01 Stock Market

The U.S. major indexes closed as follows: Dow Jones fell 0.25% at 52,342.56; S&P 500 fell 0.30% at 7,720.39; NASDAQ fell 1.38% at 26,184.72. Broad weakness hit the tape as investors reassessed mega-cap tech valuations and AI spending payoffs. The tech-heavy NASDAQ underperformed, while the Dow showed comparatively smaller losses.

Unusual-move stocks were led by sharp post-earnings reactions, with several large-cap names and chip-related shares under pressure. Intel fell 3.62% at $92.07, while Amazon.com declined 4.25% at $243.79. Among other notable movers, ServiceNow fell 26.95% at $109.67, Fortinet declined 20.09% at $139.10, Marvell Technology fell 13.24% at $218.34, and Alphabet declined 12.64% at $283.82. On the upside, Meta Platforms rose 1.96% at $624.52, Apple rose 1.48% at $348.91, and Lam Research rose 0.22% at $254.39.

Chinese ADRs were mixed, with several internet and education names falling while selected travel, e-commerce, and software-linked shares gained. Atour Lifestyle Holdings rose 7.82% at $32.66, Jiayin Group surged 37.60% at $1.72, NaaS Technology climbed 14.39% at $2.42, and Future FinTech Group gained 9.34% at $3.16. On the downside, Burning Rock Biotech fell 9.87% at $11.05, Shengfeng Development declined 16.95% at $4.90, and Opera fell 6.81% at $17.37. Several other movers also drew attention, including Jiuzi Holdings up 10.58% at $1.15, Kaixin Auto Group up 7.73% at $2.09, and Hesai Group down 6.22% at $12.97.

02 Other Markets

U.S. 10-year Treasury yield rose by 0.00%, latest at 4.99.

USD/CNH rose 0.0089%, at 6.71; USD/HKD fell 0.0032%, at 7.85.

U.S. Dollar Index fell 0.0981%, at 101.80.

WTI crude futures rose 0.78%, at 102.80 USD/bbl; COMEX gold futures rose 0.02%, at 4032.10 USD/oz.

03 Top News

1. Amazon reported softer-than-expected fourth-quarter sales guidance and heavy cash burn. Reuters said the company forecast revenue below Wall Street estimates and highlighted a trailing 12-month cash burn of $42.4 billion. The report also noted elevated capital spending tied to AI infrastructure, which weighed on the shares in extended trading.

2. Intel warned that weak PC demand and heavy investment plans will pressure cash flow. Dow Jones reported that management said positive cash flow is unlikely in the near term and could remain elusive into the next planning cycle. The company also said the personal-computing slowdown is hurting results and prompted a sharply weaker outlook.

3. Sandisk posted a strong earnings beat, but investors still sold the stock. The memory company reported sharply higher profit and revenue as AI-related storage demand boosted results. Even so, the stock finished lower after management signaled that investors may have wanted even more from the quarter.

4. Stryker cut its sales outlook after third-quarter profit missed internal expectations. The medical-devices maker lowered both full-year sales growth and adjusted EPS guidance. Management said operations remained solid, but recent results came in below plan and the stock weakened after hours.

5. Alphabet suffered a historic market-value loss after revenue fell short of expectations. Dow Jones said the company’s slide erased hundreds of billions of dollars in market capitalization as investors questioned returns from AI spending. The report linked the drop to softer search revenue growth and a tougher bar for earnings.

6. Gilead reported lower earnings as rising operating costs offset sales growth. The company’s diluted EPS fell year over year even as total product sales increased. Higher R&D and SG&A expenses, along with weaker Veklury sales, pressured profitability.

7. Exxon was expected to raise its dividend when it reports results. Dow Jones said investors are watching how large the increase will be because a bigger payout could support the stock. The company’s earnings are also expected to benefit from strong refining economics and elevated energy prices.

8. Amazon’s CEO said AWS could eventually become a trillion-dollar business. Andy Jassy said AI computing demand appears durable over the next few years and could support long-term growth. The comments reinforced the company’s confidence in cloud and inference workloads even as the near-term report disappointed investors.

9. Amazon said AI chatbots are not yet taking retail customers away. Jassy told analysts that most consumers still prefer direct shopping experiences. He argued that chatbot-based shopping remains too limited to materially disrupt the company’s e-commerce business.

10. Intel said the PC slowdown is likely to last through the first half of the next cycle. Dow Jones reported that management sees the weak personal-computer environment continuing for an extended period. The commentary added to investor concern about near-term demand and capital allocation discipline.

Sources: Reuters, Dow Jones, public market dataDisclaimer: This content is for reference only and does not constitute investment advice.