Market Snapshot
| Dow | 48907.51 | -592.58 | (-1.20%) | | Nasdaq | 22540.61 | -363.99 | (-1.59%) | | SP 500 | 6798.39 | -84.32 | (-1.23%) | | 10-yr Note |
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| | NYSE | Adv 930 | Dec 1830 | Vol 1.53 bln | | Nasdaq | Adv 1134 | Dec 3731 | Vol 10.17 bln |
Industry Watch
| Strong: Consumer Staples, Utilities |
| | Weak: Consumer Discretionary, Communication Services, Materials, Information Technology, Energy, Financials, Industrials, Health Care, Real Estate |
Moving the Market
--Mega-cap stocks under pressure after Alphabet's (GOOG) earnings release
--Weakness in the broader market
--Bitcoin expands its losses for the week
--Amazon (AMZN) sharply lower ahead of its earnings release
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Tech lags amid broad weakness, volatility jumps
05-Feb-26 16:25 ET
Dow -592.58 at 48907.51, Nasdaq -363.99 at 22540.61, S&P -84.32 at 6798.39
[BRIEFING.COM] It was a tough session for stocks today as sustained pressure across mega-cap and tech stocks came without the support of the broader market from previous sessions.
The S&P 500 (-1.2%), Nasdaq Composite (-1.6%), and DJIA (-1.2%) finished lower across the board, with the Russell 2000 (-1.8%) and S&P Mid Cap 400 (-0.5%) closing with losses as well. Today's weakness moved the S&P 500 into negative territory for the year and saw the index close below its 50-day moving average (6,882.21).
Much of today's coverage revolved around the price action of Alphabet (GOOG 331.33, -2.01, -0.60%) after its earnings report yesterday afternoon. While the company decidedly topped earnings estimates, a massive FY26 capital expenditure plan of $175-$185 billion prompted some questions about if the company can continue to generate meaningful returns with that level of spending. Though the stock was down as much as 5% this morning, it battled back throughout the session, an encouraging sign given the size and scope of losses across other mega caps.
Despite sharp early losses, the communication services sector (-0.3%) finished as one of the better-performing S&P 500 sectors today.
The same cannot be said of the consumer discretionary sector (-2.6%), which lagged as a majority of its components traded lower, while Amazon (AMZN 222.69, -10.30, -4.42%) and Tesla (TSLA 396.93, -9.08, -2.24%) provided weak leadership ahead of Amazon's earnings after the close.
The information technology sector (-1.7%) also logged another disappointing finish after a choppy session. Alphabet's massive capital expenditure plans were touted by many analysts as a positive for select semiconductor and AI infrastructure names, which saw the sector open to a modest gain. Despite a midday run back towards its opening levels, the sector plotted a steady retreat throughout the afternoon.
Broadcom (AVGO 310.51, +2.46, +0.80%) ceded nearly all of its solid early gain, while NVIDIA (NVDA 171.81, -2.38, -1.37%) also finished lower after spending time in positive territory. The PHLX Semiconductor Index (-0.1%) closed with a modest loss.
Meanwhile, software stocks continued to freefall, with the iShares GS Software ETF finishing 5.0% lower. Microsoft (MSFT 393.67, -20.52, -4.95%) was yet again a "magnificent seven" laggard.
The Vanguard Mega Cap Growth ETF closed 1.9% lower, adding to its early losses for the year.
Outside of the mega-cap space, the market was devoid of the rotational strength that helped somewhat limit losses in the previous two sessions.
The materials sector (-2.8%) finished as the worst-performing S&P 500 sector, garnering some profit-taking after a hot start to the year.
Meanwhile, the financials sector (-1.2%) also had a rough session after a solid gain yesterday. Coinbase Global (COIN 146.12, -22.50, -13.34%) and Robinhood Markets (HOOD 72.68, -7.94, -9.85%) finished sharply lower as Bitcoin extended its recent losses with another sizable slide today, which added to the stock market's intraday volatility. Bitcoin is currently down about 13% for the day, moving below the $64,000 mark.
Only the consumer staples (+0.3%) and utilities (+0.1%) sectors managed meager gains. Walmart (WMT 126.94, -1.06, -0.83%) finally saw a touch of profit-taking, though the move was negated by broader strength in the sector.
Hershey Foods (HSY 224.38, +18.59, +9.03%) made a solid upward move after a beat-and-raise earnings report, while Estee Lauder (EL 96.75, -22.86, -19.11%) was the worst-performing S&P 500 name despite topping earnings estimates of its own.
Overall, today's action reflects the recent heightened volatility across risk assets. Alphabet's battle from session lows was an encouraging sign for the stock, but the market could be in for more volatility tomorrow in reaction to Amazon's earnings. The CBOE Volatility Index surged over 20% during the session and remains elevated at 21.59 (+15.8%), suggesting an uneasiness throughout the market as some of its weightiest names continue to face pressure this year.
U.S. Treasuries followed their two days of quiet sideways trade with a Thursday rally that took place alongside continued weakness in tech stocks. The 2-year note yield settled down seven basis points to 3.49%, and the 10-year note yield settled down seven basis points to 4.21%.
- S&P MidCap 400: +5.3% YTD
- Russell 2000: +3.9% YTD
- DJIA: +1.8% YTD
- S&P 500: -0.7% YTD
- Nasdaq Composite: -3.0% YTD
Reviewing today's data:
- Weekly Initial Claims 231K (Briefing.com consensus 210K); Prior 209K, Weekly Continuing Claims 1.844 mln; Prior was revised to 1.819 mln from 1.827 mln
- The key takeaway from the report was the jump in initial claims, which hit their highest level since early December. That created some headline surprise, but to be fair, the absolute level isn't that bad.
- December JOLTS - Job Openings 6.542 mln; Prior was revised to 6.928 mln from 7.146 mln
Amazon lags ahead of earnings
05-Feb-26 15:25 ET
Dow -568.31 at 48931.78, Nasdaq -356.97 at 22547.63, S&P -83.03 at 6799.68
[BRIEFING.COM] The major averages remain firmly lower with just half an hour left in today's session.
Investors have another sizable batch of earnings reports on tap after the close, including that of Amazon (AMZN 222.72, -10.27, -4.41%).
The stock heads into Q4 earnings with expectations elevated following an exceptional Q3, making guidance the primary swing factor for the stock. Investors will watch closely to see whether AWS can sustain its recent reacceleration and whether operating income lands toward the upper end of guidance. With Microsoft's (MSFT 393.52, -20.66, -4.99%) Azure results providing a mixed signal, sentiment hinges on whether AWS demand remains robust enough to justify premium cloud valuations. Given AMZN's streak of 11 consecutive double-digit EPS beats, execution is not the concern; rather, the stock's reaction will likely depend on Q1 commentary and management's confidence in cloud, AI investment returns, and margin durability as 2026 begins.
Major averages firmly lower late in the session
05-Feb-26 15:00 ET
Dow -493.40 at 49006.69, Nasdaq -328.93 at 22575.67, S&P -73.23 at 6809.48
[BRIEFING.COM] The S&P 500 (-1.1%), Nasdaq Composite (-1.4%), and DJIA (-1.0%) remain firmly lower with just an hour left in today's session.
While not much has changed at the index level, there have been a few changes at the sector level.
The information technology sector (-1.3%) is back near session lows, with the PHLX Semiconductor Index (-0.2%) moving back into negative territory.
Meanwhile, the communication services sector is at session highs as Alphabet (GOOG 329.10, -4.24, -1.27%) has pared its losses.
S&P 500 Slides 0.7% as Earnings Hits CMI, HII; Tapestry Soars to Record Highs on Strong Q2 Beat
05-Feb-26 14:30 ET
Dow -364.88 at 49135.21, Nasdaq -182.99 at 22721.61, S&P -47.87 at 6834.84
[BRIEFING.COM] The S&P 500 (-0.70%) is down 48 points this afternoon, hosting the shallowest losses among the major averages on an otherwise widely lower session.
Briefly, S&P 500 constituents Cummins (CMI 533.00, -72.63, -11.99%), Huntington Ingalls (HII 367.30, -45.84, -11.10%), and Coinbase (COIN 150.65, -17.97, -10.66%) dot the bottom of the average. CMI and HII fall after reporting earnings, while COIN slips due in part to losses in cryptocurrencies.
Meanwhile, Tapestry (TPR 144.94, +15.02, +11.56%) is near the top of the standings and making new all-time highs after delivering a strong Q2 beat and a sizable FY EPS raise, sharply improving its margin outlook, highlighting sustained demand with FX and Europe as tailwinds, and boosting free cash flow and shareholder return expectations.
Gold Drops 1.2% as Stronger Dollar Spurs Profit-Taking
05-Feb-26 14:00 ET
Dow -570.79 at 48929.30, Nasdaq -316.99 at 22587.61, S&P -80.71 at 6802.00
[BRIEFING.COM] With about two hours to go on Thursday afternoon, the tech-heavy Nasdaq Composite (-1.38%) is in last place down almost 317 points.
Gold futures settled $61.30 lower (-1.2%) at $4,889.50/oz, as a firmer U.S. dollar and shifting rate expectations after Kevin Warsh's Fed chair nomination sparked profit-taking and position unwinds. The move was amplified by broader risk aversion, margin pressures in metals futures, and cross-asset liquidation, even as longer-term safe-haven fundamentals remain intact.
Meanwhile, the U.S. Dollar Index is up about +0.2% to $97.82.
Cummins Returns to Growth in Q4; Sees a Better Back Half for On-Highway in 2026 (CMI)
Cummins (CMI) is sharply lower after reporting its Q4 results this morning. The company beat EPS expectations, while revenue returned to growth after four straight quarters of declines, increasing 1.1% yr/yr to $8.54 bln and coming in above expectations. In a positive development, CMI reinstated full-year guidance, calling for FY26 revenue growth of 3-8%, or roughly $34.68-$36.36 bln, which was in line with expectations.
- The return to growth was driven by strong global power generation demand, higher pickup volumes, and improved pricing, which more than offset weaker North America heavy/medium duty trucks.
- Power Systems continued double-digit growth, increasing 11% yr/yr to $1.90 bln, fueled by data-center-driven backup power demand, favorable pricing, and the benefit of recent capacity actions.
- Distribution continued to run strong, increasing 7% yr/yr to $3.3 bln, reflecting a favorable mix of power generation activity and a resilient aftermarket backdrop.
- Components sales stayed pressured by the on-highway downcycle, decreasing 7% yr/yr to $2.4 bln, as lower North America heavy and medium duty builds weighed on volumes. International was relatively stronger, up 4%, supported by firmer demand in Europe and China.
- Engine also reflected the same end-market split, with sales down 4% to $2.6 bln, with weakness tied to North America heavy and medium duty demand, partially offset by pickup volumes.
- Accelera revenue increased 31% yr/yr to $131 mln, but delivered an EBITDA loss of $374 mln on electrolyzer-review charges and product coverage costs amid a slower, policy-driven hydrogen demand backdrop.
- Notably, while CMI expects North America on-highway pressure in 1H26, it sees conditions improving in 2H alongside continued strength in its power generation, industrial, and aftermarket businesses.
Briefing.com Analyst Insight
CMI's Q4 results underscore the split environment it has been operating in. Its power generation businesses continue to look strong, supported by data-center-related demand and a healthier aftermarket backdrop. On the other hand, the on-highway downcycle, particularly in North America, has continued to weigh on the Engine and Components segments. There was also more noise in Accelera, where electrolyzer-review and reorganization charges were a major drag, driving a sizable EBITDA loss and muddying the quarter. That said, it was nice to see CMI reinstate guidance. It was in line with expectations, but the commentary around on-highway improvement in the second half stood out. Still, with the recovery skewed to the back half, the strong run into the report and a backdrop still clouded by policy uncertainty appear to be putting investors on the sidelines as they await clearer proof of that improvement.
O'Reilly Auto Keeps the Engine Running, but FY26 EPS Outlook Loses Some Torque (ORLY)
O'Reilly Automotive is trading lower following its Q4 earnings report, as an EPS miss and below-consensus FY26 EPS guidance overshadowed an otherwise in-line top-line performance. The setup suggests margin pressure, with rising costs weighing on profitability.
- Q4 revenue came in in line, and FY26 revenue guidance was also in line, but EPS fell short and FY26 EPS guidance missed expectations, pointing to ongoing margin compression.
- Comparable sales remained healthy in Q4 at +5.6%, while FY25 comps finished at +4.7%, reflecting continued share gains in a mixed demand environment.
- FY26 comp guidance of +3-5% was a bit underwhelming and implies more moderate growth as ORLY cycles tougher comparisons.
- The professional segment continued to drive results in Q4, posting comps above +10% for a second straight quarter, while the DIY business delivered low-single-digit positive comps in Q4.
- ORLY remained cautious on DIY demand, citing inflationary pressure on consumers and transaction declines that emerged midway through Q3 and lingered into early Q4, though trends stabilized as the quarter progressed.
- Cost pressures were a key headwind in 2025, particularly higher expenses tied to team member healthcare and self-insurance programs, which weighed on margins and contributed to the Q4 EPS miss.
Briefing.com Analyst Insight:
O'Reilly's Q4 results highlight a familiar trade-off: solid sales execution offset by rising cost pressures and a more measured outlook. While comps remain healthy and professional demand continues to outperform, the weaker FY26 EPS guidance underscores the margin sensitivity of the model in a higher-cost environment, with tariffs and healthcare expenses taking a toll. Management's commentary around DIY stabilization is encouraging, but the modest comp outlook suggests limited near-term upside. We view ORLY's long-term fundamentals as intact given the stable automotive aftermarket backdrop and compelling repair-versus-replace value proposition, though the stock may struggle to gain traction until margin pressures begin to ease.
Arm Holdings Rebounds After Strong Q3 As Data Center Momentum Limits Handset Uncertainty (ARM)
Arm Holdings (ARM) has bounced back nicely after reporting its Q3 (Dec) results last night. The company beat expectations on the top and bottom line, with revenue increasing 26.3% yr/yr to $1.24 bln. Q4 guidance was just in line with expectations, however, expecting EPS of $0.54-0.62 and revenue of $1.42-1.52 bln.
- Growth continues to be supported by mobile strength and Cloud AI momentum, as inference and always-on workloads drive hyperscalers toward higher core-count, power-efficient Arm CPUs.
- Royalty revenue increased 27% yr/yr to a record $737 mln, with the biggest growth contributors coming from smartphones (higher royalty rates per chip) and the data center.
- On mobile, all major Android OEMs are now ramping Armv9 and CSS-based chips, keeping edge AI royalties growing much faster than the broader market.
- In the data center, royalty revenue continues to double yr/yr as major hyperscalers ramp ARM-based CPUs, with an added tailwind from AI data-center buildouts driving more networking silicon (DPUs and SmartNICs) where ARM has high share.
- Licensing revenue was $505 mln, up 25% yr/yr, driven by demand for next-gen architectures and high-value customer wins, including two new Arm Total Access agreements and two CSS licenses. ACV rose 28% yr/yr.
- Non-GAAP operating margin fell 430 bps yr/yr, reflecting aggressive spending on engineering, next-generation architectures, and platform expansion.
- On rising memory costs and supply constraints, Arm said its outlook aligns with broader expectations for smartphone unit volume declines, but OEMs are prioritizing the high end of the market where Armv9 and CSS carry the highest royalties. As a result, management said even a 20% unit decline would likely mean only a 2-4% hit to smartphone royalties and about a 1-2% hit to total royalties, with Cloud AI and infrastructure strength helping offset the pressure.
Briefing.com Analyst Insight
ARM has bounced back nicely from its earlier losses, and the quarter itself was strong with record royalty revenue and a fourth consecutive quarter above $1 bln. Data center stood out, with royalties still growing at a triple-digit pace, and ARM expects it to grow to rival and potentially surpass mobile as its largest business over the next two to three years. That said, the bar was high, and in-line guidance along with higher R&D investment and related margin pressure likely tempered the initial reaction, with investors also sensitive to near-term handset risk. Those concerns align with Qualcomm's (QCOM) recent comments that rising memory demand from AI data centers is tightening supply and lifting pricing, prompting some OEMs to scale back build plans and chipset orders. Overall, the quarter was solid and ARM looks well positioned as the data center opportunity scales, though near-term volatility around increased investment and handset uncertainty is likely.
Cardinal Health surges as double-digit profit growth fuels guidance hike (CAH)
Cardinal Health (CAH) is flying higher after reporting 2Q26 results that exceeded expectations and raising its FY26 outlook for the second time in a month. Despite a recent interim update forecasting EPS of at least $10.00, the company surpassed those projections due to double-digit profit growth across all five operating segments. The results underscore a successful shift toward high-margin specialty services and clinical products, solidifying CAH's position as a critical infrastructure provider in the U.S. healthcare sector.
- CAH grew Q2 revenue 19% to $66 bln and non-GAAP EPS 36% to $2.63, driven by strong pharmaceutical demand.
- The company raised its FY26 EPS guidance to $10.15–$10.35, representing projected yr/yr growth of 23-26%.
- All five operating segments achieved at least double-digit profit growth, led by a 29% profit increase in Pharmaceutical and Specialty Solutions.
- GLP-1 medication sales provided approximately 6 percentage points of revenue growth for the Pharmaceutical and Specialty segment.
- BioPharma Solutions experienced over 30% revenue growth in theranostics and supported roughly half of all 2025 specialty product launches.
- The November 3 acquisition of Solaris Health contributed two months of results and has already added its first urology practice.
Briefing.com Analyst Insight:
CAH’s Q2 performance marks a masterclass in execution, highlighted by its second guidance raise in under a month. The narrative is shifting from a turnaround to a growth story as the company pivots toward high-margin specialty services and nuclear medicine. A 52% profit surge in Other Growth Businesses and 30% growth in theranostics demonstrate that CAH is capturing the market's most lucrative segments. The Solaris Health acquisition and the expansion into urology provide a clear roadmap for FY26, positioning CAH to thrive in the high-demand specialty market. While competitors face pricing pressure, CAH is leveraging its scale and digital infrastructure to lock in manufacturer partnerships. With $1 bln returned to shareholders this year and a return to targeted leverage, CAH possesses the financial flexibility to sustain its beat-and-raise momentum.
Qualcomm Rings Up Record Q1 but Supply Concerns Mutes the Guidance (QCOM)
Qualcomm is pulling back sharply after reporting fiscal Q1 (Dec) results that topped expectations, but issuing weaker-than-expected Q2 (Mar) guidance due to supply constraints. While QCOM delivered record EPS and revenue, the outlook echoed cautionary commentary recently heard from Apple (AAPL). Qualcomm reported a solid beat for fiscal Q1 (Dec), delivering record EPS and revenue, but shares are pulling back after the company issued softer-than-expected fiscal Q2 (Mar) guidance as handset OEMs turn more cautious amid supply constraints.
- Revenue grew 4.7% yr/yr to $12.25 bln, reaching a new quarterly record and highlighting steady demand despite a mixed macro backdrop.
- The high-margin QTL licensing business continued to provide stability, with revenue of $1.59 bln and an EBT margin of 77%, supported by healthy unit volumes and favorable mix.
- In the core QCT chipset segment, revenue reached a record $10.6 bln, driven by broad-based strength in Automotive and IoT and solid momentum in premium-tier smartphones.
- Handset revenue of $7.8 bln benefited from flagship device launches, though management noted early signs of more conservative ordering behavior from OEMs.
- IoT and Automotive remained key growth engines, with IoT revenue of $1.7 bln and Automotive revenue of $1.1 bln, reinforcing Qualcomm's diversification strategy.
- Looking ahead, management flagged near-term uncertainty as rising memory demand from AI data centers pressures supply and pricing, prompting some OEMs—particularly in China—to scale back build plans and chipset orders.
Briefing.com Analyst Insight:
Qualcomm delivered a solid fiscal Q1 with record revenue and earnings, but the market is focused squarely on the weaker MarQ outlook. The guidance reflects a temporary disconnect between end demand and OEM behavior, as memory supply constraints tied to AI data center buildouts force handset manufacturers to act cautiously. While QCOM's diversification into Automotive and IoT remains a bright spot and continues to post strong growth, the stock is likely to trade on near-term handset uncertainty rather than longer-term positioning in edge AI. We view the current setup as a pause in an otherwise intact growth story, but supply visibility will need to improve before sentiment meaningfully recovers.
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