Anti-Clickbait News Summaries for February 5, 2025
Google updates AI principles, removes ban on weapons use
Hi, it’s Jack and The Stock Insider team with your daily news summaries 😇
The Markets:
Futures Highlights
Today’s futures were a mixed bag: while Gold managed a modest gain, most of the major indices and energy commodities fell—with Natural Gas taking the steepest dive. The winners and losers are listed below in order from the best performer to the worst.
🟢 Gold: 2886.70 (+10.90 | +0.38%)
⚪ Russell 2000: 2299.20 (+0.40 | +0.02%)
🔴 Dow: 44624.00 (–73.00 | –0.16%)
🔴 S&P 500: 6042.75 (–20.25 | –0.33%)
🔴 Nasdaq 100: 21535.00 (–135.25 | –0.62%)
🔴 Crude Oil: 71.95 (–0.75 | –1.03%)
🔴 Natural Gas: 3.1820 (–0.0710 | –2.18%)
Forex & Bonds Highlights
In the Forex and Bonds space, BTC/USD led the positive move, while traditional pairs and government bonds trended lower. The following sorted list shows the clearest winners and losers from today’s session.
🟢 BTC/USD: 98696.10 (+661.90 | +0.68%)
🟢 GBP/USD: 1.2518 (+0.0040 | +0.32%)
🟢 EUR/USD: 1.0406 (+0.0028 | +0.27%)
🔴 USD/JPY: 152.97 (–1.35 | –0.87%)
🔴 30-Year Treasury: 4.692 (–0.056 | –1.18%)
🔴 5-Year Treasury: 4.264 (–0.054 | –1.25%)
🔴 10-Year Treasury: 4.454 (–0.059 | –1.31%)
Major Stock News
Equity markets were largely upbeat today with tech and growth stocks surging—AMD led the pack—while only a couple of stocks like DIS slipped into negative territory. Below is the list of major names, arranged from the strongest performers to those with slight declines.
🟢 AMD: +4.58%
🟢 EQNR: +4.07%
🟢 SNAP: +3.85%
🟢 UBER: +3.66%
🟢 GOOGL: +2.56%
🟢 GOOG: +2.50%
🟢 TSLA: +2.22%
🟢 TM: +2.13%
🟢 AAPL: +2.10%
🟢 AMZN: +1.95%
🟢 LLY: +1.93%
🟢 NVDA: +1.71%
🟢 CMG: +1.13%
🟢 MSFT: +0.35%
⚪ NVO: –0.04%
🔴 DIS: –0.61%
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The Daily News Podcast
Events Affecting The Markets Today & Beyond
Most Impactful News Summaries
Podcast:
Read:
Today:
Below is a detailed overview of the key events—spanning economic data releases, corporate earnings, policy signals, and other market-moving announcements—that are scheduled to occur in the US market today (Wednesday, February 5, 2025).
1. Economic Data Releases
ADP Employment Report
• What to Expect:
The ADP National Employment Report for January is set for release early this morning (around 8:15 AM ET). Current forecasts indicate that private payrolls will have increased by approximately 183,000 jobs—well above previous figures.
• Market Impact:
A stronger-than-expected jobs number can reinforce the view of a resilient labor market. However, if the growth is interpreted as a signal that wage pressures (and hence inflation) might remain elevated, investors could anticipate a more cautious stance from the Federal Reserve, affecting interest rates and, by extension, equity valuations.
• Reference:
Trade and Housing Data Releases
• U.S. International Trade in Goods and Services:
According to the US Census Bureau Economic Indicator Release Schedule, the report covering December 2024 will be published at 8:30 AM ET. This data is critical for understanding the US trade balance and may also offer insight into how international pressures—including tariffs—are affecting the economy.
• Housing Vacancies and Homeownership:
Another report scheduled for today at 10:00 AM ET will cover housing vacancies and homeownership metrics, which help gauge the health of the housing market—a sector with knock‐on effects on consumer spending and overall economic growth.
• Reference:
ISM/Services PMI
• What to Expect:
Later in the morning (around 10:00 AM ET), the ISM Non-Manufacturing (Services) Purchasing Managers’ Index for January is due. The consensus forecast suggests readings near prior levels.
• Market Impact:
The Services PMI is a key indicator of economic momentum in a sector that accounts for roughly 75% of US GDP. A reading that confirms steady expansion could help bolster market confidence, while any sign of deterioration might raise concerns over consumer spending.
2. Corporate Earnings Announcements
Today is a major earnings day with a broad cross-section of companies reporting quarterly results. Among the companies scheduled to report are:
• Insurance, Technology, and Consumer Discretionary:
– Allstate, Aflac, and Align Technology
• Industrial and Financial Sectors:
– Arm Holdings, Ford Motor, and Boston Scientific
• Health Care and Pharmaceuticals:
– Novo Nordisk, Molina Healthcare, and MetLife
• Tech and Media:
– Uber Technologies and Disney
• What to Expect:
These earnings reports span multiple sectors. In recent premarket updates, tech giants like Alphabet and chipmaker AMD have already shown disappointing results (with Alphabet’s cloud revenue missing estimates and AMD’s data center sales falling short), which have weighed on sentiment. The full slate of earnings today will either amplify these trends or offer unexpected surprises that could shift market sentiment quickly.
• Market Impact:
Earnings data will be closely scrutinized for clues on corporate health amid ongoing economic uncertainty and tariff-related supply chain concerns. A mixed set of results could lead to increased volatility, while broadly positive outcomes might buoy investor confidence.
• References: ,
3. Policy and Tariff Developments
Tariff Environment and Trade Tensions
• What’s Happening:
The current US trade policy environment continues to be a source of uncertainty. While tariffs on Canadian and Mexican imports have been postponed, tariffs on Chinese goods remain active.
• Market Impact:
This ongoing “tariff whiplash”—as described in recent coverage—affects sectors with complex international supply chains (for example, the automotive and technology industries). Investors remain cautious, as further policy adjustments or trade negotiations could have a significant impact on corporate earnings and cost structures.
• Reference:
Treasury Operations and Debt Management
• What’s Happening:
There is also attention on the US Treasury’s quarterly refunding announcement, scheduled for around 8:30 AM ET.
• Market Impact:
While not an earnings report, changes in the Treasury’s funding or debt management strategy (especially in a period of fiscal uncertainty) can influence bond yields. Given the close interplay between bond yields and equity valuations, this is another factor that market participants are monitoring. • Reference:
4. Pre-Market and Broader Market Sentiment
• Futures and ETFs:
Early trading reports indicate that stock index futures—including those for the S&P 500, Dow Jones Industrial Average, and Nasdaq—are slightly down. Major ETFs such as SPY, DIA, and QQQ are being watched closely for clues on how the day might open.
• Tech Sector Caution:
Notable declines in premarket trading for tech stocks (e.g., Alphabet and AMD) have already set a cautious tone. This, combined with the continuing impact of tariff uncertainty, suggests that market volatility may persist throughout the day. • Reference:
Conclusion
Today’s landscape is characterized by a convergence of influential factors:
Economic data releases (ADP employment, trade data, and services PMI) will provide fresh insights into the health of the US economy.
A broad slate of corporate earnings—from sectors as diverse as insurance, technology, industrials, and healthcare—will offer a snapshot of business performance amid a challenging global trade environment.
Ongoing policy uncertainty driven by US tariffs (especially on Chinese imports) continues to add to market nervousness.
Treasury funding announcements and the broader interplay of bond yields and equity valuations will further shape market dynamics.
Investors will be parsing all these developments closely as they assess risks and opportunities in real time. With both economic and corporate indicators under the microscope today, the US stock market is set for a day of potentially significant, albeit mixed, reactions.
Feel free to refer to the cited sources for more detailed information:
ADP Employment Report details:
Census Bureau trade release schedule:
Earnings and market sentiment summaries: ,
Tariff-related commentary:
Treasury and bond market updates:
Pre-market trading overview:
Most Impactful News Summaries:
Mattel warns of potential price hikes due to new Trump tariffs on Chinese imports
Mattel, the maker of Barbie, may raise prices in the U.S. due to new 10% tariffs on Chinese imports. Nearly 40% of its production is in China, prompting potential changes to its supply chain.
The toy industry is facing slower sales as consumers have less disposable income. Despite this, Mattel's shares rose 10% after it projected better profits for next year.
Trade experts warn that the new tariffs add to existing ones, potentially raising costs to 35% or more. Critics argue this will increase prices for American families and disrupt supply chains.
Source: https://www.bbc.com/news/articles/c77rmryxkz2o
Google updates AI principles, removes ban on weapons use
Google's parent company, Alphabet, has changed its principles on artificial intelligence, removing a commitment to avoid using AI for weapons and surveillance. The update reflects the evolving nature of AI technology and the need for collaboration between businesses and governments on national security.
In a blog post, Google executives emphasized the importance of guiding AI development with values like freedom and human rights. They noted that AI has become a widespread technology, moving beyond its initial research phase.
Despite weaker-than-expected financial results, Alphabet plans to invest $75 billion in AI projects this year, a 29% increase from previous estimates. The company is focusing on AI infrastructure, research, and applications, including its AI platform, Gemini.
Source: https://www.bbc.com/news/articles/cy081nqx2zjo
Hugging Face launches open version of OpenAI's deep research tool
Hugging Face has developed an "open" version of OpenAI's deep research tool, called Open Deep Research. This tool compiles research reports from the web and is designed to be more accessible than OpenAI's version, which is limited to paid subscribers.
Open Deep Research uses OpenAI's proprietary model, o1, along with an open-source framework. It can autonomously navigate the web, read files, and perform calculations. However, it scored 54% on the GAIA benchmark, lower than OpenAI's 67.36%.
The Hugging Face team has made the source code available on GitHub for public feedback. While there are other reproductions of OpenAI's tool, they lack the advanced capabilities of OpenAI's o3 model, which excels in complex information gathering.
Trump's crypto czar discusses initiatives but no Bitcoin reserve announced
The Trump administration is exploring cryptocurrency initiatives but has not announced plans for a Bitcoin reserve. David Sacks, the cryptocurrency director, stated the team will assess the feasibility of such a reserve during a recent press conference.
Bitcoin's value dropped over 2% to around $98,000 amid these developments. Sacks also mentioned a joint working group in Congress is forming to advance cryptocurrency legislation, aiming to position the U.S. as a global crypto hub.
The SEC launched a Crypto Task Force website, led by Hester Peirce, to propose regulations and evaluate a national cryptocurrency stockpile. Additionally, Senator Bill Hagerty introduced a bill to regulate stablecoins, supported by key Senate figures.
Source: https://qz.com/trump-crypto-czar-david-sacks-bitcoin-reserve-1851755207
Beijing limits exports of key metals to the US in response to tariffs
Beijing has announced restrictions on the export of five key metals to the United States, including tungsten and indium. This move follows the implementation of a 10% tariff on Chinese imports by President Trump.
These metals are essential for various industries, including electronics and aerospace. The U.S. lacks large-scale production of these materials, making it reliant on China for supply.
Experts suggest that while companies may seek alternative sources, it will be challenging to eliminate China's role in the supply chain. The restrictions are viewed as a negotiating tactic rather than a permanent measure.
Judge calls Elon Musk's claims against OpenAI a stretch but allows trial to proceed
A federal judge has described Elon Musk's claims of harm from OpenAI's transition to a for-profit model as a "stretch." However, she is allowing the case to proceed to trial next year for a jury to decide.
Musk, who invested $45 million in OpenAI, argues that the company has strayed from its nonprofit mission. He has added new claims and defendants, including Microsoft and Reid Hoffman, to his lawsuit.
OpenAI contends that Musk's request for a court order would harm its business. The dispute centers on a 2017 power struggle within OpenAI, where Musk sought to become CEO but was opposed by other co-founders.
Source: https://apnews.com/article/elon-musk-openai-lawsuit-sam-altman-3cd261b2a9b04630ec93582020c59ef7
ByteDance launches OmniHuman AI to create realistic videos from a single photo
ByteDance has introduced OmniHuman, an AI that creates realistic videos from a single photo. This new system can animate full-body movements and gestures, improving on previous models that only animated faces or upper bodies.
OmniHuman was trained on over 18,700 hours of human motion data, using a method that combines text, audio, and body movements. This approach allows for more diverse and effective training compared to earlier techniques.
The technology could impact digital entertainment and communications significantly. However, it also raises concerns about the potential for misuse in creating misleading synthetic media.
Source: https://venturebeat.com/ai/omnihuman-bytedances-new-ai-creates-realistic-videos-from-a-single-photo/
Stripe acquires Bridge Network for $1.1 billion to expand into stablecoin market
Stripe has completed its $1.1 billion acquisition of Bridge Network, marking a significant move into the stablecoin market. This deal follows a meeting last summer where Stripe executives recognized Bridge's potential in stablecoin infrastructure.
Bridge, which specializes in facilitating stablecoin payments, will help Stripe enhance its global payment capabilities. The acquisition comes after Stripe's previous attempt to enter the crypto space faltered in 2018 due to scalability issues.
With this acquisition, Stripe aims to streamline cross-border transactions and reduce costs. Bridge will continue its operations while both teams explore new product opportunities together.
US Congress establishes bipartisan working group for cryptocurrency policies
U.S. lawmakers are forming a bipartisan working group to create policies for digital assets. This initiative aims to establish a clearer regulatory framework for cryptocurrencies, according to Representative French Hill.
This development follows President Donald Trump's earlier order to create a cryptocurrency working group of agency heads. Trump has expressed support for digital assets, contrasting with former President Joe Biden's regulatory approach focused on consumer protection.
The new group will explore various aspects of cryptocurrency, including the potential for a national cryptocurrency stockpile. The effort marks a shift towards a more supportive stance on digital assets in Congress.
Source: https://finance.yahoo.com/news/us-congress-form-cryptocurrency-working-195659685.html
Figure AI ends partnership with OpenAI to develop in-house AI models
Figure AI has ended its partnership with OpenAI to focus on developing its own AI models. CEO Brett Adcock cited a significant breakthrough and plans to unveil new technology for humanoid robots within 30 days.
Previously, Figure AI and OpenAI aimed to create advanced AI for humanoid robots, with OpenAI being a major investor. Figure AI has raised $1.5 billion in total, with a recent valuation of $2.6 billion.
Adcock emphasized the need for integrated AI solutions tailored to their hardware. Meanwhile, OpenAI is exploring its own humanoid robot technology, as indicated by a recent trademark application.
Source: https://techcrunch.com/2025/02/04/figure-drops-openai-in-favor-of-in-house-models/
Mark Zuckerberg shifts stance on Trump and changes Meta's misinformation policies
Mark Zuckerberg, CEO of Meta Platforms, has shifted his stance towards Donald Trump, engaging in a lengthy podcast discussion with Trump supporter Joe Rogan. He announced changes to Meta's misinformation policies, ending the use of fact-checkers and allowing users to self-regulate content.
Zuckerberg's recent actions include promoting a Republican to lead global policy and investing heavily in artificial intelligence. Meta's financial performance has improved, with a reported revenue increase of 22% in 2024, and Zuckerberg expressed optimism about the current U.S. administration's support for technology.
This pivot marks a significant change from Zuckerberg's previous criticisms of Trump and his administration. Meta's new approach aims to reduce content moderation while addressing concerns about censorship, despite potential risks to its advertising business.
Hedge fund founder warns US faces economic crisis without debt reduction
Ray Dalio, founder of the world's largest hedge fund, warned that the U.S. faces severe economic risks if national debt is not reduced. He described the current situation as a "death spiral" of debt, which could lead to an "economic heart attack."
The U.S. national debt has surpassed $36 trillion, with a debt-to-GDP ratio of 125%. This ratio has increased significantly since the pandemic, as federal debt rose by 80% while GDP grew by only 38%.
Dalio emphasized the need for bipartisan agreement to cut the deficit from 7.5% to 3% of GDP. He noted that achieving this will be politically challenging and could lead to significant job losses and economic turbulence.
Amazon faces potential impact from new China tariffs, report shows
Amazon may face significant challenges due to new tariffs on Chinese imports announced by Donald Trump. Morgan Stanley estimates that about 25% of the cost of products sold directly by Amazon comes from China, making it the most exposed e-commerce company.
The new tariffs include a 10% charge on goods from China. Almost half of Amazon's largest third-party sellers are based in China, which could further increase the impact on Amazon's product offerings.
In comparison, other e-commerce companies have lower exposure to Chinese imports, averaging just over 10%. Fashion retailer Revolve follows Amazon with 22% exposure, while companies like Peloton and Etsy have less than 3%.
Source: https://www.businessinsider.com/amazon-trump-china-tariffs-hit-2025-2
EU proposes new measures to increase defense spending flexibility for member states
European Commission President Ursula von der Leyen announced plans to allow EU countries to increase defense spending. She cited the need for "extraordinary measures" under the Stability and Growth Pact due to current global challenges.
Von der Leyen suggested that defense spending could be exempt from national budget deficits. This proposal aims to give countries more flexibility without renegotiating existing spending agreements.
The move responds to demands from heavily indebted nations like Italy and Greece for special treatment regarding defense budgets. Officials believe this could help address security concerns amid rising tensions in Europe.
US startup Zap Energy achieves stable plasma milestone in nuclear fusion experiment
A US nuclear fusion startup, Zap Energy, has achieved a milestone by producing stable thermal plasmas in its Fusion Z-pinch Experiment (FuZE) device. Researchers confirmed uniform neutron emissions, indicating a well-behaved plasma, which is crucial for scalable energy production.
This breakthrough supports Zap's approach to thermal fusion, where hydrogen nuclei fuse into helium, releasing energy. The findings validate that Zap's method can achieve higher fusion yields without relying on magnetic fields, addressing past challenges faced by similar technologies.
Zap's team is now testing neutron isotropy at higher energies with the FuZE-Q device. They aim to understand and mitigate instabilities that could affect fusion performance, moving closer to practical fusion energy solutions.
Source: https://interestingengineering.com/energy/zap-energy-tech-hits-stable-plasma-milestone
Trump's early presidency impacts 161 countries with tariffs and military threats
In his first two weeks as president, Donald Trump has aggressively pursued his "America First" agenda, threatening tariffs and cutting U.S. aid. His actions have impacted 161 countries, affecting 83% of the globe.
Trump announced tariffs of 25% on Mexico and Canada, and 10% on China, with a potential increase for China. He also indicated that tariffs on the European Union would occur and criticized the UK and BRICS nations for trade practices.
Additionally, Trump has threatened military action regarding Greenland and Panama, claiming the U.S. would reclaim control over the Panama Canal. He also ordered airstrikes on ISIS positions in Somalia, marking his first military action as president.
Source: https://ca.news.yahoo.com/america-first-mapped-countries-trump-120706749.html
VERSES Genius model surpasses China's DeepSeek R1 in code-breaking challenge
VERSES AI Inc. announced that its Genius model outperformed China's DeepSeek R1 in a code-breaking challenge called Mastermind. Genius was 245 times faster and 779 times cheaper than DeepSeek's model in cracking the code across 100 games.
This demonstration highlights Genius's advanced multi-step reasoning capabilities. The challenge required models to deduce the correct code using logical reasoning and feedback, showcasing Genius's efficiency in dynamic problem-solving.
The results suggest that domain-specific models like Genius may offer significant advantages over general-purpose AI models, potentially enhancing the reliability and accuracy of AI agents in real-world applications.
Trump administration takes control of USAID and halts global programs
The Trump administration has taken control of USAID, shutting down its global programs. This marks a significant shift from the agency's previous independent status, which provided aid to 120 countries.
Thousands of USAID employees and contractors face layoffs and furloughs as the agency's website is taken down. Secretary of State Marco Rubio is now acting as the administrator of USAID.
Democrats have criticized the move as illegal, warning it could harm international alliances. They plan to defend the agency's established role in global humanitarian efforts.
Source: https://www.kcra.com/article/trump-administration-takes-control-shuts-down-usaid/63662871