As Apple Inc. accelerates internal discussions around leadership succession, hardware engineering chief John Ternus has emerged as the leading candidate to eventually succeed Chief Executive Officer Tim Cook, according to a report from The New York Times.

The report said the shift comes as Tim Cook, 65, has signalled to senior leaders that he wants to reduce his workload after more than a decade at the helm of one of the world’s most valuable companies.

People familiar with the discussions told the New York Times that if Cook steps down as chief executive, he would likely transition into the role of chairman of the board, a move that would preserve continuity at the top of the company.

Ternus moves to the front of the pack

According to the report, which cited four people close to the company, Ternus, 50, has moved ahead of other internal candidates.

His rise reflects what appears to be a preference within Apple’s board for continuity rather than a dramatic strategic reset.

Those familiar with the process described Ternus as having a management style similar to Cook’s: measured, collaborative, and deeply attuned to Apple’s complex global supply chain.

Ternus joined Apple in 2001 and currently serves as Senior Vice President of Hardware Engineering.

Over the years, he has built a reputation for financial discipline and incremental innovation, qualities that align closely with Apple’s approach under Cook.

One example cited in the report dates back to around 2018, when Apple debated adding a $40 laser component to the iPhone to enhance augmented reality features.

According to two people familiar with the discussions, Ternus argued that the costly component should be limited to higher-end “Pro” models.

He reasoned that Apple’s most loyal users would value the feature, while mainstream consumers would not, and that rolling it out broadly would unnecessarily pressure margins.

Expanding responsibilities and product leadership

By 2013, Ternus’s remit had expanded to include oversight of the Mac and iPad teams.

In recent years, he has taken on an even more prominent role in shaping Apple’s product roadmap.

He was a key leader in Apple’s 2020 transition away from Intel processors in Macs to the company’s own silicon, a shift that has been widely viewed as one of Apple’s most successful engineering moves in the past decade.

Ternus also spearheaded the development of the iPhone Air, released last year with a slimmer design, and has been involved in Apple’s experimentation with foldable devices, according to one person close to the company cited by the New York Times.

A deep bench of internal candidates

While Ternus is currently viewed as the front-runner, he is not the only executive under consideration.

Apple’s internal bench includes several long-serving leaders, among them Craig Federighi, head of software; Eddy Cue, head of services; Greg Joswiak, head of worldwide marketing; and Deirdre O’Brien, who oversees retail and human resources.

The central question facing Apple’s board is whether the company needs a bold innovator or another operationally focused manager.

While Apple has not replicated the transformative success of the iPhone and iPad in recent years, it has continued to deliver steady product updates and remains one of the most profitable companies in the world.

AI strategy and external pressures

Succession planning comes as Apple confronts several strategic challenges.

The company must navigate President Donald Trump’s shifting tariff policies and its continued dependence on manufacturing in China.

At the same time, Apple’s approach to artificial intelligence remains under scrutiny.

While rivals have spent tens of billions of dollars developing AI capabilities, Apple has largely stayed on the sidelines and delayed major AI-driven changes to its products.

The prospect of a Ternus-led Apple may therefore raise questions among some investors about whether the company’s long-term AI strategy will become more assertive.

Apple shares were down about 1% in afternoon trading on Thursday following the report.

While leadership clarity is often viewed positively by investors, the market reaction suggested some unease about how Apple will balance continuity with the need to address emerging technological shifts.

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Advanced Micro Devices (NASDAQ: AMD stock) tumbled on Thursday, dropping nearly 3% to $204.53 as investors rotated out of the semiconductor giant following its CES product showcase.

The decline reflects not a company-specific crisis, but rather a collision of broader sector pressures, profit-taking after a stunning 77% rally in 2025.

AMD’s impressive announcements at CES, including new MI455X data-center GPUs, the Ryzen 7 9850X3D processor, and the Helios rack platform, failed to hold investor enthusiasm.

The AMD stock move underscores how high the bar has become for semiconductor stocks racing to capitalize on artificial intelligence.​

AMD stock: Sector pressure and CES fallout weigh on chip stocks

AMD doesn’t operate in a vacuum.

On Wednesday, Intel’s 10% surge on its Panther Lake launch stole the momentum from AMD’s own CES announcements a day earlier.

Intel’s Arc B390 graphics chip claimed 77% faster gaming performance than its previous version, while its new 18A manufacturing process directly challenges AMD’s cost structure.

That competitive positioning shifted sentiment sharply away from AMD and toward Intel as the near-term AI-PC play.​

Beyond Intel, the broader semiconductor sector is vulnerable to rotation.

Memory manufacturers like Western Digital fell 9% and Seagate dropped 9.3% as investors locked in gains across high-beta chip stocks.

AMD stock, with a beta of 1.9, tends to amplify market moves, both up and down. When tech rotates into defensive holdings or away from volatile growth bets, AMD feels the pain twice over.​

Geopolitical and regulatory headlines loom in the background.

US licensing policies toward China, tariff uncertainty, and questions about whether AI capex can sustain current levels all weigh on semiconductor sentiment.

While none triggered Thursday’s sell-off directly, the uncertainty keeps short-term traders on edge, ready to bail at the first sign of profit-taking opportunity.​

Profit-taking and short-term dynamics

The math is straightforward: AMD rallied 77% in 2025. After such a gain, any pullback is violent.

Heavy insider selling, including CEO Lisa Su’s sale of 125,000 shares in December for $26.9 million, adds psychological pressure, signaling that even insiders are locking in gains near recent highs.​

Analysts maintain a “Moderate Buy” rating with a $277 consensus price target, but that consensus assumes flawless execution: robust MI450 bookings, high-margin AI-GPU sales, and no competitive surprises.

Intel’s Panther Lake announcement cast doubt on that scenario, at least for the near term.​

Technical factors amplified the decline. The stock’s recent 20% pullback from October highs has left short-term traders and algorithms on hair-trigger sell signals.

Once key price levels were breached, momentum-based selling kicked in, cascading the decline from -1% to -3.2% within the first hour of Thursday trading.​

AMD’s Thursday plunge is a reminder that near-term price action and long-term fundamentals diverge sharply.

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Investors are bailing on CorMedix (NASDAQ: CRMD) today after the biotech firm guided for up to $320 million in revenue for its fiscal 2026.

The announcement isn’t sitting well with shareholders, primarily because CRMD’s topline was roughly $400 million in the prior year, according to the preliminary full-year financials it posted on Thursday.

Simply put, the NJ-headquartered firm expects its revenue to shrink this year, which seldom bodes well for investors. Following today’s plunge, CorMedix stock is down over 50% from its 52-week high.

CorMedix stock to remain subdued on DefenCath weakness

On July 1st, DefenCath will lose its temporary TDAPA reimbursement status and shift to a notably less favourable post-TDAPA add-on adjustment.

What this means is that dialysis providers will receive lower institutional reimbursement, and CorMedix will face materially reduced net pricing.

This will directly pressure its margins and undermine its near-term revenue visibility.

Note that “DefenCath” was CorMedix’s sole commercial product for a long time – and while the recent Melinta acquisition did expand its portfolio, those new revenue sources aren’t yet material enough to offset the expected weakness in its antimicrobial catheter lock solution.

This makes buying the dip in CRMD stock a rather risky proposition for serious investors.

CRMD shares’ technicals are just as concerning

CorMedix shares remain unattractive despite the sharp pullback, also because the management sees DefenCath sales sliding further to $140 million at the top end of its range in 2027.

Moreover, it’s not just fundamentals – the company’s technicals are just as concerning.

At the time of writing, CRMD is trading decisively below its major moving averages (MAs), indicating bears remain in control across multiple timeframes.

Plus, the biotech stock’s long-term relative strength index (100-day) sits at about “45” currently – which means the broader downtrend isn’t approaching exhaustion either.

Note that insiders have predominantly unloaded CorMedix in the trailing 12 months, reinforcing that those closest to the company believe it was overvalued at north of $10.

Taken together, these insights further strengthen the bear case for CRMD in 2026.

Is it worth investing in CorMedix today?

On Thursday, CorMedix also said its chief executive, Joseph Todisco, is taking over as chairman of the board as well.

This consolidation resides significant power in a single individual, reducing checks and balances that independent board oversight typically provides.

For investors, this dual role can be unsettling – as it heightens governance risk and may complicate accountability.

In the near term, this transition may mean uncertainty around strategic decision‑making, potentially undermining confidence in CRMD shares.

What’s also worth mentioning is that Wall Street had a consensus “buy” rating and $19 price target on CorMedix heading into 2026.

It’s reasonable to assume, however, that following the DefenCath update today, at least some firms will choose to downwardly revise their estimates for CRMD.  

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US stock indexes edged higher on Thursday after shaking off early morning weakness tied to mixed labor market signals and cautious investor positioning ahead of Friday’s employment report.

The S&P 500 recovered from small opening losses to trade just barely positive, while the Dow led the session with a 0.6% gain, buoyed by rotations into defensive and cyclical names outside technology.

The rebound reflects investor resilience rather than conviction, with breadth remaining cautious as traders await the January nonfarm payroll report due on Friday at 8:30 AM.​

US market rebound led by tech, breadth remains cautious

The morning selloff faded as buyers stepped in, particularly in industrials, financials, and discretionary stocks that had lagged during the technology-led rally.

The Dow’s outperformance, up roughly 0.6% midday, contrasted sharply with the Nasdaq composite, which traded essentially flat as mega-cap technology names struggled to hold ground.

Market breadth painted a mixed picture: advancers barely outnumbered decliners as traders rotated away from concentrated positions in Magnificent Seven stocks that have driven the bulk of 2025’s gains.​

The Russell 2000 small-cap index, meanwhile, climbed toward record territory, suggesting institutional investors were diversifying away from tech concentration.

VIX volatility, the fear gauge, held steady around 15.2, elevated for an early-year Friday but not signaling capitulation or panic selling.

This measured tone contrasts sharply with Thursday’s sharp rotations into defense stocks on Trump’s $1.5 trillion military budget announcement.​

Sector performance underscored the rotation: Palo Alto Networks bounced 1.8% on M&A speculation amid a cybersecurity consolidation wave.

Gap Inc. surged 2.8% after a UBS upgrade. Energy stocks, which had faltered on Venezuela oversupply concerns, stabilized as crude prices held firm.

Notably, financial stocks like JPMorgan and Bank of America inched higher alongside Treasury yields, reflecting investor expectations that the Fed may hold rates steady longer than initially priced in.​

Macro watch: Bond yields, dollar, Fed commentary shape afternoon trade

The 10-year Treasury yield held steady around 4.14%–4.16%, having fallen 3 basis points from Wednesday’s highs as investors digested weak December job creation data (41,000 private-sector jobs via ADP vs. 50,000 forecast).

The 2-year yield sat at 3.48%, leaving the 10-2 yield curve spread at 0.68%, a modest positive slope signaling mild expectations for economic normalization rather than recession.​

The dollar index ticked up to 98.80, hovering near four-week highs but struggling to break through the 99.00 resistance level.

The modest dollar strength, paired with stable yields, created a mixed backdrop for equities, not aggressively dollar-positive, but stable enough to keep Treasury buyers engaged.​

Friday’s headline jobs report will determine afternoon market direction.

Consensus forecasts nonfarm payroll growth of 55000–60,000 in December, down sharply from prior months as the economy faces labor headwinds.

A miss could trigger a rally in bonds and equities on Fed easing bets. ​

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Tonight’s top headlines span geopolitics and global tech tensions.

In Washington, the US Senate is moving to curb President Trump’s war powers by advancing a resolution that would require congressional approval before further military action in Venezuela.

Meanwhile, Trump’s administration is entertaining an unusual proposal to pay Greenlanders to consider independence.

China has launched a probe into Meta’s AI acquisition of Manus, underscoring rising tech rivalry.

And in energy markets, Reliance Industries signals interest in Venezuelan crude should sanctions ease.

Senate moves to curb Trump’s war powers

The US Senate is preparing to vote on a bipartisan resolution that would limit President Trump’s ability to take further military actions on Venezuela without congressional approval.

The measure reflects growing concern among lawmakers about the administration’s outreach to Caracas and the potential easing of pressure on President Maduro’s government.

While Trump has argued that engaging Venezuela could lower oil prices and reduce migration, critics warn that sanctions relief should only follow concrete democratic reforms.

The resolution, which has enough support to pass, would require the White House to certify political progress before waiving key restrictions, setting up a potential clash with the executive branch.

Trump floats Greenland payout plan

The Trump administration is weighing an extraordinary idea: paying Greenland’s 57,000 residents lump sums of between 10,000 and 100,000 dollars each to encourage them to break from Denmark, according to a Reuters report.

The payments, potentially totalling nearly $6 billion, are one of several options under discussion as Trump revives his long‑held ambition to bring the Arctic island under US control.

Critics in Greenland and Europe have blasted the notion as crass and neo‑colonial, insisting Greenland’s future is for Greenlanders and Denmark to decide, not Washington.

China probes Meta AI deal

China’s antitrust regulator is investigating Meta’s acquisition of Manus, a small AI startup, and has ordered the US tech giant to halt exports of certain products to the country.

The State Administration for Market Regulation is reviewing whether the deal, which closed last year, violates merger rules and national security concerns.

Separately, Beijing has told Meta to stop shipping some hardware and software to Chinese customers, citing export control issues.

The moves signal fresh tension between Washington and Beijing over technology transfers and highlight China’s growing scrutiny of foreign deals in sensitive sectors.

Reliance eyes Venezuelan oil return

Reliance Industries said it would consider buying Venezuelan crude if US sanctions are lifted, a move that could open a major new market for Caracas and reshape global oil flows.

The Indian refining giant, which operates the world’s largest processing complex at Jamnagar, has historically taken Venezuelan oil but stopped after Washington tightened restrictions.

With the Trump administration now exploring a rapprochement, Reliance appears ready to move quickly.

The company stressed any purchases would comply with international law, but the prospect of fresh shipments highlights how sanctions relief could rapidly redraw trade routes and give Venezuela a vital economic lifeline.

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The government plans to modify their business rate increase schedule for pubs through upcoming announcements, which will establish rate increase boundaries.

The Treasury officials understand how venues face financial challenges because rateable value assessments have resulted in significant increases, which they are working to reduce.

The policy change occurred because of continuous demands from property owners and their representative organisations following more than 1,000 pubs refusing to serve Labour Members of Parliament.

The Guardian reports that the new regulations will form part of a complete Treasury initiative, which includes three main components to handle licensing and establish new business hours and reduce administrative requirements.

The solution presents two possible solutions, which include applying a smaller multiplier value or boosting the relief funding budget.

What is changing and when

Ministers are preparing a U-turn on elements of the business rates changes that were set to hit hospitality hardest, with details due shortly, according to the Guardian.

A government source indicated that the main objective is to identify problems which occur during business rate collection processes while proposing specific changes to the calculation system instead of implementing complete system changes.

The Treasury officials presented two possible solutions, which involve either decreasing the bill calculation multiplier or increasing the £4.3 billion transitional relief fund to protect businesses from pandemic support withdrawal.

Why pubs were braced for higher bills

In the November Budget, Chancellor Rachel Reeves scaled back business rate discounts that had been in place since the pandemic from 75% to 40%.

The property revaluation process resulted in higher taxable values for numerous pubs and restaurants because their property values had decreased during the COVID-19 period.

How the revaluation hits sectors

The Guardian reports that hotel rates will increase by 115% on average, while pub rates will rise by 76% starting from April, but supermarkets and warehouses will experience only 4% and 7% rate increases, respectively.

Whitbread, owner of Premier Inn as well as pubs and restaurants, said it will have to pay between £40m and £50m in tax as a result.

Political and industry backdrop

The planned modifications emerged from negotiations which involved representatives from the pub and hospitality industry organizations.

The Guardian reported that Reeves ordered work during Christmas time to develop a support program for pubs, which Dan Tomlinson from the Treasury department would lead.

The industry groups showed appreciation for the indications which suggested a change in approach.

Emma McClarkin, chief executive of the British Beer and Pub Association, said the government “is going to look again at business rates increases,” calling it “potentially a huge win for pubs across the country,” while saying the sector now awaits the detail.

England and Scotland

The pandemic brought a rate discount which specifically benefited pubs operating in England.

Businesses in Scotland are waiting for next week’s Budget in Edinburgh to see how the Scottish government will address the issue, with pubs there hoping for similar relief.

What to watch next

The upcoming announcement will reveal which approach ministers will choose between reducing the multiplier and extending transitional relief benefits, or they will select to apply both changes.

The government would need to reverse its decision, which would become the third major policy retreat since the beginning of the year, after the government already backed down on winter fuel payments and disability benefits and inheritance tax for farms and family businesses.

The Treasury has established a specific path which involves controlling interest rate growth for pubs until it completes its assessment of liability computation methods.

The extent of backing, together with the primary recipients of assistance, will depend on the specific policies which will be implemented during the upcoming period.

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GameStop (NYSE: GME) is pushing meaningfully higher this morning after Ryan Cohen, its chief executive, agreed to anchor his salary to the company’s stock price performance.

According to GME’s press release, “Mr. Cohen will receive no guaranteed pay – no salary, no cash bonuses, and no stock that vests over time.”

Instead, the latest pay plan has made it so that Cohen will be $35 billion richer if GameStop hits a few ambitious profitability targets that drive its market cap up tenfold.

At the time of writing, GME shares are down nearly 40% versus their 52-week high.

Does Cohen’s pay plan warrant investing in GME Stock

Ryan Cohen is set to bank billions but only if he can orchestrate a massive increase in GameStop’s market cap to a whopping “$100 billion” over the next ten years.

That’s a tall order, given GME was worth some $34 billion even at the peak of the meme stock mania in 2021.

Plus, the gaming merchandise retailer must hit $10 billion in cumulative performance EBITDA as well in order for Cohen’s pay plan to fully vest. That metric currently sits at just $200 million.

What these numbers suggest is: the billionaire has immense confidence in his ability to truly revive this name that’s broadly seen still as a meme stock only.

And given his track record, that vote of confidence does offer a major reason for investors to stick with GameStop stock for the long term.  

What could drive GameStop shares higher in 2026?

While a tenfold increase in market cap sure is ambitious, GameStop is already pulling some levers that seem to be driving bottom-line growth.

For example, its recent push into “collectibles” worked wonders in the latest reported quarter, with net income pushing meaningfully higher on a year-over-year basis to $77 million.

Then of course, there’s the Bitcoin pivot that makes GME stock infinitely more attractive to crypto enthusiasts – with potential to trigger a massive rally should the cryptocurrency stage a comeback in 2026.

If all else fails, there’s always the possibility of another major short squeeze that drives GameStop up significantly from here – perhaps not to a $100 billion market cap – but enough for believers to have a big payday.

Note that Wells Fargo recently forecast that markets will see a meme stock rally in 2026.  

GameStop: an attractive yet speculative bet

GameStop shares remain a highly speculative bet – a stock that continues to polarize Wall Street between skeptics who dismiss it as a relic of meme‑mania and believers who see untapped potential.

Yet Ryan Cohen’s audacious pay plan, the firm’s push into higher‑margin categories, and its bold BTC pivot all suggest there are levers that could deliver exponential upside if executed well.

Add in the ever‑present possibility of another short squeeze, and the case for keeping at least some exposure to GME becomes clear – while risky, the pay-off could be transformative for the patient investors.

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Global markets and geopolitics collide as Washington’s hard-edged strategy ripples across energy, media, defense, and aviation.

A US push to redirect Venezuelan oil away from China is roiling crude prices and inflaming Beijing, while corporate boardrooms brace for high-stakes M&A brinkmanship.

Diplomatic tensions intensify ahead of Arctic talks with Denmark, even as US airlines make long-dated bets on fleet expansion amid regulatory risk.

Together, the moves underscore a volatile mix of power politics and capital allocation.

Trump’s oil grab strips China of Venezuelan supply

The Trump administration’s move to divert Venezuelan crude away from China toward US refineries is igniting Beijing’s fury and depressing global oil prices.

China, which imported 389,000 barrels per day from Venezuela in 2025, roughly 4% of its seaborne oil imports, faces losing access to discounted crude worth billions of dollars annually.

Foreign Ministry spokesperson Mao Ning denounced the US as a “bully” for both deposing Maduro militarily and demanding Venezuela prioritise American interests.

Trump announced plans to control $2 billion in Venezuelan crude sales, claiming the proceeds would benefit Venezuela and America, while refiners reroute tankers destined for Chinese ports.

Oil prices fell 1% on expectations of expanded supply flooding markets.

Warner’s board torpedoes Paramount’s “largest LBO ever”

Warner Bros. Discovery’s board unanimously rejected Paramount’s $108 billion bid for the sixth time on Wednesday, labeling it a leveraged buyout that would create the largest debt burden in M&A history.

Despite Larry Ellison’s $40.4 billion personal guarantee and increased breakup fees, WBD’s directors flagged over $50 billion in debt financing, making Paramount, a $14 billion company, attempt a 7x market cap acquisition.

Netflix’s $72 billion offer remains the safer bet: $400 billion market cap, investment-grade credit rating, $12 billion annual free cash flow, versus Paramount’s junk rating and negative free cash flow.

WBD shareholders face a January 21 tender deadline, but the board warns that dumping Netflix would incur $4.7 billion in penalties.

Rubio’s Denmark visit sets stage for high-stakes Arctic showdown

US Secretary of State Marco Rubio confirmed on Wednesday that he will meet Danish leaders next week, but offered no reassurance, saying Trump’s Greenland acquisition goal remains unwavering.

While Rubio told lawmakers the administration prefers to “purchase” the Arctic island rather than invade it, he pointedly refused to rule out military options when pressed by reporters.

The contrast signals a familiar Trump negotiating playbook: maximalist rhetoric to pressure Denmark into talks while maintaining the threat credibly.

Denmark and Greenland have sought this meeting three times previously without success, and their requests come after six NATO powers, France, Germany, Italy, Poland, Spain, UK, jointly declared the island “belongs to its people.”

Alaska Airlines goes all-in on Boeing’s Max future

Alaska Airlines announced Wednesday its largest aircraft purchase in 90 years, 105 Boeing 737 MAX 10s and five 787 Dreamliners through 2035, worth an estimated multibillion dollars.

The sprawling order brings Alaska’s total Boeing commitment to 245 aircraft, cementing its dominance by a single manufacturer after shedding all Airbus jets by 2023.

CEO Ben Minicucci framed the deal as fuel for his “Alaska Accelerate” expansion plan: the 737-10s will seat 204 passengers, up from 178 on existing MAX 9s, boosting capacity on high-demand routes, while five new 787-10 widebodies unlock service to at least 12 European and Asian hubs from Seattle-Tacoma by 2030.

The timing risks a gamble: the 737-10 still awaits FAA certification, originally slated for 2023, now likely 2026 with Boeing caught between anti-icing fixes and supply-chain constraints.

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US stock markets pushed to fresh intraday records on Wednesday before investors locked in early gains, leaving the Dow down roughly 0.5% and the S&P 500 essentially flat.

The day’s mixed trading reflected a familiar tension: strong economic data from the services sector clashed with weak employment numbers.

Energy refiners, led by Valero’s 3% gain on Venezuelan oil-supply optimism, offered momentum to the broader rally.

The Nasdaq managed modest gains, rising 0.13% to 23,578, but the broader picture showed caution settling in after three consecutive days of record-setting rallies.​

The intraday path: Records and reversals

The session opened with conviction.

The Dow climbed to an intraday high of 49,368 early in the day, while the S&P 500 pushed toward 7,000 as investors cheered the Institute for Supply Management’s December services report, which came in at 54.4.

That 10-month high for the services PMI signaled underlying economic resilience.

Yet by midday, the rally stalled. The Dow retreated 240 points to close at 49,221.89, while the S&P 500 ended down 6.9 points at 6,937.81.

Volume remained above average, but breadth told a different story: advances barely outnumbered declines as traders rotated out of cyclicals and into defensive plays.​

Valero Energy jumped 3% on reports that Venezuelan crude supplies could resume under US oversight, feeding a broader energy rotation that failed to sustain.

Yet crude prices fell, with West Texas Intermediate sliding $0.44 to $56.69 per barrel, as markets priced in global oversupply concerns despite the Venezuela headline.​

US stocks midday: Growth meets labor weakness

The day’s reversal hinges on two colliding signals.

The ISM services data showed the strongest new-orders component (57.9) in months, with business activity climbing to 56.0, suggesting the AI-driven productivity push is finally trickling into the broader economy.

For the Fed, that’s encouraging.

The problem: price inflation for service-sector inputs remained stubbornly elevated at 64.3, just below the 13-month high, signaling that input costs are not deflating as quickly as central bankers hoped.​

That concern deepened when the ADP National Employment Report landed with a miss: only 41,000 private-sector jobs added in December, well short of the 45,000 forecast.

Traders read the jobs weakness as a potential signal that the labor market is cooling faster than expected, a scenario that historically paves the way for Fed rate cuts.

Yet the sticky services inflation muddies that thesis. If the Fed cuts rates while service-side price pressures persist, it risks reigniting broad-based inflation.​

The market’s caution is justified.

Treasury yields held steady on Wednesday as traders hedged their bets.

The January 14 Producer Price Index and January 15 Consumer Price Index will follow, offering clearer signals on whether disinflation is durable or stalling.

For now, the investors are holding near record highs but awaiting clarity.

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President Trump is threatening to ban stock buybacks and dividend payments for major US defense contractors until they speed up weapons production and reduce cost overruns.

The administration is drafting an executive order targeting firms like Lockheed Martin, Northrop Grumman, RTX, Boeing, and General Dynamics.

The companies return billions to shareholders annually, but are alleged to be missing Pentagon deadlines and exceeding budgets on critical weapons programs.

Trump’s goal is clear: force these contractors to redirect cash from shareholder payouts into factories, equipment, and production capacity.​

What the White House is proposing

The draft executive order would restrict dividends, stock buybacks, and executive compensation for defense firms that run over budget or fall behind schedule on weapons programs.

In December, sources told Reuters the White House was preparing the measure, with Trump potentially signing it by early January.

On Wednesday, Trump publicly declared on Truth Social:

I will not permit dividends or stock buybacks for defense companies until such time as these problems are rectified.​

The directive is tied to a Treasury Department initiative, though exact enforcement mechanisms remain unclear.

Details are still being finalised, including eligibility thresholds and specific triggers, whether delays must be measured in months, years, or cost overrun percentages.​

The push follows years of Pentagon frustration with the defense industry.

Northrop Grumman’s Sentinel intercontinental ballistic missile program has ballooned to $140.9 billion, 81% over its original $77.7 billion estimate.

Lockheed Martin’s F-35 fighter program has faced persistent cost increases and schedule delays throughout its 20-year development.

Meanwhile, these same firms have spent tens of billions rewarding shareholders.​

Lockheed Martin recently raised its quarterly dividend to $3.45 per share (the company’s 23rd straight annual increase) and authorised an additional $2 billion stock buyback, bringing total buyback authority to $9.1 billion.

Northrop Grumman pays a $2.31 quarterly dividend and authorized a new $3 billion buyback program in December 2024.

From 2021 to 2024, the top four Pentagon contractors, Lockheed, RTX, General Dynamics, and Northrop, spent roughly $89 billion on buybacks and dividends combined.

An estimated $58 billion of that came from taxpayer-funded government contracts.​

Market and legal implications

Defense stocks tumbled on the news.

Lockheed Martin fell 1.7% and Northrop Grumman dropped 2% in Wednesday trading after Trump’s comments.

Analysts worry the restrictions could reduce earnings per share support, buybacks artificially boost EPS by shrinking the share count, and hurt dividend yields that attract institutional investors.​

However, legal experts say Trump’s authority to enforce such restrictions is questionable.

Executive orders cannot create new laws; they can only direct federal agencies to enforce existing ones.

The administration would likely tie restrictions to government contracts, essentially threatening to withhold work unless firms comply.

That approach is more politically feasible but legally murky. Industry groups are preparing litigation challenges.​

Analysts also note that defense contractors will likely benefit from higher defense spending anyway.

Trump is signaling a willingness to boost Pentagon budgets, which could grow revenues enough to offset dividend cuts.

The real question is whether contractors will voluntarily comply to win larger contracts or fight the restrictions in court.

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