Midday Fly By: SpaceX acquires xAI, Disney names new CEO

The major averages were trending downward near noon amid another wave of corporate earnings. Results were positive in spaces like pharmaceuticals and consumer products, with Merck and PepsiCo reporting upbeat quarterly earnings. Investors are still awaiting plenty more big corporate earnings reports, with results from big players like Alphabet and Amazon due later this week.

In commodities, gold prices have surged again after two days of sharp declines, while oil prices are also on the rise ahead of API crude numbers set to be released this afternoon.

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

1. STOCK NEWS:

• Elon Musk confirmed that SpaceX has acquired xAI, with The Information reporting that the deal price was $250B
• PayPal (PYPL) reported downbeat Q4 results and named HP Inc.’s (HPQ) Enrique Lores as CEO, succeeding Alex Chriss
• Disney (DIS) CEO Bob Iger will retire, with Disney Experiences chairman Josh D’AMaro named the media giant’s next CEO
• PepsiCo (PEP) reported better-than-expected Q4 results and announced a new $10B share repurchase program
• Palantir (PLTR) reported upbeat Q4 results and provided guidance for Q1 and FY26

2. WALL STREET CALLS:

• Palantir (PLTR) upgraded to Outperform at Baird and Northland after Q4 report
• SoFi Technologies (SOFI) upgraded to Overweight at JPMorgan
• Visa (V) and MasterCard (MA) upgraded to Outperform at Daiwa
• Exxon Mobil (XOM) downgraded to Underperform at BNP Paribas
• Figure (FIGR) downgraded to Underperform at BofA

3. AROUND THE WEB:

• Grindr (GRND) is in early testing for a new AI subscription tier named “Edge”, with pilot prices ranging from $80 to $200 a week, Business Insider reports
• Google (GOOGL) intends to spend $4.75B to help find enough electricity to run its fleet of data centers, WSJ reports
• Meta (META) has given $65M to two super PACs to elect California state candidates, regardless of party, whom it views as supportive of the AI and tech industry, Politico reports
• Suppliers accustomed to catering to Apple’s (AAPL) every demand are gaining leverage as AI companies outduel the company in a race to secure components, WSJ says
• Blackrock’s GIP is partnering with EQT AB (EQBBF) to acquire AES Corp. (AES), Bloomberg reports

4. MOVERS:

• DaVita (DVA) gains after reporting Q4 results and providing guidance for FY26
• Palladyne AI (PDYN) increases after securing a contract with a U.S. defense prime contractor
• Sigma Lithium (SGML) higher in New York after BofA upgraded the stock to Neutral
• Gartner (IT) falls after reporting quarterly results
• FuboTV (FUBO) lower after reporting Q1 results and announcing a planned reverse stock split

5. EARNINGS/GUIDANCE

• Ball Corp. (BALL) reported Q4 results, with EPS and revenue beating consensus
• Illinois Tool Works (ITW) reported Q4 results, with CEO Christopher O’Herlihy commenting, “ITW delivered a solid finish to the year”
• ATI (ATI) reported Q4 results and provided guidance for FY26
• TransDigm (TDG) reported Q1 results and raised its guidance for FY26
• Merck (MRK) reported Q4 results and provided guidance for FY26

INDEXES:

Near midday, the Dow was down 0.20%, or 101.26, to 49,306.40, the Nasdaq was down 1.37%, or 324.09, to 23,268.02, and the S&P 500 was down 0.72%, or 50.06, to 6,926.38.