Market Snapshot
| Dow | 50186.93 | +52.27 | (0.10%) | | Nasdaq | 23102.50 | -136.20 | (-0.59%) | | SP 500 | 6941.80 | -23.01 | (-0.33%) | | 10-yr Note |
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| | NYSE | Adv 1690 | Dec 1030 | Vol 1.29 bln | | Nasdaq | Adv 2246 | Dec 2533 | Vol 8.57 bln |
Industry Watch
| Strong: Consumer Discretionary, Utilities, Real Estate, Materials, Industrials |
| | Weak: Communication Services, Energy, Consumer Staples, Financials, Information Technology, Health Care |
Moving the Market
--Weakness in mega-cap, tech, and growth stocks today
--Relatively road strength lifting the DJIA to a fresh record high
--Bitcoin remaining stable
--Mixed reaction to today's earnings report
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Major averages finish mostly lower as tech rebound stalls
10-Feb-26 16:25 ET
Dow +52.27 at 50186.93, Nasdaq -136.20 at 23102.50, S&P -23.01 at 6941.80
[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-0.6%), and DJIA (+0.1%) finished mostly lower today as mega-cap and tech names saw their recent rebound efforts modestly stalled, while early strength in the broader market succumbed to some afternoon selling pressure.
The DJIA's modest gains were enough to secure record highs for the third consecutive session.
While sector strength tilted positive for most of the session, it was eroded somewhat in the afternoon, with just five S&P 500 sectors finishing higher. Losses were relatively modest across the six sectors that finished lower, though weakness in some of the market's weightiest names pressured the major averages.
The communications services sector (-0.8%) finished with the widest loss as Alphabet (GOOG 318.63, -5.77, -1.78%) and Meta Platforms (META 670.72, -6.65, -0.98%) both finished lower.
The financials sector (-0.8%) finished similarly as major banking and financial services names lagged today.
Meanwhile, the consumer staples sector (-0.7%) faced a combination of weakness from this morning's economic data and earnings releases. Walmart (WMT 126.70, -2.32, -1.80%) and Costco (COST 971.23, -26.36, -2.64%) finally faced some pressure after an exceptional start to the year following a flat December retail sales report (Briefing.com consensus 0.4%).
Coca-Cola (KO 76.82, -1.16, -1.48%) finished modestly lower after beating EPS estimates but missing on revenues.
The top-weighted information technology sector (-0.6%) finished at session lows after spending the first half of the session with modest gains. Datadog (DDOG 129.67, +15.66, +13.74%) was an earnings standout, and software names tracked higher for most of the session, but the iShares GS Software ETF (IGV) finished just 0.4% higher after holding a significantly higher gain.
Microsoft (MSFT 413.27, -0.33, -0.08%) was unable to maintain its early strength, while NVIDIA (NVDA 188.54, -1.50, -0.79%) and Apple (AAPL 273.68, -0.94, -0.34%) added to the day's mega-cap weakness that saw the Vanguard Mega Cap Growth ETF finish 0.4% lower.
The PHLX Semiconductor Index (-0.7%) finished even lower, pressured by sharp retreats across memory storage names such as Western Digital (WDC 262.56, -23.43, -8.19%) and Sandisk (SNDK 541.64, -41.76, -7.16%).
While growth stocks largely underwhelmed today, there were a few defensive and cyclical pockets of the market that outperformed.
The utilities sector (+1.6%) finished with the widest gain as all but one of its components finished higher. Vistra Corp. (VST 159.58, +6.61, +4.32%) led the advance after receiving an upgrade to Buy from Hold from Jefferies.
Meanwhile, the real estate sector (+1.4%) traded higher as the House passed a bipartisan bill to reduce regulations and increase housing supply.
The materials sector (+1.3%) also charted a gain wider than 1.0% due to strong performances from chemical stocks.
Though the consumer discretionary sector (+0.5%) finished with only about half of its earlier strength, it still notched a solid gain due to solid post-earnings performances from Marriott (MAR 359.35, +28.14, +8.50%) and Hasbro (HAS 104.00, +7.24, +7.48%), along with strength in its homebuilder components.
Amazon (AMZN 206.90, -1.82, -0.87%) traded modestly higher for much of the session but was unable to secure its first higher finish following its earnings report last Thursday afternoon.
Outside of the S&P 500, the Russell 2000 (-0.3%) and S&P Mid Cap 400 (-0.1%) also ceded their early gains.
All told, today's session started as a modest extension of the recent rebound effort, and while select pockets of the market finished with nice gains, weakness in mega-cap and tech spaces resulted in a mostly lower finish for the major averages. Action at the index level was still subdued as the market awaited its next catalyst in the form of more earnings and tomorrow's release of the January employment situation report.
U.S. Treasuries registered gains in the overnight session, comforted by the calm seen in Japan's bond market despite speculation that the LDP's commanding victory in last weekend's snap election could stoke additional fiscal stimulus. Those gains persisted into today's cash session, courtesy mostly of a weak retail sales report for December and the recognition that employment costs moderated in Q4. The 2-year note yield settled down three basis points to 3.45%, and the 10-year note yield settled down five basis points to 4.15%.
- S&P Mid Cap 400: +8.6% YTD
- Russell 2000: +8.0% YTD
- DJIA: +4.4% YTD
- S&P 500: +1.4% YTD
- Nasdaq Composite: -0.6% YTD
Reviewing today's data:
- January NFIB Small Business Optimism 99.3; Prior 99.5
- December Retail Sales 0.0% (Briefing.com consensus 0.4%); Prior 0.6%, December Retail Sales, ex-auto 0.0% (Briefing.com consensus 0.4%); Prior was revised to 0.4% from 0.5%
- The key takeaway from the report is that spending on goods was down across most discretionary categories following some decent-sized gains in November. That will foment some concern about consumer spending fatigue at the end of last year, which of course included the holiday shopping period.
- Q4 Employment Cost Index 0.7% (Briefing.com consensus 0.8%); Prior 0.8%
- The key takeaway from the report is that there was some moderation in employment costs on a year-over-year basis that will help temper inflation worries.
- December Import Prices 0.1%
- December Import Prices ex-oil 0.4%
- December Export Prices 0.3%
- December Export Prices ex-ag. 0.3%
- November Business Inventories 0.1% (Briefing.com consensus 0.2%); Prior was revised to 0.2% from 0.3%
Major averages mostly lower ahead of key jobs data
10-Feb-26 15:35 ET
Dow +105.28 at 50239.94, Nasdaq -102.66 at 23136.04, S&P -13.99 at 6950.82
[BRIEFING.COM] The major averages remain mostly lower with just half an hour left in today's session.
Stocks traded in a somewhat subdued fashion today ahead of tomorrow's release of the January Employment Situation Report, which will feature the annual "benchmark revisions" that could reshape the markets' view of how strong 2025 hiring actually was.
Additionally, the market will receive a sizable batch of earnings reports before action kicks off tomorrow, including reports from Ford Motor (F 13.64, +0.04, +0.33%), T-Mobile US (TMUS 199.48, +1.82, +0.92%), and Kraft Heinz (KHC 25.11, +0.53, +2.15%).
Major averages now mostly lower
10-Feb-26 15:05 ET
Dow +130.59 at 50265.25, Nasdaq -63.71 at 23174.99, S&P -5.88 at 6958.93
[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (-0.3%), and DJIA (+0.2%) now sit mostly lower as the market enters the final hour of the session.
The information technology sector (-0.3%) has come under pressure this afternoon after spending most of the day with a modest gain. Weakness across chipmaker names sends the PHLX Semiconductor Index 0.5% lower.
Elsewhere in the sector, Microsoft (MSFT 415.14, +1.54, +0.37%) has seen the bulk of its earlier gain eroded.
The Vanguard Mega Cap Growth ETF is now down 0.2%.
S&P 500 slips 0.16% as SPGI, XYL, INCY drop; Masco surges 9.3%
10-Feb-26 14:30 ET
Dow +35.73 at 50170.39, Nasdaq -71.54 at 23167.16, S&P -10.87 at 6953.94
[BRIEFING.COM] The S&P 500 (-0.16%) is in second place on Tuesday afternoon, down 11 points.
Briefly, S&P 500 constituents S&P Global (SPGI 406.03, -38.16, -8.59%), Xylem (XYL 129.77, -10.42, -7.43%), and Incyte (INCY 101.93, -7.10, -6.51%) pepper the bottom of the standings following earnings.
Meanwhile, Masco (MAS 78.24, +6.63, +9.26%) is near the top of the average after beating Q4 EPS expectations and issuing FY26 EPS guidance that brackets consensus, easing concerns around flat repair-and-remodel demand. The move is being amplified by a dividend increase and a new $2B share repurchase authorization, strengthening the shareholder return story.
Gold slips 1% to $5,031 as profit-taking emerges ahead of key U.S. data
10-Feb-26 14:00 ET
Dow -5.70 at 50128.96, Nasdaq -77.49 at 23161.21, S&P -13.41 at 6951.40
[BRIEFING.COM] The tech-heavy Nasdaq Composite (-0.33%) is in last place on Tuesday afternoon, down about 77 points.
Gold futures settled $48.40 lower (-1.0%) at $5,031/oz, as investors took profits and turned cautious ahead of key U.S. labor and inflation data that could influence the Fed's rate path. The pullback followed gold's recent surge above $5,000/oz, with improved risk sentiment and modest dollar strength weighing on prices despite ongoing structural support.
Meanwhile, the U.S. Dollar Index is up less than +0.1% to $96.89.
Credo Technology Connects the Dots with Upside Guidance as AI Data Center Demand Accelerates (CRDO)
Credo Technology is surging after the data center interconnection supplier guided fiscal Q3 (Jan) and Q4 (Apr) revenue well above analyst expectations last night. The upside reflects strong demand for its Active Electrical Cables, continued momentum in its IC business, and growing enthusiasm around multiple new long-term growth opportunities tied to AI-driven data center expansion.
- Credo guided Q3 and Q4 revenue well above Street expectations, pointing to improving demand visibility.
- The company previously said that AECs remain its fastest-growing segment, with customer forecasts strengthening across the board in recent months. AECs have become the de facto standard for intra-rack connectivity and are displacing optical rack-to-rack links up to 7 meters.
- The IC business, including retimers and optical DSPs, continues to show strong growth alongside AECs. CRDO expects significant optical DSP growth in FY26, driven by 50 gig and 100 gig per lane deployments, with longer-term upside from 200 gig per lane products. The company's existing AEC and IC businesses each address multibillion-dollar market opportunities with solid visibility.
- Credo has added three new growth pillars, each representing a distinct multibillion-dollar opportunity:
- ZeroFlap Optics, a laser-based optical connectivity platform, is in live data center trials, with sampling at a second U.S. hyperscaler expected later this fiscal year and initial revenue anticipated in FY27.
- Additional growth pillars include a microLED-focused collaboration with Hyperlume and the OmniConnect gearbox platform for optimized XPU connectivity.
Briefing.com Analyst Insight:
Credo's guidance highlights its increasing relevance in the AI data center ecosystem, where reliable, high-speed connectivity is critical even for companies not directly supplying AI servers. The rapid adoption of AECs is driving near-term results, while expanding IC offerings and emerging technologies such as ZeroFlap Optics, microLED connectivity, and OmniConnect gearboxes provide longer-term optionality. With multiple multibillion-dollar markets in play and improving visibility, Credo is evolving from a niche interconnect supplier into a broader AI infrastructure enabler. Credo is not one of the first names investors think about as a play on the buildout of AI infrastructure at data centers. However, it is clearly benefitting.
Hasbro is "Playing to Win" as record margins and Wizards growth propels blowout Q4 results (HAS)
Hasbro (HAS) is trading sharply higher following its 4Q25 earnings report this morning, as the toy and gaming giant delivered a substantial beat on both EPS and revenue. Revenue growth accelerated to 31% -- the company's strongest quarterly growth in over four years -- signaling that HAS is firmly back on a growth trajectory. Management attributed the performance to the "Playing to Win" strategic roadmap, which has successfully transitioned the company from a turnaround phase into a new era of profitability and digital-first play.
- Q4 revenue increased 31% yr/yr to $1.5 bln, driven by exceptional momentum in the gaming-led business model. Adjusted EPS reached $1.51, capping a year of accelerating operational discipline.
- The primary growth engine was the Wizards of the Coast and Digital Gaming segment, which saw revenue surge 86% to $630 mln in the quarter. This was driven by a 141% explosion in Magic: The Gathering sales, fueled by the massive success of the Avatar: The Last Airbender and Final Fantasy holiday releases.
- Consumer Products revenue grew 7% to $800 mln, supported by the strength of Hasbro Gaming and Marvel brands. Conversely, Entertainment revenue was down 5% for the period, though the segment remains a key part of the "asset-led" strategy with approximately 50% operating margins expected for 2026.
- A major future growth catalyst was revealed with the announcement of a multi-year licensing partnership with Warner Bros. Discovery (WBD). Starting in late 2026, HAS will become the global primary toy licensee for the World of Harry Potter and the upcoming HBO Original Harry Potter series, a move expected to significantly scale the company's multi-generational appeal.
- Demonstrating confidence in its cash flow durability, the board has authorized a new $1.0 bln share repurchase program alongside its continued commitment to the quarterly dividend.
- For 2026, HAS guided for consolidated revenue growth of 3-5% on a constant currency basis. The company expects to maintain high profitability with adjusted operating margins of 24-25% and adjusted EBITDA in the range of $1.40-$1.45 bln.
Briefing.com Analyst Insight
HAS's 4Q25 results suggest the "Playing to Win" strategy is delivering exactly what it promised: a more efficient, higher-margin business anchored by world-class IP. The 86% surge in Wizards and Digital Gaming is particularly impressive, as it validates the "Universes Beyond" strategy of pairing Magic’s core mechanics with blockbuster collaborations like Avatar. Adding the Harry Potter franchise to the portfolio starting in 2027 provides a clear long-term growth vector that should help HAS capture significant market share in the collectibles and role-play categories. While the 2026 revenue guidance is measured, the record 24%+ operating margins and $1 bln buyback authorization signal a company that has successfully optimized its cost structure and is now ready to reward shareholders.
Coca-Cola Fizzles On Q4 Revenue Miss, But Volume Improvement Broadens (KO)
Coca-Cola (KO) is modestly lower after reporting its Q4 results this morning. The beverage giant beat EPS expectations, while revenue increased 2.2% yr/yr to $11.8 bln, falling short of estimates. Additionally, for FY26, the company expects organic sales growth of 4-5% and comparable EPS growth of 7-8%, or $3.21-3.24, which was in line with expectations.
- Total volume increased 1%, holding steady relative to Q3, but it marks the second consecutive quarter of volume growth. Management also noted volumes improved each month of the quarter.
- North America volume continued to improve despite pressure on lower income consumers, with volume up 1% after being flat in Q3, driven by broad-based strength across the beverage portfolio.
- EMEA volume increased 2%, moderating from Q3's 4% gain, as the quarter started slowly before recovering as transactions improved, supported by holiday activations and sports-linked marketing.
- Latin America volume increased 2%, a step up from flat in Q3, driven by growth across all global beverage categories. Asia Pacific volume was flat, improving from a 2% decline in Q3, as growth in water, sports, coffee and tea and Coca-Cola was offset by weaker sparkling flavors.
- Coca-Cola Zero Sugar was a standout with volume up 13%, while water rose 4% and sports drinks increased 5%. Offsetting that, juice and value-added dairy declined 3% and sparkling flavors fell 1%.
- Price/mix growth was 1% in Q4, driven by 4 points of pricing actions but offset by 3 points of unfavorable mix. Comparable operating margin expanded 50 bps to 24.4%, reflecting solid cost discipline.
- Incoming CEO Henrique Braun is focused on three priorities: deepening recruitment with young adult consumers, getting closer to the consumer to speed innovation and time-to-market, and embedding digital at the core of the system.
Briefing.com Analyst Insight
KO delivered an encouraging demand read-through this quarter, as volumes stayed positive for a second consecutive quarter and momentum improved as the quarter progressed. Volume trends also broadened, with North America and Latin America returning to growth and Asia Pacific stabilizing. Despite those positives, shares are trading a bit lower, which likely reflects the revenue shortfall after a strong run into the report. That said, the quarter still reinforces KO's defensive profile, with strong cash generation and a long-standing dividend. Incoming CEO Henrique Braun reiterated three priorities, and we look forward to hearing more as he formally steps into the role on March 31. Overall, we think the bigger focus for investors remains on volumes, as KO expects pricing to normalize in 2026, putting more emphasis on how it can support volumes to drive growth rather than leaning on pricing.
Datadog Back on the Scent with Q4 Beat and Upside Revenue Outlook (DDOG)
Datadog is trading sharply higher following its Q4 earnings report this morning, as the cloud monitoring and security platform delivered a solid beat on EPS and an especially strong beat on revenue. The company also guided Q1 revenue well above analyst expectations, reinforcing confidence that growth momentum is reaccelerating across both its core customer base and AI-native customers.
- Q4 revenue increased 29.2% yr/yr to $918.7 mln, marking DDOG's strongest revenue growth rate since 1Q23. The company beat nicely on EPS, while Q1 EPS guidance came in modestly below consensus despite the upside revenue outlook.
- Robust sequential usage growth from existing customers was a key driver of top-line performance in Q4. Revenue growth excluding AI-native customers accelerated to 23% yr/yr, up from 20% in Q3, signaling broad-based improvement across the core business.
- AI-native customers remain a major growth engine, with revenue growth significantly outpacing the rest of the business. As of today, 14 of the top 20 AI-native companies are Datadog customers, including several of the largest players in the space.
- New logo bookings were very strong, as go-to-market teams converted a record number of new customers during the quarter.
- A metric that stood out was RPO, which at $3.46 bln, was up 52% yr/yr, while current RPO grew 40% yr/yr. Management continues to see favorable demand trends tied to cloud migration, noting that many large enterprises remain early in their cloud adoption journey.
Briefing.com Analyst Insight:
Datadog's results suggest the company is exiting its recent growth slowdown with renewed momentum. Encouragingly, revenue growth is accelerating across the broader customer base, not just among AI-native clients, pointing to healthier underlying demand. At the same time, Datadog's strong positioning with leading AI-native companies provides an additional growth lever as those customers move into production. While valuation remains a consideration following the stock's sharp move higher, the combination of accelerating revenue, strong RPO growth, and low churn supports a constructive medium- to long-term outlook.
Spotify's strong Q4 results and subscriber growth is music to investors' ears (SPOT)
Spotify (SPOT) is surging higher after delivering a blowout 4Q25 earnings report featuring record-breaking profitability and user growth. The streaming giant's results, highlighted by a record 33.1% gross margin and a massive beat in Monthly Active Users (MAUs), have reignited investor confidence. This performance effectively validates SPOT's pricing power and its shift toward a high-margin, diversified audio ecosystem.
- SPOT easily beat 4Q25 EPS expectations as gross margin hit a record 33.1% (+83 bps yr/yr), fueled by Marketplace scaling and improved podcast/audiobook efficiency.
- MAUs jumped 11% to 751 mln, comfortably beating estimates due to strong international expansion and "Spotify Wrapped" momentum.
- Premium Subscribers grew 10% to 290 mln. Despite recent price hikes, churn remained lower than anticipated, proving platform stickiness.
- The "Spotify Wrapped" campaign engaged over 300 mln users, acting as a high-impact acquisition tool for the Premium tier.
- While the €4.5 bln revenue guide was conservative, MAU guidance of 759 mln and Premium Subscriber target of 293 mln both exceeded analyst projections.
Briefing.com Analyst Insight
Today's rally reflects a fundamental re-rating of SPOT’s risk-to-reward profile. The company has successfully transitioned from "growth at all costs" to a high-margin cash machine, with the 33.1% gross margin serving as a major proof point for its multi-vertical strategy. While the Q1 revenue outlook was characteristically conservative, the underlying momentum in MAUs -- especially the record holiday additions -- suggests SPOT's market dominance is only intensifying. As long as the company maintains its disciplined operating expenses and leverages its creator tools to drive margin expansion, the stock is likely to hold these new highs.
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