Sector Focus - February 11, 2026 (Morning)

 ## Sector Overview The market is set for a mixed session today, driven by positive job growth data that exceeded expectations, which may bolster investor sentiment. However, weakness in consumer spending and disappointing retail sales could temper enthusiasm, particularly in sectors reliant on discretionary spending. ## Technology - Overnight, **Tower Semiconductor** reported a significant increase in quarterly profits, benefiting from strong demand for AI-driven chips, which could positively impact related tech stocks. - **Nvidia** continues to attract attention with its CEO stating that the recent stock sell-off is "illogical," suggesting a potential rebound as market sentiment shifts. - Key stocks: **$AAPL**, **$MSFT**, **$NVDA**, **$GOOGL**. - Sector ETF: **$XLK** is expected to show resilience as tech fundamentals remain strong. ## Financials - The financial sector faces mixed signals as the recent job growth data may lead to speculation about potential interest rate adjustments by the Fed, creating volatility. - Key stocks: **$JPM**, **$GS**, **$BAC** could see fluctuations as investors weigh the implications of economic data on future earnings. - Sector ETF: **$XLF** may experience heightened volatility but could benefit from any positive sentiment stemming from strong job growth. ## Healthcare & Biotech - **Gilead Sciences** reported Q4 earnings that exceeded forecasts, though shares dipped on a soft outlook, which may affect sentiment in the healthcare sector. - **Moderna** faced setbacks as the FDA refused to review its flu vaccine application, potentially impacting its stock. - Key stocks include **$GILD** and **$MRNA**. - Sector ETF: **$XLV** may see mixed trading due to these contrasting developments. ## Energy - Oil prices are reacting positively to rising tensions in the Middle East and potential supply disruptions, which could benefit large oil players. - **BP** had its price target raised by Piper Sandler, indicating a favorable outlook despite recent downgrades from other institutions. - Key stocks: **$XOM**, **$CVX**, **$OXY** are likely to benefit from the favorable oil environment. - Sector ETF: **$XLE** is poised for potential gains as oil prices firm up. ## Consumer - Reports indicate a significant slowdown in retail sales, which could weigh heavily on consumer discretionary stocks. - **Lyft** shares fell sharply after a ride volume miss, which may impact investor sentiment towards the broader ride-sharing and consumer spending sectors. - Key stocks: **$AMZN**, **$WMT**, **$COST** might see downside pressure. - Sector ETFs: **$XLY** and **$XLP** could experience volatility as investors reassess consumer spending outlook. ## Today's Sector Playbook - **Favor**: Technology and Energy sectors due to strong earnings reports and supportive fundamentals. **$XLK** and **$XLE** are recommended for potential upside. - **Avoid**: Consumer discretionary sector, particularly companies like **Lyft** and broader retail stocks due to disappointing sales data and negative sentiment impacting stock prices. **$XLY** and **$XLP** should be approached with caution.