Apple shareholder vote to keep its diversity policies
Proponents of the proposal argued that recent legal changes meant Apple would see an increase in discrimination cases if it continued DEI policies. Apple said it had an active oversight effort to avoid legal risks and that the proposal inappropriately restricted management. Apple CEO Tim Cook said at the meeting the company's "strength has always come from hiring the very best people and then providing a culture of collaboration, one where people with diverse backgrounds and perspectives come together to innovate." But Cook added that "as the legal landscape around these issues evolves, we may need to make some changes to comply, but our North Star of dignity and respect for everyone and our work to that end will never waver."
Tesla's market value tumbles below $1 trillion as its Europe sales slump
Tesla's stock tumbled, pushing its market value below $1 trillion for the first time since November after data showed the electric car maker's sales slumped in Europe in January. The European Automobile Manufacturers Association reported that Tesla sales dropped 45% in Europe, compared with a 37% jump in overall sales of EVs in Europe. The sales decline underscores Tesla's challenges following a dip in global deliveries last year that has raised pressure on CEO Elon Musk to roll out lower-priced models as well as the autonomous cars that he says underpin Tesla's future. Some investors are also worried that Musk's role overseeing a radical downsizing of the federal government, at the behest of U.S.
President Donald Trump, is potentially distracting his attention from Tesla as well as damaging the company's brand appeal to some consumers. Shares of the company ended 8.39% down at $302.80. Separately, Tesla made a long-awaited update to its autopilot software in China to add a city navigation feature, but the move disappointed Chinese owners who said it fell short of Elon Musk's promises.
AI stocks battered heading into make-or-break Nvidia earnings
Artificial intelligence-linked shares fell, in lead-up to AI bellwether Nvidia's quarterly earnings, which could offer clarity on demand and justify the sector's lofty valuations. Technology stocks globally sold off this week after a TD Cowen analyst note said Microsoft has canceled leases for sizeable data center capacity in the U.S., with at least two private data- center operators. AI-darling Nvidia dropped ahead of its highly anticipated quarterly earnings on Wednesday, where investors will focus on demand for its pricey AI chips after low-cost AI models from China's DeepSeek rattled the industry.
"It must be noted that such lulls are not uncommon, especially ahead of a set of results, but bulls of US equities more generally will be looking to Nvidia for reassurance,"
AJ Bell's investment director Russ Mould said in a note. Chip stocks were also hit following a report that said the U.S. was planning further restrictions on Nvidia's chip exports to China and that Washington was consulting with allies about tightening chip controls on China. Shares of Nvidia closed 2.80% lower at $126.63.
Home Depot forecasts surprise drop in annual profit as demand wavers
Home Depot forecast a surprise drop in 2025 profit as the company grapples with a weak housing market and high interest rates that are making U.S. consumers wary of making big expenditures. Home Depot executives on a post-earnings call said they expected the consumer to remain "healthy" while reiterating that the company can manage any impact from tariffs. "We've likely reached the bottom of housing turnover ... but we're not expecting a big rebound, nor significant increases in new housing starts,"
Home Depot Chief Financial Officer Richard McPhail said. Home Depot posted a 0.8% rise in same-store sales in the fourth quarter, compared with analysts' average estimate of a 1.87% drop, according to data compiled by LSEG. Home Depot expects adjusted profit- per-share for fiscal year 2025 to decline about 2%. Wall Street was projecting a 4.6% growth in earnings.
Lilly offers weight-loss drugs in vials at a discount to fight competition
Eli Lilly said it cut the price for vials of its weight-loss drug Zepbound by $50 or more and expanded the range of doses sold online to try to stave off competition from compounding pharmacies and rival Novo Nordisk. The move comes as the competitive dynamic in the highly lucrative weight- loss drug market is about to shift. Lilly said patients could purchase higher- dose 7.5 milligram and 10mg vials of Zepbound for $499 a month on the LillyDirect website.
That is nearly 23% less than the $650 Lilly charges for auto-injectors of the drug to patients who are insured but not covered for the medicine. Lilly's new offer of $499 per month is still higher than the $231 to $330 compounding pharmacies charge on average for their versions of Zepbound and Wegovy in the U.S.
US bank profits climb as regulator adjusts 'problem bank' tracking
U.S. banking sector profits rose 2.3% to $66.8 billion in the fourth quarter of 2024, a bank regulator reported, as it also announced moves to update how so-called problem banks are tracked. In its latest quarterly report, the Federal Deposit Insurance Corporation said it is revising its "problem bank" list to say only how many banks have been downgraded by regulators. The FDIC will no longer disclose how many assets are held at those banks. Overall, the banking sector reported healthy numbers, posting a 5.6% increase in 2024 year-long profits to $268.2 billion.
The FDIC said the boost in fourth-quarter profits was mainly due to recent short-term interest rate cuts, which helped boost net interest income by $3.8 billion for banks, as interest expenses shrank more than interest income. The amount of funds banks set aside for potential losses was also down, dipping 5.5% from the prior quarter to $22.3 billion.
Google loses fight on Android Auto access, bodes ill for Big Tech
Alphabet unit Google's refusal to let an Enel e-mobility app access its Android Auto platform can be considered an abuse of its market power, Europe's top court said in a ruling that could force Big Tech to make it easier for rivals to operate on their platforms. Google, which had cited security concerns and the absence of a specific template for refusing to make JuicePass compatible with Android Auto, had challenged the decision at the Italian Council of State which subsequently sought guidance from the Luxembourg-based Court of Justice of the European Union. Google has since resolved the issue, but the judgment could guide dominant companies' actions in similar situations in the future.
Court of Justice judges backed the Italian regulator. However, the court also said companies can justify their refusal if there is no template for the category of apps concerned and that to grant interoperability in such a situation would compromise the security or integrity of the platform. Meta must face lawsuit claiming it prefers cheaper foreign workers A federal judge said Meta Platforms must face a lawsuit claiming that the Facebook and Instagram parent prefers to hire foreign workers because it can pay them less than American workers.
U.S. Magistrate Judge Laurel Beeler in San Francisco said three U.S. citizens who accused Meta of refusing to hire them though they were qualified may pursue a proposed class action. Meta, based in Menlo Park, California, said there was no proof it intended to discriminate, or would have hired the plaintiffs if they were not U.S. citizens.
But the judge cited statistics that 15% of Meta's U.S. workforce holds H-1B visas, which typically go to foreign professionals, compared with 0.5% of the overall workforce. She also cited Meta's October 2021 agreement to pay up to $14.25 million, including a civil fine, to settle federal government claims it routinely refused to consider American workers for jobs it reserved for temporary visa holders.
Alcoa warns Trump's aluminum tariff could cost 100,000 US jobs
Alcoa said that U.S. President Donald Trump's plan to impose a tariff on aluminum imports could cost about 100,000 U.S. jobs and would itself not be enough to entice it to boost production in the country. The tariff takes effect on March 4. Alcoa, which produces aluminum in Canada, Iceland, Australia and elsewhere, had trimmed its output in the United States in recent years partly due to electricity costs.
Bill Oplinger, Alcoa's CEO, told the BMO Global Metals and Mining Conference in Florida that the tariffs could cost about 20,000 U.S. aluminum industry jobs and further 80,000 jobs in sectors that support it. "This is bad for the aluminum industry in the U.S. It's bad for American workers," said Oplinger, an engineer by training who became CEO in 2023, in webcast remarks.
Microsoft invests in cloud data firm Veeam Software to build AI products
Microsoft has made an undisclosed equity investment in Veeam Software as part of an expanded partnership to build artificial intelligence products, the cloud data company said. Veeam's software is designed to help customers quickly recover their data after cybersecurity incidents, ransomware attacks or accidental data loss.
Its core product supports immutable backups to prevent ransomware from modifying or deleting data, ensuring that clean copies remain available for recovery even if hackers encrypt files. Veeam said it would focus on research and development investments and design collaboration, among others, with the support of Microsoft.
