Daily Brief - February 18, 2026 (Morning)

 ## Pre-Market Overview U.S. stock futures are indicating a mixed open as traders await key economic data and the release of the Fed minutes later today. Overnight developments in Asia showed a positive sentiment, with major indices like Japan's Nikkei 225 rising by 1.00% on strong export data. European markets are also in the green, driven by favorable earnings reports and easing inflation concerns, which may influence today's trading session in the U.S. Investor sentiment is cautious but optimistic as the market looks for signs of stability following recent volatility. Notably, oil prices jumped over 2% after reports regarding U.S.-Iran tensions, which may influence energy sector stocks today. In the backdrop, the ongoing discussions regarding the Fed's monetary policy direction remain a focal point for traders. ## Top Stories Moving Markets - **FDA Chief Comments on OTC Drugs** Marty Makary, the chief of the FDA, suggested that most drugs should be available over-the-counter unless deemed unsafe or addictive. This could significantly impact pharmaceutical companies like **$PFE** and **$JNJ**, potentially shifting sales dynamics in the OTC market. - **Oil Prices Surge Amid U.S.-Iran Tensions** Oil prices increased by more than 2% as tensions with Iran escalate, raising concerns of military action. Companies like **$XOM** and **$CVX** may see positive momentum as traders react to these developments, particularly in the energy sector. - **Tesla's Trading Momentum Weakens** Reports indicate that Tesla's stock momentum has been declining since December, raising concerns about its future performance. This may lead to increased volatility in **$TSLA**, as traders reassess growth expectations ahead of upcoming earnings. - **Palo Alto Networks Faces Downgrade** Palo Alto Networks saw a downgrade due to its underwhelming guidance amid high costs related to recent acquisitions. This could weigh on **$PANW** as investors react to the news and reassess the company's growth trajectory in the competitive cybersecurity space. - **Wingstop Reports Earnings Beat** Wingstop's shares jumped over 13% after reporting better-than-expected same-store sales. The positive earnings news may lead to increased investor interest in **$WING**, especially as the company navigates a competitive food service landscape. ## Stocks to Watch Today - **$PFE** - FDA chief's comments potentially increase over-the-counter drug sales. - **$TSLA** - Weakening trading momentum raises concerns ahead of earnings. - **$XOM** - Oil price surge could benefit energy sector stocks. - **$CVX** - Likely to react positively to the rising oil prices due to geopolitical tensions. - **$PANW** - Faces pressure after downgrade amid high costs and underwhelming guidance. - **$WING** - Shares up after strong earnings report; momentum expected to continue. - **$HOOD** - Gained from new product introductions; potential for continued growth. - **$GIS** - Impacted by the recent mention of high dividend packaged foods; could attract interest. - **$CABA** - Investment thesis suggests potential for growth; watch for market reaction. - **$RSG** - Positive earnings could attract attention in waste management sector. - **$ACLS** - Analysts suggest a strong outlook amid semiconductor demand; watch for movement. ## Sector Setup - **Technology:** Mixed outlook. While some companies like **$WING** are performing well, tech stocks like **$PANW** face downward pressure due to recent downgrades and concerns over growth. - **Financials:** Generally stable, but closely watching for Fed signals that may influence interest rates and lending conditions. - **Energy:** Positive momentum expected with rising oil prices due to geopolitical tensions; stocks like **$XOM** and **$CVX** could benefit. - **Healthcare:** Mixed signals. The FDA's comments may boost OTC sales, benefiting companies like **$PFE**; however, concerns remain about drug pricing and regulation. ## Economic Calendar & Fed Today, the market will be focused on the release of the Fed minutes. Expectations are for insights into future rate cuts, which could influence market sentiment. No major economic data releases are scheduled outside of this. ## Crypto & Commodities Oil prices have rallied over 2% as tensions with Iran heighten. Bitcoin is holding near $68,000 as market volatility cools, but concerns remain over potential downside risks. ## Trading Game Plan - Monitor **$PFE** and **$JNJ** for potential movement following FDA comments. - Consider energy stocks like **$XOM** and **$CVX** given the rise in oil prices. - Watch **$PANW** for potential further declines after downgrade. - Be cautious with tech stocks, particularly **$TSLA**, as concerns about growth emerge. - Keep an eye on the Fed minutes for cues on future rate decisions and market direction.