Benchmark initiated coverage on Block, formerly Square, with a buy rating, noting a perceived “path to profitability.” The recent stock momentum is expected to continue due to increased management focus on profitability.

Loop began coverage on construction materials firm Knife River with a buy rating, highlighting a “self-help catalyst path.” The buy rating comes with an $81 price target based on 11 times FY25E EBITDA of $475 million.

Goldman Sachs reaffirmed a buy rating on Arista Networks, branding it an AI winner post-earnings. Though the 2024 revenue growth outlook remained unchanged, current guidance is seen as not fully reflecting potential benefits from recent increases in the 2024E hyper scaler capex outlook.

Morgan Stanley designated Ford as a top pick, suggesting that the ongoing decline in electric vehicle (EV) demand could prompt traditional OEMs to seek cost-saving measures.

Morgan Stanley began coverage of software firm Dynatrace with equal weight, indicating that while share gains are anticipated to persist, patience is necessary due to the company’s robust technology, product range, and consolidation prospects.

Redburn Atlantic Equities shifted United Airlines from buy to neutral, citing inflationary pressures and caution on long-haul supply.

UBS upped Nvidia’s price target to $850, optimistic ahead of earnings.

Evercore ISI initiated coverage on NextEra Energy Partners with an outperform rating.

Susquehanna reaffirmed a favorable rating on Taiwan Semiconductor, highlighting its status as a long-term idea.

Piper Sandler elevated Trimble to overweight from neutral, envisioning a software-focused bullish scenario where recurring revenue dominates the mix, driving double-digit organic growth.

B Riley lowered Children’s Place to sell from hold, citing worries about the company’s “cycle of distress” and projecting a high likelihood of a share price decline to $4 or less within the next 12 months.

Bernstein restated Apple’s market performance, recognizing its pricing power in Apple Services.

Morgan Stanley reaffirmed an overweight rating on Disney, emphasizing its low-risk involvement in a sports streaming bundle.

Deutsche Bank reaffirmed Walmart as a buy, increasing its price target to $190 per share from $186 before earnings.

Citi upgraded GSK to buy from neutral, pointing to the pharmaceutical company’s recent commercial and pipeline successes.

Evercore ISI commenced coverage on Quanta Services with a buy rating, optimistic about its prospects amid North America’s energy transition.

Bank of America downgraded Duckhorn Portfolio to underperform due to a premium wine segment slowdown.

Stephens began covering Enovis with an overweight rating, deeming its shares compelling.

Cantor Fitzgerald initiated coverage on Stratasys with a buy rating, anticipating growth from new product cycles and industry demand.

Morgan Stanley reaffirmed an overweight rating on Rivian, recognizing the necessity for significant funding to complete its Georgia plant.

PayPal Holdings Inc. has recently delineated its 2024 outlook, indicating a year of transition, prompting one analyst to adopt a more guarded stance on the stock.

According to Daiwa Capital Markets analyst Kazuya Nishimura, it has become arduous to anticipate growth in earnings per share (EPS) for PayPal in the medium and long term until specific developments materialize.

Nishimura asserts that the company needs to demonstrate a tangible uptick in transaction-margin dollars and elucidate the positive impacts of its increased investments before meaningful bottom-line growth can transpire.

Given PayPal’s envisaged focus on executing its plans in 2024, Nishimura anticipates that it will take some time for service enhancements to materialize in earnings, potentially rendering the growth potential for EPS in the medium term difficult to discern.

As a result, he downgraded PayPal’s stock from buy to neutral on Monday, simultaneously reducing the price target from $64 to $62, with the stock closing at approximately $60 on that day.

Despite expressing the belief that there is a greater upside risk than downside risk in terms of earnings, Nishimura acknowledges PayPal’s stock as undervalued.

He notes that the company’s guidance appears conservative, leaving room for considerable potential overshooting, but currently lacks the conviction to factor in a sharp upside.

Over the past three months, PayPal shares have experienced a modest increase of about 10%. However, it is notable that the stock has undergone a significant decrease, nearly halving in value over two years.

This downward trend has prompted Nishimura to adopt a more cautious stance, downgrading the stock even as he recognizes the potential for earnings to outperform expectations.

Moreover, the broader sentiment among Wall Street analysts has shifted concerning PayPal. In February 2023, nearly 75% of analysts tracked by FactSet rated the stock as a buy.

Presently, this proportion has decreased to just over 45%, indicating a significant reduction in the stock’s bullish backing among industry experts.

As the company navigates its transitional phase in 2024, uncertainties regarding the realization of planned improvements and their subsequent impact on earnings have led to a more subdued outlook from analysts.

This reinforces the challenges PayPal may encounter in reestablishing its growth trajectory in the eyes of investors.

Shares in Warren Buffett’s Berkshire Hathaway soared to a historic high last week, achieving a significant milestone and positioning the company as a formidable contender to become the first non-technology U.S. firm to attain a remarkable $1 trillion market value.

The Omaha-based powerhouse witnessed a 2% surge in the past week, reaching an unprecedented peak of $600,531. This surge marked the first time the stock surpassed the $600,000 threshold on an intraday basis.

In 2024 alone, Berkshire has seen a notable increase of over 10%, effectively doubling the return of the S&P 500.

This swift ascent has propelled Berkshire’s market capitalization beyond $863 billion as of the latest market close, solidifying its position as the seventh most valuable company in the United States.

As the proprietor of BNSF Railway, Geico Insurance, and Dairy Queen, this conglomerate representing traditional sectors could soon join the elite trillion-dollar club, a distinction thus far monopolized by technology giants.

Internationally, only PetroChina and Saudi Aramco currently boast market caps exceeding $1 trillion.

According to FactSet data, Berkshire’s valuation reached approximately $777 billion by the end of December and was at $682 billion by the close of 2022.

The journey from $500,000 to $600,000 for Berkshire Class A shares spanned about two years. During this time, the 93-year-old investment guru, often referred to as the “Oracle of Omaha,” made significant strategic moves.

These included the $11.6 billion acquisition of insurer Alleghany, acquiring a substantial stake in Occidental Petroleum amounting to nearly 30%, and orchestrating a successful turnaround at Geico.

Additionally, Buffett strategically invested billions in Treasury bills to take advantage of rising interest rates and expanded his already profitable stakes in Japanese trading companies.

With Berkshire boasting a record cash reserve exceeding $157 billion by the end of September, the eagerly awaited fourth-quarter earnings report, set for later this month, has garnered significant attention.

Ranked seventh in market cap, Berkshire has sparked discussions regarding its potential inclusion in the “Magnificent 7,” a cohort of stocks that spearheaded the market surge in 2023.

Comprising Microsoft, Alphabet, Amazon, Apple, Meta Platforms, Nvidia, and Tesla, the Mag 7 collectively witnessed a remarkable 75% rally in 2023.

Although most continued their impressive momentum into the new year, Tesla experienced a 22% decline in 2024, while Apple retraced approximately 2%.

Strategas Securities, a renowned Wall Street research firm, has pinpointed Berkshire as one of the top three contenders to potentially replace Tesla in the Mag 7 ensemble, alongside Broadcom and Eli Lilly.

Strategas asserts that Berkshire presently stands as the most fitting candidate to join this influential group, citing its market cap weighting and earnings contribution to the S&P 500.

Berkshire’s original Class A shares carry one of the loftiest price tags on Wall Street, with each share commanding approximately 45% more than the median price of a U.S. home.

Buffett’s steadfast decision to eschew stock splits is rooted in the conviction that the high share price serves to allure and retain long-term, quality-focused investors.

However, in 1996, Berkshire introduced Class B shares at a price equivalent to one-thirtieth of a Class A share, catering to smaller investors seeking a more accessible entry point into Buffett’s investment acumen.

In 2024, Berkshire’s Class B shares experienced a remarkable surge of over 11% and achieved an intraday pinnacle of $399.15 earlier in the week.

Arm shares surged 29% on Monday, extending the previous week’s rally as investors continue to commend the chipmaker’s better-than-anticipated third-quarter earnings and its standing in the artificial intelligence surge.

Arm has now risen by 93% since it released its quarterly financials on Feb. 8, although there is no distinct catalyst for Monday’s movement.

The stock has nearly tripled since Arm’s initial public offering in September, closing at $148.97, and currently holds a value of almost $153 billion, just over $30 billion shy of Intel’s market cap.

Last week, Arm announced it could double the price for its latest instruction set, representing 15% of the company’s royalties, indicating potential margin expansion and increased earnings from new chips.

Additionally, it disclosed its entry into new markets such as cloud servers and automotive sectors, driven by the demand for AI.

The company’s robust royalty performance combined with Arm’s optimistic growth outlook has positioned it as the latest darling of investors interested in AI, despite having a higher earnings multiple compared to Nvidia or AMD.

However, the true value of Arm may become more evident next month when the 180-day post-IPO lockup period expires.

SoftBank still retains 90% ownership of the outstanding stock, leading to a significant increase in its stake in Arm by over $61 billion since the company’s recent report, now valued at over $131 billion.

For the second time in three trading sessions, Arm’s daily trading volume surpassed 100 million shares, exceeding the stock’s average by more than 10 times.

The yield on the 10-year Treasury note remained unchanged on Friday as investors deliberated over encouraging revisions to the consumer price index, revealing a slower pace of inflation than previously indicated for December.

At 4.173%, the 10-year Treasury yield held steady, while the yield on the 2-yea23r Treasury saw a modest increase of over 2 basis points to 4.482%. The movement of yields and prices runs counter to each other, with one basis point equivalent to 0.01%.

On Friday, the Bureau of Labor Statistics within the Labor Department unveiled revisions to the consumer price index, indicating a 0.2% rise in inflation for December, which was lower than initially stated. Following this report, Treasury yields briefly dipped.

Recent data releases continue to underscore the economy’s enduring strength and the resilience of the labor market.

Notably, the initial weekly jobless claims data released on Thursday showed a figure of 218,000, below the 220,000 expected by economists surveyed by Dow Jones.

The data contributes to the anticipation that the Federal Reserve will probably delay reducing interest rates, coinciding with increasing speculation regarding the schedule for such reductions.

Statements from Federal Reserve officials in recent weeks indicate a more careful approach towards rate cuts, disappointing investors who had hoped for one as early as March.

Statements from policymakers have also heightened worries that there might be fewer rate reductions this year than initially anticipated.

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, expressed on CNBC’s “Squawk Box” on Wednesday his expectation of two or three rate cuts in 2024.

Wednesday saw a predominantly positive trend in Asia-Pacific stocks as investors deliberated over corporate earnings and China’s measures to fortify its market.

DBS Group, the largest bank in Southeast Asia, announced a 2% year-over-year rise in fourth-quarter net profit, reaching $2.39 billion, while maintaining its full-year net interest income forecast for 2024. This report prompted a 2% surge in the bank’s shares.

On the other hand, China’s leading chipmaker, SMIC, cautioned on Wednesday that persistent global macroeconomic challenges and geopolitical tensions might impact its business in 2024.

This warning came just a day after the company revealed a significant 54.7% decline in fourth-quarter profit. Consequently, SMIC’s shares experienced a downturn of nearly 5% in Hong Kong trading.

Shares of electric vehicles in Hong Kong experienced an uptick following the release of a document by China’s commerce ministry, which delineated its strategy for the “healthy development of new energy vehicles” within the nation.

The South Korean Kospi saw a notable surge of 0.95%, marking significant gains across Asia, while the Kosdaq also experienced an increase of 0.48%.

In Australia, the S&P/ASX 200 experienced a modest increase of 0.45% on the trading charts, concluding the session at 7,615.8 points. This uptick followed a pivotal decision by the country’s central bank to maintain interest rates at 4.35%.

Meanwhile, the Hang Seng index in Hong Kong underwent a reversal of fortunes, relinquishing earlier gains to register a decline of 0.34%.

In contrast, across the border in mainland China, the CSI 300 index saw a rise of 0.42%, marking a positive turn in trading sentiment.

Over in Japan, the Nikkei 225 index witnessed a slight dip of approximately 0.18%, while the broader Topix index recorded a modest increase of 0.33%.

This mixed performance reflects the nuanced dynamics shaping the regional markets, influenced by both domestic and international factors.

In the United States, the stock market experienced upward movement across all three major indexes following the release of a new set of quarterly earnings.

The S&P 500, a key indicator of the market’s overall performance, saw an increase of 0.23%. Similarly, the Nasdaq Composite showed a slight uptick of 0.07%, while the Dow Jones Industrial Average surged by 0.37%.

These gains reflect a positive sentiment among investors in response to the earnings reports.

Some specific high-end brands seem to have defied the trend after L’Oreal shares dropped by 7% on Friday which continued to attract increasingly discerning shoppers.

Shares of Hermes were up 5.1% Friday after reporting a surge in sales as wealthy consumers continue to seek its exclusive Birkin handbags and silk scarves despite rising prices.

Fourth-quarter revenues rose 18% at constant exchange rates to 3.36 billion euros, while full-year revenues were up 21% to 13.42 billion euros. The company also announced plans for an exceptional dividend of 10 a euro share.

Speaking Friday, Executive Chairman Axel Dumas said product prices were likely to rise by an average of 8% to 9% in 2024, according to Bloomberg, which he said was indicative of the company’s continued appeal in an increasingly “polarized” market.

Hermes stock is currently up more than 13% for the year, ahead of LVMH, up 11%, and Burberry, down 8%.

L’Oreal shares dropped more than 7% Friday, before slightly paring losses, as the company reported lower-than-expected sales and pointed to a slowdown in demand in Asia.

The world’s largest beauty brand on Thursday reported fourth-quarter sales below estimates, rising 2.8% to 10.6 billion euros ($11.4 billion). Barclays analysts had anticipated a figure near 10.9 billion euros, according to Reuters.

The company, which owns brands such as Lancôme and Kiehl’s, also logged a 7.6% increase in 2023 full-year sales to 41.18 billion euros ($44.37 billion).

The quarterly shortfall was led by activity in North Asia, including China, where sales fell 6.2% over the three months. Sales were otherwise up in Europe and North America.

CEO Nicolas Hieronimus said Friday that the company remains very ambitious in China, adding that it has strong growth plans for the country in 2024 and beyond, according to Reuters.

The luxury sector has been under pressure since late 2023, as tough macroeconomic and geopolitical conditions have weighed on consumer spending, notable in the U.S. and China.