Good morning investors! The market remains choppy with BTC falling below $73,000 to lowest since November 2024 and top names like Meta and Microsoft losing value. Gold and silver, however, have rebounded.
Today we cover:
European oil giants in trouble?
AMD falls after earnings
More earning reports
📊 Economy and News
European Oil Giants Face Pressure on Shareholder Returns Amid Low Oil Prices
European oil majors like Shell, BP, TotalEnergies, and Equinor are bracing for a challenging Q4 2025 earnings season, with weaker crude prices (Brent around $67-68 per barrel) squeezing profits and free cash flow.
Analysts expect Shell and TotalEnergies to post some of their lowest quarterly profits in nearly five years. Dividends remain largely "sacrosanct" and protected, but share buybacks are the easiest cut—potentially reduced by 10-25% across the sector to preserve balance sheets and fund operations.
Experts note European firms face tougher conditions than U.S. peers like Exxon and Chevron, which reported stronger results. Cuts may also hit capital spending, likely sparing core oil/gas projects but impacting low-carbon initiatives.
Global hits:
Thai business group keeps 2026 GDP growth forecast at 1.6% to 2.0%.
UK unemployment set to hit 11-year high in 2026.
China aservices activity picks up in January, hiring hits 6‑month high. Similarly, India goes higher too.
Reminder: Fed’s Stephen Miran resigns from White House post. Also, U.S. could issue general license for oil companies to produce in Venezuela this week. Lasty, Legendary investor Ray Dalio said the world was “on the brink” of a capital war, while calling gold a good investment.
📈 Stocks
S&P 500 6,917.81 (-0.84%)
DJIA 49,240.99 (-0.34%)
NASDAQ 23,255.19 (-1.43%)
BRENT CRUDE 66.41 (+0.57%)
* Prices as of Feb 4th, 12:20 AM UTC
Big Names Announce Earnings
Advanced Micro Devices reported fourth-quarter earnings that topped expectations and provided a stronger-than-expected forecast. For the first quarter, The company expected $9.8 billion in revenue, plus or minus $300 million, versus expectations of $9.38 billion. Moreover, it added that the AI boom is boosting sales of the company’s central processors, not just its GPUs. Some analysts, however, were expecting stronger guidance, sending the stock down -8% after the bell.
Match Group beat Wall Street’s fourth-quarter estimates but issued weak guidance as it invests $60 million in new products and artificial intelligence initiatives to turn around declining user growth at Tinder, with a three-year transformation plan. Part of the turnaround target is to reach $1 billion in annual revenue by 2027 with Hinge. The company is expanding the platform internationally and has invested in new tools to boost engagement, such as AI-powered conversation starters. The stock went up 8% after the bell.
Chipotle Mexican Grill reported quarterly earnings and revenue that topped analysts’ expectations, although traffic to its restaurants fell for the fourth straight quarter. For 2026, the company is projecting flat same-store sales growth. Chipotle is focusing on improving the chain’s operations and adding new menu items, rather than leaning into discounts. Furthermore, the company is projecting that it will open 350 to 370 new restaurants this year, including 10 to 15 international locations that will be run by licensees.
UBS announced plans for a $3 billion buyback and posted fourth-quarter profits that beat analysts’ forecasts.
Interesting: Apple said it’s introducing agentic coding, from Anthropic and OpenAI, into its flagship coding tool called Xcode.
Pandora fell 7% after analysts warned it was facing pressures from surging silver costs and more cautious consumers.
Surprising: KKR, Singtel to take full control of STT GDC for 6.6 billion Singapore dollars ($5.1 billion).
PayPal shares dropped about 20% after its latest earnings report disappointed investors. For the first time since splitting from eBay in 2015, PayPal's market cap has fallen below its former parent—now roughly $40 billion compared to eBay's $42 billion.
💵 Personal Finance
How to Get Your Kid Started Investing: A Simple Guide
Getting children started with investing teaches financial responsibility and builds long-term habits. Here's a streamlined guide for parents:
Choose the Right Account Type
Use a custodial account under UTMA or UGMA laws. You (the parent) act as custodian and control the account until the child reaches 18–21 (state-dependent). The money legally belongs to the child and must benefit them.
Open at banks, credit unions, or online brokers like Vanguard.
Micro-investing apps (e.g., Stash, Stockpile) work well for small amounts and often link to chore/allowance tools.
A custodial 529 plan offers tax advantages but restricts funds to education expenses. Kids without earned income can't open IRAs.
Select Investments
Children can access the same options as adults:
Individual stocks — Engaging for kids interested in specific companies; choose low/no-fee brokers.
Index funds/ETFs — Best for broad market exposure (e.g., S&P 500); low costs, less risk than single stocks. Many require minimums ($1,000+), but fractional shares via micro-apps allow tiny starting amounts. Avoid low-yield options like CDs or Treasuries for learning purposes.
Understand Taxes
Investment income under $1,050: No reporting needed.
$1,050–$12,000: Parent can report on their return or file separately for the child.
Over $12,000: Child must file. Unearned income above ~$2,100 is taxed at the parent's rate (kiddie tax rules). 529 earnings are tax-free if used for qualified education.
College Aid Impact
Assets in the child's name (non-529 UTMA/UGMA) reduce aid eligibility more (20% assessed) than parental assets (5%).
Consider short-term goals (e.g., car, camp) rather than college savings in non-529 accounts.
529 plans count as parental assets, preserving more aid potential.
Start small, keep it educational, and focus on long-term growth rather than quick wins.
💰 Be a Better Investor
"The investor’s chief problem—and even his worst enemy—is likely to be himself."
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