Daily Brief - February 19, 2026 (Morning)

 ## Pre-Market Overview U.S. stock futures are trading slightly lower this morning, reflecting caution ahead of major earnings reports and economic data. The Dow Jones Industrial Average futures are down 0.3%, while S&P 500 and Nasdaq futures are also experiencing minor declines. Concerns over inflation and potential rate hikes from the Federal Reserve continue to weigh on market sentiment. Overnight, Asian markets showed mixed results with the Nikkei 225 up 0.71% as investors anticipated positive corporate earnings. In Europe, stocks are poised to open lower following disappointing earnings reports from major companies, leading to a cautious tone. The ongoing geopolitical tensions regarding the U.S.-Iran situation are also influencing market dynamics, particularly in the energy sector. Key overnight developments include the announcement from **eBay** about its $1.2 billion acquisition of Depop from **Etsy**, which is expected to boost eBay's position in the fashion e-commerce market. Additionally, **Deere** has raised its annual profit outlook, supporting its stock ahead of the market open. ## Top Stories Moving Markets **eBay Acquires Depop** **$EBAY** eBay has announced a $1.2 billion acquisition of Depop from **Etsy**. This move aims to enhance eBay's appeal in the fashion segment, particularly among younger consumers. The acquisition is likely to positively impact eBay’s stock today as investors react to the potential for increased market share. **Deere Boosts Profit Outlook** **$DE** Deere lifted its full-year profit forecast due to a resurgence in its construction business. This positive outlook follows strong quarterly results, and the stock is likely to see upward momentum as investors respond favorably to the news. **US Jobless Claims Decline** Jobless claims have fallen to 206,000, the lowest level of the year, signaling a stable labor market. This data may influence Fed policy discussions and could impact market sentiment as traders adjust their expectations for future rate hikes. **Walmart's Earnings Outlook** **$WMT** Walmart is set to report earnings today, and expectations are tempered due to recent cautious guidance regarding future profits. The stock may face volatility as investors digest the results and management's outlook. **Tensions Rise Over US-Iran Relations** Geopolitical tensions are escalating with diplomatic efforts to avert a conflict between the US and Iran. This situation is driving oil prices higher, and energy stocks may react strongly based on developments throughout the day. ## Stocks to Watch Today **$DE** - Deere's stock is set to rise following an upward revision in profit guidance due to a booming construction business. **$EBAY** - eBay's acquisition of Depop is likely to boost its share price as it positions itself in the fashion e-commerce market. **$WMT** - Walmart's upcoming earnings report could lead to volatility as the market anticipates cautious profit guidance. **$CVNA** - Carvana's shares fell sharply after a disappointing earnings report; investors will be watching for any signs of recovery or further declines. **$AAPL** - Analysts are optimistic about Apple's AI initiatives, which could drive interest in the stock today. **$HLF** - Herbalife's stock may see activity following its quarterly earnings report, which is expected to show improved revenues. **$NKE** - Nike's partnership with Costco could enhance brand visibility, and traders will be watching for market reaction. **$ADBE** - Adobe is gearing up for earnings; any strong results could bolster confidence in tech stocks. **$MSFT** - Microsoft continues to generate interest as it expands its AI capabilities; traders may react to any news surrounding its future projects. **$NFLX** - Netflix's content strategy and subscriber growth will be under scrutiny as the market anticipates its upcoming earnings. **$XOM** - ExxonMobil's stock may be affected by rising oil prices amid geopolitical tensions in the Middle East. **$TSLA** - Tesla's stock could see movement depending on news surrounding its production targets and delivery numbers. ## Sector Setup - **Technology:** The tech sector is poised for potential gains as companies like **AAPL** and **MSFT** prepare for earnings, focusing on AI advancements. - **Financials:** Financial stocks may face pressures as market participants assess the implications of jobless claims and Fed policy. - **Energy:** The energy sector is likely to benefit from rising oil prices due to heightened geopolitical tensions, particularly impacting stocks like **XOM**. - **Consumer Discretionary:** Expectations from **WMT**'s earnings report could create volatility within the consumer discretionary sector. ## Economic Calendar & Fed Today's economic calendar includes the release of jobless claims data, which showed a decline to 206,000. Traders will be closely monitoring this as it may influence Fed policy decisions. No major releases are scheduled beyond this. ## Crypto & Commodities Gold prices are holding near $5,000 per ounce as geopolitical risks escalate, while oil continues to rise amidst US-Iran tensions. Bitcoin is experiencing volatility below $67k as market sentiment remains cautious. ## Trading Game Plan - Focus on tech stocks, particularly **AAPL** and **MSFT**, as they prepare for earnings; consider potential upside. - Monitor **WMT** for any volatility post-earnings, as the outlook will influence retail sentiment. - Keep an eye on energy stocks like **XOM**, which may benefit from rising oil prices due to geopolitical tensions. - Watch for reactions in the market regarding the jobless claims data and its implications for Fed policy. - Be prepared for volatility in e-commerce stocks following eBay's acquisition of Depop as market dynamics shift.