It's been a tricky year uh in some respects for financials, hasn't it. Yeah. You know, they they kick off earnings season, the stocks look pretty good going into that and now they're pacing for the third negative week of the past four.Uh you can maybe hang on some headlines that have come out obviously some of the social media posts and some of the planned executive orders or the like that has weighed on on names here. Some of the credit card ones for obvious reasons. Bin, speaking of your new buy is Capita ...

Core Viewpoint - The acquisition of Brex by Capital One signifies a strategic move to enhance corporate card offerings while integrating advanced software and automation technologies into financial operations [1][2] Group 1: Acquisition Details - The acquisition of Brex, a corporate card and expense management company based in San Francisco, is expected to close in mid-2026, subject to regulatory approval and customary conditions [1] - Brex CEO and cofounder Pedro Franceschi will continue to lead the company under Capital One [1] Group 2: Brex's Business Model - Brex has established its reputation by providing corporate cards to startups without requiring personal guarantees, along with tools that simplify expense tracking and approvals [3] - The company has evolved into a comprehensive platform that integrates payments, spend management, and banking services, utilized by over 25,000 companies, including notable clients like DoorDash, Robinhood, Zoom, and Plaid [3] Group 3: Industry Implications - The deal represents more than just an expansion into corporate cards; it highlights the growing importance of software, automation, and artificial intelligence in transforming financial operations within companies [2]

Core Viewpoint - Capital One's fourth-quarter 2025 results fell short of expectations, with adjusted earnings of $3.86 per share missing the Zacks Consensus Estimate of $4.12, despite showing year-over-year growth from $3.09 [1][8] Financial Performance - Adjusted earnings for 2025 were $19.61 per share, below the Zacks Consensus Estimate of $19.82, but improved from $13.96 in the previous year [3] - Total quarterly net revenues reached $15.58 billion, a 52.9% increase year over year, surpassing the Zacks Consensus Estimate of $15.37 billion [4] - Net revenues for 2025 were $53.43 billion, up 36.6% year over year, also exceeding the Zacks Consensus Estimate of $53.29 billion [4] - Quarterly net interest income (NII) surged 53.9% year over year to $12.5 billion, with net interest margin (NIM) expanding 123 basis points to 8.26% [4] Expense and Income Analysis - Non-interest income grew 49% year over year to $3.12 billion, driven by higher service charges and customer-related fees [5] - Non-interest expenses rose 53.4% year over year to $9.34 billion, attributed to increases in various cost components, particularly amortization of intangibles [5] - The efficiency ratio increased to 59.95%, indicating a decline in profitability compared to 59.75% in the prior-year quarter [6] Credit Quality - Provision for credit losses was $4.12 billion, a 56.8% increase from the prior-year quarter, with the allowance as a percentage of reported loans held for investment at 5.16%, up 20 basis points [7] - The net charge-off rate decreased by 14 basis points year over year to 3.45%, and the 30-plus-day-performing delinquency rate declined by 28 basis points to 3.41% [7] Strategic Developments - Capital One announced the acquisition of fintech Brex for $5.15 billion in a stock-and-cash deal, expected to close in mid-2026 [10][11] - The acquisition aims to enhance Capital One's position in the business payments marketplace, leveraging Brex's integrated platform [11] Capital Ratios - As of December 31, 2025, the Tier 1 risk-based capital ratio improved to 15.3% from 14.8% a year earlier, while the common equity Tier 1 capital ratio rose to 14.3% from 13.5% [9]

Group 1 - Capital One Financial Corp's shares have decreased by 4.2%, trading at $225.61, following a fourth-quarter profit miss and the announcement of acquiring startup Brex for $5.15 billion [1] - Despite the recent decline, analysts remain optimistic, with 18 out of 22 maintaining a "buy" or better rating, and a 12-month consensus target price of $278.91, indicating a 24.2% upside potential from current levels [2] - The stock has experienced a 23.5% gain over the past nine months, although it has retreated from its all-time high of $259.63, breaking below the 100-day moving average [3] Group 2 - Options trading volume for Capital One is significantly high, at three times the typical amount, with 12,000 calls and 8,023 puts traded, indicating increased market activity [4] - The most active options contract is the weekly 1/23 232.50-strike call, with new positions being opened, suggesting a strategic move by investors [4] - The current Schaeffer's Volatility Index (SVI) for Capital One is at 33%, which is higher than 84% of readings from the past year, indicating that options are affordably priced [4]

Market Overview - The U.S. stock market opened with mixed sentiment as investors reacted to corporate earnings and easing geopolitical tensions [1] - Major indices showed modest movements, with a notable rotation from mega-cap technology stocks towards small-cap companies [1] Major Market Indexes - The S&P 500 rose 0.05% to 6916 points, recovering from earlier losses, but is down 0.4% for the week [2] - The Dow Jones Industrial Average (DJIA) closed at 49,384.01 after a 0.6% increase, nearing the psychological 50,000 mark [3] - The Nasdaq Composite, after a 0.9% gain to close at 23,436.02, experienced a subdued open, indicating a shift in investor focus [4] Small-Cap Performance - Small-cap ETFs have led the market rally with year-to-date gains exceeding 7%, contrasting with the flat performance of mega-cap tech ETFs [4] - The Invesco S&P 500 Equal Weight ETF (RSP) climbed 3.3%, attracting significant fresh capital, signaling broader market recovery interest [4] Upcoming Earnings - The fourth-quarter 2025 earnings season is underway, with S&P 500 companies expected to report an earnings growth of 8.8% year-over-year, potentially reaching around 12% [6] - Key companies reporting today include Schlumberger Limited, Ericsson, and Capital One Financial, among others [6][7] Economic Indicators - Today's focus includes preliminary PMI data and final January Consumer Sentiment figures, with further insights expected next week [8] - The Personal Consumption Expenditures (PCE) index is projected to show a 0.2% month-over-month increase, with year-over-year readings at 2.8% [9] Corporate Developments - Intel shares fell 13% in premarket trading after a weaker-than-expected first-quarter outlook, despite surpassing fourth-quarter earnings estimates [14] - TikTok finalized a deal to avert a U.S. ban, involving a joint venture with Oracle and retaining a 19.9% stake for ByteDance [14] - Capital One Financial's shares declined after announcing the acquisition of fintech startup Brex for $5.15 billion while missing fourth-quarter earnings estimates [14] - Amazon is reportedly planning layoffs across various divisions, although its shares remained relatively unchanged [14] - Microsoft is noted for its sluggish performance, contributing to the drag on traditional market-cap-weighted indices, while Nvidia remains a focus for investors [14]

Market Overview - US stock index futures are all down, with Dow futures down 0.23%, S&P 500 futures down 0.11%, and Nasdaq futures down 0.18% [1] - European indices show mixed performance, with Germany's DAX down 0.04%, UK's FTSE 100 up 0.04%, France's CAC40 down 0.40%, and Europe's Stoxx 50 down 0.41% [2][3] Commodity Prices - WTI crude oil increased by 1.89% to $60.48 per barrel, while Brent crude oil rose by 1.81% to $65.22 per barrel [3][4] Investment Trends - A new wave of "Sell America" is emerging, with global funds flocking to Asian tech stocks and gold, driven by tensions between the US and various sovereign governments, leading to significant selling pressure on dollar assets [5] - Emerging markets, particularly in Asia, are attracting global capital, with a focus on South Korea, China, Taiwan, and India [5] Company News - Schlumberger (SLB.US) reported Q4 net income exceeding expectations, driven by strong North American market demand, with revenue up 5% year-over-year to $9.75 billion [8] - Ericsson (ERIC.US) nearly doubled its Q4 profit, exceeding expectations, and announced a historic SEK 15 billion stock buyback plan [9] - Intel (INTC.US) reported Q4 revenue down 4.1% year-over-year to $13.7 billion, with guidance for Q1 2026 lower than analyst expectations [10] - Alcoa (AA.US) reported Q4 revenue of $3.4 billion, exceeding market consensus, driven by rising aluminum prices [10] - First Capital Credit (COF.US) reported Q4 revenue of $15.583 billion, a 53% year-over-year increase, but adjusted EPS fell short of analyst expectations [11] - Amazon (AMZN.US) is preparing to lay off thousands of employees, following a previous announcement of 14,000 job cuts [13] - Tesla (TSLA.US) has launched a fully autonomous taxi service in Austin, marking a significant milestone in its operations [14]

Let's get Kramer's mad dash as we count down to the bell. >> I feel very counterintuitive today. We talked about Phil Leau and GE Larry Culp.That stock was down. We talked about Lip Boo and why Intel is down and that Intel is good. I want to address Capital One.This was an amazing conference call. They bought this terrific company Brex. I didn't nearly even know how much business that Brex does.That's for corporate. They want to go directly against American Express. Yes.Did they disappoint in the quarter. D ...

Weather Impact on Retail - A winter storm is expected to affect a significant portion of the U.S., potentially impacting consumer behavior and retail sales [2][3] - Costco (COST) is anticipated to benefit from increased sales as consumers engage in pantry-loading ahead of the storm, similar to past events [4] - Anecdotal evidence shows crowded Costco stores in states like Texas and Florida, with shares up 13% year-to-date [5] Restaurant and Retail Sector Challenges - Dine-in restaurants and discretionary retail are likely to face revenue headwinds due to consumers staying indoors during the storm [5][6] - Several restaurant companies have previously reported traffic declines during severe winter weather [6] Capital One Acquisition - Capital One (COF) has announced the acquisition of fintech company Brex for $5.15 billion, with the deal structured as 50% cash and 50% stock [7][8] - This acquisition aims to enhance Capital One's capabilities in serving corporate clients through Brex's technology for corporate cards and expense management [8] Intel Earnings Report - Intel (INTC) reported stronger-than-expected Q4 results but provided a Q1 outlook that fell below analyst expectations, leading to a 12% drop in premarket shares [9][10] - The company expects Q1 revenue between $11.7 billion and $12.7 billion, with adjusted earnings per share projected to break even [10]

Group 1: Weather Impact on Retail - A winter storm is expected to affect a significant portion of the U.S., potentially impacting consumer behavior and retail sales [2][3] - Costco (COST) is anticipated to benefit from increased sales as consumers engage in pantry loading in preparation for the storm, similar to past events [4] - Anecdotal evidence shows crowded Costco stores in states like Texas and Georgia, with shares of Costco up 13% year-to-date [5] Group 2: Restaurant Sector Challenges - Dine-in restaurants and discretionary retail are likely to face revenue headwinds due to consumers sheltering indoors during the storm [5] - Several restaurant companies, including Dunkin' and McDonald's, have previously noted that severe winter weather negatively impacts customer traffic [6] Group 3: Capital One Acquisition - Capital One (COF) has agreed to acquire fintech company Brex for $5.15 billion, with the deal structured as 50% cash and 50% stock [7][8] - This acquisition aims to enhance Capital One's capabilities in serving corporate clients, particularly in corporate card issuance and expense management [8] Group 4: Intel Earnings Report - Intel (INTC) reported stronger-than-expected Q4 earnings but provided a Q1 revenue outlook below analyst expectations, leading to a 12% drop in premarket shares [9][10] - The company expects Q1 revenue between $11.7 billion and $12.7 billion, with adjusted earnings per share anticipated to break even, below the expected $0.08 [10]

Group 1 - The core point of the article is the acquisition of Brex by First Capital Investment International Group for $5.15 billion, marking an unremarkable end to Brex's journey as an independent company [2][11] - Brex, founded nine years ago, aimed to disrupt traditional financial institutions like American Express but faced challenges in recent years, including a significant drop in valuation from a peak of $12.3 billion in early 2022 to a current valuation of $3.9 billion [3][12] - The acquisition price of $5.15 billion, split equally between cash and stock, is less than half of Brex's peak valuation, indicating substantial losses for some investors [3][12] Group 2 - Brex's co-founder and CEO, Pedro Franceschi, expressed optimism about the merger, stating it would maximize the advantages of the entrepreneurial model [4][13] - First Capital views the acquisition as relatively small, representing only 3.5% of its current market value of approximately $149 billion, and emphasizes Brex's technological value [4][13] - The decision to sell rather than pursue an IPO reflects the board's assessment that going public may not be the best way to maximize shareholder value, especially after observing the poor performance of many IPOs last year [3][12]