Micron and Applovin among market cap stock movers on Friday

Investing.com -- Wolfe Research has identified BP and ExxonMobil as top performers in the oil sector heading into 2026, with both companies showing strong momentum and potential for accelerated free cash flow growth.

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The research firm maintains Outperform ratings on both stocks, citing their solid execution and attractive valuations relative to peers.

BP PLC emerges as Wolfe’s top European major pick for 2026 after outperforming the XLE energy index by approximately 5% in 2025. The firm maintains its $51 price target for BP, adjusting its weighted average cost of capital assumption to 8% from 8.5% following the recently announced Castrol sale.

Analysts expect BP’s progress on leverage reduction and cost-cutting efforts to accelerate under incoming CEO Meg O’Neill, who joins from Woodside on April 1st. The company’s current targets include $20 billion in disposals and $4-5 billion in cost reductions by 2027, but Wolfe suggests these goals could be revised upward under new leadership.

BP’s recent Bumerangue discovery in Brazil could differentiate its outlook from peers, with promising reservoir indicators including 1,000 meters of hydrocarbons, favorable fluid mix, large aerial extent, and low government take. While CO2 levels are elevated, BP considers them manageable.

The recently announced sale of 65% of BP’s global lubricants business (Castrol) at an implied enterprise value of approximately $10.1 billion exceeded market expectations. BP expects around $6 billion in after-tax proceeds, including about $800 million from accelerated dividends.

In recent developments, BP agreed to sell interests in its U.S. midstream assets to Sixth Street for $1.5 billion as part of its debt reduction efforts. The company also withdrew its plans for a hydrogen hub in northern England and is reportedly in discussions with Mexico for potential oil exploration deals.

ExxonMobil continues its strong performance, with shares reaching all-time highs in 2025 and outperforming the XLE by approximately 10% year-to-date. Wolfe slightly adjusted its price target to $140 from $141 based on an updated gas price deck, maintaining an Outperform rating.

Exxon’s updated plan strengthens its trajectory, with 2024-2030 earnings and cash flow projections increased by $25 billion and $35 billion respectively. Capital spending has been reduced to $27-29 billion for 2026, with the long-term range decreasing by $1 billion, highlighting improved capital efficiency and reduced spending on low-carbon projects.

The company’s 2030 production is guided to 5.5 million barrels of oil equivalent per day, driven by continued Permian Basin outperformance. With approximately $145 billion in surplus cash flow projected for 2026-2030 (after capital expenditures and dividends), Wolfe sees Exxon’s shares as undervalued with best-in-class visibility and execution that consistently outperforms targets.

ExxonMobil has received a reiterated Buy rating from UBS, which cited the strength of the company’s global refining operations. The company and Shell also canceled the planned sale of natural gas assets in the UK southern North Sea to Viaro Energy.

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

Yi Feng Holdings (YIFE) has filed for 3,750,000 share NYSE IPO at $4-$6 per share.

Cathay Securities will serve as sole underwriter.

Investing.com -- The S&P 500 inched higher Friday, underpinned by solid quarterly earnings and healthy economic data, though fresh concerns about tariffs weighed on sentiment.

At 12:42 p.m. ET (17:42 GMT), the Dow Jones Industrial Average fell 10 points, or 0.02%, the S&P 500 index gained 0.1%, and the NASDAQ Composite was roughly flat.

Trump threatens fresh tariffs if countries oppose to U.S. interest in Greenland

President Donald Trump warned on Friday that he may impose tariffs on countries that "don’t go along with Greenland," which the president said is needed for national security. 

“We need Greenland for national security. So I may do that,” Trump said at the White House during a health-care-related event.

The comments raised uncertainty over fresh tariffs just as many were becoming comfortable with the idea that the effective rate of tariffs - following a blitz of trade levies imposed on countries last year -  would likely remain steady.   

Bank results to the fore 

The banking sector has been in the spotlight this week, with reports from America’s biggest lenders underlining how a topsy-turvy 2025 in financial markets aided trading desks.

Earlier Friday, PNC Financial Services (NYSE:PNC) posted a 25% jump in profit in the fourth quarter, as the U.S. bank earned more from interest payments and cashed in on a dealmaking rebound.

On the flip side, Regions Financial (NYSE:RF) reported fourth quarter adjusted earnings that fell short of expectations, despite posting revenue growth and solid full-year performance.

The bank earnings signaled the start of the fourth quarter earnings season in earnest, with a string of major companies set to report in the coming week. Netflix (NASDAQ:NFLX), 3M Company (NYSE:MMM) and U.S. Bancorp (NYSE:USB) are due to report on Tuesday, while Johnson & Johnson (NYSE:JNJ) will report on Wednesday. 

Visa (NYSE:V), Intel (NASDAQ:INTC), Abbott Laboratories (NYSE:ABT), Intuitive Surgical  (NASDAQ:ISRG) and many more will report later in the week. 

The tech sector has also been in focus in the wake of chipmaker TSMC’s record-high fourth-quarter profit. 

The company is a key supplier to U.S. tech majors such as Nvidia (NASDAQ:NVDA) and Apple (NASDAQ:AAPL), and has benefited greatly from an AI-driven surge in chip demand in recent years.

Solid economic data 

There were more economic data to digest Friday, with industrial production climbing 0.4% on the month in December, while manufacturing production gained 0.2% over the course of the same month. These numbers were stronger than expected, and continued the week’s healthy view of the country’s economy.

On Thursday U.S. initial jobless claims unexpectedly fell to 198,000 last week, below the 215,000 forecast, highlighting continued labor market strength. 

The data reinforced market views that the Fed will keep policy rates steady for longer, resulting in traders pushing back expectations for the first rate cut toward mid-year.

Comments from several Federal Reserve officials overnight added to the cautious tone. 

Chicago Fed President Austan Goolsbee said Thursday that amid ample evidence of stability in the job market, the central bank should be focused on getting inflation down.

Kansas City Fed President Jeff Schmid called inflation "too hot", while San Francisco Fed President Mary Daly said that incoming U.S. economic data looks promising.

Peter Nurse ,Ambar Warrick contributed to his article

Investing.com -- DraftKings (NASDAQ:DKNG) stock tumbled 7% and Flutter Entertainment (NYSE:FLTR) shares dropped 4% on Friday after data revealed a significant decline in online sports betting revenue during the NFL’s Wild Card weekend.

According to the New York State Gaming Commission, gross gaming revenue fell approximately 40% last week compared to the same period last year. The commission reported revenue of $37,308,585 for the week ending January 11, down from $62,044,116 for the week ending January 12, 2025.

The decline is particularly notable as Wild Card weekend typically attracts a higher volume of sports bettors. Piper Sandler highlighted that all six NFL games from the weekend garnered "a significant amount" of attention on prediction markets platforms, with the top five games by volume this season occurring during this period.

The revenue drop coincided with increased activity on competing prediction markets platforms, suggesting a potential shift in bettor behavior.

The broader gaming industry also felt the impact. Other notable declines included Caesars Entertainment (NASDAQ:CZR) down 2.5%, Wynn Resorts (NASDAQ:WYNN) dropping 2%, MGM Resorts (NYSE:MGM) falling 2%, and Las Vegas Sands (NYSE:LVS) declining 2.5%.

The disappointing performance during what is traditionally a strong betting period raises questions about the competitive landscape in online sports gambling as alternative betting platforms continue to gain traction.

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