Nucor, American Capital Agency, Crane set to report earnings Monday

Investing.com -- Sable Offshore (NYSE:SOC) shares dropped 10% on Friday after California’s attorney general announced a lawsuit against the Trump administration for allowing the company to restart pumping oil through two state pipelines.

The legal action represents the latest development in an ongoing dispute between Sable and California officials regarding a drilling project off the Santa Barbara coast that was shut down following a 2015 oil spill.

California Attorney General Rob Bonta stated that the administration violated the law by reclassifying the Las Flores pipelines as "interstate" last month, despite the fact that they run between two California counties. This reclassification enabled the federal Pipeline and Hazardous Materials Safety Administration to issue an emergency permit allowing operations to resume.

The petition will be filed in the U.S. Court of Appeals for the Ninth Circuit, according to the attorney general’s office.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- The S&P 500 slipped Friday, as slump Intel on disappointing earnings held back the broader the tech sector, putting Wall Street on pace for second-straight losing week.

At 1:15 p.m. ET (18:15 GMT), the Dow Jones Industrial Average dropped 374 points, or 0.8%, the S&P 500 index fell 0.1%, and the NASDAQ Composite gained 0.4%.

The main averages on Wall Street gained on Wednesday and Thursday, rebounding after sharp losses at the start of the week, but they are still on course for their second negative week in a row.

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Greenland deal brings relief

Sentiment received a boost in the second half of the week after U.S. President Donald Trump said his administration had reached a framework trade deal over Greenland, and that he will not tariff European powers in an attempt to coerce control over the Danish territory. 

Trump also withdrew his threat to use force to take the island, a sharp reversal from his rhetoric last week. The move offered much relief to markets, after Trump’s earlier tariff threats ramped up global geopolitical tensions and sparked deep losses in Wall Street.

That said, the relationship between many European countries and the Trump administration remains fraught, and the U.S. president added to geopolitical tensions by flagged potential military action against Iran, stating the U.S. had a fleet moving towards the Middle East country as he spoke to reporters aboard Air Force One late Thursday, warning Tehran against killing protesters or restarting its nuclear efforts.

“We have an armada... heading in that direction, and maybe we won’t have to use it,” Trump told reporters. “I’d rather not see anything happen, but we’re watching them very closely,” Trump said. 

Intel slumps on disappointing outlook 

Turning to the corporate sector, Intel (NASDAQ:INTC) stock slumped after the chipmaker reported a fourth-quarter loss and unveiled a dour outlook for the current quarter.

The company, who has recently been buoyed by fresh backing from major investors including artificial intelligence-darling Nvidia and even the U.S. government, posted a net loss of $333 million for the final three months of its fiscal year, worse than Wall Street analysts had anticipated.

Executives flagged the impact of soaring demand from data centers, which house the chips that power cutting-edge AI models. CFO David Zinsner described supply shortages as an industry-wide problem that could extend well into 2026.

There are more major earnings from the tech sector to digest next week, with Apple(NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) and Tesla (NASDAQ:TSLA) all set to report.

Elsewhere, Nvidia (NASDAQ:NVDA) stock rose after Bloomberg reported that Chinese authorities have told major technology companies they can prepare orders for the tech giant’s H200 AI chips, suggesting Beijing may be close to formally approving imports of these critical AI components.

Intuitive Surgical (NASDAQ:ISRG) stock rose after the medical device maker beat Wall Street ‍estimates for fourth-quarter profit and revenue on growing demand for its ⁠surgical robots used in minimally invasive procedures.

Booz Allen Hamilton (NYSE:BAH) stock rose after the advanced technology company reported third-quarter fiscal 2026 results that beat expectations despite revenue declines, with investors focusing on the company’s strong profitability metrics.

Fed to meet next week 

The economic data slate includes S&P PMI data for January later Friday, as well as the Michigan consumer sentiment index, but these releases are unlikely to change sentiment ahead of next week’s Federal Reserve meeting.

The central bank is widely expected to leave interest rates unchanged, amid growing uncertainty over the U.S. economy. 

Trump confirmed Thursday that he has concluded his search for the next Federal Reserve chair after interviewing a final shortlist of candidates.

The current shortlist of potential nominees features a mix of institutional insiders and private sector veterans. Included in the final deliberations are National Economic Council Director Kevin Hassett, BlackRock executive Rick Rieder, current Fed Governor Christopher Waller, and former governor Kevin Warsh. 

Amber Warrick contributed to this article

Investing.com -- Bernstein downgraded Confluent to Market-Perform after IBM agreed to acquire the data streaming company for $31 a share in an all-cash deal valuing it at about $11 billion.

The broker said the offer matches its pre-deal price target, which already included a takeover premium, leaving limited upside now that the transaction has been announced and no rival bids have emerged. Bernstein said it waited several weeks after the deal was disclosed to assess the risk of counterbids or other complications, but none materialized.

Bernstein said the acquisition makes strategic sense for IBM, while the valuation looks fair for Confluent shareholders. It described Confluent as a neutral, independent provider in the cloud-native ecosystem, a position it said fits with IBM’s strategy through its Red Hat business.

At the same time, Bernstein said Confluent’s long-term economics were constrained by its position in a relatively narrow middleware segment focused on data-in-motion, limiting its addressable market as a standalone company. That dynamic, it said, made IBM one of the most logical buyers.

The broker said a takeover by a hyperscaler would have undermined Confluent’s neutral positioning, reducing its appeal to customers. Other potential buyers appeared limited, with Databricks often cited as an alternative, though Bernstein said even that scenario looked unlikely. It added that private equity interest also appeared low given the valuation and Confluent’s cash flow profile.

Bernstein said regulatory risk looks manageable due to limited overlap between Confluent and IBM’s existing products, increasing confidence the deal will close.

With Confluent shares recently trading close to the $31 offer price, Bernstein said the risk-reward profile now supports a Market-Perform rating.

Investing.com -- Water technology stocks underperformed the broader market in 2025, with the sector gaining only 3% compared to the S&P 500’s 16% increase. However, Deutsche Bank analysts believe this creates an attractive entry point for 2026, highlighting water tech as a "chicken cyclical" play offering both recovery potential and secular growth advantages.

The bank’s analysis suggests these stocks could rebound as balance sheets remain strong and companies adapt to market conditions under the current administration. Here are Deutsche Bank’s top water technology stock picks for 2026:

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Badger Meter: Despite lagging in 2025 while investors shifted toward higher-risk industrial sectors like Machinery (+15%) in anticipation of a 2026 short-cycle recovery, BMI remains well-positioned. Deutsche Bank notes that while there are signs of PMIs bottoming, the downturn has been relatively shallow, and a sharp recovery may not materialize as some expect.

Badger Meter also announced executive leadership changes effective January 2026, including the promotion of its CFO to Executive Vice President. The company received new analyst coverage, with Jefferies initiating with a Buy rating while Barclays initiated with an Underweight rating.

Pentair: Deutsche Bank views PNR as one of its top ideas for 2026, citing attractive valuation levels after 2025’s underperformance while still offering resilient double-digit earnings growth. The bank specifically highlights a favorable setup for Pentair heading into Q4 2025 earnings.

In recent news, Pentair announced an 8% dividend increase, which will mark its 50th consecutive year of dividend increases in 2026. The company also received several analyst rating changes, including downgrades from TD Cowen and Barclays, alongside an upgrade to Buy from Jefferies.

Watts Water Technologies: While included among Deutsche Bank’s top water tech stocks, analysts suggest caution around WTS for Q4 2025 earnings, recommending investors avoid the stock for the near term despite its longer-term inclusion in the sector’s leading companies.

Watts Water Technologies recently completed the acquisition of Saudi Cast, a manufacturer of drainage solutions with approximately $20 million in annualized sales. Additionally, KeyBanc upgraded the company’s stock to Overweight, citing a compelling outlook for 2026.

Xylem : Ranked as one of Deutsche Bank’s favorite water tech ideas for 2026 alongside Pentair, XYL also receives a positive outlook for Q4 2025 earnings. The bank appears confident in Xylem’s positioning to capitalize on both recovery potential and underlying secular growth trends.

Xylem reported strong financial results for the third quarter of 2025, with both revenue and earnings per share surpassing analyst expectations. S&P Global Ratings also revised its outlook on the company to positive from stable, citing solid credit metrics.

Zurn Elkay Water Solutions: Deutsche Bank positions ZWS as its third favorite pick in the water tech sector for 2026, following PNR and XYL. The company benefits from the sector-wide advantages of strong balance sheets and potential for increased capital allocation actions.

Zurn Elkay Water Solutions reported third-quarter 2025 revenue and earnings that exceeded market expectations, leading the company to raise its full-year guidance. Following the results, Stifel raised its price target on the company.

Veralto: Rounding out Deutsche Bank’s water technology coverage, Veralto is included among the bank’s tracked stocks in this sector, though with less specific commentary on its positioning relative to the top five selections.

More recently, Veralto announced plans to acquire environmental water monitoring company In-Situ for $435 million and also authorized a $750 million share repurchase program. The company’s board also approved an 18% increase to its quarterly cash dividend.

Deutsche Bank expects 2026 to feature increased capital allocation activities across the water tech sector as companies leverage their strong balance sheets while navigating market conditions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- EquipmentShare.com shares opened at $28.50 in their Nasdaq debut on Friday, rising more than 16% above the company’s initial public offering price of $24.50 per share.

The construction equipment rental company raised $747 million in its IPO, offering 30.5 million shares of Class A common stock. The strong market reception values the company at approximately $7.16 billion.

Founded in 2015 and based in Columbia, Missouri, EquipmentShare describes itself as a construction technology and equipment solutions provider. The company operates a fleet management platform, telematics devices and an equipment rental marketplace using its proprietary technology called T3.

Goldman Sachs & Co. LLC, Wells Fargo Securities, UBS Investment Bank, Citigroup and Guggenheim Securities served as lead book-running managers for the offering.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Investors are increasingly rotating into Chinese technology stocks and diversifying away from the U.S. due to lower valuations, government support, and loose fiscal policy in China, according to UBS fund managers who spoke to Reuters at the World Economic Forum in Davos, Switzerland.

"We like China tech in particular because there’s some success there. There also seems to be government support," said Mark Haefele, chief investment officer of UBS Global Wealth Management.

Haefele noted that clients across the U.S., Europe, and Asia are looking for hedges against the dollar, with growing confidence in China’s tech sector encouraging increased investment in the region.

Ulrike Hoffman-Buchardi, Americas CIO and head of global equities at UBS, identified a broader cyclical backdrop as the main market driver. She explained that fiscal stimulus will benefit all regions, creating opportunities in markets trading at more attractive valuations.

"We are optimistic, but also cognizant of downside risks, in particular in those countries and areas where capital has gone; U.S. of course has been a big recipient of those inflows," Hoffman-Buchardi added.