Good morning. YouTube sensation MrBeast, also known as Jimmy Donaldson, is expanding his business portfolio by venturing into banking with his recent acquisition of the financial services app Step through his company, Beast Industries. This move follows his prominent appearance in a Super Bowl advertisement for Salesforce, further solidifying his influence across different industries.
In the financial markets, stock futures remain relatively stable after all three major indices recorded gains at the start of the week. Here’s what investors should keep in mind as they enter the trading day:
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Tech Recovery: The tech sector showed resilience yesterday, leading the overall market upward. The S&P 500 achieved its second consecutive day of gains, while the Dow Jones Industrial Average hit both new intraday and closing records. Key players like Oracle saw their shares soar by 9%, and both Microsoft and Broadcom climbed over 3%. In contrast, major tech stocks had lost more than $1 trillion in market value just a week ago. Pre-market activity indicates Spotify shares jumped over 10% following a user growth report, whereas CVS Health saw a drop of over 2% despite exceeding earnings expectations. Retail sales data, projected to display a 0.5% month-on-month increase, is on the horizon, as is a critical jobs report that had been delayed due to a partial government shutdown.
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Coca-Cola’s Mixed Results: Shares of Coca-Cola fell this morning after revealing mixed fourth-quarter results. Although adjusted earnings per share exceeded forecasts, the adjusted revenue of $11.82 billion fell short of the anticipated $12.03 billion. The company projects organic revenue growth of 4% to 5% for 2026, but like Pepsi, it has experienced declining demand as consumers tighten their spending at grocery stores.
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Alphabet’s AI Investments: Alphabet is gearing up to make significant investments in artificial intelligence while also acknowledging potential risks. In its latest annual financial report, the company cautioned that increased consumer use of generative AI might disrupt its core advertising business. To support its AI infrastructure, Alphabet plans to raise $20 billion through a U.S. dollar bond sale. Their capital expenditures for 2026 could exceed those of 2025, underlining the scale of their investment strategy.
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Target’s Workforce Reallocation: In an internal memo, Target announced a shift in resource allocation aimed at improving in-store customer experiences. The retailer will boost staffing levels while cutting approximately 500 jobs at distribution centers and regional offices. This strategy is part of CEO Michael Fiddelke’s priority to enhance the shopping experience after receiving feedback regarding disorganized stores and long checkout lines.
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Novo Nordisk Under FDA Scrutiny: The FDA is investigating Novo Nordisk after raising concerns about misleading claims in a television advertisement for its Wegovy pill. The advertisement misbrands the oral weight-loss drug, violating federal law, according to a letter from the agency. In response, a spokesperson stated that the company is working to address the FDA’s concerns. U.S.-listed shares of Novo Nordisk saw a gain of over 3% by the end of yesterday’s trading session, while shares of Hims & Hers, which Novo plans to sue over a competing obesity pill, experienced a 16% drop.
In technology news, BNY, one of America’s oldest banks, is making substantial investments in digital technologies, including the introduction of “digital employees.” The bank reassures that these advancements will not compromise human job opportunities.
