government's slightly ambiguous “strong dollar” policy yesterday. Chart of the day Meta's stocks surged 10% overnight as a 24% jump in revenue in the December quarter and a forecast-beating first quarter outlook helped fund data center spending, which is expected to rocket by 87% this year to $135 billion. Microsoft's shares fell 6% on its results, however, as somewhat disappointing growth in its Azure cloud-computing business questioned its huge AI-related capital spending. Today's events to watch * U.S. November trade balance (8:30 AM EST), revised Q3 labor productivity (8:30 AM EST), weekly jobless claims (8:30 AM EST), November manufacturers’ new orders (10:00 AM EST) * U.S. 7-year note auction (12:00 PM EST) * Chinese President Xi Jinping holds a press conference with British Prime Minister Keir Starmer * U.S. corporate earnings: Apple, Blackstone, Caterpillar, Comcast, Dow, Honeywell, Lockheed Martin, Mastercard, Visa Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. You can find ROI on the Reuters website , opens new tab, and you can follow us on LinkedIn , opens new tab and X. , opens new tab Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/business/finance/global-markets-view-usa-2026-01-29/
2026-01-29 11:50
Jan 29 (Reuters) - South Africa's energy regulator on Thursday approved an application by Eskom to reduce electricity tariffs by 35% for two distressed ferrochrome operations battling high power costs. More than a dozen smelters have shut down in South Africa in recent years, leading to thousands of job losses, largely due to high electricity costs which have surged by more than 900% since 2008. Sign up here. State power utility Eskom in December sought the National Energy Regulator of South Africa's approval for a tariff reduction for Samancor Chrome as well as a joint venture between Glencore (GLEN.L) , opens new tab and Merafe Resources (MRFJ.J) , opens new tab in a bid to avert smelter closures and save jobs. Samancor Chrome and the Glencore-Merafe joint venture started processes late last year to shut down their smelters and lay off workers, citing viability problems mainly related to high electricity costs. The approval is subject to the government funding the difference between the current tariff of 1.36 rand ($0.0864) per kilowatt hour and the 87.74 South African cents per kilowatt hour the two ferrochrome firms will pay for 12 months starting in January 2026, NERSA official Willibrod Majola said during a virtual briefing. The cost of the shortfall should not be borne by standard tariff customers, Majola added. South Africa, the world's biggest chrome ore producer, has lost its position as the world's top processor of chrome into ferrochrome to China mainly due to high electricity costs. Energy-intensive smelters combine chromium and iron to produce ferrochrome, which is mainly used in steel production. ($1 = 15.7430 rand) https://www.reuters.com/sustainability/boards-policy-regulation/safrica-energy-regulator-approves-power-cost-relief-ferrochrome-makers-2026-01-29/
