Market Snapshot
| Dow | 49500.09 | +260.31 | (0.53%) | | Nasdaq | 22904.60 | -350.61 | (-1.51%) | | SP 500 | 6882.71 | -35.09 | (-0.51%) | | 10-yr Note |
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| | NYSE | Adv 1597 | Dec 1137 | Vol 1.64 bln | | Nasdaq | Adv 1785 | Dec 2962 | Vol 10.90 bln |
Industry Watch
| Strong: Materials, Energy, Consumer Staples, Health Care, Real Estate, Financials, Industrials |
| | Weak: Information Technology, Communication Services, Consumer Discretionary, Utilities |
Moving the Market
--Lingering weakness across tech and mega-cap names, broader market mostly higher
--Mixed reaction to earnings, Eli Lilly (LLY) sharply higher, while Advanced Micro Devices (AMD) lags despite topping estimates
--Sharp decline in Bitcoin
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Tech pressure persists as broader market sees rotational gains
04-Feb-26 16:30 ET
Dow +260.31 at 49500.09, Nasdaq -350.61 at 22904.60, S&P -35.09 at 6882.71
[BRIEFING.COM]The midweek session unfolded in a similar fashion to yesterday's action, with significant losses across tech and mega-cap stocks pressuring the S&P 500 (-0.5%) and Nasdaq Composite (-1.5%) while the DJIA (+0.5%) benefited from rotational strength into other corners of the market.
While the DJIA made a run towards fresh record highs this morning, the S&P 500 dipped below its 50-day moving average (6,878.02) as selling pressure increased in the early afternoon, though the index recovered and closed just above the key technical level.
Meanwhile, the Nasdaq Composite remains below its own 50-day moving average (23,390.10), with today's losses moving the index into negative territory for the year.
The top-weighted information technology sector (-1.9%) widened its year-to-date loss to 5.2%. While the sector lagged for the entirety of the session, it is worth noting that some support kicked in after an early afternoon slide that saw the sector's losses for the day expand past 3.0% amid a sharp retreat in bitcoin.
Still, the PHLX Semiconductor Index (-4.4%) faced a considerable retreat as shares of Advanced Micro Devices (AMD 200.19, -41.92, -17.31%) plummeted despite beating earnings expectations and delivering upside Q1 guidance. NVIDIA (NVDA 174.19, -6.15, -3.41%) had a poor showing, though the sector's other "magnificent seven" components, Apple (AAPL 276.49, +7.01, +2.60%) and Microsoft (MSFT 414.19, +2.98, +0.72%), fared better.
Even with the modest gain in Microsoft, software stocks faced an extension of yesterday's pressure, sending the iShares GS Software ETF 1.8% lower.
Pressure across mega-cap names elsewhere pushed the communication services (-1.7%) and consumer discretionary (-1.2%) sectors lower as well. Alphabet (GOOG 333.34, -7.36, -2.16%) was a laggard ahead of its earnings report after the close.
The Vanguard Mega Cap Growth ETF finished 1.4% lower, widening its negative start to 2026.
With the exception of a modest pullback in the utilities sector (-0.4%), which outperformed yesterday, the broader market saw another solid day of rotational interest.
Seven S&P 500 sectors finished higher, with five boasting a gain of 1.0% or wider. As a result, the S&P 500 Equal Weighted Index (+0.9%) outperformed the market-weighted S&P 500 (-0.5%) by a considerable margin.
The energy sector (+2.3%) once again captured the widest gain as crude oil futures settled today's session $1.97 higher (+3.1%) at $65.13 a barrel. Axios reported that diplomatic talks between the U.S. and Iran have hit a roadblock regarding nuclear negotiations.
The materials sector (+1.8%) also saw an extension of yesterday's gains. Smurfit Westrock plc (SW 44.38, +3.48, +8.51%) led the advance after the company announced it would increase its quarterly dividend, while Amcor (AMCR 48.58, +3.66, +8.16%) finished similarly after topping EPS estimates and reaffirming its FY26 EPS guidance.
Meanwhile, the health care sector (+1.2%) notched a solid gain after a lower finish yesterday, with Eli Lilly (LLY 1107.75, +104.29, +10.39%) and Amgen (AMGN 366.20, +27.61, +8.15%) among the top performers after beating earnings estimates.
The real estate sector (+1.5%) advanced on broad strength, rounding out the top five, while the financials (+0.8%) and industrials (+0.2%) sectors captured more modest gains.
Outside of the S&P 500, the Russell 2000 (-0.9%) and S&P Mid Cap 400 (+0.7%) finished mixed.
Overall, the session reinforced the market’s recent tug-of-war between persistent pressure on tech and the resulting rotational strength elsewhere. The market has more key mega-cap earnings on tap, which will likely be key in determining whether leadership stabilizes or the current rotation continues.
U.S. Treasuries had another steady showing on Wednesday, keeping yields near levels seen during Tuesday's sideways session. The 2-year note yield settled down one basis point to 3.56%, and the 10-year note yield finished unchanged at 4.28%.
- S&P Mid Cap 400: +5.8% YTD
- Russell 2000: +5.8% YTD
- DJIA: +3.0% YTD
- S&P 500: +0.5% YTD
- Nasdaq Composite: -1.5% YTD
Reviewing today's data:
- Weekly MBA Mortgage Applications Index -8.9%; Prior -8.5%
- January ADP Employment Change 22K (Briefing.com consensus 43K); Prior was revised to 37K from 41K
- January S&P Global U.S. Services PMI - Final 52.7; Prior 52.5
- January ISM Non-Manufacturing Index 53.8% (Briefing.com consensus 53.7%); Prior was revised to 53.8% from 54.4%
- The key takeaway from the report is that activity in the services sector grew at a steady pace in January at the same time prices paid for materials and services increased.
Major averages mixed ahead of key earnings reports
04-Feb-26 15:35 ET
Dow +321.68 at 49561.46, Nasdaq -283.73 at 22971.48, S&P -17.83 at 6899.97
[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-1.2%), and DJIA (+0.8%) continue to sit mixed with just half an hour left in today's session.
Market participants will receive another batch of earnings reports after the close that will include Alphabet's (GOOG 334.64, -6.06, -1.78%) earnings release.
Shares have been exceptionally strong, reaching new record highs this week before a minor pullback in a broader tech sell-off. On a year-over-year basis, the stock is up more than 60%, reflecting intense optimism around its AI integration and cloud acceleration.
The stock's recent run to record highs means there is little room for error, placing the spotlight on whether the Google Cloud acceleration and Search's AI-driven evolution can sustain mid-teens revenue growth.
While Meta Platforms' (META 673.32, -18.38, -2.66%) robust results provided a favorable backdrop for digital ads, the core tension for GOOG remains the massive CapEx required to lead the AI race. Management needs to convince investors that the $100 billion+ annual spend is yielding a clear "AI ROI" via Gemini enterprise adoption and infrastructure efficiency through its custom TPU silicon. A clean beat on Cloud revenue paired with a disciplined but aggressive FY26 CapEx guide could act as the next catalyst for the stock, while any signs of Search disruption or slowing Cloud backlog conversion could spark a near-term consolidation.
Stocks recovering from session lows
04-Feb-26 15:00 ET
Dow +319.50 at 49559.28, Nasdaq -284.53 at 22970.68, S&P -19.62 at 6898.18
[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-1.2%), and DJIA (+0.6%) are off their worst sessions of the afternoon with an hour left in today's session.
The rebound effort has been led by some buying efforts in the information technology sector (-1.4%). The sector is still the day's worst performer, though it has shed half of its previous losses. Similarily, the PHLX Semiconductor Index (-3.3%) has narrowed its loss that exceeded 6.0%.
The broader market continues to tilt higher, with seven S&P 500 sectors in positive territory.
Elsewhere, Bitcoin seems to be bouncing off of its intraday lows, reapproaching the $74,000 mark.
S&P 500 falls 0.7% as AppLovin, Boston Scientific, and Amphenol drag; FTV rises on strong earnings
04-Feb-26 14:30 ET
Dow +96.91 at 49336.69, Nasdaq -424.53 at 22830.68, S&P -47.25 at 6870.55
[BRIEFING.COM] The S&P 500 (-0.68%) is in second place on Wednesday afternoon, down about 47 points.
Briefly, S&P 500 constituents AppLovin (APP 384.45, -77.34, -16.75%), Boston Scientific (BSX 78.15, -13.47, -14.70%), and Amphenol (APH 130.47, -16.59, -11.28%) dot the bottom of the average. APP leads losses as investors fear credible AI-driven disruption to the mobile ad stack could erode AppLovin's core monetization moat, with the selloff amplified by crowded positioning and a broader software risk-off move, with BSX sliding despite beating Q4 EPS and revenue, as investors reacted to cautious FY26 guidance that slightly misses consensus and signals slower-than-expected near-term growth.
Meanwhile, Fortive (FTV 60.84, +6.49, +11.94%) is atop the standings after beating Q4 EPS and revenue expectations and issuing FY26 guidance above consensus, with strong execution, accelerating growth, and significant share buybacks boosting investor confidence.
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Gold rebounds on dip buying, geopolitical demand even as dollar firms
04-Feb-26 14:05 ET
Dow +36.93 at 49276.71, Nasdaq -430.20 at 22825.01, S&P -51.41 at 6866.39
[BRIEFING.COM] With about two hours to go on Wednesday the tech-heavy Nasdaq Composite (-1.85%) is in last place among the major averages.
Gold futures settled $15.80 higher (+0.3%) at $4,950.80/oz, as investors stepped back in after last week's sharp pullback, with dip buying and technical stabilization helping prices recover from recent volatility. Ongoing geopolitical uncertainty and steady central-bank demand continue to support bullion, even as dollar strength and profit-taking cap near-term gains.
Meanwhile, the U.S. Dollar Index is up about +0.3% to $97.69.
Cirrus Logic Hits a High Note as Upside Q3 Results and Strong Q4 Guide Fuel Rally (CRUS)
Cirrus Logic (CRUS +7%) is moving sharply higher following its upside Q3 (Dec) earnings report, as the company delivered better-than-expected results and issued surprisingly strong Q4 (Mar) guidance despite its reputation for conservative guidance. CRUS once again posted a sizable EPS beat—its fifth consecutive quarter with an upside of at least $0.40—while also defying expectations for a year-over-year revenue decline.
- Q3 revenue increased 4.5% yr/yr to $580.62 mln, topping expectations as analysts had been braced for a decline.
- The standout takeaway was Q4 revenue guidance well above consensus, a notable development given CRUS's long-standing reputation for conservative forecasting. The guidance upside appears to be the primary catalyst for today's move.
- Results benefited from stronger-than-anticipated demand for smartphone components and a favorable mix of end devices.
- CRUS's largest customer remains Apple (AAPL), which accounted for 89% of FY25 revenue, up from 87% in FY24 and 83% in FY23, reinforcing the tight correlation between CRUS performance and iPhone demand. Apple's recent blowout results helped set a constructive backdrop for CRUS.
Briefing.com Analyst Insight:
CRUS delivered a convincing upside quarter, but the real surprise came from its Q4 guidance, which stood out as unusually aggressive for a company known for setting a low bar. The results underscore the strength of current smartphone demand—particularly tied to Apple—and validate Cirrus Logic's positioning in premium audio components. While customer concentration remains a long-term risk, near-term momentum appears solid given the favorable device mix and continued design wins. Encouragingly, progress in PCs and camera controllers suggests diversification efforts are gaining traction, even if smartphones will remain the dominant driver for now. With visibility improving into Q4, sentiment toward CRUS should remain constructive in the near term.
AMD Slides Despite Record Q4 as High Expectations Keep Focus on MI450 and Helios Payoff (AMD)
Advanced Micro Devices (AMD) is sharply lower despite beating Q4 expectations and issuing upside Q1 guidance last night. The company beat EPS expectations by its widest margin in over three years, while revenue increased 34.1% yr/yr to a record $10.27 bln. AMD expects Q1 revenue between $9.50-10.10, which includes about $100 mln of instinct sales to China.
- Growth remained broad-based, with demand accelerating into year-end across data center, PCs, gaming, and embedded, supporting continued server and PC processor share gains.
- Data center revenue increased 39% yr/yr, 24% sequentially, to a record $5.4 bln, driven by accelerating MI350 deployments and strong EPYC demand. 5th Gen EPYC Turin adoption accelerated further and accounted for more than half of total server revenue, with strength spanning both hyperscaler cloud deployments and enterprise adoption.
- Client and Gaming revenue increased 37% yr/yr to $3.9 bln, driven by Client revenue up 34% to a record $3.1 bln on strong Ryzen demand. Gaming revenue rose 50% to $843 mln, but declined sequentially as semi-custom console sales pulled back seasonally. AMD expects semi-custom SoC revenue to fall a significant double-digit percentage in FY26 as the console cycle matures.
- Non-GAAP gross margin increased 290 bps yr/yr to 57%, benefiting from an inventory reserve release and MI308 revenue to China. Excluding the reserve release and China revenue, gross margin was about 55% (+80 bps yr/yr), and AMD expects gross margin to remain around 55% in Q1.
- The MI450 + Helios ramp remains on schedule for 2H26, with MI450 revenue starting in Q3 and ramping to meaningful volume in Q4 into 2027. Management reiterated OpenAI is on schedule, while noting multiple other customers are in discussions for at-scale, multi-year Helios/MI450 deployments.
- The Q1 guidance reflects a seasonal step-down outside of Data Center, and assumes only limited MI308 revenue in Q1 and no contribution beyond that given the dynamic licensing backdrop.
Briefing.com Analyst Insight
AMD delivered yet another record quarter and comfortably beat expectations on results and guidance, yet shares are getting punished. Stepping back, the fundamentals remain strong as AMD continues to take share in server and client while Data Center growth accelerates. That said, some investors may view the beat as a bit less clean since Q4 included some China Instinct revenue that was not widely expected, while the Q1 outlook still points to a sequential decline even as Data Center is expected to grow. More notably, a lot of optimism is already embedded in the stock around the MI450 and Helios opportunity. With the biggest upside still tied to a back-half weighted ramp that depends on complex, large-scale system deployments, the market appears to be looking for more tangible proof points on cadence and execution rather than simply another beat and upside guide. That mix seems to be driving a sell-the-news reaction despite another fundamentally strong quarter.
Eli Lilly soars as dominant beat-and-raise report contrasts sharply with rival Novo Nordisk (LLY)
Eli Lilly (LLY) delivered a powerhouse performance for 4Q25, sending the stock trading sharply higher as the company continues to dominate the high-demand obesity and diabetes treatment markets. While its primary competitor, Novo Nordisk (NVO), issued a cautious outlook yesterday, LLY crushed 4Q25 estimates and provided upside FY26 guidance, reinforcing its position as a global leader in cardiometabolic health.
- LLY reported Q4 non-GAAP EPS of $7.54, exceeding the FactSet consensus by $0.63, while revenue surged 43% to $19.3 bln, beating estimates by $1.35 bln.
- Results were fueled by Mounjaro, which grew 110% to $7.4 bln, and Zepbound, which more than doubled its US revenue and captured a 70% share of new prescriptions in the branded obesity market.
- Beyond obesity, Kisunla (Alzheimer's) reached $109 mln in revenue, becoming the US market leader with over 50% share of prescriptions, while immunology drugs Omvoh (+55%) and Jaypirca (+30%) also posted double-digit growth.
- The company issued robust FY26 guidance, forecasting revenue of $80.0–$83.0 bln and non-GAAP EPS of $33.50–$35.00. This outlook implies roughly 25% revenue growth, driven by massive volume increases from its key incretin products and the introduction of new manufacturing capacity.
- LLY’s beat-and-raise performance contrasts sharply with NVO’s disappointing 2026 guidance of -5% to -13% sales growth. While NVO faces US pricing pressure and expiring drug exclusivity, LLY is leveraging a proactive $55 bln manufacturing build-out that has already scaled production to 1.8 times the previous year’s incretin doses.
- The company's new oral weight-loss pill, Orforglipron, is on track for a US launch in 2Q26, which is expected to significantly expand the addressable market by offering a convenient non-injectable option.
- To support this oral medication pipeline, LLY is constructing a new $3 bln manufacturing facility in the Netherlands, part of a broader strategy to solidify its European supply chain and boost production for patients worldwide.
Briefing.com Analyst Insight:
LLY’s Q4 results signal a company that has successfully decoupled itself from the headwinds facing its peers. The divergence from NVO is the narrative of the quarter. Where NVO sees "unprecedented pricing pressure," LLLY sees a "volume response" enabled by its massive internal investments in supply chain resilience. By committing $55 bln to manufacturing since 2020, LLY has effectively engineered its own growth trajectory, allowing it to meet overwhelming demand that competitors simply cannot. The upcoming Q2 launch of Orforglipron is a potential game-changer, as it targets the broader mid-single digit market penetration of eligible patients who may prefer a pill over an injector. With new Medicare/Medicaid access agreements coming online in July 2026, LLY is betting that its scale and diversified portfolio - from Alzheimer's to immunology - will maintain its valuation premium even as legacy products like Trulicity begin to plateau.
Chipotle No Extra Guac: CMG Flatlines After Weak Comps and Cautious FY26 Guide (CMG)
Chipotle Mexican Grill (CMG) is trading roughly flat following its Q4 earnings report, as investors weigh mixed fundamentals against already-muted expectations. The burrito chain continues to face demand headwinds, as a modest EPS beat and in-line revenue were overshadowed by a return to negative comparable sales and a disappointing initial comp outlook for FY26.
- Q4 comparable sales declined -2.5%, reversing the modest +0.3% comp gain in Q3 and following a -4.0% comp in Q2, highlighting ongoing traffic softness. For FY26, CMG guided comps to be "about flat," which came in slightly below Street expectations, particularly given the easy comparison against FY25 comps of -1.7%.
- Management pointed to encouraging underlying trends in January following the launch of its high-protein menu, with additional momentum expected from the return of Chicken al Pastor as a limited-time offer beginning Feb. 10, though visibility remains limited early in the year.
- The company noted a shift in consumer behavior toward value, high-quality protein, fiber, and clean ingredients, aligning with its recent protein-focused offerings. These range from a $3.50 single taco with 15g of protein to a double-protein bowl with over 80g of protein, along with a new High Protein Cup priced around $3.80, catering to smaller portion demand linked to GLP-1 adoption. Early results have been encouraging.
- To further stimulate demand, CMG plans to increase its menu innovation cadence to four LTOs in 2026, beginning with the return of Chicken al Pastor next week, as LTOs tend to attract new guests and increase visit frequency.
- Margins are expected to face pressure in FY26, primarily due to CMG's decision to take less pricing than inflation. Full-year price increases are expected in the 1-2% range, while inflation is projected at 3-4%, with the largest price-cost gap occurring in Q1. Management views this pressure as temporary.
Briefing.com Analyst Insight:
CMG's Q4 results did little to change the narrative that the brand is still working through a difficult traffic environment. The return to negative comps and the underwhelming FY26 comp outlook were disappointing, especially given the easy comparison year ahead. While management is optimistic about improving trends tied to protein-focused menu innovation and increased LTO activity, uncertainty around consumer behavior remains high, particularly as diners continue to emphasize value. CMG's premium price points and lack of a true value menu remain notable disadvantages in the current environment. That said, it is a constructive sign that the stock is holding up relatively well despite the weak comp outlook, suggesting that a significant amount of negativity may already be priced into the shares.
Uber in reverse as mixed Q4 results, CFO departure overshadows record user engagement (UBER)
Uber (UBER) reported a complex set of 4Q25 results, with the stock selling off sharply following the release as investors weigh a mixed earnings report and the sudden announcement of CFO Prashanth Mahendra-Rajah’s departure. While UBER exceeded expectations for top-line demand metrics, a significant miss on bottom-line earnings and a forecasted slowdown in Gross Bookings for the upcoming quarter have overshadowed the platform's continued growth momentum.
- UBER missed Q4 EPS expectations due to a $1.6 bln headwind from equity investment revaluations. However, Adjusted EBITDA hit the high end of guidance at $2.5 bln (+35%).
- CFO Prashanth Mahendra-Rajah will step down February 16 with VP of Strategic Finance Balaji Krishnamurthy named as his successor.
- User engagement remains a primary strength, with total Trips growing 22% yr/yr to 3.8 bln. Monthly Active Platform Consumers (MAPCs) reached a record 202 mln, an 18% increase that reflects deepening penetration across both core and emerging markets.
- Gross Bookings reached $54.1 bln (+22%), beating guidance. Mobility surged 25% via suburban expansion and Uber Reserve, while Delivery was fueled by grocery and retail growth.
- 1Q26 Gross Bookings guidance of $52.0–$53.5 bln signals a growth slowdown to 17–21%, supported by an approximate 4 percentage point currency tailwind.
- 1Q26 Adjusted EBITDA guidance of $2.37–$2.47 bln was in-line with expectations, which investors may view as disappointing given the sequential softening.
- AV strategy centers on a "multi-trillion dollar opportunity," with plans to operate in 15 cities by year-end through partnerships with Waymo (GOOG/GOOGL) and NVIDIA (NVDA). UBER AVs currently see 30% higher utilization than standalone competitors.
Briefing.com Analyst Insight:
UBER’s Q4 results signal a platform operating at an immense global scale with trips hitting a $15 bln annual run rate, yet the sharp stock sell-off reflects investor unease over bottom-line GAAP volatility and the sudden departure of CFO Mahendra-Rajah. The EPS miss, though largely due to non-cash equity revaluations, serves as a reminder of the complexity in UBER’s balance sheet. More concerning for some is the 1Q26 Gross Bookings guidance, which suggests a deceleration in growth even after accounting for favorable currency shifts. The sudden departure of Mahendra-Rajah, who helped steer the company to investment-grade status, creates a leadership transition at a time when UBER is aggressively pivoting toward its autonomous future. However, the appointment of insider Balaji Krishnamurthy suggests a commitment to the existing operating framework aimed at durable growth. As UBER moves toward 15 AV cities by year-end, management is betting that its marketplace density and superior utilization rates will make it the indispensable partner for any AV hardware provider, regardless of the near-term noise in its legacy business.
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