Prada to acquire Versace, CarMax reports mixed Q4 results: Morning Buzz

The major averages were sharply lower near noon, curtailing some of yesterday’s sharp gains after President Donald Trump announced a 90-day pause on some of his “reciprocal” tariffs, despite announcing an increase on the cumulative tariff rate on Chinese imports. Despite the temporary relief from the tariff suspension, market sentiment remains cautious.

Looking to commodities, gold prices are up significantly, approaching the $3,200 threshold. Oil prices, meanwhile, have sharply dropped after serious gains yesterday, with the broader recent decline having been influenced by several factors, including ongoing trade tensions and fluctuations in global supply and demand.

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

1. STOCK NEWS:

• Prada (PRDSY) agreed to acquire Versace from Capri Holdings (CPRI) for $1.38B in cash
• Constellation Brands (STZ) reported upbeat Q4 results and announced it will divest certain wine brands, vineyards, and facilities
• CarMax (KMX) reported mixed Q4 results and updated its long term growth model
• U.S. Steel (X) shares are falling after President Trump said he doesn’t want to see the company be sold to Nippon Steel (NPSCY)
• Aether (ATHR) opened at $5.25 after its IPO was priced at $4.30 per share

2. WALL STREET CALLS:

• General Motors (GM) downgraded to Neutral from Buy at UBS
• Ford (F) downgraded to Neutral from Buy at Goldman Sachs
• Oppenheimer upgraded Roblox (RBLX) to Outperform as pullback creates “excellent” entry point
• AppLovin (APP) upgraded at Morgan Stanley, sees opportunity to buy ad tech’s “best executor ‘on sale'”
• QuantumScape (QS) downgraded to Sell from Neutral at UBS

3. AROUND THE WEB:

• Nio (NIO) has implemented a new series of executive changes affecting its mass-market Onvo brand and broader marketing departments, EV says
• Microsoft (MSFT)-backed OpenAI has filed a countersuit against Tesla (TSLA) CEO Elon Musk, claiming harassment and asking a federal judge to stop Musk from any further attacks in a case over OpenAI’s future structure, Reuters reports
• Amazon (AMZN) is weighing a $15B warehouse expansion plan for nearly 80 new U.S. logistics facilities that would reverse its post-pandemic construction slowdown, Bloomberg says
• Apple (AAPL) has chartered cargo flights to ferry as many as 1.5M iPhones from India to the U.S. in an effort to beat President Donald Trump’s tariffs, Reuters reports
• Delaware Superior Court Judge Eric Davis determined that Newsmax Media (NMAX) defamed Dominion Voting Systems with its false reporting that claimed the voting machine company rigged the 2020 U.S. presidential election, Reuters says

4. MOVERS:

• Keros (KROS) increases after its board of directors initiated a formal review process to evaluate strategic alternatives
• Fortuna Mining (FSM) gains in New York after reporting Q1 gold production results
• DexCom (DXCM) higher after receiving FDA clearance for Dexcom G7 15 day CGM system
• Red Cat (RCAT) falls after announcing a $30M stock offering
• Easterly Government Properties (DEA) lower after Compass Point downgraded the stock to Neutral

5. EARNINGS/GUIDANCE:

• Lovesac (LOVE) reported Q4 results and provided guidance for FY26 and Q1
• CureVac (CVAC) reported Q4 results, with revenue lower year-over-year
• Bank7 (BSVN) reported Q1 results, with CEO Thomas Travis commenting, “2025 is off to a strong start”
• NextNRG (NXXT) reported preliminary Q1 results
• Dixie Group (DXYN) announced Q4 results, with EPS and revenue lower year-over-year

INDEXES:

Near midday, the Dow was down 3.81%, or 1,548.15, to 39,060.30, the Nasdaq was down 5.36%, or 918.33, to 16,206.64, and the S&P 500 was down 4.60%, or 251.07, to 5,205.83.