Daily Brief - February 04, 2026 (Morning)

 ## Pre-Market Overview U.S. stock futures are showing mixed signals ahead of the market open, with Dow futures slightly up by 0.2%, while S&P 500 and Nasdaq futures are down by about 0.1% each. This follows a volatile session on Wall Street, primarily driven by a sell-off in technology stocks. Overnight, European markets experienced a minor bounce, with the FTSE 100 and DAX both gaining around 0.3%. In Asia, markets were mixed, with the Nikkei 225 rising 0.5% while the Hang Seng Index fell by 0.3%. Investor sentiment appears cautious as concerns about inflation and interest rates linger, particularly ahead of key economic data releases this week. Additionally, geopolitical tensions, especially relating to U.S.-Iran relations and ongoing nuclear talks, may contribute to market volatility. However, some market participants are hopeful for a rebound in technology stocks following significant earnings reports from companies like **$AMGN** and **$LITE**. ## Top Stories Moving Markets **Eli Lilly Surges** Eli Lilly's shares jumped 9% after the company reported a blowout quarterly earnings, significantly exceeding analysts' expectations. The strong performance was attributed to soaring sales of its weight-loss drugs, Mounjaro and Zepbound, which saw sales double. This growth signals strong demand in the pharmaceutical sector and could influence investor confidence in healthcare stocks today. **Novo Nordisk Shares Plunge** Novo Nordisk shares tumbled 18% after the company warned of a potential decrease in sales for its weight-loss drugs in 2026, signaling a shift in market dynamics and heightened competition. This negative sentiment may affect related stocks in the healthcare sector and raise concerns about pricing pressures in the obesity drug market. **Tesla’s China Sales Rise** Tesla reported a 9.3% year-over-year increase in its China-made electric vehicle sales for January. This uptick is critical as it signals sustained demand in a key international market, despite broader economic challenges. **$TSLA**’s positive news may buoy investor sentiment in the EV sector. **SpaceX-xAI Merger** The announcement of SpaceX’s merger with xAI has created a buzz, potentially reshaping investor perceptions of tech stocks related to artificial intelligence and space exploration. This merger could lead to increased investment in both sectors, influencing stocks like **$GOOGL** and **$MSFT**. **Boston Scientific Shares Slide** Boston Scientific's shares fell sharply after a key division missed sales forecasts. The company faced challenges in its revenue guidance for 2026, which may prompt further scrutiny from investors and analysts in the healthcare sector today. ## Stocks to Watch Today **$LLY** - Shares surged after strong quarterly earnings driven by weight-loss drug sales. **$NVO** - Plunged 18% after warning of a potential drop in sales for its obesity drugs. **$TSLA** - Increased sales figures in China could positively impact investor sentiment. **$BSX** - Shares slid after missing sales forecasts, raising concerns about future performance. **$SMCI** - Reported blowout earnings, confirming bullish market sentiment. **$AMD** - Stock price target raised by analysts, indicating positive outlook despite recent volatility. **$LITE** - Shares gained after strong earnings report, reflecting positive market sentiment. **$CNC** - Caution advised after earnings caused concern about future guidance. ## Sector Setup - **Technology:** Outlook is mixed. The sector has faced losses due to AI-related sell-offs but remains buoyed by strong earnings from key players like **$AMGN** and **$LITE**. - **Healthcare:** Mixed outlook. **$LLY** shows strength while **$NVO**’s decline may cause caution among investors. - **Energy:** No notable news impacting the sector today, but oil prices have shown some stability amidst geopolitical concerns. - **Financials:** Overall positive sentiment as earnings season progresses, but individual stocks may react to economic data and interest rate expectations. ## Economic Calendar & Fed No major economic releases are scheduled for today. However, market participants will be watching for any hints regarding interest rate policies from upcoming Fed meetings, especially in light of inflation concerns. ## Crypto & Commodities Bitcoin prices are stabilizing after recent sell-offs, with the cryptocurrency trading around $76,000. Gold is also making a comeback, rising towards $5,000 amid growing geopolitical tensions, particularly related to Iran. ## Trading Game Plan - Focus on healthcare stocks today, especially **$LLY** and **$NVO**, to gauge market reactions to recent earnings. - Keep an eye on technology stocks, particularly **$TSLA**, for any signs of recovery. - Monitor geopolitical developments, especially U.S.-Iran tensions, as they may impact market sentiment. - Be cautious with financial stocks and watch for any shifts in interest rate expectations that could affect market dynamics.