Daily Brief - February 08, 2026 (Morning)

 ## Pre-Market Overview Futures are indicating a mixed opening for major U.S. indices. The **S&P 500** futures are trading flat, while **Nasdaq** futures show a slight decline of about 0.3%. Overnight, Asian markets reacted positively to Japan's election results, with the **Nikkei 225** gaining 1.5%. European markets also opened higher, buoyed by optimism around economic resilience amid ongoing geopolitical tensions. Key overnight developments include Japan's ruling Liberal Democratic Party winning a decisive majority in the snap elections, which is likely to stabilize the government and economic policies. Additionally, reports suggest that **Block Inc.** is considering job cuts of up to 10%, which could weigh on market sentiment and investor confidence in tech stocks today. Overall, the market sentiment is cautious but optimistic, influenced by Japan's political stability and concerns over job cuts in the tech sector. Traders will be looking closely at these factors as they position themselves for today's session. ## Top Stories Moving Markets - **Block Inc. (SQ)** weighs cutting up to 10% of jobs: Bloomberg reports indicate that the company is considering significant layoffs amid economic pressures and slowing growth. This could impact investor sentiment towards tech stocks and prompt a broader sell-off in the sector. - **Japan's election results**: The ruling Liberal Democratic Party's decisive victory is expected to enhance market stability and investor confidence. This may lead to a bullish sentiment for Japanese stocks and influence U.S. market attitudes towards foreign investments. - **Alpine Income Property Trust (PINE)**: The company is highlighting its growth potential, suggesting investors have not yet fully recognized its value. This messaging could support its stock price in today’s trading. - **Rocket Lab (RKLB)** faces a setback with its Neutron rocket but receives an opportunistic upgrade to 'Buy'. This could attract investor interest despite the challenges and impact sentiment in the aerospace sector. - **Super Micro Computer (SMCI)** sees a rating downgrade due to concerns over AI profitability. This could put downward pressure on the stock and potentially affect tech sector valuations. ## Stocks to Watch Today - **$SQ** - Job cuts of up to 10% could signal deeper issues within the company, impacting stock performance. - **$PINE** - Positive long-term growth narrative may attract investors seeking stability. - **$RKLB** - Despite setbacks, the upgrade to 'Buy' could lead to renewed interest from investors. - **$SMCI** - Downgrade may lead to selling pressure as investors reassess their positions. - **$AAPL** - Ongoing concerns about AI competitiveness may affect tech giants as sentiment shifts. - **$GOOGL** - Positive AI signals from Alphabet may bolster investor confidence in tech stocks. - **$NFLX** - Streaming rivals are seeing significant profit growth, which could influence Netflix's market position. - **$AMZN** - CEO Andy Jassy's comments on competition in cloud services may draw investor attention. ## Sector Setup - **Technology:** Cautiously bearish. The job cuts at Block and Super Micro's downgrade could signal a broader slowdown in tech, prompting traders to tread carefully. - **Financials:** Neutral outlook. No significant news impacting this sector overnight, but general market sentiment could influence trading. - **Energy:** Positive outlook. Rising oil prices and strong cash flows reported by companies could support gains in this sector. - **Healthcare:** Neutral. No significant news, but potential for volatility based on broader market movements. ## Economic Calendar & Fed No major releases scheduled for today. Traders should remain alert for any unexpected news that could impact market sentiment. ## Crypto & Commodities No relevant news reported regarding cryptocurrencies or commodities. ## Trading Game Plan - Watch for volatility in tech stocks, particularly those reacting to job cut news and downgrades. - Monitor Japanese market performance for potential spillover effects on U.S. indices. - Favor energy stocks given upward momentum from rising oil prices. - Be cautious with growth stocks, especially in tech, as layoffs could signal broader economic challenges. - Keep an eye on upcoming earnings reports that could shift sentiment ahead of the market's next direction.