Revolution Medicines stock surges over 20% on potential AbbVie acquisition

Investing.com -- Shares of major packaged food companies declined Wednesday following the Trump administration’s release of revamped dietary guidelines that emphasize protein consumption while declaring "war on added sugar."

Conagra Brands (NYSE:CAG) fell 3.8%, General Mills (NYSE:GIS) dropped 1.3%, and Kraft Heinz (NASDAQ:KHC) declined 1.85%, while beverage giants PepsiCo (NASDAQ:PEP) and Coca-Cola (NYSE:KO) each slipped 1% amid a broader market that traded slightly positive.

The new guidelines flip the traditional food pyramid upside down, prioritizing fruits, vegetables, healthy fats and protein while limiting whole grains. They recommend Americans consume no added sugars if possible, and no more than 10 grams per meal - a potential challenge for companies whose product portfolios include sugary processed foods and beverages.

Health Secretary Robert F. Kennedy Jr. announced the changes during a White House briefing, stating, "Today marks a decisive change in federal nutrition policy" and "Today our government declares war on added sugar." The guidelines also recommend higher protein intake than previously advised.

For the first time, the guidelines specifically address highly processed foods, urging Americans to limit consumption - a recommendation that could impact manufacturers of packaged convenience foods. The guidelines also promote "healthy fats" including olive oil, butter and beef tallow for cooking, moving away from previous recommendations favoring vegetable oils.

The dietary guidelines influence federal nutrition programs including school meals for nearly 30 million children and the Supplemental Nutrition Assistance Program (SNAP). Agriculture Secretary Brooke Rollins indicated the USDA would work to align these programs with the new guidelines, though specific implementation details weren’t provided.

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

Investing.com -- Arm Holdings (NASDAQ:ARM) stock erased earlier declines and gained 0.3% after the chip technology company announced the formation of a new "Physical AI" division aimed at expanding its presence in the robotics market.

The UK-based company has reorganized its operations into three main business lines: Cloud and AI, Edge (which includes mobile devices and PC products), and the newly formed Physical AI division, which also incorporates its automotive business, according to company executives who spoke with Reuters at the CES trade show in Las Vegas.

Arm, which supplies the underlying technology powering most of the world’s smartphones and an increasing number of other devices, is looking to capitalize on growing interest in robotics. The announcement comes amid numerous robotics demonstrations at CES, where companies showcased robots capable of building cars, cleaning toilets, and dealing poker games.

The expansion into Physical AI represents part of CEO Rene Haas’ broader strategy to grow the business since taking the helm approximately four years ago. Under his leadership, Arm has developed methods to increase prices for its latest technology and is considering creating its own full chip design.

Drew Henry, who will lead the new Physical AI unit, told Reuters that physical AI solutions could "fundamentally enhance labor, free up extra time" and potentially have a significant impact on gross domestic product.

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

Investing.com -- Olaplex Holdings Inc (NASDAQ:OLPX) stock surged 23% and was halted for volatility after Bloomberg reported that German consumer goods giant Henkel AG (ETR:HNKG_p) has submitted a takeover offer for the haircare company.

According to people familiar with the matter, Olaplex and Henkel are in discussions about a potential deal that could materialize within weeks. The talks come after Olaplex has lost more than 90% of its value since its initial public offering.

Private equity firm Advent International remains Olaplex’s largest shareholder, controlling approximately 75% of the company. The sources indicated that no final decision has been made, and the discussions could still end without an agreement.

Olaplex, known for its premium hair care products that claim to repair damaged hair, has struggled in the public markets since its debut. The potential acquisition by Henkel, which owns brands like Schwarzkopf and Dial, could provide Olaplex with the backing of an established global consumer goods company.

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 gave up some gains after hitting a fresh all-time high Wednesday, underpinned by a climb in Alphabet bet amid optimism about artificial intelligence momentum accelerating this year.     

At 1:04 p.m. ET (18:04 GMT), the blue-chip Dow Jones Industrial Average fell 0.4%, benchmark S&P 500 added 0.1% after earlier hitting an all-time high of 6,965.69, and the tech-heavy Nasdaq Composite rose 0.6%.

Alphabet Inc Class A (NASDAQ:GOOGL)rose more than 2% after the Canaccord Genuity lifted its price target on stock to $390.00 from $330.00 on optimism that the company’s efforts in boosting AI development will drive further growth.  

Nvidia also added to recent gains to help the overall tech sector stay above water, offsetting weakness in Meta Platforms Inc (NASDAQ:META) and Apple Inc (NASDAQ:AAPL).

The broader market gains come as analysts suggest that financial markets are looking beyond the upheaval caused by a weekend U.S. strike on Venezuela that led to the capture of the Latin American country’s leader, Nicolas Maduro.

Soft labor market in focus

In its place, a fresh batch of crucial U.S. economic indicators is expected to step into the spotlight.

U.S. private employers added fewer jobs than anticipated in December, although the figure was a reversal from a steep decline in the preceding month. Private payrolls rose by 41,000 in the last month of 2025, compared to a dip of 29,000 in November, according to monthly figures from ADP. Economists had anticipated a reading of 49,000.

Separately,  job openings, a proxy for labor demand, fell by more than expected to 7.146 million verses expectations for 7.61 billion, adding to ongoing expectations about soft labor demand. 

The health of the labor market has been a crucial factor in recent interest rate decisions taken by the Federal Reserve. Policymakers at the U.S. central bank slashed borrowing costs multiple times in 2025, prioritizing helping a weakening employment picture over signs of sticky inflation.

Elsewhere, a tracker of activity in the key American services sector is also scheduled to be released. Services are a critical piece of the U.S. economy, accounting for more than two-thirds of overall activity. As a result, the ISM figures could provide insight into the state of the world’s biggest economy at the end of the fourth quarter.

On the earnings calendar, investors are expected to keep tabs on returns after the closing bell from spirit maker Constellation Brands.

The company is estimated to post comparable per-share earnings of $2.64 for its fiscal third quarter on comparable net sales of $2.16 billion, according to Bloomberg estimates.

Beer shipment volumes, in particular, are seen dropping 2.91%, while the quarterly depletion volume -- or the rate at which drinks are sold -- is anticipated to slide 3.96%. The beer division makes up the majority of Constellation’s total revenue.

Constellation and rivals like Molson Coors and Brown-Forman have been grappling with weaker demand for alcoholic beverages, along with elevated tariffs on aluminum cans which have put pressure on margins.

Oil drops

Oil prices dropped following mixed inventory data Wednesday after much larger draw in crude stocks was offset by larger than expected in product inventories including gasoline and distillate at a time when oversupplied markets continue exert pressure. 

On the geopolitical front, President Donald Trump said on Tuesday that the U.S. and Venezuela had reached a deal that will see Caracas export up to $2 billion in domestic crude to Washington.

Trump has previously demanded that Venezuela and its interim President Delcy Rodriguez effectively grant the U.S. and American oil companies full "access" to the country’s vast and lucrative oil industry.

Should it fail to do so, Trump has suggested that further U.S. military intervention could face Venezuela.

Writing in a social media post, Trump said Venezuela will be "turning over" 30 million to 50 million barrels of "sanctioned oil" to Washington. Millions of barrels of oil have been prevented from moving out of Venezuela since Trump slapped a blockade on the Latin American country in December.

(Ayushman Ojha contributed reporting.)

Investing.com -- Wolfe Research upgraded Trex to outperform and downgraded Mohawk Industries to peer perform, saying expectations for homebuilders and building products remain low after another weak year, but valuations leave risk and reward modestly skewed to the upside in 2026.

Wolfe expects a slow start to the year, with survey work and field research showing no clear inflection yet. Weak repair and remodel demand and fading new residential tailwinds are likely to weigh on building products in the first half, though the firm said the bar for performance is low.

Policy remains a key focus. Wolfe said it does not expect sharply negative housing actions, such as limits on mortgage buydowns, and sees scope for supply-side measures and other demand influences to support fundamentals and sentiment over time.

Valuations underpin Wolfe’s preference for small- and mid-cap builders, which it said trade at deep discounts to large-cap peers.

Its top builder picks are Meritage Homes and Toll Brothers. Wolfe expects Meritage to outgrow the group in 2026 while trading about 20% below book value and returning roughly 11% of market value to shareholders through buybacks and dividends.

It favors Toll Brothers for lower exposure to Texas and Florida, limited reliance on entry-level buyers and conservative guidance.

In building products, Wolfe’s top picks are Fortune Brands Innovations and QXO.

The firm said Fortune Brands trades well below historical valuation averages, with estimates not yet reflecting potential digital tailwinds in 2026.

QXO was cited for expected traction from recent business changes, with a potential deal seen as the next catalyst.

Wolfe upgraded Trex after shares fell about 50% in 2025, leaving the stock at the largest discount to historical averages in the group. It sees above-average growth potential in 2026, driven by material conversion tailwinds, easy comparisons and upside to consensus gross margin estimates.

Mohawk was downgraded after strong performance in 2025, with Wolfe saying the repair and remodel recovery needed for a more meaningful earnings inflection now looks more like a 2027 story, reducing near-term upside relative to peers.

Investing.com -- Lockheed Martin (NYSE:LMT) stock fell 1.7%, Northrop Grumman (NYSE:NOC) dropped 2%, and other defense names were pressured Wednesday afternoon after President Donald Trump threatened to prohibit dividends and stock buybacks for defense companies.

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In a post on his social media platform Truth Social, Trump criticized defense contractors for issuing "massive dividends" and conducting stock buybacks "at the expense and detriment of investing in plants and equipment." He declared that this situation "will no longer be allowed or tolerated."

Trump also targeted executive compensation in the defense industry, calling pay packages "exorbitant and unjustifiable" given delivery delays of military equipment. He suggested capping executive pay at $5 million, which he described as "a mere fraction of what they are making now."

The president’s comments specifically addressed what he perceives as slow production and maintenance of military equipment. "I will not permit dividends or stock buybacks for defense companies until such time as these problems are rectified," Trump wrote, adding that defense contractors should use those funds to build equipment rather than "borrowing from financial institutions, or getting the money from your government."

Other major defense contractors including Raytheon Technologies (NYSE:RTX), General Dynamics (NYSE:GD), and L3Harris Technologies (NYSE:LHX) also saw their shares decline following the announcement.