Market Snapshot
| Dow | 50114.46 | +1206.95 | (2.47%) | | Nasdaq | 23031.24 | +490.63 | (2.18%) | | SP 500 | 6932.29 | +133.90 | (1.97%) | | 10-yr Note |
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| | NYSE | Adv 2214 | Dec 540 | Vol 1.50 bln | | Nasdaq | Adv 3853 | Dec 948 | Vol 9.11 bln |
Industry Watch
| Strong: Information Technology, Energy, Industrials, Financials, Materials Consumer Staples, Health Care, Real Estate |
| | Weak: Consumer Discretionary, Communication Services |
Moving the Market
--Market sees broad-based buying support after several days of notable downward pressure
--Tech leading the rebound with solid gains across semiconductor and software names
--Amazon (AMZN) down sharply after missing EPS expectations and capex guidance of $200 billion
--Stabilization in Bitcoin
--DJIA crosses 50,000 mark
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DJIA hits record highs as tech attempts to regain footing
06-Feb-26 16:25 ET
Dow +1206.95 at 50114.46, Nasdaq +490.63 at 23031.24, S&P +133.90 at 6932.29
[BRIEFING.COM] The stock market ended a volatile week on a sharply positive note, with a strong rebound across tech names and broad strength propelling the S&P 500 (+2.0%), Nasdaq Composite (+2.2%), and DJIA (+2.5%) higher.
Today's strength saw the DJIA notch fresh record highs, eclipsing and closing above the 50,000 mark for the first time. The S&P 500 reclaimed and closed above its 50-day moving average of 6,884.75.
Small caps, semiconductors, and high-beta names were among the outperformers in today's rally, with the top-weighted information technology sector (+4.1%) finishing as the best performer across the nine S&P 500 sectors that notched gains.
Chipmaker names rebounded sharply from recent weakness, with the PHLX Semiconductor Index (+5.7%) closing the week with a modest gain following today's strength. Super Micro Computer (SMCI 34.38, +3.53, +11.44%) made back the entirety of yesterday's weakness and then some, while NVIDIA (NVDA 185.41, +13.53, +7.87%) was a mega-cap standout, moving back above its 50-day moving average (183.57).
Microsoft (MSFT 401.14, +7.47, +1.90%) also garnered some buying interest off of recent lows, and the iShares GS Software ETF (+3.5%) notched a much-needed gain.
While there was certainly a technical element to the tech rebound given the size of this week’s pullback, AI infrastructure names received an added tailwind from massive capital expenditure plans outlined by some of the market’s largest constituents.
Amazon (AMZN 210.32, -12.37, -5.55%) forecast roughly $200 billion in capital spending for 2026, and while return-on-investment concerns—along with a modest EPS miss—initially weighed on the stock, the scale of the investment is broadly viewed as constructive for the AI ecosystem, particularly across semiconductors and related infrastructure providers.
Additionally, Alphabet (GOOG 323.10, -8.23, -2.48%) issued a similar forecast of up to $185 billion with its earnings release earlier in the week. While those two names, along with some weakness in Meta Platforms (META 661.46, -8.75, -1.31%), pushed the communication services (-1.5%) and consumer discretionary (-0.7%) sectors lower, strength across the other mega-caps saw the Vanguard Mega Cap Growth ETF (+2.2%) reclaim just under half of this week's losses.
Strength was not just limited to mega-cap tech, as eight of the nine S&P 500 sectors that closed higher boasted gains wider than 1.0%.
The industrials sector (+2.8%) was among the top performers, with airline names such as United Airlines (UAL 115.91, +9.82, +9.26%) and Delta Air Lines (DAL 75.30, +5.52, +7.91%) trading sharply higher.
The financials sector (+1.8%) was supported by a rebound in Robinhood Markets (HOOD 82.82, +10.14, +13.95%) and Coinbase Global (COIN 165.12, +19.00, +13.00%) as Bitcoin prices stabilized and bounced off of recent lows, reclaiming the $70,000 mark.
The health care sector (+1.8%) finished similarly, with broad strength outweighing Molina Healthcare's (MOH 131.56, -45.28, -25.61%) post-earnings plummet.
Outside of the S&P 500, the Russell 2000 (+3.6%) and S&P Mid Cap 400 (+3.1%) outperformed amid the resurgence in growth stocks today.
While improving risk sentiment helped the major averages finish the week on a higher note, it is worth noting that sizable losses earlier in the week left the S&P 500 (-0.1% week-to-date) and Nasdaq Composite (-1.8% week-to-date) with weekly declines. In contrast, the DJIA's (+2.5% week-to-date) push to fresh record highs highlights the ongoing bifurcation between value and growth stocks in early 2026.
Still, today's session underscores how quickly the broader market can advance when mega-cap and technology stocks regain momentum, and suggests they could reassert leadership as investors grow more comfortable with the scale of capital expenditure forecasts coming from mega-cap companies.
U.S. Treasuries had a quiet finish to a week that featured a volatile showing from equities, which contributed to a week of gains in most tenors. The 2-year note yield settled up one basis point to 3.51% (-3 basis points this week), and the 10-year note yield finished unchanged at 4.21% (-3 basis points this week).
- S&P Mid Cap 400: +8.5% YTD
- Russell 2000: +7.6% YTD
- DJIA: +4.3% YTD
- S&P 500: +1.3% YTD
- Nasdaq Composite: -0.9% YTD
Reviewing today's data:
- February Univ. of Michigan Consumer Sentiment - Prelim 57.3 (Briefing.com consensus 54.3); Prior 56.4
- The key takeaway from the report is that there was a surge in sentiment among consumers with the largest stock portfolios, whereas it remained at "dismal levels" for consumers without stock holdings. [Note: interviews for this release ended this past Monday, so with steep losses in many tech stocks since then, there is a good chance of a downward revision when the final report is released on February 20, barring a sustained rebound effort.
- Consumer credit increased by $24.0 billion in December (Briefing.com consensus: $8.4 billion) following an upwardly revised $4.7 billion increase (from $4.2 billion) in November.
- The key takeaway from the report is that there was a healthy expansion in consumer credit in December, driven by solid pickups in both revolving and nonrevolving credit. The December expansion was the biggest since March 2025.
Consumer Credit increases in December
06-Feb-26 15:30 ET
Dow +1115.62 at 50023.13, Nasdaq +438.72 at 22979.33, S&P +120.55 at 6918.94
[BRIEFING.COM] The S&P 500 (+1.8%), Nasdaq Composite (+2.0%), and DJIA (+2.3%) continue to chart session highs with just half an hour left in today's session.
Consumer credit increased by $24.0 billion in December (Briefing.com consensus: $8.4 billion) following an upwardly revised $4.7 billion increase (from $4.2 billion) in November.
The key takeaway from the report is that there was a healthy expansion in consumer credit in December, driven by solid pickups in both revolving and nonrevolving credit. The December expansion was the biggest since March 2025.
DJIA eclipses 50,000 mark
06-Feb-26 15:05 ET
Dow +1107.32 at 50014.83, Nasdaq +432.29 at 22972.90, S&P +120.56 at 6918.95
[BRIEFING.COM] The S&P 500 (+1.7%), Nasdaq Composite (+1.8%), and DJIA (+2.3%) continue to chart session highs this afternoon, with the DJIA eclipsing the 50,000 mark for the first time.
The major averages are on track for a mixed finish to the week. The DJIA (+2.3% week-to-date) leads as the broader market garnered some rotational strength amid pronounced weakness across tech in previous sessions, while the Nasdaq Composite (-2.1% week-to-date) suffers the widest loss, and the S&P 500 (-0.3% week-to-date) holds a more modest loss.
Just released, consumer credit increased by $24.0 billion in December (Briefing.com consensus: $8.4 billion) following an upwardly revised $4.7 billion increase (from $4.2 billion) in November.
S&P 500 Up 1.7% as Teradyne, SMCI, and Biogen Rally; Molina Healthcare Plunges 26% on Weak Guidance
06-Feb-26 14:30 ET
Dow +1097.71 at 50005.22, Nasdaq +428.61 at 22969.22, S&P +117.30 at 6915.69
[BRIEFING.COM] The S&P 500 (+1.73%) is in last place on Friday afternoon, up about 117 points.
Briefly, S&P 500 constituents Teradyne (TER 298.60, +27.47, +10.13%), Super Micro Computer (SMCI 33.82, +2.97, +9.63%), and Biogen (BIIB 200.00, +14.64, +7.90%) pepper the top of the standings. TER and SMCI rebound sharply a day after being equally pressured to the downside, while BIIB rises after beating Q4 EPS and guiding FY26 above consensus, with investors encouraged by strong pipeline momentum and upcoming key drug milestones despite a modest revenue decline.
Meanwhile, Molina Healthcare (MOH 130.60, -46.24, -26.15%) is today's worst laggard after guiding FY26 revenue well below expectations and warning that 2026 will be a "trough year" for Medicaid margins due to a continued mismatch between rates and medical cost trends. The sharp Q4 EPS swing to a loss amplified concerns about near-term profitability, causing investors to reprice the stock despite an EPS outlook that topped consensus.
Gold Jumps Nearly 2% to $4,976 as Safe-Haven Demand Rises Amid Geopolitical Risk, Weaker Dollar
06-Feb-26 14:00 ET
Dow +1034.80 at 49942.31, Nasdaq +419.81 at 22960.42, S&P +114.08 at 6912.47
[BRIEFING.COM] The tech-heavy Nasdaq Composite (+1.86%) is firmly in second place on Friday afternoon, up about 420 points.
Gold futures settled $86.40 higher (+1.8%) at $4,975.90/oz, as safe-haven demand picked up amid geopolitical uncertainty, heightened market volatility, and renewed risk-off sentiment, while a softer U.S. dollar and falling real yields continued to support bullion. The move was amplified by speculative positioning and sharp price swings, underscored by COMEX margin hikes and expectations that the Fed will eventually ease policy.
Meanwhile, the U.S. Dollar Index is now -0.4% lower at $97.63.
Molina Healthcare Plunges on Q4 Miss as Rate Mismatch Drives Downside FY26 Guide (MOH)
Molina Healthcare (MOH) is under heavy pressure after badly missing Q4 EPS estimates and issuing downside FY26 guidance. The company reported an adjusted loss of $2.75/share when analysts had expected a profit, while revenue increased 8% yr/yr to $11.38 bln, above estimates. MOH guided FY26 EPS to at least $5.00 and revenue of $44.5 bln.
- The Q4 miss was driven by continued trend pressure in Medicare and Marketplace, plus about $2/share of retroactive Medicaid items in California.
- California applied a retroactive risk corridor and rate cut, a 160 bp headwind, alongside what management called an unprecedented cost-trend inflection, pushing Medicaid MCR to 93.5%, up 330 bps.
- Medicare's MCR was 97.5%, 370 bps higher, reflecting elevated LTSS and high-cost drug utilization across high-acuity dual populations. MAPD margin recovery was slower than expected and the traditional MAPD product will be exited for 2027.
- Marketplace was most strained with MCR of 99%, up from 83.3%, as utilization ran elevated across most categories, especially behavioral health, high-cost drugs, and professional outpatient visits, compounded by prior provider claims settlements.
- For FY26, MOH is shrinking Marketplace exposure to stabilize margins amid a volatile risk pool, guiding to roughly a 50% decline in Marketplace premium as it reprices and lets membership roll down.
- The guidance signals the rate-trend mismatch persists, with Medicaid rates around 4% that do not offset medical cost trend around 5%, plus added pressure from ongoing California items and startup drag from the Florida CMS contract.
- Management sees potential upside levers, including improved Medicaid rates through on and off-cycle adjustments, and Medicare/Marketplace landing better than conservative assumptions as Medicare products mature and the Marketplace book is resized and repriced.
Briefing.com Analyst Insight
This was a tough finish to FY25, and the FY26 outlook suggests these pressures are still persisting, driving a sharp reversal in the stock. The core issue remains the mismatch between Medicaid rates and medical cost trend, which management again characterized as an underfunded environment across the industry. Management said the Florida CMS impact is about $1.50/share and MAPD underperformance is roughly $1.00/share. Stripping that out implies FY26 EPS closer to $7.50, still below expectations and highlighting ongoing trend pressure. There were a few relative bright spots, including commentary that excluding the retroactive California items, Medicaid performance was closer to plan, and that the Florida CMS win reinforces MOH's growth initiatives with continued success winning renewal and new RFP awards. Even so, the magnitude of the guidance miss and sustained trend pressure are weighing heavily on sentiment.
Roblox Levels Up After Q4 Beat as Bookings Surge on Broadening Growth (RBLX)
Roblox (RBLX) is nicely higher after reporting its Q4 results last night. The online gaming and creator platform delivered a modest EPS beat, while bookings surged 63% yr/yr to $2.2 bln, above expectations. Additionally, the company expects FY26 bookings to grow 22-26% to $8.282-8.553 bln, which was also above expectations and on top of the 55% growth seen in FY25.
- Q4 delivered strong engagement and bookings growth without a major new viral hit, as growth broadened outside the top 10 experiences with 68% engagement growth and 53% growth in Robux spending, accelerating from Q3.
- DAUs increased 69% yr/yr to 144 mln, while hours engaged rose 88% yr/yr to 35 bln. Monthly unique payers nearly doubled yr/yr to 36.7 mln, underscoring broad-based monetization strength.
- This was fueled by robust growth across all regions, with US and Canada up 41% yr/yr and APAC up 96% yr/yr, led by Japan up 160%, India up 110%, and Indonesia up over 700% yr/yr.
- RBLX's age-check rollout confirmed the user base still skews younger, but revealed a larger 18-plus cohort than expected that is growing over 50% and monetizes about 40% higher, expanding the opportunity for stronger monetization.
- Consolidated net loss widened in Q4 to $318 mln from $221 mln as RBLX leaned into reinvestment in creators, safety, and platform infrastructure, including AI. On AI, management downplayed disruption fears from efforts like Google's Genie, arguing the opportunity is expanding and RBLX's multiplayer 3D platform remains a key differentiator.
- Its current guidance reflects continued DAU and hours growth, while margins are expected to be flat to slightly down as it invests in DevEx, infrastructure, and safety. Additionally, RBLX will shift to quarterly guidance in FY27 to better reflect fast-changing content trends.
Briefing.com Analyst Insight
This was a strong finish to FY25 for RBLX, highlighted by the surge in engagement across the platform. What stood out was the broadening of growth, showing that even without a major viral hit, RBLX can still generate compelling momentum as spend and engagement expand beyond its top experiences, supporting its strong bookings outlook. The age-check rollout also revealed a larger 18-plus cohort than expected that monetizes at higher levels, creating a bigger long-term opportunity even with some modest near-term friction. The widening loss remains a point of note as RBLX continues to reinvest in creators, safety, infrastructure, and AI. Even so, the combination of broader content-driven growth and a larger 18-plus monetization opportunity keeps the long-term setup attractive.
Amazon Delivers on AWS, but $200 bln Cap-Ex Plan Clouds the Outlook (AMZN)
Amazon (AMZN -8%) is under pressure today after reporting fiscal Q4 results last night. The company missed on EPS, while revenue delivered only modest upside, rising 13.6% yr/yr to $213.39 bln. Since Amazon provides only GAAP EPS, it is also helpful to examine operating income as a clearer gauge of profitability. Q4 adjusted operating income of $27.4 bln exceeded prior guidance of $21-26 bln, while Q1 revenue guidance came in roughly in-line.
- The primary concern from the report centered on capital expenditures. Amazon expects cap-ex to reach roughly $200 bln in 2026, the majority of which will be directed toward AWS infrastructure. Management cited extremely strong demand for both core and AI workloads, noting that AWS is monetizing new capacity as quickly as it can be deployed.
- Cap-ex totaled $77.7 bln in 2024 and $128.3 bln in 2025, so the planned $200 bln cap-ex in 2026 represents a sharp acceleration.
- Investors are worried about margin pressure, AI bubble risk, and potential debt or dilution, especially after AMZN filed a mixed securities shelf offering.
- Within the Stores segment, Amazon closed the year on a strong note during the peak holiday season. Worldwide paid units increased 12%, Amazon's fastest quarterly growth rate of 2025.
- The standout performance came from AWS, which surprised to the upside. AWS revenue of $35.6 bln grew 24% yr/yr, accelerating from 20.2% in Q3. AWS now carries an annualized revenue run rate of ~$142 bln. Growth was driven by both core cloud services and AI workloads. In 2025, AWS added more data center capacity than any company globally.
- Advertising Services also remained a consistent growth driver. Advertising revenue grew 22% CC to $21.32 bln and matched Q3 and Q2 levels, reflecting steady momentum. • Management highlighted strength in its full-funnel advertising model, which simplifies brand-to-customer engagement.
Briefing.com Analyst Insight: Amazon delivered a solid quarter with broad-based strength across AWS, Advertising, and its core Retail business. The reacceleration in AWS growth to 24% yr/yr was particularly impressive and reinforces the durability of cloud demand, especially tied to AI workloads. That said, the market's focus has quickly shifted to Amazon's aggressive cap-ex trajectory, which is raising concerns around returns on investment, margin compression, and balance sheet risk. While AWS demand clearly remains robust, the planned $200 bln cap-ex spend in 2026 is a large leap that investors are not yet comfortable underwriting. As a result, shares are under pressure and trading near the $200 level, a price not seen since May 2025, as the market waits for greater clarity on long-term profitability and capital discipline.
Fortinet jumps on Q4 beat as billings acceleration and solid FY26 outlook appeases investors (FTNT)
Fortinet (FTNT) reported a strong set of 4Q25 results, with the stock trading sharply higher following the release as investors cheer an acceleration in billings and a robust full-year outlook. While near-term 1Q26 earnings guidance arrived slightly below analyst estimates, the platform's ability to drive high-growth Unified SASE adoption and maintain its "Rule of 45" profile has bolstered confidence in FTNT’s long-term competitive positioning.
- FTNT exceeded Q4 expectations with total revenue growing 15% yr/yr to $1.91 bln. Product revenue growth was particularly notable, accelerating to 20% ($691 mln) as the company continues to gain market share in the firewall space.
- Billings growth accelerated significantly to 18%, up from 14% in the previous quarter. This acceleration is a critical positive, suggesting that FTNT is successfully navigating a crowded cybersecurity market by leveraging its integrated platform approach to displace point-solution competitors.
- Unified SASE billings surged by 40%, now representing 27% of total billings. This growth is driven by FTNT’s unique ability to integrate SD-WAN and SASE on a single operating system (FortiOS) and its Sovereign SASE offering, which allows customers to maintain data privacy in their own data centers -- a feature competitors currently lack.
- FY26 guidance provided a lift to sentiment, with revenue projected between $7.5-7.7 bln and non-GAAP EPS of $2.94-$3.00. These midpoints are slightly better than expectations, signaling management's confidence in durable, double-digit growth despite a more conservative 1Q26 EPS guide.
- Capital allocation remains shareholder-friendly, as the company announced a $1.0 bln increase to its authorized stock repurchase program.
- Operational Technology and AI remain massive tailwinds, with OT billings growing over 25%. A new partnership with NVIDIA (NVDA) to secure AI infrastructure using BlueField-3 DPUs further positions FTNT at the center of next-generation data center security.
Briefing.com Analyst Insight:
FTNT’s 18% billings acceleration proves networking and security convergence drives large deals. The stock is shrugging off a soft 1Q26 EPS guide because the raised FY26 outlook signals a service revenue recovery is on the horizon, fueled by 20% product growth. A key pillar is the 40% growth in Unified SASE, where FTNT’s Sovereign SASE remains a unique differentiator against peers. Maintaining a "Rule of 45" profile for the seventh consecutive year while implementing 5-20% price hikes demonstrates elite operational discipline. This broad-based demand is a bullish signal for the entire sector, suggesting a resilient spending environment ahead of earnings from Palo Alto Networks (PANW), CrowdStrike (CRWD), and Zscaler (ZS). With a $1.0 bln buyback boost, management is signaling high confidence in its AI and OT-driven growth trajectory.
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.
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