Daily Brief - February 09, 2026 (Morning)

 ## Pre-Market Overview U.S. stock futures are trending lower this morning following a turbulent week dominated by tech sell-offs and concerns over inflation. The Dow futures are down approximately 0.4%, while S&P 500 and Nasdaq futures are also in the red, reflecting a cautious market sentiment as investors brace for key economic data releases later this week. Overnight, Asian markets saw a significant rebound, particularly the Nikkei 225, which surged over 4% following the election victory of Prime Minister Takaichi in Japan. This victory is expected to lead to increased fiscal stimulus and spending, which has buoyed investor sentiment in the region. European markets opened higher, driven by optimism from the Japanese election results and easing concerns over tech sector valuations. Key market drivers today include the ongoing fallout from the tech sector's recent struggles, especially with AI-related stocks facing scrutiny after a sell-off. Additionally, investors will be focusing on the implications of today’s earnings reports and economic indicators, which could set the tone for market direction. ## Top Stories Moving Markets **Canopy Growth Reports In-Line Q3, But Q4 Remains Positive Despite Weak Sector** Canopy Growth has reported Q3 earnings that met expectations, but the broader cannabis market remains under pressure. This could influence sentiment around other cannabis stocks today. Affected Ticker: **$CGC** Implication: Traders may be wary of investing in the cannabis sector, anticipating continued volatility. **Software Leads AI-Driven Tech Rout - What Next?** A significant sell-off in tech stocks, particularly those related to AI, has raised concerns about overvaluation. Major software companies have been particularly affected. Affected Tickers: **$MSFT**, **$GOOGL**, **$AAPL** Implication: Traders should be cautious in tech investments, as further declines may persist amid earnings season. **STMicro shares boom on multiyear, mult-billion dollar deal with Amazon Web Services** STMicroelectronics secured a major multi-billion dollar partnership with AWS, significantly boosting investor confidence. Affected Ticker: **$STM** Implication: Expect strong performance in STMicro shares as momentum builds from this positive news. **Novo Nordisk jumps 8% after Hims & Hers pulls copycat weight-loss pill** Novo Nordisk's shares surged as Hims & Hers announced it would discontinue its weight-loss pill, clearing the competitive landscape for Novo. Affected Ticker: **$NVO** Implication: This news may lead to bullish sentiment for Novo Nordisk today. **JPMorgan Raises Price Target on Globe Life Inc. to $181 and Reiterates an Overweight Rating** JPMorgan's upgrade of Globe Life is seen as a positive signal for the insurance sector. Affected Ticker: **$GL** Implication: Investors may seek to capitalize on this upgrade, potentially lifting Globe Life shares. ## Stocks to Watch Today **$CGC** - Canopy Growth's Q3 results met expectations, but concerns linger over the cannabis sector's health. **$MSFT** - Microsoft faces pressure as AI-related stocks are sold off amid valuation concerns. **$GOOGL** - Alphabet could see volatility as investors reassess tech valuations post-earnings. **$STM** - STMicroelectronics is expected to rally following its lucrative deal with AWS. **$NVO** - Novo Nordisk shares are likely to gain traction after news of Hims & Hers' withdrawal from the weight-loss market. **$GL** - Globe Life may see increased buying interest following JPMorgan's price target upgrade. **$KGC** - Kinross Gold Corporation may react to rising gold prices as market conditions shift. **$BMY** - Bristol-Myers Squibb to experience price action related to recent analyst upgrades. **$HIMS** - Hims & Hers may face selling pressure after pulling its weight-loss product. **$NEE** - NextEra Energy could be impacted by ongoing discussions surrounding renewable energy policies. **$VZ** - Verizon’s stock may react to recent price target upgrades from analysts. **$AAPL** - Apple could see movements based on broader tech sector trends and earnings expectations. ## Sector Setup **Technology:** The sector is under pressure as AI-related stocks have faced a significant sell-off, raising concerns about valuations. Investors may approach with caution. **Healthcare:** Positive momentum for companies like Novo Nordisk following the discontinuation of competing products could provide a favorable outlook for the healthcare sector. **Consumer Discretionary:** Companies like Hims & Hers may struggle, particularly if competitive pressures in the health and wellness space continue to mount. ## Economic Calendar & Fed No major releases scheduled today. Market participants are keeping an eye on upcoming data releases later this week that could influence Fed policy expectations. ## Crypto & Commodities Gold prices have surged above $5,000, attracting interest from investors amid economic uncertainty. Bitcoin remains volatile, currently stabilizing above $70,000. ## Trading Game Plan - Focus on defensive sectors like healthcare, particularly stocks like **$NVO** and **$GL**, which may benefit from recent news. - Monitor tech stocks closely; consider short positions or hedges against **$MSFT** and **$GOOGL** as concerns over valuations persist. - Watch gold and gold-related stocks like **$KGC** for potential gains amid rising prices. - Stay alert to any shifts in market sentiment regarding the cannabis sector, especially with **$CGC**. - Prepare for volatility as earnings reports are released; sectors with mixed signals may provide trading opportunities.