Cisco jumps after earnings beat, Trump teases reciprocal tariffs: Morning Buzz

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

1. STOCK NEWS:

• Cisco (CSCO) increased revenue 9% year-over-year to $14.0B in Q2 and produced EPS of 94c, exceeding consensus on each
• Reddit (RDDT) reported a “beat and raise quarter,” but shares declined, which analysts attribute to relatively high expectations and lower than expected daily active users
• Deere (DE) shares fell after the tractor maker maintained its outlook amid a slumping agriculture sector
• Nissan (NSANY) and Honda (HMC) announced they have terminated talks on a business integration between the two companies
• Trump says today “the big one” as reciprocal tariffs come

2. WALL STREET CALLS:

• Cisco (CSCO) upgraded to Buy at Rosenblatt as AI becomes larger driver
• BofA double downgraded Kraft Heinz (KHC) to Underperform after “disappointing” outlook
• Target (TGT) downgraded to Hold and Macy’s (M) downgraded to Accumulate at Gordon Haskett
• HubSpot (HUBS) upgraded to Overweight from Sector Weight at KeyBanc
• General Dynamics (GD) downgraded at BTIG, here’s why

3. AROUND THE WEB:

• Elliot Investment Management is demanding BP (BP) make significant cost cuts and divestments, Bloomberg reports
• Tesla (TSLA) CEO Elon Musk says he will withdraw his $97.4B bid for the nonprofit that controls OpenAI if the board halts its conversion to a for-profit company, WSJ says
• Amazon (AMZN) told hundreds of thousands of workers to return to the office full time, but many offices did not have enough desks for all of its employees, WSJ reports
• JPMorgan’s managers began notifying employees of job cuts last week as part of a series of layoffs the bank plans to make throughout 2025, Barron’s says
• Apple (AAPL) is exploring both humanoid and non-humanoid robotic form factors for its future smart home ecosystem, Ming-Chi Kuo reports

4. MOVERS:

• Dutch Bros (BROS) gains after reporting Q4 results and providing FY25 guidance
• Tempus AI (TEM) higher after entering a collaboration with the Institute of Follicular Lymphoma Innovation
• Organon (OGN) and Pagaya (PGY) increase after reporting quarterly results
• Atai Life Science (ATAI) falls in New York after announcing a $55M share offering
• West Pharmaceutical (WST) and Aspen Aerogels (ASPN) lower after reporting quarterly results

5. EARNINGS/GUIDANCE:

• AppLovin (APP) reported Q4 results and provided guidance for Q1
• Robinhood (HOOD) reported Q4 results, with EPS and revenue beating consensus
• GE Healthcare (GEHC) announced Q4 results, with CEO Peter Arduini “pleased with the strong momentum in orders, backlog, and book-to-bill” seen in the quarter
• Wendy’s (WEN) reported Q4 results, with EPS and revenue beating consensus
• Crocs (CROX) reported Q4 results and provided guidance for Q1 and FY25

INDEXES:

Near midday, the Dow was up 0.25%, or 109.56, to 44,478.12, the Nasdaq was up 0.84%, or 165.43, to 19,815.38, and the S&P 500 was up 0.50%, or 30.54, to 6,082.51.