## MARKET MOOD: RISK-OFF
Overnight sentiment turned cautious as concerns about rising interest rates and disappointing earnings from key tech companies weighed on investor confidence. Recent geopolitical tensions, particularly in the Middle East, also contributed to a more defensive stance in the markets.
## TOP 5 HEADLINES
1. **Eli Lilly Surges 9% After Obliterating Forecasts** → Impact: Strong sales growth of Mounjaro and Zepbound drugs drove significant upside in share price.
2. **Novo Nordisk Shares Tumble 18% After 2026 Sales Dip Warning** → Impact: A grim outlook on sales growth raises concerns over future profitability, causing a sharp sell-off.
3. **AMD Reports Q4 Earnings; Stock Falls 9% Despite Strong Growth** → Impact: Investors reacted negatively to weaker guidance and concerns over GPU demand, leading to a sell-off.
4. **Uber Stock Tumbles On Earnings Miss, Weak Profit Guidance** → Impact: Despite revenue growth, disappointing profit forecasts spooked investors, resulting in a significant drop.
5. **Tesla's China Shipments Rise 9.3% Year-On-Year** → Impact: Continued strong demand in China provides a positive outlook for Tesla, although broader market sentiment remains cautious.
## PRE-MARKET MOVERS
### Longs (Bullish Catalysts)
**$LLY** - Strong earnings report and guidance boost investor confidence.
**$TSLA** - Positive sales growth in China supports bullish sentiment.
**$PG** - Expanding collaboration with Itron for grid reliability enhances future prospects.
**$WLDN** - Favorable infrastructure demand outlook from Wedbush drives up sentiment.
### Shorts (Bearish Catalysts)
**$AMD** - Weaker-than-expected guidance leads to significant pre-market selling pressure.
**$UBER** - Earnings miss and weak profit guidance raise concerns among investors.
**$NVO** - Recent sales dip warning prompts sell-off amid lowered expectations.
**$CMG** - Flat comparable sales forecast leads to negative sentiment.
## INDEX BIAS
**SPY:** BEARISH - Deteriorating sentiment in the tech sector and geopolitical tensions are weighing heavily on investor outlook.
**QQQ:** BEARISH - Disappointing earnings reports from major tech companies are fostering a risk-off environment.
**IWM:** BEARISH - Small caps are impacted by broader market concerns, particularly in tech and consumer sectors.
## SECTORS
**Favor:** Healthcare - Strong earnings from key players like Eli Lilly provide a safe haven amid market volatility.
**Avoid:** Technology - Recent earnings misses and guidance cuts from major firms signal ongoing weakness in this sector.
## CATALYST WATCH
Events today that could move markets:
- 10:00 AM EST: ISM Manufacturing Index report
- 2:00 PM EST: FOMC Minutes release
## BOTTOM LINE
**Today's Play:** SELECTIVE
The dominant theme is a cautious approach as earnings reports from major companies reflect underlying weaknesses, particularly in tech. Opportunities exist in healthcare stocks like **$LLY**, while risks are elevated in tech names like **$AMD** and **$UBER**. Investors may consider maintaining a selective strategy, focusing on sectors showing resilience amidst broader market pressures.
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