Daily Brief - February 05, 2026 (Morning)

 ## Pre-Market Overview U.S. stock futures indicate a cautious start to the trading day, with the S&P 500 futures down approximately 0.3%, reflecting the market's response to mixed signals from corporate earnings and economic data. Overnight, European markets showed a similar trend, with the FTSE 100 down 0.5% and the DAX off by 0.4%, as investors digest earnings reports and central bank decisions. Asian markets were mixed; the Nikkei 225 closed up 0.1%, while the Hang Seng Index fell 1.2% amid concerns over the tech sector. Key overnight news includes the release of U.S. weekly jobless claims, which rose more than expected, suggesting a cooling labor market. This development could influence sentiment towards interest rate expectations as the Federal Reserve continues to navigate inflation and employment dynamics. Additionally, increasing scrutiny over tech companies, notably Alphabet, following their significant AI spending plans, adds to investor caution. ## Top Stories Moving Markets **Alphabet Inc. (GOOGL)** - Alphabet reported fourth-quarter earnings that beat expectations, yet shares fell in pre-market trading. The company’s plans for substantial AI infrastructure spending raised concerns about increasing costs. This could create volatility in tech stocks as investors weigh growth against expenses. **Qualcomm Inc. (QCOM)** - Qualcomm's outlook has softened due to ongoing memory chip shortages impacting smartphone sales. The company reported lower expected revenue, which could pressure its stock and related semiconductor firms as they navigate supply chain challenges. **AbbVie Inc. (ABBV)** - AbbVie is forecasted to see growth from its Skyrizi and Rinvoq products, despite operational headwinds. The market’s reaction will hinge on how well these drugs perform against increasing competition, particularly in the immunology sector. **Bristol-Myers Squibb Co. (BMY)** - Bristol-Myers shares rose after a strong 2026 outlook was reported. The company anticipates continued growth driven by its cancer treatment portfolio, which could attract investor interest during today's session. **Aurora Cannabis Inc. (ACB)** - Aurora reported increased revenue and free cash flow for Q3 2026, which could revive interest in cannabis stocks. This positive earnings report contrasts with the broader market sentiment around risk assets, especially in the cannabis sector. ## Stocks to Watch Today **$GOOGL** - Focus on Alphabet’s earnings and AI spending impact on stock performance. **$QCOM** - Monitoring Qualcomm's revenue outlook amid memory chip shortages. **$ABBV** - Watch for AbbVie's growth prospects in immunology treatments. **$BMY** - Bristol-Myers' optimistic outlook may provide upward momentum. **$ACB** - Aurora Cannabis’ positive earnings could lead to renewed interest in cannabis equities. **$MPC** - Marathon Petroleum's price target was raised, indicating potential upward movement in shares. **$EPD** - Enterprise Products received a price target increase, which may bolster investor sentiment. **$DLO** - DLocal reported growing payment volumes, a potentially bullish sign for its stocks. ## Sector Setup - **Technology:** The sector is under pressure due to concerns over rising operational costs associated with AI investments, particularly highlighted by Alphabet's spending plans. Traders may approach with caution. - **Healthcare:** Positive earnings from companies like AbbVie and Bristol-Myers could indicate strength in this sector, making it a potential area for investment today. - **Energy:** The mixed news from Marathon Petroleum and Enterprise Products suggests a cautiously optimistic outlook, particularly with raised price targets, which may support energy stocks today. ## Economic Calendar & Fed No major releases scheduled for today. However, traders will be watching for any comments from the Fed regarding interest rate policy, especially in light of recent jobless claims data. ## Crypto & Commodities Bitcoin has dropped below $70,000 amid a broader selloff in the crypto market, reflecting risk-off sentiment among traders. Silver prices have also seen significant volatility, plunging over 12% as markets react to global economic factors. ## Trading Game Plan - Focus on tech stocks like **$GOOGL** and **$QCOM** for potential volatility. - Consider healthcare stocks like **$ABBV** and **$BMY** for growth opportunities. - Watch the energy sector for movements related to **$MPC** and **$EPD**. - Monitor the crypto market, particularly Bitcoin, for signs of stabilization following recent drops. - Pay attention to jobless claims data and any market reactions towards Fed policy discussions.