Good morning. QQQs +15bps / SPY -30bps on a quad witch & S&P rebalance day. Yields +3-5bps across the curve while crude is slightly lower. Semis +50bps. META +1.5% after Muse finally hits top spot on the app store. GOOGL +2% on some rumored Gemini 4 Pro benchmarks that look faked. NFLX -3.5% on a Wells downgrade on lower engagement and viewing.
Overnight, Asia mainly green: TPX -0.07%, NKY +1.38%, Hang Seng +0.6%, HSCEI +0.61%, SHCOMP +0.94%, Shenzhen +1.67%, Taiwan TAIEX +1.93%, Korea KOSPI +2.66%. Memory names stronger: Hynix +6%; Samsung +3%; Kioxia +9%
Lots to get to, so let’s get to it…
META: Muse hits top spot on the Appstore
Apptopia says Muse has 1.6 million US downloads in its first 8 days. ChatGPT's first 8 days (albeit a different use case and much less capable at the time) saw 822k US downloads. ChatGPT was also only available via iOS at the time. If just looking at iOS downloads of Muse, it is 1.1 million.
NFLX: Wells Fargo downgrades to UW/$57 as engagement weakens and softer slate pressures ’27–28 margin upside
Wells Fargo says 2H26 hours/sub are tracking ~4% lower y/y, with viewing of Top 100 NFLX Originals down >20%, reinforcing concern that the service has lacked enough breakout original series. Wells cuts 2027/28 EPS to $3.77/$4.52 and sees less operating-margin expansion as weaker engagement raises the risk of higher content spend and licensing. Wells downgrades to Underweight and cuts PT to $57 from $80, with the Jan-27 viewership report a key catalyst.