March S&P 500 E-Mini futures (ESH26) are down -0.42%, and March Nasdaq 100 E-Mini futures (NQH26) are down -0.55% this morning, pointing to further losses on Wall Street as technology stocks face renewed pressure.
Sentiment was dampened by some negative corporate news. Alphabet (GOOGL) fell over -4% in pre-market trading after Google’s parent reported upbeat Q4 results but said it plans to nearly double capital expenditures this year. Also, Qualcomm (QCOM) plunged more than -12% in pre-market trading after the chip company issued below-consensus FQ2 guidance. In addition, Arm Holdings (ARM) slumped over -6% in pre-market trading as the chip designer’s FQ4 revenue guidance disappointed investors.
Investors now await U.S. jobless claims data and the delayed reading on job openings as well as a new wave of corporate earnings reports, with particular attention on results from “Magnificent Seven” member Amazon.
In yesterday’s trading session, Wall Street’s three main equity benchmarks closed mixed. Advanced Micro Devices (AMD) sank over -17% and was the top percentage loser on the Nasdaq 100 after the chipmaker issued Q1 revenue guidance that underwhelmed investors. Also, most members of the Magnificent Seven stocks slid, with Tesla (TSLA) and Nvidia (NVDA) falling over -3%. In addition, Boston Scientific (BSX) plunged over -17% and was the top percentage loser on the S&P 500 after the medical device maker issued soft FY26 adjusted EPS guidance. On the bullish side, Super Micro Computer (SMCI) surged more than +13% and was the top percentage gainer on the S&P 500 after the AI server maker posted upbeat FQ2 results and raised its full-year revenue guidance.
“There might be a glass half full and a glass half empty perspective on the moves here. On the one hand, tech stocks are potentially too richly valued. On the other hand, the strength in the market is broadening out in a sign of improving economic fundamentals, backed up by data that shows more robust economic conditions,” according to Kyle Rodda at Capital.com.
The ADP National Employment report released on Wednesday showed that U.S. private nonfarm payrolls rose by +22K in January, weaker than expectations of +46K. At the same time, the U.S. ISM services index was unchanged at 53.8 in January, stronger than expectations of a decline to 53.5. Also, the U.S. January S&P Global services PMI was revised higher to 52.7 from the preliminary reading of 52.5.
Fed Governor Lisa Cook said on Wednesday that it is crucial for the central bank to maintain its credibility by bringing inflation back to target in the near term. “Until I see stronger evidence that inflation is moving sustainably back down to target, that is where my focus will be, in the absence of unexpected changes in the labor market,” Cook said.
U.S. rate futures have priced in an 88.0% probability of no rate change and a 12.0% chance of a 25 basis point rate cut at the conclusion of the Fed’s March meeting.
Fourth-quarter corporate earnings season continues in full force, and investors await new reports from notable companies today, including Amazon.com (AMZN), ConocoPhillips (COP), Bristol-Myers Squibb Company (BMY), Roblox (RBLX), and Microchip Technology (MCHP). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +8.4% increase in quarterly earnings for Q4 compared to the previous year.
On the economic data front, investors will focus on U.S. Initial Jobless Claims data, set to be released in a couple of hours. Economists expect this figure to be 212K, compared to last week’s number of 209K.
The U.S. JOLTs Job Openings figures will also be released today. Economists anticipate that the December JOLTs Job Openings will arrive at 7.200 million, compared to the November figure of 7.146 million.
In addition, market participants will be looking toward a speech from Atlanta Fed President Raphael Bostic.
Meanwhile, the Bureau of Labor Statistics said on Wednesday that the January jobs report will be published on Wednesday, February 11th. The report was originally scheduled for release on Friday, but was delayed due to the partial government shutdown. Also, January’s consumer price index report, originally set for release next Wednesday, will now be published on Friday, February 13th.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.280%, up +0.05%.
The Euro Stoxx 50 Index is down -0.15% this morning as investors digest a mixed bag of corporate earnings reports and await monetary policy decisions from the Bank of England and the European Central Bank. Utilities, energy, and mining stocks underperformed on Thursday. Limiting losses, technology stocks climbed as they rebounded from a global selloff seen earlier in the week. Data from Eurostat released on Thursday showed that the Eurozone’s monthly retail sales fell more than expected in December, underscoring the fragile rebound in household spending. Separately, data showed that Germany’s monthly factory orders unexpectedly surged in December, signaling that the recent woes of the country’s industrial sector may be easing as Berlin’s fiscal stimulus gathers pace. At the same time, data showed that France’s monthly industrial production unexpectedly fell in December, even though it rose on a quarterly basis in the fourth quarter. Investors are gearing up for interest rate decisions from the Bank of England and the European Central Bank later in the day. The ECB is widely expected to keep the deposit rate unchanged at 2.00%, with attention on any guidance regarding the rate outlook and remarks on the euro’s recent strength. Also, the BoE is widely expected to leave rates unchanged at 3.75%, as U.K. officials debate how much further to extend their easing cycle. In corporate news, BNP Paribas (BNP.FP) rose about +3% after the Eurozone’s largest lender by assets posted a stronger-than-expected Q4 profit. At the same time, Shell Plc (SHEL.LN) fell more than -1% after the British oil major reported weaker-than-expected Q4 net profit.
Germany’s Factory Orders, France’s Industrial Production, and Eurozone’s Retail Sales data were released today.
The German December Factory Orders rose +7.8% m/m, stronger than expectations of -1.8% m/m.
The French December Industrial Production fell -0.7% m/m, weaker than expectations of +0.2% m/m.
Eurozone’s December Retail Sales fell -0.5% m/m and rose +1.3% y/y, weaker than expectations of -0.2% m/m and +1.6% y/y.
Asian stock markets today settled in the red. China’s Shanghai Composite Index (SHCOMP) closed down -0.64%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -0.88%.
China’s Shanghai Composite Index closed lower today, snapping a two-day winning streak amid weakness in technology stocks and precious metals. Non-ferrous metal stocks tumbled on Thursday amid a renewed selloff in precious metals. Also, technology stocks slumped following a global rout fueled by concerns over valuations and disruption from AI. In addition, solar stocks retreated after several companies denied cooperation with Elon Musk. At the same time, consumer stocks climbed on rising expectations that the sector will benefit from increased spending during the upcoming Lunar New Year break. Gary Tan, a portfolio manager at Allspring Global Investments, said, “Increased uncertainty around the AI monetization narrative and a perceived rise in regulatory risk across digital sectors appear to have prompted some capital to rotate into high‑quality consumer franchises with more visible earnings profiles and relative insulation from policy risk.” Meanwhile, Chinese equities face a new headwind as Beijing steps up efforts to collect corporate taxes, a move that could weigh on earnings in a fragile economy. At least 19 listed companies have paid overdue taxes totaling 1.3 billion yuan ($187 million) so far this year, according to Bloomberg calculations based on exchange filings. In other news, U.S. President Donald Trump and Chinese President Xi Jinping discussed trade and geopolitical flashpoints during a call on Wednesday ahead of a planned in-person meeting later this year. In corporate news, Baidu rose over +2% in Hong Kong after announcing plans for its first-ever dividend and authorizing a $5 billion stock buyback program.
Japan’s Nikkei 225 Stock Index closed lower today, dragged down by weakness in the technology sector. Tech stocks led the declines on Thursday, tracking losses in their U.S. peers amid growing concerns over stretched valuations and heavy AI spending. SoftBank Group slumped about -7% after its affiliated chip design firm Arm Holdings posted weaker-than-expected FQ3 licensing revenue. At the same time, pharmaceutical stocks outperformed, led by a more than +7% jump in Astellas Pharma after it raised its full-year net profit guidance by nearly fivefold. Data from the Ministry of Finance showed on Thursday that foreign investors bought a net 494.6 billion yen worth of Japanese stocks in the week ended January 31st, marking a sixth straight week of inflows. Meanwhile, longer-dated Japanese government bonds climbed on Thursday following strong demand at a closely watched 30-year debt auction. Toshihiro Nagahama, a government panel member known as an economic adviser to Premier Sanae Takaichi, said on Thursday that Japan must avoid boosting fiscal spending in ways that stoke inflation and prompt the Bank of Japan to hike interest rates rapidly. Investors are awaiting Japan’s December household spending data, scheduled for release on Friday, which will offer insight into the willingness of the nation’s consumers to spend. Attention will then turn to Japan’s Lower House election to be held on Sunday, February 8th. Local media reported that Takaichi’s Liberal Democratic Party is likely to secure a landslide victory in the election. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +1.01% to 36.16.
Pre-Market U.S. Stock Movers
Alphabet (GOOGL) fell over -4% in pre-market trading after Google’s parent reported upbeat Q4 results but said it plans to nearly double capital expenditures this year.
AI infrastructure stocks advanced in pre-market trading on Alphabet’s much higher-than-expected spending outlook, with Broadcom (AVGO) rising over +1%.
Qualcomm (QCOM) plunged more than -12% in pre-market trading after the chip company issued below-consensus FQ2 guidance.
Arm Holdings (ARM) slumped over -6% in pre-market trading as the chip designer’s FQ4 revenue guidance disappointed investors.
Align Technology (ALGN) surged more than +11% in pre-market trading after the Invisalign maker reported better-than-expected Q4 results.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Thursday - February 5th
Amazon.com (AMZN), Linde (LIN), ConocoPhillips (COP), Bristol-Myers Squibb Company (BMY), Intercontinental Exchange (ICE), KKR & Co. (KKR), Cummins (CMI), Barrick Mining (B), The Cigna Group (CI), Fortinet (FTNT), Digital Realty Trust (DLR), Monolithic Power Systems (MPWR), Carrier Global (CARR), Cardinal Health (CAH), Rockwell Automation (ROK), Xcel Energy (XEL), Roblox (RBLX), Ares Management (ARES), ArcelorMittal (MT), The Estée Lauder Companies (EL), Microchip Technology (MCHP), The Hershey Company (HSY), Thomson Reuters (TRI), Banco Bradesco (BBD), Strategy (MSTR), WEC Energy Group (WEC), Ventas (VTR), IQVIA Holdings (IQV), Bloom Energy (BE), Shinhan Financial Group (SHG), Mettler-Toledo International (MTD), Reddit (RDDT), Atlassian (TEAM), Tapestry (TPR), Equity Residential (EQR), BCE Inc. (BCE), Tradeweb Markets (TW), VeriSign (VRSN), CMS Energy (CMS), Ralph Lauren (RL), XPO, Inc. (XPO), Illumina (ILMN), TPG Inc. (TPG), Snap-on (SNA), Affirm Holdings (AFRM), Blue Owl Capital (OWL), CEMEX (CX), SS&C Technologies Holdings (SSNC), MACOM Technology Solutions Holdings (MTSI), Huntington Ingalls Industries (HII), RBC Bearings (RBC), ITT Inc. (ITT), IREN Limited (IREN), Warner Music Group (WMG), News Corporation (NWS), Gen Digital (GEN), Regency Centers (REG), News Corporation (NWSA), Reinsurance Group of America (RGA), Unum Group (UNM), Advanced Drainage Systems (WMS), Camden Property Trust (CPT), SK Telecom (SKM), Flowserve (FLS), Encompass Health (EHC), Arrowhead Pharmaceuticals (ARWR), Molina Healthcare (MOH), AGCO Corporation (AGCO), AptarGroup (ATR), InterDigital (IDCC), StepStone Group (STEP), OneMain Holdings (OMF), FirstCash Holdings (FCFS), Arrow Electronics (ARW), Sirius XM Holdings (SIRI), Paylocity Holding (PCTY), Genpact (G), Madison Square Garden Sports (MSGS), Boyd Gaming (BYD), Doximity (DOCS), Terreno Realty (TRNO), Construction Partners (ROAD), ESCO Technologies (ESE), Open Text (OTEX), Post Holdings (POST), Viasat (VSAT), Phillips Edison & Company (PECO), Maximus (MMS), Magnolia Oil & Gas (MGY), Impinj (PI), Qualys (QLYS), Asbury Automotive Group (ABG), Patrick Industries (PATK), Cousins Properties (CUZ), MDU Resources Group (MDU), Bullish (BLSH), Peabody Energy (BTU), CNO Financial Group (CNO), Envista Holdings (NVST), Griffon (GFF), AllianceBernstein Holding (AB), BILL Holdings (BILL), COPT Defense Properties (CDP), Exponent (EXPO), Synaptics (SYNA), Viking Therapeutics (VKTX), Prestige Consumer Healthcare (PBH), Hub Group (HUBG), Haemonetics (HAE), Coty Inc. (COTY), Adaptive Biotechnologies (ADPT), Power Integrations (POWI), Lionsgate Studios (LION), CleanSpark (CLSK), Insight Enterprises (NSIT), Peloton Interactive (PTON), Werner Enterprises (WERN), Omnicell (OMCL), Knowles (KN), NetScout Systems (NTCT), Acadian Asset Management (AAMI), Energizer Holdings (ENR), Spectrum Brands Holdings (SPB), Thermon Group Holdings (THR), LiveRamp Holdings (RAMP), Ladder Capital (LADR), Lightspeed Commerce (LSPD), Suburban Propane Partners (SPH), Dorian LPG (LPG), Gold.com (GOLD), IRADIMED Corporation (IRMD), Canada Goose Holdings (GOOS), Coursera (COUR).
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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