Daily Brief - February 03, 2026 (Morning)

 ## Pre-Market Overview U.S. stock futures are indicating a positive open, with futures for the S&P 500 and Nasdaq both up approximately 0.5%. This sentiment is reflected in global markets, as European indices have opened higher, buoyed by optimism surrounding corporate earnings. Asian markets also showed strength overnight, particularly in Japan, where the Nikkei 225 rose nearly 4% following solid earnings reports from major companies. Key developments include the ongoing focus on earnings results, particularly from technology firms, which are expected to dominate today's trading. The recent U.S.-India trade deal has also injected some optimism into the markets, with analysts anticipating potential benefits for various sectors. However, the market remains cautious due to concerns over inflation and potential interest rate hikes. ## Top Stories Moving Markets **Palantir Technologies Inc. (PLTR)** Palantir reported a significant earnings beat, with revenue growth accelerating. Their strong guidance for 2026 has investors optimistic, contributing to a 10% surge in pre-market trading. This growth is seen as a key indicator of increasing demand for AI-driven solutions. **Rambus Inc. (RMBS)** Rambus shares plummeted after the company issued soft Q1 guidance, citing challenges in the semiconductor space. The stock is down over 15% in pre-market trading, and analysts warn of potential further declines if demand does not pick up. **Pfizer Inc. (PFE)** Pfizer reaffirmed its modest outlook during its earnings report, causing shares to dip. The company is facing challenges with its Covid product line as demand subsides. Investors are concerned about the long-term sustainability of its revenue, leading to a cautious approach in today's session. **Merck & Co. Inc. (MRK)** Merck reported strong fourth-quarter results that exceeded expectations, but provided a cautious outlook for 2026 due to potential patent losses. The stock is expected to face pressure as investors digest the implications of its guidance. **Teradyne Inc. (TER)** Teradyne's stock soared nearly 23% after it reported its first billion-dollar quarter, driven by robust demand for its testing equipment. Analysts are upgrading their outlook for the company, making it a focal point for traders today. ## Stocks to Watch Today **$PLTR** - Surged on strong earnings and optimistic guidance for 2026, making it a key stock to watch. **$RMBS** - Shares crumbled on disappointing Q1 guidance, likely to weigh heavily on sentiment today. **$PFE** - Dropped following a reaffirmed modest outlook; investor sentiment may remain cautious. **$MRK** - Faces pressure from a cautious outlook despite strong earnings; watch for potential volatility. **$TER** - Jumped after a record quarter driven by AI demand, likely to attract further investment. **$TGT** - Upgraded due to an improved risk-reward scenario, with analysts seeing potential despite a lower earnings outlook. **$DVN** - Upgraded by UBS as cost cuts accelerate, expected to perform well amid rising energy prices. **$WDC** - Announced a $4 billion share repurchase authorization, indicating strong confidence in its valuation. **$AMD** - Recent reports suggest potential market share gains in the semiconductor sector, positioning it for a positive day. **$AAPL** - Positioned for a rebound following a recent dip, as investors look for entry points after strong long-term performance. ## Sector Setup **Technology:** The sector is poised for gains, particularly driven by strong earnings from firms like Palantir and Teradyne. However, concerns around semiconductor stocks could dampen enthusiasm. **Healthcare:** Mixed outlooks in healthcare, with Merck's cautious guidance weighing down sentiment, while Pfizer's reaffirmed outlook raises questions about sustainability. **Energy:** The sector appears strong, buoyed by rising oil prices and upgrades for companies like Devon Energy, which are benefiting from cost management strategies. ## Economic Calendar & Fed No major releases scheduled for today. Traders will be focused on earnings reports and any developments regarding interest rate policies as they assess market sentiment. ## Crypto & Commodities Gold prices have rebounded after a sharp sell-off, with investors seeking safe-haven assets amid market volatility. Bitcoin remains under pressure but may stabilize as traders seek entry points. Oil prices are steady as tensions in the Middle East could impact supply dynamics. ## Trading Game Plan - Focus on tech stocks, particularly those reporting strong earnings, like **$PLTR** and **$TER**. - Monitor healthcare stocks for potential volatility following earnings reports, especially **$MRK** and **$PFE**. - Keep an eye on energy sector developments, particularly with companies like **$DVN** and **$WDC**. - Watch for market reactions to any commentary on interest rates or inflation concerns that could impact overall sentiment.