Stock Market Update

[BRIEFING.COM] The S&P 500 (-1.0%), Nasdaq Composite (-1.9%), and DJIA (-0.3%) are modestly improved from session lows at midday. 

While much of today's coverage has focused on the dismal response to Microsoft's (MSFT 423.85, -57.78, -12.00%) earnings report, there is also a number of stocks posting solid gains in reaction to earnings. 

Meta Platforms (META 725.97, +57.24, +8.56%) delivered a powerhouse conclusion to 2025, signaling a rapid acceleration from a social media conglomerate to a "personal superintelligence" leader. While the stock is trading sharply higher following a decisive beat on revenue and EPS, the company is committing to an unprecedented level of infrastructure investment to fuel its AI-native transformation. This transition is underscored by a historic commitment to infrastructure, as the company is guided toward a massive capital expenditure range for 2026 to secure a strategic lead in the AI race. Furthermore, META's Q1 revenue guidance of $53.5-$56.5 billion arrived well ahead of expectations, supported by a healthy macro backdrop and continued monetization efficiency gains.

IBM (IBM 312.34, +18.18, +6.18%) is also sharply higher following an earnings beat. Revenue increased 12.2% year-over-year (+9% CC) to $19.69 billion, exceeding expectations and marking IBM's strongest constant-currency growth in more than three years. FY26 guidance was notably bullish, with management expecting 5%+ CC revenue growth and free cash flow up about $1 billion year-over-year, implying high-single-digit growth off its $14.7 billion FY25 base. IBM also guided Q1 CC revenue growth to be in line with the full-year 5%+ outlook.

Elsewhere, Southwest Air (LUV 47.14, +6.28, +15.37%) and Royal Caribbean (RCL 335.27, +43.67, +14.98%) are among the best-performing S&P 500 names after reporting earnings before the open.