Stocks Supported by Tech Strength and Improvement in Consumer Sentiment

The S&P 500 Index ($SPX) (SPY) today is up +1.10%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +1.60%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.93%.  March E-mini S&P futures (ESH26) are up +1.14%, and March E-mini Nasdaq futures (NQH26) are up +0.98%.

Stock indexes are sharply higher today, with the Dow Jones Industrials posting a new all-time high.  Some better-than-expected tech earnings results have boosted market sentiment and are lifting the broader market today.  Gen Digital is up more than +7% after forecasting full-year adjusted EPS above consensus.  Also, Roblox is up more than +9% after forecasting stronger-than-expected full-year bookings.  In addition, chipmakers and AI-infrastructure stocks are moving higher today on dip buying as they recover some of this week’s sharp losses.  Stock indexes added to their gains today after the University of Michigan US Feb consumer sentiment index unexpectedly rose to a 6-month high.

On the negative side of the market, Amazon.com is down more than -8% after the company announced plans to spend $200 billion this year on data centers, chips, and other equipment, sparking concerns that its huge bet on artificial intelligence may not pay off in the long run.

The University of Michigan US Feb consumer sentiment index unexpectedly rose +0.9 to a 6-month high of 57.3, stronger than expectations of a decline to 55.0.

The University of Michigan US Feb 1-year inflation expectations fell to a 13-month low of 3.5%, weaker than expectations of no change at 4.0%. The Feb 5-10 year inflation expectations ticked up to 3.4%, stronger than expectations of no change at 3.3%.

Hawkish comments today from Atlanta Fed President Raphael Bostic were bearish for stocks and bonds when he said, “It’s paramount for the Fed to keep monetary policy in a restrictive posture so that we get inflation back to 2%.”

Bitcoin (^BTCUSD) recovered from a 1.25-year low today and is up by more than +9% to lift cryptocurrency-exposed stocks.  Bitcoin is recovering from a selloff that briefly dragged it down more than 50% from its October record high.  According to Coinglass data, investors pulled $434 million from US Bitcoin ETFs on Thursday, and about $2.1 billion in long positions in cryptocurrencies were liquidated over the past 24 hours. 

Q4 earnings season is in full swing, with 150 of the S&P 500 companies scheduled to report earnings this week.  Earnings have been a positive factor for stocks, with 79% of the 275 S&P 500 companies that have reported beating expectations.  According to Bloomberg Intelligence, S&P earnings growth is expected to climb by +8.4% in Q4, marking the tenth consecutive quarter of year-over-year growth.  Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by +4.6%.

The markets are discounting an 18% chance for a -25 bp rate cut at the next policy meeting on March 17-18.

Overseas stock markets are mixed today.  The Euro Stoxx 50 is up by +1.04%.  China’s Shanghai Composite closed down -0.25%.  Japan’s Nikkei Stock 225 closed up +0.81%.

Interest Rates

March 10-year T-notes (ZNH6) today are down by -3 ticks.  The 10-year T-note yield is up +4.2 bp to 4.222%.   Mar T-notes fell from a 3-week high today, and the 10-year T-note yield climbed from a 3-week low of 4.156%.  T-notes gave up an early advance and turned lower today after a sharp rally in stocks reduced safe-haven demand for T-notes.  Also, the unexpected increase in the University of Michigan US Feb consumer sentiment index to a 6-month high weighed on T-notes.  In addition, hawkish comments today from Atlanta Fed President Raphael Bostic undercut T-note prices when he said, “It’s paramount for the Fed to keep monetary policy in a restrictive posture.” 

European government bond yields are mixed today.  The 10-year German bund yield rebounded from a 2.5-week low of 2.812% and is up +0.5 bp to 2.847%.  The 10-year UK gilt yield is down by -2.6 bp to 4.532%.

German Dec industrial production fell -1.9% m/m, weaker than expectations of -0.3% m/m and the biggest decline in four months.

German trade news was better than expected as Dec exports rose +4.0% m/m, stronger than expectations of +1.1% m/m and the biggest increase in 4 years.  Dec imports rose +1.4% m/m, stronger than expectations of +0.2% m/m.

Swaps are discounting a 3% chance of a -25 bp rate cut by the ECB at its next policy meeting on March 19.

US Stock Movers

Chip makers and AI-infrastructure stocks are moving higher today as they recover some of this week’s sharp losses.  ARM Holdings Plc (ARM) is up more than +9%, and Advanced Micro Devices (AMD) is up more than +7%.  Also, Nvidia (NVDA) is up more than +6% to lead gainers in the Dow Jones Industrials, and KLA Corp (KLAC), Lam Research (LRCX), and Marvel Technology (MRVL) are up more than +6%. In addition, Applied Materials (AMAT) and Broadcom (AVGO) are up more than +4%, and Intel (INTC) and ASML Holding NV (ASML) are up more than +3%.

Cryptocurrency-exposed stocks are moving higher today as they recover some of this week’s sharp losses, after Bitcoin (^BTCUSD) recovered from a 1.25-year low and is up more than +9%.  Strategy (MSTR) is up more than +18% to lead gainers in the Nasdaq 100, and Galaxy Digital Holdings (GLXY) is up by more than +17%.  Also, MARA Holdings (MARA) is up by more than +16%, and Riot Platforms (RIOT) is up by more than +15%.  In addition, Coinbase Global (COIN) is up by more than +9%. 

Bill Holdings (BILL) is up more than +17% after reporting Q2 adjusted EPS of 64 cents, better than the consensus of 56 cents, and raising its full-year adjusted EPS forecast to $2.33 to $2.41 from a previous forecast of $2.11 to $2.25, above the consensus of $2.23. 

Roblox (RBLX) is up more than +9% after reporting Q4 bookings of $2.22 billion, better than the consensus of $2.09 billion, and forecasting full-year bookings of $8.28 billion to $8.55 billion, stronger than the consensus of $8.05 billion.

Gen Digital (GEN) is up more than +7% after forecasting full-year adjusted EPS of $2.54 to $2.56, stronger than the consensus of $2.54.

Estee Lauder (EL) is up more than +7% after Citigroup upgraded the stock to buy from neutral with a price target of $120. 

Caterpillar (CAT) is up more than +4% after CICC initiated a recommendation of outperform on the stock with a price target of $800.

Vistra Corp (VST) is up more than +3% after Goldman Sachs upgraded the stock to buy from neutral with a price target of $205.

Molina Healthcare (MOH) is down by more than -27% to lead losers in the S&P 500 after reporting an unexpected Q4 loss of -$2.75 EPS versus expectations of a +41 cent profit, and forecasting full-year adjusted EPS of at least $5.00, well below the consensus of $13.71. 

Doximity (DOCS) is down more than -24% after forecasting full-year revenue of $642.5 million to $643.5 million, weaker than the consensus of $645.6 million.   

Stellantis NV (STLA) is down more than -22% after it said a business reset resulted in charges of around 22.2 billion euros for the second half of 2025, about double the market consensus.  

Illumina (ILMN) is down more than -9% after reporting Q4 adjusted gross margin of 67%, below the consensus of 68.1%. 

Amazon.com (AMZN) is down more than -8% after announcing plans to spend $200 billion this year on data centers, chips, and other equipment, sparking concerns that its huge bet on artificial intelligence may not pay off in the long run.

Centene (CNC) is down more than -6% after forecasting full-year revenue of $186.5 billion to $190.5 billion, below the consensus of $192.72 billion. 

Hims & Hers Health (HIMS) is down more than -4% after FDA Commissioner Makary said his agency will take “swift action against companies mass-marketing illegal copycat drugs, claiming they are similar to FDA-approved products,” after Hims on Thursday launched a cheaper copycat version of the Wegovy weight-loss pill. 

Earnings Reports(2/6/2026)

AutoNation Inc (AN), Biogen Inc (BIIB), Carlyle Group Inc/The (CG), Cboe Global Markets Inc (CBOE), Centene Corp (CNC), Freedom Holding Corp/NV (FRHC), MarketAxess Holdings Inc (MKTX), Newell Brands Inc (NWL), nVent Electric PLC (NVT), Philip Morris International In (PM), Roivant Sciences Ltd (ROIV), Ubiquiti Inc (UI), Under Armour Inc (UAA), White Mountains Insurance Group Ltd (WTM).