In remarks at the World Economic Forum in Davos today, President Trump called for “immediate negotiations” over his latest hyperfixation—taking over Greenland—and said he won’t use the military to take over the territory.

“People thought I would use force. I don’t have to use force. I don’t want to use force. I won’t use force,” he promised the group of CEOs and political leaders.

Stocks immediately rebounded after those comments, which gave investors a sense of assurance that at least some diplomatic normalcy was still in place after the double-whammy of Nicolas Maduro’s ousting and the president’s heated rhetoric about Greenland.

Keeping Davos on its toes

Then, that normalcy was shattered by the president’s stunning announcement that he had reached an agreement with NATO Secretary-General Mark Rutte about the future of Greenland.

“We have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region,” Trump posted on Truth Social this afternoon. “Based on this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st.”

US stocks jumped even higher as investors breathed a sigh of relief that the threat of military conflict was temporarily quelled.

But it's still unclear what the details of that “framework” would be, or what long-term diplomatic damage has been done after this whole fiasco. Although the president declared he would back off of his recent threats of higher tariffs on European nations that resist the acquisition of Greenland, the European Union’s parliament had already decided to freeze a ratification vote of the previous trade deal it made with the US earlier this afternoon.

TACO traders are seeing green

How should investors approach today’s latest edition of market madness? One investment that’s consistently worked out over the past two years is betting that Trump chickens out, and today’s news is just the latest example of how anyone who buys the dip after the president promises global upheaval can make some serious profits when he backs down.

Then again, while gambling on the president’s whims has been a winning wager, making rash investment decisions based on the headlines isn’t the long-term path to profits. Instead, try to ignore the noise and find great stocks worth sticking with through thick and thin.—LB

🟢 What’s up

• Intel rallied 11.72% as investors looked ahead to the company’s upcoming earnings report.
• United Airlines jumped 2.2% following a strong fourth quarter and forecasts of record earnings this year on solid travel demand.
• Interactive Brokers Group climbed 6% after it beat fourth-quarter expectations, helped by heavy trading activity.
• Charles Schwab rose 0.8% despite missing fourth-quarter earnings expectations, as client assets continued to grow.
• Progress Software gained 10.62% on a strong fourth-quarter earnings report.
• Lucid surged 17.88% after the luxury EV maker said it expanded its partnership with Rockwell Automation to support manufacturing growth in Saudi Arabia.
• GameStop shares rose 2.8% after CEO Ryan Cohen bought 500,000 shares.

What’s down

• Ubisoft fell 11.35% after the company canceled six games, shut two studios, and confirmed additional layoffs as part of a major restructuring.
• Xerox dropped 10.36% after the office equipment manufacturer said it plans for a $250 million securities offering.
• Travel company MakeMyTrip slid 12.13% after mixed fiscal third-quarter results, with higher tax and financing costs pushing profits down 73% from a year earlier.

From Stranger Things to K-Pop Demon Hunters, Netflix knows how to crank out hits—but off-screen, the streaming giant is stuck in a real-life Upside Down hellscape, with shares dropping 2.18% today, and down 40% from their peak this summer.

Hopes were high for a comeback story in yesterday’s Q4 earnings report, which tried its best to deliver. Paid subscriptions surpassed the 325 million mark—which, along with price hikes and advertising, boosted quarterly revenue and earnings past analysts’ projections. However, operating margin guidance missed expectations thanks to a 10% increase in spending in order to satisfy the bottomless pit of binge-watchers seeking their next Squid Game fix.

But the real attention-grabber is the company’s over-the-top, rom-com-style wooing of Warner Bros. Netflix just upped the ante, making an all-cash, $82.7 billion offer for the company in an effort to fend off a bidding war from Paramount Skydance.

This deal—which forced Netflix to pause share buybacks to amass the money to pay for it—has investors’ alarms blaring, and shares have tumbled 15% since this WBD drama all began. Still, Netflix management insisted that this marriage was worth the effort and will “strengthen the entire entertainment industry” (not to mention its long-suffering stock). Netflix Co-Chief Executive Greg Peters added that this all-cash deal-sweetener “demonstrates our commitment to the transaction” and should help speed both parties toward the altar.

What’s next? Warner is slated to hold a shareholder vote on this deal by April, so odds are this drama won’t be over anytime soon. Until then, there will surely be plenty of new plot twists as Netflix tries to remain the king of streaming in an increasingly crowded and competitive landscape. Stay tuned.—JD

Every new CEO wants a signature first move. Greg Abel’s just happens to involve clearing out a Buffett-era pantry staple.

Berkshire Hathaway is preparing to exit its 28% stake in Kraft Heinz, following a $3.8 billion writedown last year on the value of the position. Kraft Heinz shares fell 5.72% on the news.

The original bet dates back to 2015, when Berkshire joined forces with Brazilian private equity firm 3G Capital to combine Kraft Foods and H.J. Heinz. The company continued to struggle, however, falling about 70% since the merger as higher costs, evolving consumer preferences, and weak brand momentum took a toll.

Management is responding by splitting the company, separating sauces and shelf-stable brands from North American staples like Oscar Mayer and Lunchables, a move Warren Buffett has previously criticized.

Abel takes the wheel

Berkshire Hathaway’s decision is on trend: The company has been a net seller of stocks for 12 straight quarters and has paused share buybacks for the past five, two signals that valuations look too rich for attractive long-term returns. Since Buffett stepped down, Berkshire’s Class B shares have fallen about 7%, as some investors price out the “Buffett premium.”

Abel can change both the stock’s trajectory and the company’s history of selling instead of buying by deploying the company’s $358 billion in cash. The only question is, when and where he’ll use that massive hoard.

Given Buffett’s (and Abel’s) preference for investing in value, many investors don’t expect big moves until markets cool from red-hot levels. The S&P 500 rose about 16% in 2025, and the index trades at a price-to-book ratio of 5.5, well above its average of 3.16. Until Abel spots a deal worth making, don’t expect him to rush into an acquisition ASAP.

What does Buffett think comes next?

While investors are left wondering what Abel will do next, one has full confidence in the new Berkshire Hathaway CEO: the guy who just quit the job.

“Greg can do anything I can do, and he can do it way, way better,” Buffett told CNBC.

Buffett has made it clear that Abel not only has the investing chops to succeed, he also has the business acumen to find the sort of undervalued companies that built Berkshire into the empire it has become.

“It doesn’t take a genius—and it sure doesn’t take any Greek symbols or anything like that—to figure out what a business is worth. I happen to have a guy who can run businesses—and if you can run businesses, you can value businesses,” Buffett said. “Unless you’re nuts and listen to the wrong people.”—SY

• US pending home sales fell by most since the start of the pandemic.
• Chinese EVs are driving circles around Tesla.
• One of the buzziest AI startups is dealing with some very human drama.
• This is why Elon Musk is vying to take SpaceX public ASAP.
• Ryanair’s public feud with Musk has led to booming business, according to its CEO.
• Quant hedge funds just had their worst 10-day period since October.

Economic reports: Delayed October and November PCE reading, as well as a first revision of Q3 GDP

Earnings announcements: Procter & Gamble, General Electric, Intel, Abbott, Intuitive Surgical, Capital One, Freeport-McMoRan, CSX, Alcoa, and McCormick & Co.

Everything else: Oscar nominations will be announced, and the Sundance Film Festival kicks off