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  • 🚫 Biden Blocks $14 billion Acquisition

🚫 Biden Blocks $14 billion Acquisition

+ Microsoft’s $80 Billion AI Bet, Building the Future of Cloud Computing

January 03, 2025

Good afternoon! Southern England’s Dewars Farm Quarry just leveled up the Jurassic narrative with the discovery of a 166-million-year-old “dinosaur highway.” Nearly 200 tracks—painstakingly documented by a 100-person team—showcase the movements of massive sauropods and the clawed strides of a nine-meter-long Megalosaurus, the first dino to ever be scientifically named. Talk about stomping into history.

Thanks to 20,000 digital images and drone footage, researchers have created 3D models that capture everything from the size of the dinosaurs to the way the mud squished beneath their feet. This find could unlock new insights into their speed, interactions, and how they navigated their swampy, prehistoric stomping ground

MARKETS

*Stock data as of market close*

  • Stocks ended the week with a bang as Wall Street shook off its 2025 jitters. The S&P 500 jumped 1.3%—its best day in almost two months—while the Dow gained 0.8% and the Nasdaq surged 1.8%, driven by a tech-powered rally. Nvidia popped 4.7%, and Super Micro Computer spiked nearly 11%, proving that chips are still the market’s golden ticket.

  • After five straight down days, the market's still catching its breath. Investors are holding out hope for a rate-cut boost, but with Big Tech leading the charge, 2025’s plotline could get interesting fast.

STOCKS
Winners & Losers

What’s up 📈

  • Cerence skyrocketed 143.76% after announcing a partnership with Nvidia to power its voice generative AI for automobiles. ($CRNC)

  • Rivian Automotive soared 24.45% after meeting its vehicle production and delivery guidance for 2024. ($RIVN)

  • Vistra gained 8.49%, continuing its strong performance after a 258% rise in 2024. ($VST)

  • Chewy added 6.17% following an upgrade from Wolfe Research, which named the pet retailer a top 2025 internet stock pick. ($CHWY)

  • Block rose 6.24% after Raymond James upgraded the fintech to outperform, citing valuation appeal and potential acceleration in 2025. ($SQ)

  • Constellation Energy climbed 4.04% after securing $1 billion in nuclear energy supply contracts with the U.S. government. ($CEG)

  • Ford gained 2.38%, and General Motors rose 0.78% after both automakers posted their best U.S. sales since 2019. ($F, $GM)

What’s down 📉

  • Carvana fell 11.22% following Hindenburg Research's allegations of accounting manipulation and unstable loans. ($CVNA)

  • Alcohol stocks dropped after the Surgeon General called for mandatory cancer warning labels: Diageo fell 3.76%, Molson Coors lost 3.37%, and Anheuser-Busch InBev declined 2.16%. ($DEO, $TAP, $BUD)

  • Boeing declined 1.15% after South Korea ordered inspections of all 737-800 planes following a deadly Jeju Air crash. ($BA)

AQUISITION
Biden Blocks $14 billion Acquisition Of US Steel By Japan’s Nippon Steel

In a move straight out of a geopolitical drama, President Biden hit the brakes on Nippon Steel’s $14.1 billion bid for US Steel, claiming the deal posed a "credible threat" to national security. The decision followed a recommendation (or lack thereof) from the CFIUS, which punted the call to the White House after failing to reach a consensus.

A Steel Defense

Biden framed the decision as a win for American resilience, calling US Steel essential to critical supply chains, infrastructure, and national defense. His statement didn’t hold back, stressing that US Steel needs to stay “American-owned, American-operated, by American union steelworkers.” The United Steelworkers union cheered the announcement, while Nippon Steel and US Steel cried foul, calling the move political theater.

Boardroom vs. Courtroom

The drama isn’t over. Nippon Steel and US Steel plan to take their fight to court, accusing Biden of prioritizing union optics over economic sense. The failed bid leaves US Steel’s future uncertain—it may have to restart the sale process or go solo after years of financial challenges. Meanwhile, Cleveland-Cliffs, an earlier bidder, could circle back, but even that’s murky now.

Tariffs and Trade Tensions

This decision doesn’t just shake Wall Street; it could strain ties between the US and Japan. Nippon Steel’s leadership, already frustrated with Biden’s stance, hinted that the ruling sends a “chilling message” to international investors. With Trump’s return looming and his history of tariff love on deck, the US steel sector may be facing a new era of protectionism—again.

For US Steel, surviving alone might be tough. For investors, it’s an open question: What’s next in the battle for America’s industrial crown?

NEWS
Market Movements

  • 🚗 GM and Ford post best sales since 2019: General Motors sold 2.7M vehicles in 2024 (+4.3%), while Ford sold 2.08M units, its best performance since 2019. Electrified vehicles drove much of the growth, although EVs still made up a small share of total sales. ($GM, $F)

  • ✈️ JetBlue fined $2M for delays: The Department of Transportation fined JetBlue $2M for "chronically delayed flights" on four key routes. JetBlue argued air traffic control staffing issues contributed to the delays and called for government improvements. ($JBLU)

  • 🎰 DraftKings launches subscription service: DraftKings is testing a $20/month subscription service in New York, offering up to 100% profit boosts on parlays. The service aims to offset New York’s 51% gaming tax, the highest in the nation. ($DKNG)

  • 🔍 Boeing increases factory inspections: Boeing is stepping up surprise factory inspections to address production quality issues after last year’s 737 Max panel failure. The FAA will maintain heightened oversight, urging a "cultural shift" to prioritize safety. ($BA)

  • 🎙️ Apple agrees to $95M Siri settlement: Apple will pay $95M to settle claims that Siri recorded user conversations without consent and shared data with advertisers. Eligible users could receive up to $20 per device. ($AAPL)

  • 🏈 Prime Video sets football viewership record: Amazon's "Thursday Night Football" averaged 13.22M viewers in 2024, a 13% increase YoY. The Dec. 5 Detroit-Green Bay game drew 17.29M viewers, the platform’s most-watched game. ($AMZN)

  • 🚙 Norway hits 88.9% EV sales in 2024: Fully electric vehicles made up 88.9% of new car sales in Norway last year, helping the nation approach its goal of 100% EV sales by 2025. Tesla, Volkswagen, and Toyota led the market. ($TSLA, $VOW3, $TM)

  • 🚗 Stellantis reports 68-year production low in Italy: Stellantis's Italian vehicle production dropped 37% in 2024, with car-specific output down 46% amid weak EV demand and regulatory pressures. ($STLA)

  • 🏦 Major banks exit climate alliance: Morgan Stanley exited the Net-Zero Banking Alliance, joining Citigroup, Bank of America, Wells Fargo, and Goldman Sachs in response to Republican pressure over fossil fuel financing. ($MS, $C, $BAC, $WFC, $GS)

AI
Microsoft’s $80 Billion AI Bet, Building the Future of Cloud Computing

Microsoft is making waves with a massive $80 billion investment in AI-focused data centers this fiscal year. More than half of the funds will be spent in the U.S., aiming to bolster the company’s infrastructure for handling skyrocketing AI demand. Brad Smith, Microsoft’s president, made the announcement in a blog post emphasizing the importance of private-sector innovation and warning against "heavy-handed regulations" under the incoming Trump administration.

The AI Arms Race

Big tech players, including Microsoft, Amazon, and Google, are in a race to dominate AI computing capacity. Microsoft’s spending spree is largely tied to its partnership with OpenAI and its drive to incorporate AI across its products. In just the first quarter of fiscal 2025, Microsoft shelled out $20 billion in capital expenditures, primarily on data centers packed with Nvidia GPUs—the gold standard for AI workloads. The goal? To stay ahead of global competitors, particularly China, which has been wooing developing nations with subsidized AI infrastructure.

Powering AI with Nuclear Deals

High-powered data centers require immense energy, and Microsoft’s solution involves nuclear power deals—including an agreement to reopen the infamous Three Mile Island reactor. The company isn’t alone—Amazon and Google have signed similar deals as they expand their cloud capabilities.

A Policy Pitch

Smith’s message wasn’t just about numbers; it was also a call to action. He urged the Trump administration to adopt policies that support AI growth through education, targeted export controls, and global promotion of U.S. AI technologies. The concern is clear: China’s growing influence in the AI space could shape the future of global tech ecosystems, with Smith advocating for the U.S. to lead not by complaint, but by action.

As AI reshapes industries, Microsoft’s investment signals that the future of cloud computing will hinge on who can build the fastest, most powerful infrastructure. The $80 billion question is whether this arms race will yield the AI dominance Microsoft is betting on.

Calendar
On The Horizon

Next Week

Next week was shaping up to be the first full grind of 2025—until President Biden declared January 9 a national day of mourning for President Jimmy Carter, who passed away at 100 on December 29. That means the stock market will take a breather, while the bond market shuts down at 2 p.m. ET.

But don’t expect a lull in data drops. Monday kicks off with factory orders, Tuesday brings the ISM services index and JOLTS, and by Wednesday, we’ll see ADP employment numbers and consumer credit. The grand finale? Friday’s all-important US jobs report.

Earnings season is also dusting off the cobwebs. The real wave hits mid-January, but a few early players are reporting next week:

  • Wednesday: Albertsons ($ACI), Jefferies Financial Group ($JEF)

  • Thursday: Walgreens Boots Alliance ($WBA), Constellation Brands ($STZ), KB Home ($KBH)

  • Friday: Delta Air Lines ($DAL)

NEWS
The Daily Rundown

RESOURCES
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