Daily Brief - February 06, 2026 (Morning)

 ## Pre-Market Overview U.S. stock futures are showing a mixed trend as investors prepare for the market open. Futures for the Dow are slightly higher, while those for the Nasdaq are flat. Overnight, Asian markets experienced a broad sell-off, influenced by ongoing concerns regarding the tech sector and macroeconomic pressures. European markets opened lower, reflecting the cautious sentiment from Asia and the impact of mixed earnings reports from major companies. The market sentiment remains cautious as traders digest the implications of recent earnings reports, particularly from technology companies. Notably, **Amazon** and **AMD** have drawn attention, with their earnings stirring concerns over future growth and capital expenditures. This backdrop may lead to volatility as investors position themselves ahead of further economic data releases today. ## Top Stories Moving Markets **AMD Q4 FY 2025 Earnings Review:** AMD reported earnings that fell short of expectations, leading analysts to suggest a "Do Nothing" rating for the stock. The company's struggles in the competitive chip market are likely to weigh on investor sentiment. **$AMD** is expected to face selling pressure today as traders react to the disappointing results. **Amazon's Massive Capex Plans:** Amazon announced plans to spend $200 billion on AI infrastructure, but this has raised concerns about its profitability and cash flow. Despite the ambitious strategy, concerns about diminishing returns from AWS could negatively impact **$AMZN** shares as investors evaluate the sustainability of such expenditures. **Stellantis EV Strategy Overhaul:** Stellantis is set to take a €26 billion hit as it scales back its electric vehicle (EV) ambitions after overestimating demand. This significant write-down is likely to affect **$STLA** shares as the market reassesses the automaker's future growth prospects in the EV space. **Tech Sector Selloff:** The ongoing selloff in tech stocks, particularly those linked to AI, has intensified, leading to fears of a bubble. Analysts are advising caution, which could lead to further declines in tech-heavy indices and impact stocks like **$AAPL** and **$MSFT**. **Bitcoin Market Reactions:** Bitcoin prices fell sharply, nearing $60,000, as macroeconomic pressures mount. The volatile crypto market remains a focal point for traders as sentiment continues to shift. Companies with exposure to Bitcoin, such as **$MARA**, may see increased volatility. ## Stocks to Watch Today **$AMD** - Following disappointing earnings, analysts have issued a "Do Nothing" rating, likely leading to downtrends in stock price. **$AMZN** - Concerns regarding massive capex plans could lead to a cautious outlook from investors. **$STLA** - The significant financial hit from scaling back EV investments will likely pressure the stock today. **$AAPL** - As the tech sector faces ongoing selloff pressures, **Apple** may experience volatility. **$MSFT** - Similar to **AAPL**, Microsoft is likely to be impacted by the broader tech market trend. **$MARA** - With Bitcoin nearing $60,000, the volatility within the crypto market may affect this stock. **$DOCS** - Doximity’s earnings report could provide insights into the healthcare tech sector's performance. **$EXP** - Exponent's earnings call may influence market sentiment toward tech-related stocks. **$Roku** - The company’s strategic ties with Amazon and potential advertising revenue from the Olympics could provide positive catalysts. **$UBER** - Uber’s stock is being closely watched following an upgrade recommendation amidst ongoing operational challenges. **$COTY** - The stock is under review post-earnings, which could lead to volatility based on consumer sentiment. ## Sector Setup **Technology:** The tech sector is under pressure due to concerns over valuations and potential bubble risks in AI-related stocks. Expect continued volatility as earnings results trickle in. **Consumer Discretionary:** Amazon's capex plans may negatively impact the sector, particularly for companies heavily reliant on tech integration. **Financials:** The sector may see mixed results as banks adjust their forecasts against the backdrop of rising interest rates and economic uncertainty. **Energy:** With rising oil prices, energy stocks may experience upward momentum, especially those tied to renewable energy projects. ## Economic Calendar & Fed No major releases scheduled for today. Investors will be attentive to any comments from Fed officials regarding interest rates and economic outlook. ## Crypto & Commodities Bitcoin is rebounding slightly after hitting lows near $60,000, but the sentiment remains fragile following a week of heavy selling. Gold prices are under pressure due to a strengthening dollar, affecting overall commodity performance. ## Trading Game Plan - Focus on tech sectors showing resilience against ongoing selloff pressures. - Monitor earnings reports closely for insight into consumer sentiment. - Consider positioning in energy stocks as oil prices rise. - Be cautious with investments in companies tied to Bitcoin as volatility persists. - Watch for any economic indicators that may signal shifts in Federal Reserve policy.