Midday Fly By: Cisco reports Q2 beat, Trump orders Pentagon to buy coal

The major averages were broadly lower amid concerns over technology profits after a tepid margin outlook from Cisco Systems, whose forecast underscored that higher memory-chip prices are taking a toll. Looking to commodities, gold scaled back after yesterday’s gains, slipping over 2%. Oil was also sharply lower following the EIA natural gas storage data.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.

1. STOCK NEWS:

• Cisco (CSCO) provided a “beat and raise” report for Q2 and raised its quarterly dividend
• McDonald’s (MCD) reported better-than-expected Q4 results and provided its outlook for 2026
• FedEx (FDX) said it now sees its Q3 earnings exceeding consensus of $3.99 and that its planned FedEx Freight spinoff is on track for June 1
• Baxter (BAX) reported mixed Q4 results and provided downbeat FY26 earnings guidance
• President Donald Trump ordered the Pentagon to(SHOP) upgraded to Outperform at Mizuho and to Buy at TD Cowen
• Deutsche Bank (BWA) to Buy on “pivotal shift” to AI
• RBC (HUM) on Medicare Advantage cost pressure
• Kraft Heinz (KHC) downgraded to Underweight at JPMorgan
• Coinbase (COIN) double downgraded to Sell at Monness Crespi ahead of Q4 report

3. AROUND THE WEB:

• Apple’s (AAPL) long-planned update of its Siri virtual assistant has run into some issues during recent testing, possibly delaying the release of several highly anticipated functions, Bloomberg reports
• Adam Mosseri, the CEO of Meta‘s (META) Instagram, on Wednesday disputed claims that the platform prioritized making money over the mental health of young users in a landmark tech addiction case, saying social media is not “clinically addictive” and that Meta was careful to test features used by young people, NY Times says
• AeroVironment’s (AVAV) LOCUST laser counter-drone weapon system was deployed by the U.S. Army on Wednesday near El Paso International Airport, Reuters reports
• Naveen Mallela, JPMorgan’s (JPM) global co-head of blockchain unit Kinexys, is leaving after 11 years at the bank, Bloomberg reports
• China’s ByteDance is in talks with Samsung (SSNLF) to manufacture an AI chip, Reuters says

4. MOVERS:

• Novocure (NVCR) increases in New York after Optune Pax was approved by the FDA to treat pancreatic cancer
• Crocs (CROX) gains after reporting Q4 results and providing guidance for Q1 and FY26
• Fastly (FSLY) and Cognex (CGNX) higher after reporting quarterly results
• Icon (ICLR) falls in New York after providing an update on its ongoing internal investigation into accounting practices and withdrawing its previously issued FY25 guidance
• Energy Vault (NRGV) lower after announcing a $125M share offering and providing guidance for Q4

5. EARNINGS/GUIDANCE

• IPG (IPGP) reported Q4 results, with EPS and revenue beating consensus
• Restaurant Brands (QSR) reported Q4 results, with CEO Josh Kobza commenting, “As we enter 2026, I’m encouraged by the stronger, more focused foundation we’ve built for the long term”
• Phinia (PHIN) reported Q4 results and provided guidance for FY26
• Organon (OGN) reported Q4 results, with EPS missing consensus
• Melco Resorts (MLCO) reported Q4 results, with CEO Lawrence Ho commenting, “2025 was a year of growth and recovery”

INDEXES:

Near midday, the Dow was down 1.10%, or 553.18, to 49,568.22, the Nasdaq was down 1.54%, or 355.58, to 22,710.89, and the S&P 500 was down 1.16%, or 80.39, to 6,861.08.